Dynamic management and netting of transactions using executable rules

• US 8,909,552 B2
• Filed: 01/21/2014
• Issued: 12/09/2014
• Est. Priority Date: 05/18/2012
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Sethi, Vince, Key, Andrew
• Primary Examiner(s): JOHNSON, GREGORY L
• Application Number:
  US14/159,684
• Publication Number:
  US 20140136404A1
• Time in Patent Office: 322 Days
• Field of Search: None
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Systems and methods for dynamically managing and netting transactions based on one or more sets of netting rules are disclosed. The present invention dynamically associates transactions with one or more collections based on the execution of netting rules to identify transactions that may be ideal for netting and to perform netting operations and calculations accordingly. The present invention may execute the netting rules according to the priority of the netting rule within a rule hierarchy and utilizes unique solutions allowing for the efficient processing of transactions even as netting rules are created, modified and removed from time-to-time. In addition, embodiments of the disclosed netting system utilize denormalized sets of data and maintain a complete audit trail for all operations.

Claims

1. A computer system to dynamically manage transactions for netting one or more transactions associated with a collection, the computer system comprising:

a database stored in memory, the database including netting data of the one or more transactions;

a netting engine, using processor components, to perform at least the following operations,

receiving the one or more transactions;

associating the one or more transactions with the collection based on a general rule set and a specific rule set,

determining a net transaction value for the collection, and

causing a settlement of the one or more transactions associated with the collection based on the determined net transaction value; and

a rule engine for generating rules in at least one of the specific rule set or the general rule set, said rules in the general rule set and the specific rule set are associated with at least one priority.

2. The computer system of claim 1, wherein the rule engine automatically generates one or more rules in the general rule set or the specific rule set based on at least one settlement.

3. The computer system of claim 1, wherein the netting engine further performs the operation of selecting a rule.

4. The computer system of claim 3, wherein said step of operating of determining is based on the rule selected.

5. The computer system of claim 4, wherein said selecting is based upon a priority.

6. The computer system of claim 4, wherein said selecting is based upon an attribute of the one or more transactions.

7. The computer system of claim 6, wherein the priority is based upon historical data.

8. The computer system of claim 6, wherein the historical data comprises historical data associated with settlement, netting or association.

9. The computer system of claim 1, wherein the netting engine associates the one or more transactions with the collection based on a specific rule in the specific rule set.

10. The computer system of claim 1, wherein the netting engine associates the one or more transactions with the collection based on a general rule in the general rule set where the one or more transactions are not associated with at least one collection based on a specific rule in the specific rule set.

11. The computer system of claim 1, wherein the netting engine further performs the following operations:

disassociating the one or more transactions from the collection; and

associating the one or more transactions with a second collection based on a general rule in a general rule set.

12. The computer system of claim 1, wherein the netting data of each of the one or more transactions comprises a rule identifier, the rule identifier identifying a rule in the general rule set or the specific rule set.

13. The computer system of claim 1, wherein general rule set and the specific rule set comprises a plurality of rules defining attributes of the one or more transactions.

14. The computer system of claim 1, wherein the netting engine perfoms at least one of:

automatically associating the one or more transactions with the collection based on the general rule set and the specific rule set when the one or more transactions are received or amended; and

automatically disassociating the one or more transactions with the collection based on the general rule set and the specific rule set when the one or more transactions are removed.

15. A netting system to net one or more transactions associated with a collection in accordance with a netting rule, the computer system comprising:

a denormalized transaction database including data of each of the one or more transactions, the data of each of the one or more transactions including a rule identifier; and

a netting engine to perform at least the following operations using a processor,

receiving the one or more transactions;

associating the one or more transactions with the collection in accordance with a general rule set and a specific rule set, said rules in the general rule set and the specific rule set are associated with at least one priority;

determining a net transaction value for the collection, and

causing a settlement of the one or more transactions associated with the collection based on the determined net transaction value.

16. The netting system of claim 15, wherein the rule identifier identifies a rule in the general rule set or the specific rule set associated with the one or more transaction.

17. The netting system of claim 15, Wherein the netting engine associates the one or more transactions with the collection according to a rule in the specific rule set.

18. The netting system of claim 17, wherein the netting engine associates the one or more transactions with the collection in response to the updating of the rule identifier to identify the rule.

19. The netting system of claim 15, therein the netting engine associates the one or more transactions with the collection according to a rule in general rule set.

20. The netting system of claim 19, wherein the netting engine associates the one or more transactions with the collection if the one or more transactions are not associated with at least one collection based on a rule in the specific rule set.

21. The netting system of claim 19, wherein the netting engine associates the one or more transactions with the collection in response to the updating of the rule identifier to null.

22. A computer-implemented method of netting one or more transactions using a programmed computer processor according to a netting rule stored in memory, the method comprising the steps of:

generating rules for a general rule set and a specific rule set;

receiving the one or more transactions;

associating the one or more transactions with the collection, using the programmed computer processor, in accordance with the general rule set and the specific rule set, said rules in the general rule set and the specific rule set are associated with at least one priority;

determining a net transaction value for the collection using the programmed computer processor; and

causing a settlement of the one or more transactions associated with the netting group using the programmed computer processor based on the determined net transaction value.

23. The netting method of claim 22, further comprising automatically generating one or more rules in the general rule set or the specific rule set based on at least one settlement.

24. The netting method of claim 23, wherein said step of determining is based on a selected rule, the method further comprising the step of selecting a rule.

25. The netting method of claim 24, wherein said selecting is based upon a priority.

26. The netting method of claim 25, wherein said selecting is based upon an attribute of the one or more transactions.

27. The netting method of claim 25, wherein the priority is based upon historical data.

28. The netting method of claim 25, wherein the historical data comprises historical data associated with settlement, netting or association.

29. The netting method of claim 22, wherein the associating step is in response to the adding or modification of the one or more transactions.

30. The netting method of claim 22, further comprising the step of automatically disassociating the one or more transactions from the netting collection according to at least one rule in the general rule set or the specific ale set when the one or more transactions are removed.

31. The netting method of claim 22, further comprising the step of automatically updating netting data associated with the one or more transactions in response to step of associating, determining or causing.

32. The netting method of claim 22, further comprising step of automatically generating the one or more rules in the general rule set or the specific rule set.