System and method for conducting web-based financial transactions in capital markets
View Patent ↗The present invention provides a system and method that enables users, such as institutional investors and financial institutions, to interactively engage in capital market transactions, including the trading of Over-the-Counter financial products, via the Internet (including the World Wide Web). The system includes a variety of servers, applications, and interfaces that enable users to interactively communicate and trade financial instruments among one another, and to manage their portfolios. Interactive communications supported by the system include: requesting price quotes, monitoring and reviewing quote requests, issuing price quotes, monitoring and reviewing price quotes, negotiation between users, acceptance of price quotes, reporting, portfolio management, analysis of financial information and market data, calendaring, and communications among users and/or system administrators, including e-mail, chat, and message boards. The present invention also supports communications with the server side in an automated manner via an automated processor. Such automated communications enable connectivity with users' internal, back-end systems to execute automated, straight-through processing, including transaction pricing, payment scheduling and journaling, derivatives trading, trade confirmation, and trade settlement. Such communications are facilitated using a novel XML-based syntax (FinXML™) and XSL-based processing language (FinScript™). FinXML provides a standard data interchange language for capital market transactions and supports a broad set of elements and attributes that represent a wide variety of financial transactions, reference data, and market data. The common description of the FinXML syntax can be used for all aspects of straight-through-processing, including deal creation, confirmation, settlement, payment, risk management, and accounting.
1. An online computing system, the online computing system comprising:
a connect messaging server that is coupled to a first client machine and a second client machine and:
receives a first markup language document that conforms with an extensible markup language (XML) format via the first client machine, wherein the first markup language document includes first transaction information associated with a financial transaction between the first client machine and the second client machine;
converts the first markup language document to a first Java object that contains first converted transaction information associated with the first transaction information and conforms with a first format for processing by one or more servers;
transmits the first Java object to at least a first server for processing of the first Java object;
receives a second Java object from at least one of the first server and a second server, wherein the second Java object also conforms with the first format and includes second transaction information associated with the financial transaction between the first client machine and the second client machine, wherein the second transaction information is generated via the processing of the first Java object;
converts the second Java object to a second markup language document that conforms with the XML format; and
transmits the second markup language document to at least one of the first client machine and the second client machine.
2. The online system of claim 1 , wherein the connect messaging server further:
retrieves a data object that includes data associated with the financial transaction, wherein the data object is associated with third transaction information;
converts the data object to a third markup language document; and
transmits the third transaction information comprising the third markup language document to at least one of the first client machine and the second client machine.
3. The online system of claim 1 , wherein the first markup language document comprises an XML document and the first Java object comprises a Java object.
4. The online system of claim 1 , wherein the connect messaging server further:
receives terms associated with the financial transaction that are generated as data objects, and
communicates the terms to at least one of the first client machine and the second client machine as markup language documents.
5. The online system of claim 1 , further comprising a web server in communication with the connect messaging server and operable to enable the first client machine to engage in a financial transaction with the second client machine by performing an operation comprising at least one of receiving a first price quote request from the first client machine, aggregating the first price quote request with a second price quote request from the second client machine, receiving a price quote from the second client machine, and receiving an acceptance of the price quote from the first client machine.
6. The online system of claim 5 , wherein the price quote request includes a request for both purchase and sale price quotes.
7. The online system of claim 5 , wherein the price quote includes both purchase and sale price quotes.
8. The online system of claim 5 , wherein the web server is further operable to perform an operation comprising aggregating the price quote request received from the first client machine with monitoring a second price quote request received from a third client machine.
9. The online system of claim 1 , wherein the first transaction information associated with the financial transaction comprises pricing criteria that includes one or more of the following categories:
(a) a type of financial transaction;
(b) a currency;
(c) an interest rate;
(d) an exchange rate;
(e) a notional amount; and
(f) a credit relationship between a member associated with the first client machine and a provider associated with the second client machine.
10. The online system of claim 9 , wherein the type of financial transaction comprises one of a foreign exchange spot, a foreign exchange forward, an interest rate fixed float swap, an interest rate float swap, or a forward rate agreement.
11. The online system of claim 9 , wherein the type of financial transaction comprises one of a fixed deposit, fixed loan, float deposit, or float loan.
12. The online system of claim 9 , wherein the type of financial transaction comprises one of a foreign exchange option, or a foreign exchange swap.
13. The online system of claim 9 , wherein the type of financial transaction comprises one of a cross currency fixed fixed swap, a cross currency fixed float swap, or a cross currency float float swap.
14. The online system of claim 9 , wherein the type of financial transaction comprises one of a cap or a floor.
15. The online system of claim 9 , wherein the type of financial transaction comprises a hybrid trade, wherein one or more aspects of a first trade type are combined with one or more aspects of a second trade type.
16. The online system of claim 1 , wherein the first transaction information associated with the financial transaction comprises pre-transaction data, transaction data, and post transaction data.
17. The online system of claim 1 , wherein the first transaction information associated with the financial transaction comprises at least one of:
an identifier associated with the connect messaging server;
an identifier for the first client machine;
an identifier for the second client machine; or
an identifier for the financial transaction.
18. The online system of claim 17 , wherein each identifier is globally unique.
19. The online system of claim 1 , wherein the first transaction information associated with the financial transaction is searchable based on one or more criteria from the group consisting of:
an identifier for the first client machine;
an identifier for the second client machine; or
an identifier for the financial transaction.
20. The online system of claim 1 , wherein at least one of the first client machine and the second client machine is associated with a member whose identity is undisclosed by the first transaction information associated with the financial transaction.
21. The online system of claim 1 , wherein the first client machine is associated with a member and the second client machine is associated with a provider.
22. The online system of claim 21 , wherein the member and the provider are designated as counterparties.
23. A computer-implemented method, comprising:
receiving a first markup language document that conforms with an extensible markup language (XML) format via a first client machine, wherein the first markup language document includes transaction information associated with a financial transaction between the first client machine and a second client machine;
converting the first markup language document to a first Java object that contains first converted transaction information associated with the first transaction information and conforms with a first format for processing by one or more servers;
transmitting the first Java object to at least a first server for processing of the first Java object;
receiving a second Java object from at least one of the first server and a second server, wherein the second Java object also conforms with the first format and includes second transaction information associated with the financial transaction between the first client machine and the second client machine, wherein the second transaction information is generated via the processing of the first Java object;
converting the second Java object to a second markup language document that conforms with the XML format; and
transmitting the second markup language document to at least one of the first client machine and the second client machine.