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. 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, and communications among users 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.
1. An online system for facilitating financial transactions involving the exchange of financial instruments, the online system comprising:
a connect processor to facilitate the exchange of messages between a member and a provider, including trans action messages that contain information and data regarding transactions between the member and the provider, wherein the connect processor is configured to convert XML documents to/from Java objects; and
a web server in communication with the connect processor and operable to enable the member to engage in a trans action with one or more providers, the web server operable to generate:
an interactive interface that enables the member to generate the details of a request for price quote and communicate such request for price quote to the one or more providers;
an interactive interface that enables the provider to generate and modify the details of price quotes and communicate such price quotes to the one or more members, and wherein the request for price quote generated by the member includes a request for both purchase and sale price quote;
an interactive interface that enables the member to view price quotes received from the one or more providers; and
an interactive interface that enables the member to accept price quotes received from the one or more providers, generate transaction terms related to each price quote, and communicate the transaction terms and acceptances to the one or more providers, wherein the transaction terms are generated as Java objects and communicated as XML documents.
2. The system of claim 1 , wherein a price quote generated by the provider includes both purchase and sale price quotes.
3. The system of claim 1 , wherein the transaction comprises one of a Foreign Exchange Spot, a Foreign Exchange Forward, or an Interest Rate Swap.
4. An online system for facilitating financial transactions involving the exchange of financial instruments, the online system comprising:
a connect processor to facilitate the exchange of messages among member and provider systems, including transaction messages that contain information and data regarding transactions between members and providers, wherein the connect processor is configured to convert XML documents to/from Java objects; and
a web server in communication with the connect processor and operable to enable a buyer to engage in a transaction with one or more sellers the web server operable to generate:
an interactive interface that enables providers to generate the details of price quotes for both purchase and sale transactions and communicate such price quotes to a pricing engine wherein the pricing engine determines the purchase and sale price quotes to be displayed to the member, based on pre-selected pricing criteria associated with each member of the one or more members, and communicates such price quotes to the member;
an interactive interface that enables the member to view the purchase and sale price quotes received from the pricing engine; and
an interactive interface that enables the member to accept price quotes received from one or more providers, generate transaction terms related to each price quote, and communicate the transaction terms and acceptances to the providers, wherein the transaction terms are generated as Java objects and communicated as XML documents.
5. The system of claim 4 , wherein the pricing criteria selected by the member includes one or more of the following categories:
(a) the type of transaction of the price quote;
(b) the currency of the price quote;
(c) the interest rate or exchange rate of the price quote;
(d) the notional amount of the price quote;
(e) the name of the provider that provided the price quote; and
(f) the member's credit relationship with the provider that provided the price quote.
6. The system of claim 4 , wherein the transaction comprises one of a Foreign Exchange Spot, a Foreign Exchange Forward, or an Interest Rate Swap.
7. An online system for facilitating financial transactions involving the exchange of financial instruments, the online system comprising:
a connect processor to facilitate the exchange of messages between a member and a provider, including trans action messages that contain information and data regarding transactions between members and providers, wherein the connect processor is configured to convert XML documents to/from Java objects; and
a web server that enables a member to engage in a transaction with one or more providers, the web server including:
(1) an interactive interface that enables the provider to generate and modify the details of price quotes and communicate such price quotes to the one or more members, and wherein a price quote generated by a provider includes both purchase and sale price quotes;
(2) an interactive interface that enables the member to view price quotes received from the one or more providers; and
(3) an interactive interface that enables the member to accept price quotes received from the one or more providers, generate transaction terms related to each price quote, and communicate the transaction terms and acceptances to the one or more providers, wherein the transaction terms are generated as Java objects and communicated as XML documents.
8. The system of claim 7 , wherein the web server also includes a mechanism that aggregates the acceptances of the one or more members and communicates the net difference of the orders to at least one of the one or more providers for processing.
9. The system of claim 7 , wherein the transaction comprises one of a Foreign Exchange Spot, a Foreign Exchange Forward, or an Interest Rate Swap.
10. A web server system for facilitating financial transactions, the web server system comprising:
a reporting server operable for:
monitoring one or more financial transactions between one or more provider systems and one or more member systems; and
obtaining information associated with the one or more financial transactions;
and
one or more databases operable for storing the information associated with the one or more financial transactions, and wherein the information associated with the one or more financial transactions comprises pre-transactions data, transaction data, and post transaction data.
11. The web server of claim 10 , wherein the information associated with the one or more financial transactions comprises at least one of:
an identifier for the server system;
an identifier for the at least one of the one or more member systems;
an identifier for the at least one of the one or more provider systems; or
an identifier for each of the one or more financial transactions.
12. The web server of claim 11 , wherein each identifier is globally unique.
13. The web server of claim 10 , wherein the information associated with the one or more financial transactions is searchable based on one or more criteria from the group consisting of:
an identifier for the at least one of the one or more member systems;
an identifier for the at least one of the one or more provider systems; or
an identifier for each of the one or more financial transactions.
14. The web server of claim 10 , wherein the web server further comprising an analysis server operable for analyzing at least a portion of the information associated with the one or more financial transactions to determine and flag off-norm transactions.
15. The web server of claim 14 , wherein the analysis server is further operable for conduct real-time monitoring of at least a portion of the obtained information associated with the one or more financial transactions.
16. The web server of claim 10 , wherein the web server further comprising a reporting server operable for disclosing at least a portion of the stored information associated with the one or more financial transactions.
17. The web server of claim 16 , wherein the disclosing further comprises disclosures to at least one of:
the one or more provider systems;
the one or more member systems; or
a third party.
18. The web server of claim 10 , wherein the one or more member systems and the one or more provider systems are designated as counterparties.