Internal trade requirement order management and execution system
View Patent ↗The present invention provides an order management and execution system and computer-implemented method for managing orders in an environment where the customer may utilize internal accounting and trading procedures that require filling a number of internal and external trading requirements for a number of internal and external trading accounts. The invention, which may be used in a variety of different trading contexts and for a variety of asset classes, automatically converts the internal trading requirements to external trading requirements and builds external orders, which are optionally netted and executed in the market using an asset trading execution system. Then the invention automatically converts the executed external requirements back to the appropriate internal requirements, records the internal requirements as filled, and optionally downloads the appropriate execution completion records to the customer's trading system.
1. An order management system for executing trades, comprising:
A database comprising records representing
a set of one or more internal accounts for settling funds associated with internal trades, and
a set of one or more holder accounts for settling funds associated with internal trades and external trades;
an order generator processor which
receives from a customer an internal account trading requirement for an internal account, wherein the order management system does not permit direct trades between said internal account and a provider external to the customer,
translates said internal account trading requirement into a holder account trading requirement for a holder account by creating a trading requirement for the holder account that is equivalent to the trading requirement for the internal account, wherein the order management system is configured to use said holder account to trade directly with both said internal account and said external provider, and
builds an external order based on said holder account trading requirement;
an order executor processor which
transmits a set of price quotes for said external order to said customer and,
responsive to said customer's selection of a winning price quote from said external provider, causes said external order to be filled; and
an order completer processor which records two executed deals comprising:
a first executed deal between said holder account and said external provider, said first executed deal corresponding to said filled external order, and
a second executed deal between said holder account and said internal account.
2. The order management system of claim 1 , wherein said order generator builds said external order according to a set of customer preferences.
3. The order management system of claim 2 , further comprising a customer preferences database to store said set of customer preferences.
4. The order management system of claim 2 , wherein said set of customer preferences comprises at least one of:
a netting option,
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said external order,
said customer's location,
a provider candidate's location,
a funding amount associated with said external order,
a provider candidate's transaction history,
a service level agreement with one of said set of provider candidates,
a business volume target associated with one of said set of provider candidates, and
a provider candidate's observed performance record.
5. The order management system of claim 1 , wherein said winning price quote is selected from a set of price quotes submitted by a set of provider candidates.
6. The order management system of claim 5 , wherein said order generator determines said set of provider candidates according to a set of customer preferences.
7. The order management system of claim 6 , wherein said set of customer preferences comprises at least one of:
a netting option,
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said external order,
said customer's location,
a provider candidate's location,
a funding amount associated with said external order,
a provider candidate's transaction history,
a service level agreement with one of said set of provider candidates,
a business volume target associated with one of said set of provider candidates, and
a provider candidate's observed performance record.
8. The order management system of claim 1 , wherein said order generator builds said external order according to a set of system preferences.
9. The order management system of claim 8 , wherein said set of system preferences includes at least one of:
a netting option,
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said external order,
said customer's location,
a provider candidate's location,
a funding amount associated with said external order,
a provider candidate's transaction history,
a service level agreement with one of said set of provider candidates,
a business volume target associated with one of said set of provider candidates, and
a provider candidate's observed performance record.
10. The order management system of claim 1 , wherein said order executor retrieves said set of price quotes from a set of provider candidates.
11. The order management system of claim 1 , in which
said order generator receives an external account trading requirement for an external account, and builds a market order based on said external account trading requirement;
said order executor receives and transmits to said customer a price quote responsive to said market order, and causes said market order to be filled by a second external provider; and
said order completer records a third executed deal between said second external provider and said external account.
12. The order management system of claim 11 , wherein said order generator
nets together said external order and said market order, thereby forming a netted market order, and
sends said netted market order to a set of provider candidates.
13. The order management system of claim 12 , wherein said winning provider and said second winning provider are the same.
14. The order management system of claim 1 , further comprising a data communications link to an asset trading execution system.
15. The order management system of claim 14 , wherein said order executor receives said set of price quotes from said asset trading execution system via said data communications link.
16. The order management system of claim 14 , wherein said order executor causes said external order to be filled by said asset trading execution system.
17. The order management system of claim 1 , further comprising an interface to a customer trading system.
18. The order management system of claim 17 , wherein said order executor transmits said set of price quotes to said customer trading system via said interface.
19. The order management system of claim 17 , wherein said order executor receives said offer to deal from said customer trading system via said interface.
20. The order management system of claim 17 , wherein said internal account trading requirement is received from said customer via said interface.
21. The order management system of claim 17 , further comprising a customer session manager, coupled to said interface, and configured to communicate with said customer trading system, via said interface, according to a messaging protocol.
22. The order management system of claim 14 , wherein said order executor sends a request for quotes to said asset trading execution system via said data communications link.
23. The order management system of claim 1 , wherein said set of price quotes are delivered to said order executor in a substantially continuous stream.
24. The order management system of claim 1 , further comprising a requirements database to store said internal account trading requirement.
25. The order management system of claim 24 , wherein said order generator stores said internal account trading requirement in said requirements database.
26. The order management system of claim 24 , wherein said order completer retrieves said internal account trading requirement from said requirements database.
27. The order management system of claim 1 , wherein said order generator establishes a relationship between said internal account trading requirement and said holder account trading requirement.
28. The order management system of claim 27 , further comprising a relationship database to store said relationship.
29. The order management system of claim 28 , wherein said order completer retrieves said relationship from said relationship database.
30. The order management system of claim 1 , wherein said order completer records said second executed deal using a price that includes a predefined spread.
31. The order management system of claim 30 , further comprising a spreads database to store said predefined spread.
32. The order management system of claim 1 , wherein said order completer generates an execution record for said first executed deal.
33. The order management system of claim 32 , further comprising an order execution records database to store said execution record.
34. The order management system of claim 1 , wherein said order completer generates an execution record for said second executed deal.
35. The order management system of claim 34 , further comprising an order execution records database to store said execution record.
36. The order management system of claim 34 , wherein said order completer sends said execution record to said customer.
37. An order management system for executing trades, comprising:
A database comprising records representing
a set of one or more internal accounts for settling funds associated with internal trades, and
a set of one or more holder accounts for settling funds associated with internal trades and external trades;
an order generator processor which
receives from a customer an internal account trading requirement for an internal account, wherein the order management system does not permit direct trades between said internal account and a provider external to the customer,
translates said internal account trading requirement into a holder account trading requirement for a holder account by creating a trading requirement for the holder account that is equivalent to the trading requirement for the internal account, wherein the order management system is configured to use said holder account to trade directly with both said internal account and said external provider, and
builds an external order based on said holder account trading requirement;
an order executor processor which automatically selects a winning price quote from said external provider for said external order and causes said external order to be filled by an asset trading execution system; and
an order completer processor which records two executed deals comprising:
a first executed deal between said holder account and said external provider, said first executed deal corresponding to said filled external order, and
a second executed deal between said holder account and said internal account.
38. In an order management system comprising a set of one or more internal accounts for settling funds associated with internal trades, a set of one or more holder accounts for settling funds associated with internal trades and external trades, an order generator, an order executor, an order completer and an interface to a customer trading system, a computer-implemented method for processing trade requests, comprising:
receiving, via the interface to the customer trading system, an internal account trading requirement for an internal account, wherein the order management system does not permit direct trades between said internal account and a provider external to the customer;
using the order generator to translate said internal account trading requirement into a holder account trading requirement for a holder account, and to build an external order based on said holder account trading requirement, wherein, the translation includes creating a trading requirement for the holder account that is equivalent to the trading requirement for the internal account, and the order management system is configured to use said holder account to trade directly with both said internal account and said external provider;
using the order executor to transmit a set of price quotes for said external order to said customer trading system and to fill said external order responsive to receiving from said customer trading system a selection of a winning price quote from said external provider; and
using the order completer to record two executed deals comprising
a first executed deal between said holder account and said external provider, said first executed deal corresponding to said filled external order, and
a second executed deal between said holder account and said internal account;
wherein all of the steps above are performed by a programmed computer.
39. The method of claim 38 , further comprising using the order generator to build said external order according to a set of customer preferences.
40. The method of claim 39 , further comprising:
providing a customer preferences database; and
using the order generator to retrieve said set of customer preferences from said customer preferences database.
41. The method of claim 39 , wherein said set of customer preferences comprises at least one of:
a netting option,
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said external order,
said customer's location,
a provider candidate's location,
a funding amount associated with said external order,
a provider candidate's transaction history,
a service level agreement with one of said set of provider candidates,
a business volume target associated with one of said set of provider candidates, and
a provider candidate's observed performance record.
42. The method of claim 38 , wherein said winning provider is selected from a set of provider candidates.
43. The method of claim 42 , further comprising using the order generator to determine said set of provider candidates according to a set of customer preferences.
44. The method of claim 43 , wherein said set of customer preferences comprises at least one of:
a netting option,
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said external order,
said customer's location,
a provider candidate's location,
a funding amount associated with said external order,
a provider candidate's transaction history,
a service level agreement with one of said set of provider candidates,
a business volume target associated with one of said set of provider candidates, and
a provider candidate's observed performance record.
45. The method of claim 38 , wherein said order generator builds said external order according to a set of system preferences.
46. The method of claim 45 , wherein said set of system preferences includes at least one of:
a netting option,
a preferred provider candidate,
a maximum price,
a minimum order size,
a settlement date restriction,
a currency designation associated with said external order,
said customer's location,
a provider candidate's location,
a funding amount associated with said external order,
a provider candidate's transaction history,
a service level agreement with one of said set of provider candidates,
a business volume target associated with one of said set of provider candidates, and
a provider candidate's observed performance record.
47. The method of claim 38 , further comprising receiving said set of price quotes from a set of provider candidates.
48. The method of claim 38 , further comprising:
receiving, via the interface to the customer trading system, an external account trading requirement for an external account, wherein the order management system is configured to use said external account to trade directly with a second external provider;
using the order generator to build a market order based on said external account trading requirement;
using the order executor to transmit to said customer trading system a price quote responsive to said market order to receive from said customer trading system a selection of a second winning price quote from said second external provider; and
using the order completer to record a third executed deal between said second external provider and said external account.
49. The method of claim 48 , further comprising:
using the order generator to net together said external order and said market order, thereby forming a netted market order, and
using the order executor to send said netted market order to a set of provider candidates.
50. The method of claim 48 , wherein said external provider and said second external provider are the same.
51. The method of claim 38 , further comprising providing a data communications link to an asset trading execution system.
52. The method of claim 51 , further comprising receiving said set of price quotes from said asset trading execution system via said data communications link.
53. The method of claim 38 , wherein the order executor transmits said set of price quotes to said customer trading system via said interface.
54. The method of claim 38 , wherein the order executor receives said set of price quotes as a substantially continuous stream.
55. The method of claim 38 , further comprising providing a requirements database and retrieving said internal account trading requirement from said requirements database.
56. The method of claim 38 , further comprising:
providing a relationship database;
establishing a relationship between said internal account trading requirement and said holder account trading requirement; and
creating a record in the relationship database representing the relationship.
57. The method of claim 38 , wherein the order completer records said second executed deal using a price that includes a predefined spread.
58. The method of claim 38 , further comprising:
providing a spreads database; and
using the order completer to retrieve said predefined spread from said spreads database.
59. The method of claim 38 , wherein the order executor generates a first execution record for said first executed deal and sends the execution record to said customer trading system via the interface.
60. The method of claim 38 , wherein the order executor generates execution record for said second executed deal and sends the execution record to said customer trading system via the interface.