METHOD OF COMPUTERIZED MONITORING OF INVESTMENT TRADING AND ASSOCIATED SYSTEM
A method of computerized monitoring of investment trading includes providing historic trading data for a specific trader, selecting a plurality of trading parameters for the specific trader and obtaining current information regarding the selected parameters, and/or providing historic trading data and applying rules to the current information and/or historic trading data to determine if behavior of interest which may involve a rules violation, a departure from the rules which is not technically a violation or a potential departure from the rules which might make desirable further investigation has occurred. The system may be employed to monitor whether market timing of mutual fund investments has occurred. A corresponding computerized system is disclosed.
1 . A method of computerized monitoring of investment trading comprising
providing historic trading data for a specific trader,
selecting a plurality of trading parameters for said specific trader and obtaining current information regarding said selected parameters, and
applying rules to said current information and/or historic trading data to determine if behavior of interest exists.
2 . The method of claim 1 , including
prior to applying said rules, comparing said current information with said historic trading data.
3 . The method of claim 1 , including
applying said rules employing both current information and said historic trader data.
4 . The method of claim 1 , including
employing said process on a specific investment of said trader.
5 . The method of claim 4 , including
employing said process on a said specific investment which is a mutual fund.
6 . The method of claim 4 , including
repeating said process periodically for a said specific trader and specific investment.
7 . The method of claim 6 , including
employing the trade date and time as said parameters.
8 . The method of claim 4 , including
effecting said comparison employing historic trading data specific to said specific investment and said specific trader.
9 . The method of claim 1 , including
employing said method to determine if market timing mutual fund transactions have occurred.
10 . The method of claim 1 , including
if a departure from the rules has occurred, delivering an alarm report.
11 . The method of claim 4 , including
employing said process to detect specific patterns of trading in mutual funds.
12 . The method of claim 11 , including
monitoring said specific patterns in respect of higher- or lower-than-expected volumes of trading in said mutual fund by said specific investor.
13 . The method of claim 1 , including
customizing said rules with respect to said specific investor.
14 . The method of claim 4 , including
customizing said rules with respect to said specific investment.
15 . The method of claim 10 , including
effecting said delivery by at least one method selected from the group consisting of html, xml, xbrl, spreadsheets and comma-separated variable files.
16 . The method of claim 1 , including
selectively assigning and tracking trades for an omnibus account differently than trades for the underlying sub account.
17 . The method of claim 1 , including
providing with said historical trading data sub account information.
18 . The method of claim 1 , including
providing with said historical trading data omnibus information.
19 . The method of claim 1 , including
coordinating selection of said trading parameters with the said rules employed.
20 . The method of claim 19 , including
modifying said rules to monitor for specific trading conduct.