Settlement and approval service
A system and method for determining whether to throttle or kill a sale of shares of an asset using a settlement approval service, including querying, by a settlement approval service, a transfer agent whether a buyer of shares of an asset is approved; querying, by the settlement approval service, a transfer agent whether a seller of shares of the asset is approved; based on the buyer and the seller being approved, querying, by the settlement approval service, the transfer agent as to whether the shares offered for sale are valid; and based on determining, by the settlement approval service, that the shares are valid, approving, by the settlement approval service, the sale of shares of the asset.
1. An Alternative Trading System (ATS) computer-implemented method comprising:
the ATS processing transaction flows settling transactions at the ATS;
concurrently with processing transaction flows at the ATS, the ATS automatically, continually, and electronically updating and maintaining a set of security action triggers that, when triggered, subject pre-settlement transactions at the ATS to one or more supplemental security actions prior to settlement approval, including:
tracking order frequency, timing, aggregate value and user attributes based on a set of factors,
wherein the set of factors include: (1) a plurality of “inside” factors selected from among: problematic trading patterns, anti-laundering violations, events limiting access to the ATS, and multiple orders by a user with previously charged back funds, and (2) a plurality of “outside” factors selected from among: a significant regional incident, a significant national incident, a significant global incident, and government regulation affecting an asset value;
continually and automatically checking internally at the ATS for a first “inside” factor impacting transactions at the ATS, the first “inside” factor included in the plurality of “inside” factors;
continually and automatically checking internally at the ATS for a second “inside” factor impacting transactions at the ATS, the second “inside” factor included in the plurality of “inside” factors;
continually and automatically checking sources external to the ATS for a first “outside” factor impacting transactions at the ATS, the first “outside” factor included in the plurality of “outside” factors;
continually and automatically checking other sources external to the ATS for a second “outside” factor impacting transactions at the ATS, the second “outside” factor included in the plurality of “outside” factors;
identifying a factor, from among: the first “inside” factor, the second “inside” factor, the first “outside” factor, and the second “outside” factor, is occurring from the continual and automatic checking;
determining that the identified factor impacts pre-settlement transactions associated with specified transaction data in view of the tracked order frequency, timing, aggregate value, and user attributes;
responsive to determining that the identified factor impacts pre-settlement transactions associated with the specified transaction data, setting a flag denoting that pre-settlement transactions associated with the specified transaction data are subject to the one or more supplemental security actions prior to settlement;
concurrently with processing transaction flows settling transactions at the ATS and concurrently with automatically, continually, and electronically updating and maintaining the set of security action triggers, the ATS reviewing a transaction in response to triggering a security action trigger, including:
monitoring flow of a “live” transaction at the ATS, the “live” transaction being pre-settlement and including live transaction data defining exchange of shares in an asset between a buyer of the shares and a seller of the shares;
matching the live transaction data with the specified transaction data;
in response to matching the live transaction data with the specified transaction data automatically:
interrupting flow of the “live” transaction from progressing towards settlement; and
while interrupted, subjecting the “live” transaction to the one or more supplemental security actions triggered in view of the set flag, the one or more supplemental security actions handling any transaction irregularities associated with the identified factor; and
(1) allowing the flow of the “live” transaction to resume and the “live” transaction to progress towards settlement subsequent to completion of the one or more supplemental security actions or (2) preventing the flow of the “live” transaction and stopping the “live” transaction from settling based on the one or more supplemental security actions.
2. The method of claim 1 , wherein identifying a factor comprises identifying a factor creating transaction ambiguity; and
wherein subjecting the “live” transaction to the one or more supplemental security actions comprises pausing the “live” transaction at the ATS until the transaction ambiguity is resolved.
3. The method of claim 1 , wherein setting the flag comprises setting the flag indicating pre-settlement transactions including transaction data associated with one or more of: the buyer, the seller, or the shares in the asset, are to be throttled for manual inspection prior to settlement; and
wherein subjecting the “live” transaction to the one or more supplemental security actions comprises pausing the “live” transaction for manual inspection prior to settlement responsive to the live transaction data matching with the specified transaction data.
4. The method of claim 1 , wherein setting the flag comprises setting the flag indicating pre-settlement transactions including transaction data associated with one or more of: the buyer, the seller, or the shares in the asset, are to be killed prior to settlement; and
wherein subjecting the “live” transaction to the one or more supplemental security actions comprises automatically killing the “live” transaction prior to settlement responsive to the live transaction data matching with the specified transaction data.
5. The method of claim 1 , wherein matching the live transaction data with the specified transaction data comprises a microservice matching the live transaction data with the specified transaction data.
6. An Alternative Trading System (ATS):
a processor;
system memory coupled to the processor and storing instructions configured to cause the processor to:
process transaction flows settling transactions at the ATS;
concurrently with processing transaction flows at the ATS, automatically, continually, and electronically updating and maintaining a set of security action triggers that, when triggered, subject pre-settlement transactions at the ATS trades to one or more supplemental security actions prior to settlement approval, including:
track order frequency, timing, aggregate value and user attributes based on a set of factors,
wherein the set of factors include: (1) a plurality of “inside” factors selected from among: problematic trading patterns, anti-laundering violations, events limiting access to the ATS, and multiple orders by a user with previously charged back funds, and (2) a plurality of “outside” factors selected from among: a significant regional incident, a significant national incident, a significant global incident, and government regulation affecting an asset value;
continually and automatically check internally at the ATS for a first “inside” factor impacting transactions at the ATS, the first “inside” factor included in the plurality of “inside” factors;
continually and automatically check internally at the ATS for a second “inside” factor impacting transactions at the ATS, the second “inside” factor included in the plurality of “inside” factors;
continually and automatically check sources external to the ATS for a first “outside” factor impacting transactions at the ATS, the first “outside” factor included in the plurality of “outside” factors;
continually and automatically check other sources external to the ATS for a second “outside” factor impacting transactions at the ATS, the second “outside” factor included in the plurality of “outside” factors;
identify a factor, from among: the first “inside” factor, the second “inside” factor, the first “outside” factor, and the second “outside” factor, is occurring from the continual and automatic checking;
determine that the identified factor impacts pre-settlement transactions associated with specified transaction data in view of the tracked order frequency, timing, aggregate value, and user attributes;
responsive to determining that the identified factor impacts pre-settlement transactions associated with the specified transaction data, set a flag denoting that pre-settlement transactions associated with the specified transaction data are subject to the one or more supplemental security actions prior to settlement;
concurrently with processing transaction flows settling transactions at the ATS and concurrently with automatically, continually, and electronically updating and maintaining the set of security action triggers, review a transaction in response to triggering a security action trigger, including:
monitor flow of a “live” transaction at the ATS, the “live” transaction being pre-settlement and including transaction data defining exchange of shares in an asset between a buyer of the shares and a seller of the shares;
match the live transaction data with the specified transaction data; and
in response to matching the live transaction data with the specified transaction data, automatically;
interrupt flow of the “live” transaction from progressing towards settlement; and
while interrupted, subject the “live” transaction to the the one or more supplemental security actions triggered in view of the set flag, the one or more supplemental security actions handling any transaction irregularities associated with the identified factor; and
(1) allow the flow of the “live” transaction to resume and the “live” transaction to progress towards settlement subsequent to completion of the one or more supplemental security actions or (2) prevent the flow of the “live” transaction and stopping the “live” transaction from settling based on the one or more supplemental security actions.
7. The system of claim 6 , wherein instructions configured to cause the processor to identify a factor comprise instructions configured to cause the processor to identify a factor creating transaction ambiguity; and
wherein instructions configured to cause the processor to subject the “live” transaction to the one or more supplemental security actions comprise instructions configured to cause the processor to pausing the “live” transaction at the ATS until the transaction ambiguity is resolved.
8. The system of claim 6 , wherein instructions configured to cause the processor to set the flag comprise instructions configured to cause the processor to set the flag indicating pre-settlement transactions including transaction data associated with one or more of: the buyer, the seller, or the shares in the asset, are to be throttled for manual inspection prior to settlement; and
wherein instructions configured to cause the processor to subject the “live” transaction to the one or more supplemental security actions comprise instructions configured to cause the processor to pause the “live” transaction for manual inspection prior to settlement responsive to the live transaction data matching with the specified transaction data.
9. The system of claim 6 , wherein instructions configured to cause the processor to set the flag comprise instructions configured to cause the processor to set the flag indicating pre-settlement transactions trades including trade transaction data associated with one or more of: the buyer, the seller, or the shares in the asset, are to be killed prior to settlement; and
wherein instructions configured to cause the processor to subject the “live” transaction to the one or more supplemental security actions comprise instructions configured to cause the processor to kill the “live” transaction prior to settlement responsive to the live transaction data matching with the specified transaction data.
10. The system of claim 6 , wherein instructions configured to cause the processor to match the live transaction data with the specified transaction data comprise instructions configured to cause a microservice to match the live transaction data with the specified transaction data.
11. The method of claim 1 , wherein setting a flag comprises setting a flag applicable to a group of transactions at the ATS.
12. The method of claim 1 , wherein setting a flag comprises setting a flag applicable to all transactions at the ATS.
13. The method of claim 1 , wherein setting a flag comprises setting a flag applicable to randomly selected transactions at the ATS.
14. The method of claim 3 , further comprising subsequent to pausing the “live” transaction:
receiving approval from a manual review of the “live” transaction; and
responsive to the approval, allowing progression of the “live” transaction to settlement.
15. The method of claim 3 , further comprising subsequent to pausing the “live” transaction:
receiving disapproval from a manual review of the “live” transaction; and
responsive to the disapproval, canceling the “live” transaction.
16. The method of claim 4 , further comprising subsequent to killing the “live” transaction:
reverting a capitalization table to a prior version from before the “live” transaction started; and
re-listing the shares in the asset for sale at the ATS.
17. The method of claim 1 , wherein identifying a factor, from among: the first “inside” factor, the second “inside” factor, the first “outside” factor, and the second “outside” factor, is occurring comprises detecting an event through an Application Programming Interface (API) that is electronically interconnected to the ATS.