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 . A trading system computer-implemented method comprising:
concurrently with processing transaction flows settling transactions, updating and maintaining a set of security action triggers that, when triggered, subject pre-settlement transactions to one or more supplemental security actions, including:
tracking order frequency, transaction attributes, and user attributes based on a set of factors,
wherein the set of factors include: (1) a plurality of “inside” factors and (2) a plurality of “outside” factors;
continually and automatically checking for a one or more “inside” factors impacting transactions, the one or more “inside” factors included in the plurality of “inside” factors;
continually and automatically checking for a first “outside” factor impacting transactions, the first “outside” factor included in the plurality of “outside” factors;
continually and automatically checking for a second “outside” factor impacting transactions, the second “outside” factor included in the plurality of “outside” factors;
identifying a factor, from among: the one or more “inside” factors, the first “outside” factor, and the second “outside” factor, is occurring;
determining that the identified factor impacts pre-settlement transactions associated with specified transaction data in view of the tracked transaction and user attributes; and
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; and
concurrently with processing transaction flows settling transactions and concurrently with updating and maintaining the set of security action triggers, reviewing a transaction in response to triggering a security action trigger, including:
monitoring flow of a “live” transaction, 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; and
matching the live transaction data with the specified transaction data; and
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 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 3 , further comprising pausing the “live” transaction while interrupted:
receiving approval from a manual review of the “live” transaction; and
responsive to the approval, allowing progression of the “live” transaction to settlement.
5 . The method of claim 3 , further comprising pausing the “live” transaction while interrupted:
receiving disapproval from a manual review of the “live” transaction; and
responsive to the disapproval, canceling the “live” transaction.
6 . 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 preventing the flow of the “live” transaction and stopping the “live” transaction from settling comprises automatically killing the “live” transaction prior to settlement responsive to the live transaction data matching with the specified transaction data.
7 . The method of claim 6 , 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.
8 . 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.
9 . The method of claim 1 , wherein setting a flag comprises setting a flag applicable to a group of transactions.
10 . The method of claim 1 , wherein identifying a factor comprises detecting an event through an Application Programming Interface (API).
11 . A trading system comprising:
a processor;
system memory coupled to the processor and storing instructions configured to cause the processor to:
concurrently with processing transaction flows settling transactions, update and maintain a set of security action triggers that, when triggered, subject pre-settlement transactions to one or more supplemental security actions, including:
track order frequency, transaction attributes, and user attributes based on a set of factors,
wherein the set of factors include: (1) a plurality of “inside” factors and (2) a plurality of “outside” factors;
continually and automatically check for a one or more “inside” factors impacting transactions, the one or more “inside” factors included in the plurality of “inside” factors;
continually and automatically check for a first “outside” factor impacting transactions, the first “outside” factor included in the plurality of “outside” factors;
continually and automatically check for a second “outside” factor impacting transactions, the second “outside” factor included in the plurality of “outside” factors;
identify a factor, from among: the one or more “inside” factors, the first “outside” factor, and the second “outside” factor, is occurring;
determine that the identified factor impacts pre-settlement transactions associated with specified transaction data in view of the tracked transaction and user attributes; and
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; and
concurrently with processing transaction flows settling transactions and concurrently with 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, 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; and
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 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.
12 . The system of claim 11 , 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 until the transaction ambiguity is resolved.
13 . The system of claim 11 , 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.
14 . The system of claim 13 , further comprising instructions configured to cause the processor to:
pause the “live” transaction while interrupted:
receive approval from a manual review of the “live” transaction; and
responsive to the approval, allow progression of the “live” transaction to settlement.
15 . The system of claim 13 , further comprising instructions configured to cause the processor to:
pause the “live” transaction while interrupted:
receive disapproval from a manual review of the “live” transaction; and
responsive to the disapproval, cancel the “live” transaction.
16 . The system of claim 11 , 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 killed prior to settlement; and
wherein instructions configured to cause the processor to prevent the flow of the “live” transaction and stopping the “live” transaction from settling 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.
17 . The system of claim 16 , further comprising instructions configured to cause the processor to subsequent to killing the “live” transaction:
revert a capitalization table to a prior version from before the “live” transaction started; and
re-list the shares in the asset for sale.
18 . The system of claim 11 , wherein instructions configured to cause the processor to match the live transaction data with the specified transaction data comprise a microservice configured to match the live transaction data with the specified transaction data.
19 . The system of claim 11 , wherein instructions configured to cause the processor to set a flag comprise instructions configured to cause the processor to set a flag applicable to a group of transactions.
20 . The system of claim 11 , wherein instructions configured to cause the processor to identify a factor comprise instructions configured to cause the processor to detect an event through an Application Programming Interface (API).