Granted Patent B2

US 7,856,396 · App. 12/849,032 · Granted Dec 21, 2010

Assignee: UAT, Inc.

Abstract

Claims (86)

1. In a method for facilitating unified trading and control for a sponsoring organization's money management process using a plurality of money management firms to manage the sponsoring organization's investment portfolios, a method for assigning responsibility for trade order execution comprising:

defining a plurality of investment portfolios containing securities, each portfolio having a particular investment strategy;

assigning at least one money management firm for each investment portfolio, wherein the at least one money management firm provides at least one portfolio manager to make investment recommendations for the each investment portfolio;

receiving at the sponsoring organization from the money management firms investment recommendations for the plurality of investment portfolios in the form of orders comprising a number of units to trade for each security based on the recommendations;

receiving from the sponsoring organization, for each of the plurality of investment portfolios, compliance review parameters comprising at least one of regulatory laws, regulatory rules, account restrictions, prohibited transactions, prohibited holdings, and prospectus requirements applicable to the each investment portfolio;

determining, according to the compliance review parameters, and prior to execution of an order, if the execution of the order would result in a violation of at least one of the compliance review parameters;

suspending, pending examination of the order, the execution of the order if execution of the order would result in a violation of the compliance review parameters for the associated investment portfolio;

examining the suspended order to determine whether the suspended order is canceled, modified, replaced, or approved for execution;

determining, at any time, for each investment portfolio, whether the each investment portfolio is in compliance with compliance review parameters associated with the each investment portfolio, and if at least one violation of the each investment portfolio's compliance review parameters is found, determining actions needed to return the each investment portfolio into compliance with the compliance review parameters of the each investment portfolio and implementing the actions to return the each investment portfolio to compliance with its compliance review parameters;

identifying market impact parameters upon which to determine whether expected market impact of an order is high or low;

determining, for each order, an organization given discretion for executing a trade for the each order, wherein determining the organization given discretion for executing an order depends on whether an expected market impact of an order is low or high;

if the order is in compliance with the compliance review parameters for the associated investment portfolio and the expected market impact of the order is low such that the order is a low touch order:

routing the low touch trade to the sponsoring organization,

selecting at least one executing venue or broker according to a determination of the most cost effective strategy for the low touch trade, wherein the sponsoring organization selects the at least one executing venue or broker, and

routing the low touch order, by the sponsoring organization, to the at least one selected executing venue or broker for execution; and

if the order is in compliance with the compliance review parameters for the associated investment portfolio and the expected market impact of the order is high such that the trade for the each order is a high touch order:

routing the high touch order to the money management firm for selection of at least one executing venue or broker for the high touch order, and

routing the high touch order, by the money management firm, to the at least one selected executing venue or broker for execution.

2. In a system for facilitating unified trading and control for a sponsoring organization's money management process using a plurality of money management firms to manage the sponsoring organization's investment portfolios, a method for assigning responsibility for trade order execution comprising:

defining a plurality of investment portfolios containing securities, each portfolio having a particular investment strategy;

assigning at least one money management firm for each investment portfolio, wherein the at least one money management firm provides at least one portfolio manager to make investment recommendations for the each investment portfolio;

receiving at the sponsoring organization from the money management firms investment recommendations for the plurality of investment portfolios in the form of orders comprising a number of units to trade for each security based on the recommendations;

identifying market impact parameters upon which to determine whether expected market impact of an order is high or low;

determining, for each order, an organization given discretion for executing a trade for the each order, wherein determining the organization given discretion for executing an order depends on whether an expected market impact of an order is low or high;

if the expected market impact of the order is low such that the order is a low touch order:

routing the low touch trade to the sponsoring organization,

selecting at least one executing venue or broker according to a determination of the most cost effective strategy for the low touch trade, wherein the sponsoring organization selects the at least one executing venue or broker, and

routing the low touch order, by the sponsoring organization, to the at least one selected executing venue or broker for execution;

if the expected market impact of the order is high such that the trade for the each order is a high touch order:

routing the high touch order to the money management firm for selection of at least one executing venue or broker for the high touch order, and

routing the high touch order, by the money management firm, to the at least one selected executing venue or broker for execution.

3. A system for facilitating unified trading and control for a sponsoring organization's money management process using a plurality of money management firms to manage the sponsoring organization's investment portfolios, and for assigning responsibility for trade order execution, the system comprising:

a computer user interface configured to

receive a designation of a plurality of investment portfolios containing securities, each portfolio having a particular investment strategy,

receive instructions from money management firms to create, enter, modify and cancel orders for the plurality of investment portfolios, and

receive orders to trade securities of the plurality of investment portfolios;

a communications computer module configured to communicate through an external communications network with a sponsoring organization order management system and a money management firm order management system;

a translation computer module configured to translate communications from the sponsoring organization order management system and the money management firm order management system into a standard data format;

a rules-based compliance computer module configured to store and apply compliance review parameters of the plurality of investment portfolios; and

a decision analysis computer module configured to determine an organization given discretion for executing a trade for a particular order based on market impact parameters that define whether expected market impact of the particular order is low or high,

wherein the computer user interface is configured to receive from the money management firm order management system an order to trade a security and transmit the order to the translation computer module,

wherein the translation computer module is configured to translate the order into the standard data format and transmit the translated order to the rules-based compliance computer module,

wherein the rules-based compliance computer module is configured to

determine if a violation of the compliance review parameters of the associated investment portfolio would occur as a result of execution of the order,

suspend execution of the order until receiving one of a cancel instruction from the money management firm order management system, a replace instruction from the money management firm order management system, and a release instruction from the sponsoring organization order management system, and

determine, at any time, if an investment portfolio is in compliance with its compliance review parameters, and if a violation is found, forward instructions to the money management firm order management system outlining actions needed to return the investment portfolio back to compliance with its compliance review parameters,

wherein the decision analysis computer module is configured to

receive the order after the order has been determined to be in compliance with applicable compliance review parameters, and

determine, based on the market impact parameters, whether expected market impact of the order is high or low,

wherein, if the decision analysis computer module determines the expected market impact to be low such that the order is a low touch order, then

the decision analysis computer module is configured to

create a message containing instructions that the order is approved and that the order is categorized as low touch, and

forward the message to the translation computer module,

the translation computer module is configured to translate the message into a data format accepted by the sponsoring organization order management system and forward the translated message to the communications computer module,

the communications computer module configured to forward the translated message to the sponsoring organization order management system, so that the sponsoring organization order management system can select at least one executing venue or broker according to a determination of the most cost effective strategy for the low touch order and route the low touch order to the selected executing venue or broker,

wherein, if the decision analysis computer module determines the expected market impact to be high such that the order is a high touch order, then

the decision analysis computer module is configured to

create a message containing instructions that the order is approved and categorized as high touch, and

forward the message to the translation computer module,

the translation computer module is configured to translate the message into a data format accepted by the money management firm order management system and to forward the translated message to the communications computer module, and

the communications computer module configured to forward the translated message to the money management firm order management system, so that the money managements firm can select at least one executing venue or broker according to a determination of the most cost effective strategy for the high touch order and route the high touch order to the selected executing venue or broker.

4. A system for facilitating unified trading and control for a sponsoring organization's money management process using a plurality of money management firms to manage the sponsoring organization's investment portfolios, and for assigning responsibility for trade order execution, the system comprising:

a computer user interface configured to

receive a designation of a plurality of investment portfolios containing securities, each portfolio having a particular investment strategy,

receive instructions from money management firms to create, enter, modify and cancel orders for the plurality of investment portfolios, and

receive orders to trade securities of the plurality of investment portfolios;

a communications computer module configured to communicate through an external communications network with a sponsoring organization order management system and a money management firm order management system;

a translation computer module configured to translate communications from the sponsoring organization order management system and the money management firm order management system into a standard data format; and

a decision analysis computer module configured to determine an organization given discretion for executing a trade for a particular order based on market impact parameters that define whether expected market impact of the particular order is low or high,

wherein the computer user interface is configured to receive from the money management firm order management system an order to trade a security and transmit the order to the translation computer module,

wherein the translation computer module is configured to translate the order into the standard data format and transmit the translated order,

wherein the decision analysis computer module is configured to

receive the order, and

determine, based on the market impact parameters, whether expected market impact of the order is high or low,

wherein, if the decision analysis computer module determines the expected market impact to be low such that the order is a low touch order, then

the decision analysis computer module is configured to

create a message containing instructions that the order is approved and that the order is categorized as low touch, and

forward the message to the translation computer module,

the translation computer module is configured to translate the message into a data format accepted by the sponsoring organization order management system and forward the translated message to the communications computer module, and

the communications computer module configured to forward the translated message to the sponsoring organization order management system, so that the sponsoring organization order management system can select at least one executing venue or broker according to a determination of the most cost effective strategy for the low touch order and route the low touch order to the selected executing venue or broker,

wherein, if the decision analysis computer module determines the expected market impact to be high such that the order is a high touch order, then

the decision analysis computer module is configured to

create a message containing instructions that the order is approved and categorized as high touch, and

forward the message to the translation computer module,

the translation computer module is configured to translate the message into a data format accepted by the money management firm order management system and to forward the translated message to the communications computer module, and

the communications computer module configured to forward the translated message to the money management firm order management system, so that the money managements firm can select at least one executing venue or broker according to a determination of the most cost effective strategy for the high touch order and route the high touch order to the selected executing venue or broker.

Assignments (2)

Continuity (8)