Sistema de confirmação de comércio eletrônico

Crista.

DEFINIÇÃO de 'Crest'

O CREST é o depositário central de títulos para os mercados do Reino Unido (Reino Unido) e para as ações da Irlanda. O CREST é o operador de um sistema de liquidação eletrônica que é usado para liquidar um amplo espectro de títulos internacionais e também pode deter certificados de ações em nome de seus clientes. CREST é um acrônimo para o Registro sem Certificação para Transferência Eletrônica de Ações, nomeado em homenagem à empresa CrestCo, que pertence e é operada pela Euroclear desde 2002.

QUEBRANDO PARA BAIXO 'Crest'

Como o CREST mantém um sistema de compensação e detém títulos, ele pode oferecer compensação no mesmo dia para transações com títulos. A oferta mais importante da empresa para os investidores é a rápida transferência dos títulos que ela lida com títulos.

Como funciona.

O CREST possibilita que os portadores de títulos e acionistas mantenham ativos em formato eletrônico, em vez de manter certificados de ações físicas. O sistema também auxilia no pagamento de dividendos aos acionistas.

O CREST também é um sistema de confirmação de comércio eletrônico (ETC) através do uso do Trax. Quando duas ou mais partes em uma transação concordam com um acordo, as partes confirmam eletronicamente seus lados da transação por meio de uma transferência eletrônica. Todas as partes envolvidas devem submeter a confirmação de todos os detalhes da transação ao CREST. Se os detalhes da transação não forem os mesmos para cada parte, o CREST indica todos os problemas e notifica as partes das discrepâncias. Este aspecto do sistema CREST permite uma resolução rápida e processamento mais rápido da transação.

Membros da crista.

Duas classes de membros existem no sistema CREST: membros completos e membros patrocinados. Os membros efetivos geralmente são intermediários, fundos de pensão e outras grandes instituições financeiras que possuem recursos substanciais. Os membros patrocinados recebem todos os mesmos direitos, bem como as mesmas responsabilidades que os membros. No entanto, como os membros patrocinados geralmente têm muito menos recursos técnicos e financeiros do que os membros efetivos, eles dependem de seus membros patrocinadores para interagir com o sistema CREST.

História e Fusões.

O projeto CREST foi lançado em 1993, e a empresa-mãe subsequente CrestCo Ltd foi fundada em 1996.

A Euroclear foi fundada na década de 1960, respondendo ao emergente mercado Eurobond na época. A empresa passou por décadas de crescimento e expansão, bem como várias fusões, que incluíam algumas centrais de depósito de títulos (CSDs), como a Sicovam SA (a CSD da França). A Euroclear fundiu-se com a CrestCo em 2002 e assumiu o controle operacional da empresa. O novo nome para as empresas fundidas tornou-se o Euroclear UK & amp; Irlanda.

Interpretação:

Confirmação e Afirmação de Negociações de Valores; Coincidindo.

COMISSÃO DE SEGURANÇA E CÂMBIO.

17 CFR PARTE 241.

(LANÇAMENTO NO 34-39829; NÚMERO DE ARQUIVO S7-10-98)

CONFIRMAÇÃO E AFIRMAÇÃO DE NEGOCIOS DE VALORES MOBILIÁRIOS; COINCIDINDO.

AGÊNCIA: Comissão de Valores Mobiliários.

AÇÃO: Liberação Interpretativa; Pedido de comentários.

RESUMO: A Comissão de Valores Mobiliários e Câmbio ("Comissão") está publicando sua interpretação de que um "& quot; matching & quot; serviço que compara informações de comércio de títulos de um corretor e o cliente do corretor é uma função de agência de compensação. A Comissão também está solicitando comentários sobre duas abordagens possíveis para fornecer alívio isento do regulamento completo da agência de compensação para fornecedores de confirmação de comércio eletrônico qualificado ("ETC") que se enquadram na interpretação da agência de compensação da Comissão porque fornecem um serviço de correspondência .

DATAS: A interpretação contida na Seção III deste comunicado é efetiva (inserir data de publicação no Registro Federal).

Os comentários devem ser enviados em ou antes (inserir data 60 dias após a publicação no Federal Register).

ENDEREÇOS: As pessoas interessadas devem enviar comentários em triplicado a Jonathan Katz, Secretário, Comissão de Valores Mobiliários, 450 5th Street, N. W., Washington, DC 20549-6009. Os comentários podem ser enviados eletronicamente no seguinte endereço de e-mail: rule-comments@sec. gov. Todas as letras de comentários devem se referir ao Arquivo No. S7-10-98; este número de arquivo deve ser incluído na linha de assunto se o E-mail for usado. Todos os comentários recebidos estarão disponíveis para inspeção pública e cópia na Sala de Referência Pública da Comissão, 450 5th Street, NW, Washington, DC 20549. As cartas de comentários enviadas eletronicamente serão postadas no site da Internet da Comissão (sec. gov).

PARA MAIS INFORMAÇÕES, CONTACTE: Jerry W. Carpenter, Subdiretora; Jeffrey Mooney, advogado especial; ou Theodore R. Lazo, advogado; em 202 / 942-4187, Escritório de Gestão e Controle de Riscos, Divisão de Regulamentação de Mercado, Securities and Exchange Commission, Washington, D. C. 20549.

INFORMAÇÃO SUPLEMENTAR:

Recentemente, a Bolsa de Valores de Nova York ("NYSE"), a Associação Nacional de Concessionários de Valores ("NASD") e a Junta de Regulamentação de Valores Mobiliários ("MSRB") (coletivamente "SROs") apresentaram mudanças nas regras propostas nos termos da Secção 19 (b) do Securities Exchange Act de 1934 ("Exchange Act") 1 para alterar as suas regras relativas ao processamento pós-negociação de transacções executadas pelos seus membros. Os SROs & # 146; as regras atuais exigem que seus membros do corretor-comerciante usem as instalações de um depositário de valores mobiliários 2 para confirmação eletrônica e afirmação de transações onde o corretor oferece entrega versus pagamento ("DVP") ou recebimento versus pagamento (& quot , RVP ") 3 privilégios para o cliente (" regras de confirmação SRO "). 4 Como uma questão prática, as regras de confirmação do SRO exigem que os intermediários utilizem o sistema de entrega institucional ("ID & quot;)" da Corporação Depositário Trust ("DTC") porque é o único serviço de confirmação / afirmação oferecido por um depósito de valores mobiliários. 5 De acordo com as alterações propostas às regras de confirmação do SRO, os intermediários serão autorizados a usar entidades que não sejam agências de compensação registradas para a confirmação e afirmação de transações RVP / DVP, desde que as entidades sejam vendedores ETC qualificados conforme definido pelo SRO regras. Um intermediário de fornecedor de ETC qualificado só transmitirá informações entre as partes de um negócio, e as partes confirmarão e confirmarão a exatidão das informações.

A Comissão entende que o próximo passo na evolução do processamento pós-comercial será o desenvolvimento de serviços de correspondência. & quot; Matching & quot; é o termo usado para descrever o processo pelo qual um intermediário reconcilia as informações comerciais do corretor e do cliente para gerar uma confirmação confirmada, que é usada para liquidar o comércio.

A Comissão considera que a correspondência constitui uma função de agência de compensação na acepção da definição da agência de compensação nos termos da secção 3 (a) (23) do Exchange Act. 6 Especificamente, a correspondência constitui "comparação de dados respeitantes aos termos de liquidação de transações de valores mobiliários". A Comissão conclui que a correspondência está tão intimamente ligada ao processo de liquidação e liquidação que é diferente, não só em grau, mas também diferente em espécie, do processo atual de confirmação e afirmação. O objetivo deste lançamento é buscar comentários sobre o conceito de proporcionar alívio de isenção, quer através do registro como agências de compensação sujeitas a requisitos reduzidos ou através da concessão de uma isenção condicional de registro para fornecedores ETC qualificados que ofereçam um serviço correspondente.

A. Processo de Confirmação e Afirmação.

O processo de confirmação / afirmação refere-se à transmissão de mensagens entre corretores, investidores institucionais e bancos depositários sobre os termos de uma negociação executada para o investidor institucional. Como os negócios de investidores institucionais envolvem montantes de dinheiro maiores, montantes maiores de títulos, mais festas e mais etapas entre a entrada de ordens e a liquidação final, os negócios institucionais geralmente são mais complexos que as transações de varejo.

1. Confirmação usando o sistema de identificação.

Os componentes típicos do "lado do cliente" A solução de um comércio institucional sob as atuais regras de confirmação do SRO está ilustrada na Figura 1. 7.

Normalmente, um comércio institucional começará com o gerente de investimento da instituição fazendo uma ordem com o corretor. Após o corretor negociar a negociação, o corretor informará a instituição dos detalhes da execução. Isso é comumente referido como notificação de execução (passo 1 da Figura 1). A instituição então aconselha o corretor em relação à forma como o comércio deve ser alocado entre suas contas (passo 2 da Figura 1). 8 O corretor envia os dados comerciais para DTC (passo 3 da Figura 1).

Em seguida, o DTC adiciona a transação ao banco de dados comercial do sistema de identificação, atribui um número de controle de identidade e encaminha uma confirmação eletrônica para a instituição, o corretor, o agente de liquidação da instituição e outras partes interessadas (por exemplo, administradores, administradores de planos, ou bancos correspondentes) (passo 4 da Figura 1). A instituição analisa a confirmação de precisão. Se for preciso, a instituição ou o seu agente de afirmação designado afirma o comércio através do sistema ID (passo 5 da Figura 1). O DTC gera uma confirmação confirmada e o envia ao corretor e ao agente de liquidação da instituição (passo 6 da Figura 1). 9 Neste ponto, o comércio é enviado para o sistema de liquidação do DTC (por exemplo, o sistema de identificação não é um sistema de liquidação na medida em que nenhum dinheiro ou valores mobiliários se movem através dele) e deve ser autorizado pela parte obrigada a entregar os valores mobiliários (ou seja, a parte vendedora) ou o agente de liquidação antes da liquidação (etapas 7 e 8 da Figura 1). & quot; Quality Control & quot; envolve o monitoramento e produção de DTC de vários relatórios para reguladores e usuários do sistema de identificação que mostram coisas como quando uma confirmação foi enviada e a afirmação foi recebida (passo 9 da Figura 1).

2. Confirmação Utilizando um Fornecedor ETC Qualificado.

Sob as mudanças de regras SRO propostas, um fornecedor ETC qualificado pode ser usado para o processo de confirmação / afirmação. O corretor comercial envia dados comerciais para o fornecedor ETC qualificado que gera e envia uma confirmação para a instituição (etapas 3 e 4 da Figura 1). Depois de rever a confirmação, a instituição envia uma afirmação ao corretor através das instalações do fornecedor ETC qualificado (passo 5 da Figura 1). Em algum momento desse processo, o fornecedor ETC qualificado encaminha a confirmação para DTC em um formato de sistema ID para que DTC possa atribuir um número de controle ID ao comércio. DTC envia a confirmação com o número de controle de volta para o fornecedor de ETC qualificado, e o fornecedor de ETC qualificado fornece o número de controle para o corretor e a instituição. Após o recebimento da afirmação da instituição, o vendedor ETC qualificado envia a confirmação confirmada com o número de controle ID para DTC no formato do sistema ID. Nesse processo, um fornecedor ETC qualificado apenas transmite informações entre as partes para o comércio e as partes verificam a precisão da informação.

Os componentes da liquidação do lado do cliente de um comércio institucional através de um "correspondência" sistema são ilustrados na Figura 2.

& quot; Matching & quot; é o termo usado para descrever o processo pelo qual um intermediário compara a submissão de dados comerciais do intermediário (etapa 2 da Figura 2) com as instruções de alocação da instituição (etapa 1 da Figura 2) para determinar se as duas descrições do comércio . 10 Se os dados comerciais e as instruções de alocação da instituição coincidem, uma confirmação confirmada é produzida (passo 3 da Figura 2). Isso eliminaria as etapas separadas de produzir uma confirmação (passo 4 da Figura 1) para a instituição revisar e afirmar (passo 5 da Figura 1). Neste ponto, o comércio entra no processo de liquidação do DTC, mas deve ser autorizado pelo agente da parte de entrega antes da liquidação (etapas 4 e 5 da Figura 2). 11

III. CORRESPONDÊNCIA COMO FUNÇÃO DA AGÊNCIA DE CLEARING.

A Seção 3 (a) (23) (A) do Exchange Act define uma agência de compensação como “qualquer pessoa que atue como intermediária na realização de pagamentos ou entregas, ou ambas relacionadas a transações de valores mobiliários ou que forneça recursos para comparação de dados respeitando os termos de liquidação de transacções de valores mobiliários, para reduzir o número de liquidações de transacções de valores mobiliários, ou para a atribuição de responsabilidades de liquidação de valores mobiliários. 12 A Seção 17A do Exchange Act e a Regra 17Ab2-1 exigem que qualquer pessoa que se envolva em qualquer dessas funções inscreva-se na Comissão como uma agência de compensação ou obtenha uma isenção do registro. 13

Com base no idioma, propósitos e políticas da Seção 3 (a) (23) e 17A, a Comissão conclui que um intermediário que captura informações comerciais de um comprador e um vendedor de títulos e realiza uma conciliação independente ou correspondência dessas informações é fornecendo instalações para a comparação de dados dentro do escopo do Exchange Act, seção 3 (a) (23). 14 Como resultado, o intermediário está executando uma função de agência de compensação. Consequentemente, sob esta interpretação, apenas uma entidade que é registrada como uma agência de compensação ou está isenta de tal registro pode fornecer um serviço correspondente.

O histórico legislativo das alterações aos actos de valores mobiliários de 1975 ("Emendas de 1975") apoia esta interpretação estatutária 15, incluindo os fins de estabelecer um sistema nacional de apuramento e liquidação e o alcance da autoridade concedida à Comissão. Além disso, considerar um serviço de correspondência como uma função de agência de compensação é consistente com os propósitos do regulamento do Exchange Act do sistema de liquidação e liquidação. O Congresso considerou o sistema de apuramento e liquidação no início da década de 1970 como inadequado e, nas Alterações de 1975, dirigiu a Comissão para facilitar o desenvolvimento de um sistema nacional de liquidação e liquidação melhorado. O Congresso articulou os objetivos deste sistema nacional na Seção 17A do Exchange Act, 16 e deu à Comissão a autoridade e a responsabilidade de regular, coordenar e direcionar as operações de todas as pessoas envolvidas no processamento de transações de valores mobiliários para o objetivo de um sistema nacional para a pronta e exata liquidação e liquidação de transações de valores mobiliários. 17 O Congresso especificamente se recusou a abordar os méritos de qualquer sistema particular ou a ditar a forma de um sistema nacional de liquidação e liquidação. 18 Em vez disso, o Congresso reconheceu que "técnicas de processamento e comunicação de dados" envolvidos nos processos de liquidação e liquidação continuariam a evoluir. 19 Como resultado, a Comissão recebeu ampla autoridade sobre o sistema de liquidação e liquidação e um amplo poder discricionário para determinar quais atividades se enquadram na função da agência de compensação que desencadeia o requisito de registro como agência de compensação.

De fato, o processo de liquidação e liquidação para os negócios institucionais evoluiu dramaticamente. Quando as emendas de 1975 foram promulgadas, o processamento de negócios institucionais foi realizado diretamente entre o corretor e a instituição com pouca ou nenhuma automação. Os SROs & # 146; As regras que exigem o uso de confirmação eletrônica e afirmação de negócios institucionais foram adotadas em resposta à crescente complexidade dos negócios institucionais e à necessidade de automatizar o processo. Hoje, o volume de negócios institucionais cresceu até certo ponto que agora representam uma grande parte da atividade de negociação nos mercados de valores mobiliários dos EUA. 20 Devido ao aumento do volume e da complexidade dos negócios institucionais, praticamente todos eles são processados ​​por meio de sistemas eletrônicos.

A correspondência está inextricavelmente interligada com o processo de liquidação e liquidação. Um fornecedor que fornece um serviço de correspondência irá comparar ativamente as informações de comércio e alocação e emitirá a confirmação confirmada que será usada na liquidação da transação. 21 Além disso, o correspondente aborda duas áreas que a Comissão e o setor de valores mobiliários consideram crítico para manter um sistema de liquidação e liquidação sólida: redução de erros e redução da quantidade de tempo de liquidação.

Conforme mencionado acima, a combinação combina certas etapas no processo de confirmação e afirmação e, portanto, pode ajudar a reduzir erros. A combinação efetiva também será crítica em qualquer esforço para encurtar o ciclo de liquidação. 22 Ao mesmo tempo, o correspondente concentra o risco de processamento na entidade que desempenha correspondência em vez de dispersar esse risco de forma mais ampla para os corretores e seus clientes institucionais. Em particular, a correspondência elimina um passo de afirmação separado que permitiria a detecção de erros que poderiam atrasar a liquidação ou fazer com que o comércio falhasse. 23

Por conseguinte, a Comissão considera que uma entidade que fornece correspondência teria um impacto significativo no sistema nacional de liquidação e liquidação. O desmembramento da capacidade de um sistema emparelhar de comparar com precisão as informações comerciais de centenas de instituições e corretoras que envolvem milhares de transações e milhões de dólares em valores mobiliários poderia resultar em uma falha sistêmica generalizada do sistema nacional de compensação e liquidação. . 24 Sem qualquer autoridade reguladora sobre os vendedores correspondentes, a Comissão teria apenas capacidade limitada de se proteger contra tal falha. O Congresso concedeu à Comissão o poder amplo de estabelecer um sistema de regulamentação centralizado sobre o sistema nacional de liquidação e liquidação, a fim de evitar que tal situação ocorra. 25 Dado o importante papel desempenhado pelos serviços de correspondência e o alcance da definição, a Comissão considera que alguma forma de regulamentação é adequada para assegurar o apuramento e a liquidação rápidos e precisos de valores mobiliários. 26

IV. ABORDAGENS REGULAMENTARES POSSÍVEIS.

Mesmo que os serviços de correspondência se enquadrem na definição de agência de compensação, a Comissão considera preliminarmente que uma entidade que limita as funções da agência de compensação ao fornecimento de serviços de correspondência não precisa estar sujeita à totalidade da regulamentação da agência de compensação. A Comissão tem ampla autoridade de isenção nos termos da Seção 17A. A Secção 17A (b) (1) autoriza a Comissão a isentar (condicional ou incondicionalmente) qualquer agência de compensação de qualquer disposição da Seção 17A se a Comissão considerar que essa isenção é consistente com o interesse público, a proteção dos investidores e os propósitos de Seção 17A.

Duas abordagens alternativas podem fornecer uma estrutura regulatória apropriada para entidades que oferecem facilidades de correspondência: registro limitado ou isenção condicional. De acordo com qualquer abordagem, apenas os requisitos regulamentares que a Comissão considere necessários e adequados para alcançar os objetivos da Seção 17A serão aplicáveis ​​a uma entidade que forneça uma facilidade de correspondência. 27 A alternativa de registro limitado é uma "escala de trás" abordagem, que registraria o provedor de serviços de correspondência como uma agência de compensação, ao mesmo tempo que fornece isenções dos requisitos da agência de compensação individual. A alternativa de isenção condicional é um & quot; bloco de construção & quot; abordagem, que isentaria a entidade do registro da agência de compensação sujeita às condições apropriadas. 28 De acordo com qualquer das abordagens, a Comissão publicaria para comentar um aviso do pedido do vendedor de ETC qualificado para registro limitado ou isenção condicional, incluindo os termos propostos do registro ou isenção, antes de aprovar o pedido. 29

A Comissão solicita aos comentadores & # 146; pontos de vista sobre se o registro limitado da agência de compensação ou a isenção condicional do registro das agências de compensação é a melhor alternativa para regulamentar os fornecedores de EPT qualificados que fornecem serviços correspondentes. Uma ou ambas as alternativas propostas fornecem um método prudente para garantir a segurança e a solidez do sistema nacional de liquidação e liquidação de transações de valores mobiliários e o desenvolvimento contínuo de mecanismos de apuramento vinculados e coordenados sujeitos a padrões uniformes? Em termos gerais, quais os requisitos da agência de compensação de acordo com a Seção 17A (b) seriam necessários e adequados para serviços de correspondência e quais não? Existem outras alternativas pelas quais a Comissão poderia manter a supervisão da correspondência por vendedores ETC qualificados que assegurem a segurança e solidez do sistema nacional de liquidação e liquidação?

Lista de assuntos em 17 CFR Part 241.

Alteração do Código de Regulamentos Federais.

Pelas razões expostas no preâmbulo, o Capítulo 17 do Título 17 do Código de Regulamentos Federais é alterado conforme estabelecido abaixo:

PARTE 241 - LANÇAS DE INTERPRETAÇÃO RELATIVAS À LEI DE TROCA DE VALORES MOVIMENTOS DE 1934 E REGRAS E REGULAMENTOS GERAIS.

A parte 241 é alterada adicionando a versão nº 34-39829 e a data de lançamento de 6 de abril de 1998 à lista de lançamentos interpretativos.

Bloomberg recebe aprovação da SEC para seu serviço de correspondência de confirmação.

1º de dezembro de 2015.

A Bloomberg anunciou hoje que sua subsidiária, a Bloomberg STP LLC (Bloomberg STP), recebeu aprovação da Comissão de Valores Mobiliários dos Estados Unidos (SEC) para oferecer um serviço de correspondência de confirmação (CMS), para ações e títulos de renda fixa elegíveis da DTC.

"O setor financeiro está sob pressão devido a desafios financeiros e operacionais para criar soluções de processamento comercial mais eficientes, com melhores controles operacionais", disse Ben Macdonald, diretor global de produtos da Bloomberg. “O CMS da Bloomberg foi desenvolvido em resposta às preocupações da indústria com o modelo de 'ponto único de falha' que existe hoje, assim como as chamadas dos participantes do mercado por alternativas, concorrência, melhor eficiência e um sistema de compensação e liquidação mais robusto. Acreditamos que serviços adicionais de processamento direto e ofertas mais eficientes são necessários para avançar e fortalecer o mercado, especialmente com a mudança para o acordo T + 2 nos EUA ”.

O CMS da Bloomberg promove processos automatizados de pós-negociação e facilita a implementação de ciclos de liquidação mais curtos. A oferta de CMS da Bloomberg incluirá o seguinte:

Uma plataforma de arquitetura aberta que suporta a correspondência central e local para atender às demandas do setor. Protocolos de comunicação padrão do setor (por exemplo, TCP / IP, SNA), protocolos de transferência de mensagens e arquivos (por exemplo, FIX, MQSeries, SWIFT), padrões de formato de mensagem de software (por exemplo, FIX, ISITC) e metadados (por exemplo, XML ). Suporte das diretrizes globais de processamento de pós-negociação do FIX. As diretrizes fornecem uma abordagem padronizada para o fluxo de trabalho, reduzindo a complexidade e, por sua vez, os custos e o tempo necessário para a resolução de problemas. A Bloomberg é membro do grupo de trabalho FIX e adotou as especificações, diretrizes e práticas recomendadas do grupo de trabalho FIX. Integração perfeita com o serviço Bloomberg Professional, bem como outras interfaces de usuário de terceiros, sistemas de gerenciamento de pedidos de terceiros, sistemas de negociação eletrônica e funcionalidade de pós-negociação para minimizar o número de conexões manuais. Essas sinergias aumentarão a velocidade, precisão e confiabilidade do processo de pós-negociação.

Para obter mais informações sobre o CMS da Bloomberg, entre em contato com o Bloomberg STP no STP @ bloomberg ou saiba mais em DSTP & lt; GO & gt ;.

A Bloomberg, líder global em informações e negócios financeiros e de notícias, dá aos tomadores de decisão influentes uma vantagem crítica conectando-os a uma rede dinâmica de informações, pessoas e ideias. A força da empresa - fornecer dados, notícias e análises por meio de tecnologia inovadora, com rapidez e precisão - está no centro do serviço Bloomberg Professional, que fornece informações financeiras em tempo real para mais de 325.000 assinantes em todo o mundo. Para mais informações, visite bloomberg / company ou solicite uma demonstração.

O serviço Bloomberg Professional é de propriedade e distribuído pela Bloomberg Finance L. P. e suas afiliadas.

O CMS da Bloomberg faz parte de um conjunto de ferramentas de pós-negociação, conhecidas como Bloomberg STP Solutions. As soluções Bloomberg STP fornecem à comunidade de operações as ferramentas para melhorar a eficiência operacional, minimizar os custos de processamento, eliminar fluxos de trabalho bifurcados e tratar efetivamente das discrepâncias do ciclo de vida comercial em tempo real. Ao oferecer integração com o serviço Bloomberg Professional e as diversas plataformas de negociação da Bloomberg, a comunidade Bloomberg pode administrar com eficácia seus negócios, desde a geração de pedidos até a execução e liquidação.

Contatos de mídia para a Bloomberg.

Allan Schoenberg, aschoenberg @ bloomberg + 1-212-617-4787 EMEA, Ana Schoeffler, aschoeffler1 @ bloomberg, + 44-20-3525-0776 ÁSIA, Belina Tan, belina. tan@bloomberg, + 65-6231-3637 AMÉRICA LATINA , Pam Snook, pamsnook @ bloomberg, + 1-212-617-7653.

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13 de fevereiro de 2018.

Novo índice BIVA mexicano no terminal Bloomberg.

A Bloomberg anunciou hoje que um novo índice BIVA mexicano está disponível no Terminal Bloomberg em.

7 de fevereiro de 2018.

Os primeiros ETFs de renda fixa da China de Taiwan adotam os índices da Bloomberg Barclays China.

7 de fevereiro de 2018.

Bloomberg levanta sua voz na Conferência MAKERS para apoiar as mulheres no local de trabalho.

A Bloomberg enviou uma delegação de 11 funcionários este ano, incluindo Jacki Kelley, vice-chefe de operações, que iniciou a parceria com a MAKERS em 2015. Kelley disse: “A MAKERS é uma plataforma poderosa para celebrar nossas principais líderes femininas, aprender de outras empresas comprometidas com um progresso significativo em igualdade, e trazer histórias surpreendentes de volta para nossas comunidades Bloomberg. ”

Sistema de confirmação de negociação eletrônica.

Classificações

H & mdash; ELETRICIDADE H02 & mdash; GERAÇÃO; CONVERSÃO OU DISTRIBUIÇÃO DE ENERGIA ELÉTRICA H02J & mdash; ARRANJOS DE CIRCUITO OU SISTEMAS PARA FORNECIMENTO OU DISTRIBUIÇÃO DE ENERGIA ELÉTRICA; SISTEMAS PARA ARMAZENAMENTO DE ENERGIA ELÉTRICA H02J3 / 00 & mdash; Arranjos de circuitos para redes de corrente alternada ou redes de distribuição de corrente alternada H02J3 / 008 & mdash; Arranjos de circuitos para redes de corrente alternada ou redes de distribuição de corrente alternada que envolvam comércio de direitos de transmissão de energia ou energia G & mdash; FÍSICA G06 & mdash; INFORMÁTICA; CALCULAR; CONTAGEM G06Q & mdash; SISTEMAS OU MÉTODOS DE PROCESSAMENTO DE DADOS, ESPECIALMENTE ADAPTADOS PARA EFEITOS ADMINISTRATIVOS, COMERCIAIS, FINANCEIROS, GERENCIAIS, DE SUPERVISÃO OU DE PREVISÃO; SISTEMAS OU MÉTODOS ESPECIALMENTE ADAPTADOS PARA FINS ADMINISTRATIVOS, COMERCIAIS, FINANCEIROS, GERENCIAIS, DE SUPERVISÃO OU DE PREVISÃO, NÃO FORNECIDOS DE OUTRA FORMA PARA O G06Q40 / 00 & mdash; Finança; Seguro; Estratégias tributárias; Processamento de impostos corporativos ou de renda G06Q40 / 04 & mdash; Troca, e. ações, commodities, derivativos ou câmbio monetário Y & mdash; MARCA GERAL DOS NOVOS DESENVOLVIMENTOS TECNOLÓGICOS; GERENCIAMENTO GERAL DAS TECNOLOGIAS TRANSCRICIONAIS DIVULGANDO VÁRIAS SEÇÕES DO IPC; ASSUNTOS TÉCNICOS ABRANGIDOS PELO ANTIGO COLEÇÕES DE ARTE DE REFERÊNCIA CRUZADA USPC [XRACs] E DIGESTES Y04 & mdash; TECNOLOGIAS DA INFORMAÇÃO OU DA COMUNICAÇÃO QUE TENHAM IMPACTO EM OUTRAS ÁREAS TECNOLÓGICAS Y04S & mdash; SISTEMAS QUE INTEGRAM AS TECNOLOGIAS RELACIONADAS COM AS TECNOLOGIAS DE FUNCIONAMENTO, COMUNICAÇÃO OU INFORMAÇÃO DA REDE DE POTÊNCIA PARA A MELHORIA DA GERAÇÃO, TRANSMISSÃO, DISTRIBUIÇÃO, GESTÃO OU UTILIZAÇÃO DA ENERGIA ELÉCTRICA, EXPRESSAMENTE AS REDES INTELIGENTES Y04S10 / 00 & mdash; Sistemas de suporte de geração, transmissão ou distribuição de energia elétrica Y04S10 / 50 & mdash; Sistemas ou métodos que suportem a operação ou o gerenciamento da rede de energia, envolvendo um certo grau de interação com os aplicativos do usuário final do lado da carga Y04S10 / 58 & mdash; Aspectos financeiros Y & mdash; MARCA GERAL DOS NOVOS DESENVOLVIMENTOS TECNOLÓGICOS; GERENCIAMENTO GERAL DAS TECNOLOGIAS TRANSCRICIONAIS DIVULGANDO VÁRIAS SEÇÕES DO IPC; ASSUNTOS TÉCNICOS ABRANGIDOS PELO ANTIGO COLEÇÕES DE ARTE DE REFERÊNCIA CRUZADA USPC [XRACs] E DIGESTES Y04 & mdash; TECNOLOGIAS DA INFORMAÇÃO OU DA COMUNICAÇÃO QUE TENHAM IMPACTO EM OUTRAS ÁREAS TECNOLÓGICAS Y04S & mdash; SISTEMAS QUE INTEGRAM TECNOLOGIAS RELATIVAS ÀS TECNOLOGIAS DE FUNCIONAMENTO, COMUNICAÇÃO OU INFORMAÇÃO DA REDE DE POTÊNCIA PARA MELHORAR A GERAÇÃO, TRANSMISSÃO, DISTRIBUIÇÃO, GESTÃO OU UTILIZAÇÃO DA ENERGIA ELÉCTRICA, EXPRESSAMENTE AS REDES INTELIGENTES Y04S50 / 00 & mdash; Actividades de mercado relacionadas com o funcionamento de sistemas que integram tecnologias relacionadas com a operação de redes de energia e tecnologias de comunicação ou informação Y04S50 / 10 & mdash; Negociação de energia, incluindo a energia que flui da aplicação do usuário final à rede.

Descrição.

. - 1 -, SISTEMA DE CONFIRMAÇÃO DE NEGOCIAÇÃO ELETRÔNICA.

2 6 Esta invenção refere-se a um sistema e método de compensação de negociações em uma troca eletrônica e, mais especificamente, a um sistema e método que coincide com informações 8 conhecidas oferecidas por um comerciante e uma contraparte para confirmar uma operação.

ANTECEDENTES DA INVENÇÃO.

12 Negociações tradicionais de commodities ou instrumentos financeiros, tais como ações e títulos, ocorreram em mercados onde os comerciantes oferecem várias commodities a preços diferentes. Tais negociações foram realizadas usando sinais manuais e o papel foi usado para finalizar o contrato comercial atual. Com o advento dos computadores, os negócios mais complexos e mais rápidos 16 podem ser feitos pela integração do poder de computação. Além disso, o crescimento da Internet e de outros sistemas de comunicações eletrônicas mudou o domínio da negociação para além do 18º pregão. Com a crescente complexidade da economia, pode ser oferecida uma maior diversidade de produtos financeiros de base, incluindo os derivados. Derivativos são definidos como um contrato financeiro cujo valor depende dos valores de um ou mais ativos subjacentes ou índices de valores de ativos. Atualmente, os derivativos são negociados em PATENT.

ADVOGADO DOCKET NO. 02045461 bolsas tradicionais que podem incluir futuros ou opções em commodities que variam de 2 barrigas de porco a preços de câmbio. Recentemente, os derivativos também foram negociados no mercado de balcão (over-the-counter - OTC), definido por transações de grandes instituições financeiras, como 4 bancos comerciais ou seguradoras. Tais derivativos podem incluir swaps, opções, limites, andares, corredores, etc. derivados de taxas de juros, moedas estrangeiras, ações e outras 6 commodities ou instrumentos financeiros.

Os derivativos de câmbio são estruturados com termos padrão, como tamanho do contrato, vencimento 8, data de vencimento, etc., definidos por uma bolsa como a Chicago Board of Trade.

Além disso, negociações de derivativos de câmbio e seus dados de suporte são enviados a uma câmara de compensação de terceiros para liquidação. Em contrapartida, os derivados OTC são mais flexíveis porque nenhum dos termos comerciais de um derivado OTC é padronizado. Além disso, a liquidação do negócio ocorre diretamente através dos grupos de negociação, pois não existe uma câmara de compensação de terceiros devido à diversidade de diferentes derivativos.

14 Um mercado emergente de balcão de produtos derivados está no campo da energia. Com a desregulamentação da indústria de energia, há uma diversidade muito maior de 16 geradores de energia com diferentes tipos de fontes de energia, como gás natural, petróleo, eletricidade e energia solar. Com fontes de energia e fornecedores tão diversos, surgiu um mercado na troca de commodities de energia entre esses produtores. Vários instrumentos financeiros e derivativos físicos, como swaps, opções ou spreads, foram formulados por diversos participantes do mercado de energia. Os jogadores neste mercado variam da tradicional PATENT.

ADVOGADO DOCKET NO. 02045461.

-3-trading de filmes para empresas de energia. Como muitos mercados financeiros, a tecnologia torna a acessibilidade ao mercado de derivativos de balcão muito maior.

Os comerciantes do mercado de energia OTC geralmente concordam com preços e condições.

4 outra parte do mercado de negociação para um determinado tipo de derivativo em um produto de energia, como uma troca de gás natural. Esse tipo de negociação envolve certos termos comuns, como 6 condições de liquidação e pagamento. O negócio pode ser feito diretamente com uma outra parte, por telefone ou, mais recentemente, por meio de uma plataforma eletrônica, como a Internet.

8 são registrados pelos comerciantes em seus blocos de notas comerciais e os dados comerciais são inseridos diretamente nos sistemas de computador de captura de dados comerciais de sua empresa. Esses sistemas geram documentos de confirmação e dados resumidos relacionados ao comércio.

Tal como outros derivados OTC, os derivados de energia não têm um sistema uniforme de confirmação de termos, uma vez que o comércio é feito entre as partes.

Assim, quando um comércio é feito, as partes devem confirmar os termos do comércio. Os dois operadores registram os 14 detalhes do negócio em um caderno de negociações e inserem os dados diretamente no sistema de captura comercial da empresa. O sistema de captura comercial da empresa imprime 16 documentos de confirmação que são revisados ​​e enviados para a outra parte. Isso normalmente ocorre enviando por fax os documentos de confirmação para a outra parte. Em seguida, um atendente verifica os termos dos documentos de confirmação recebidos em relação à alegada negociação registrada no caderno comercial e à saída de dados do próprio sistema de captura comercial da parte receptora.

Informações como comprador e vendedor, compra ou venda, produto, instrumento, ponto de entrega, preço, prazos de entrega, etc. devem corresponder. Depois que um funcionário revisa o negócio, qualquer patente.

ADVOGADO DOCKET NO. 02045461 discrepâncias devem ser relatadas para a parte de negociação e uma reconciliação deve ser feita com base nas informações registradas. Quando se confirma que as informações são precisas, os contratos são assinados e trocados. Assim, a quantidade de tempo necessária para confirmar o comércio leva muito mais tempo do que o próprio comércio. Mesmo uma negociação que seja executada corretamente por ambas as partes pode levar dias para ser totalmente confirmada. Erros 6 prolongam o processo.

No entanto, outros erros são possíveis, uma vez que os funcionários devem examinar e confirmar 8 inúmeros negócios com formas freqüentemente diferentes para cada produto derivativo.

Os problemas de confirmação resultam em custos muito maiores e menores eficiências. De fato, 18% dos negócios de derivativos contêm erros no momento da entrada em um sistema de captura comercial. Muitos derivativos de balcão são regidos por um modelo de acordo principal endossado pela 12 International Swaps and Derivatives Association ("ISDA"). Embora o contrato básico torne a reconciliação mais eficiente, ela deve ser modificada para cada produto derivativo específico de OTC e os termos ainda devem ser examinados manualmente para liquidar as negociações.

16 Assim, existe a necessidade de um sistema de confirmação automatizado para OTC.

produtos derivados. Há ainda outra necessidade de um sistema que possa padronizar a confirmação de 18 derivativos de balcão. Existe a necessidade de um sistema de confirmação que permita a rápida entrada e processamento de dados comerciais. Existe também a necessidade de um sistema que permita ao usuário resumir as negociações durante um certo período para determinar quais operações têm irregularidades.

ADVOGADO DOCKET NO. 02045461.

Existe ainda uma necessidade de um sistema de confirmação de negociação que corresponda aos dados relacionados aos campos e categorize os negócios para determinar quais negociações são confirmadas.

6 que é um sistema de determinação do status das negociações entre um comerciante e uma contraparte, com base em uma submissão eletrônica de um arquivo de dados representando detalhes em campos de dados de um comércio 8 pelo comerciante e um segundo arquivo de dados representando detalhes em campos de dados do comércio pela contraparte. O sistema possui um mecanismo de interface de dados que lê os arquivos de dados e os campos de dados. Um mecanismo de correspondência é acoplado ao mecanismo de interface de dados e corresponde a campos de dados selecionados nos arquivos de dados e atribui um status à transação com base no fato de os 12 campos de dados enviados corresponderem. Um banco de dados é acoplado ao mecanismo de correspondência que armazena os dados de negociação resultantes para confirmar a troca se todos os detalhes da chave nos dois arquivos de dados corresponderem.

Outro aspecto é um método de confirmar eletronicamente a negociação de 16 produtos financeiros, que incluem campos de dados que são acordados entre um trader e uma outra parte. Os dados do comerciante são submetidos, incluindo diferentes campos de dados relacionados com o comércio através de uma interface eletrônica 18. Os dados da contraparte são submetidos incluindo diferentes campos de dados relacionados ao comércio através de uma interface eletrônica. Os campos de dados enviados pelo comerciante e pela contraparte são comparados para determinar quais campos correspondem. A negociação é confirmada se determinados campos de dados corresponderem.

ADVOGADO DOCKET NO. 02045461 Outro aspecto é um método de confirmar eletronicamente negociações de 2 produtos financeiros entre uma parte e uma contraparte com um contrato básico que rege os negócios dos produtos financeiros. O contrato básico é alterado para permitir a confirmação eletrônica 4. O comerciante e a outra parte estão conectados eletronicamente a um mecanismo de correspondência. Os dados do comerciante, incluindo diferentes campos de dados relacionados a uma negociação, são enviados para o mecanismo de correspondência. Os dados da parte contrária, incluindo diferentes campos de dados relacionados à negociação, são enviados ao mecanismo de correspondência. A negociação é confirmada por 8 correspondência de certos campos de dados.

É para ser entendido que tanto a descrição geral anterior como a descrição detalhada que se segue não são limitativas, mas destinam-se a fornecer explicações adicionais da invenção reivindicada. Os desenhos anexos, os quais são incorporados e fazem parte desta especificação, são incluídos para ilustrar e fornecer uma compreensão adicional do método e sistema da invenção.

Juntos 14 com a descrição, os desenhos servem para explicar os princípios da invenção.

BREVE DESCRIÇÃO DOS DESENHOS.

16 Estes e outros aspectos e vantagens da invenção serão discutidos mais detalhadamente a seguir com referência à divulgação de formas de realização preferidas, e em particular com referência às figuras anexas em que:

FIG. 1 é um diagrama de blocos de um sistema de confirmação para transações eletrônicas de produtos financeiros de acordo com um exemplo da presente invenção;

ADVOGADO DOCKET NO. 02045461.

-7-FIG. 2 é um diagrama de blocos do sistema de back office que faz parte do sistema de 2 FIG. 1 e inclui um mecanismo de correspondência que corresponda aos detalhes de negociação apresentados para confirmar os negócios;

4 FIG. 3 é um diagrama das tabelas da base de dados que representam as negociações submetidas ao sistema;

6 FIG. 4A-4D é um diagrama de fluxo do processo realizado pelo motor correspondente na FIG. 2;

8 FIG. 5 é um ecrã de resumo de confirmação que é uma interface de utilizador para o sistema de confirmação da FIG. 1;

FIG. 6A é uma tela de detalhes de negociação acessada para negociações pendentes que é uma interface de usuário para o sistema de confirmação da FIG. 1;

12 FIG. 6B é uma tela de detalhes de negociação acessada para negociações correspondidas ou canceladas que é uma interface de usuário para o sistema de confirmação da FIG. 1;

14 FIG. 6C é uma tela de detalhes de negociação acessada para negociações sem correspondência, que é uma interface de usuário para o sistema de confirmação da FIG. 1;

16 FIG. 6D é uma tela de detalhes de negociação acessada para transações alegadas, que é uma interface de usuário para o sistema de confirmação da FIG. 1;

18 FIG. 7A é uma tela de log de upload de arquivo que é uma interface de usuário para o sistema de confirmação da FIG. 1;

FIG. 7B é uma tela de registro de mensagens que é uma interface de usuário para o sistema de confirmação da FIG. 1;

ADVOGADO DOCKET NO. 02045461 FIG. 7C é um ecrã de registo de auditoria que é uma interface de utilizador para o sistema de confirmação 2 da FIG. 1;

FIG. 8A é uma tela de relatórios de status de negociação que é uma interface de usuário para o sistema de confirmação 4 da FIG. 1;

FIG. 8B �um ecr�de rela�o de campos quebrados espec�icos para trocas que �uma interface do utilizador 6 para o sistema de confiima�o da FIG. 1;

FIG. 9 é um ecrã de mapeamento de dados que é uma interface de utilizador para o sistema de confirmação 8 da FIG. 1;

FIG. 10 é uma tela de detalhes de mapeamento de dados que é uma interface de usuário para o sistema de confirmação da FIG. 1;

FIG. 11 é uma nova tela de confimação que é uma interface de usuário para o sistema de confirmação 12 da FIG. 1;

FIG. 12 é uma tela de upload de arquivo que é uma interface de usuário para o sistema de confirmação 14 da FIG. 1;

FIG. 13A é uma tela de administração para definir contra-partes, que é uma interface de usuário 16 para o sistema de confirmação da FIG. 1;

FIG. 13B é uma tela de administração para definir valores padrão, que é uma interface de usuário 18 para o sistema de confirmação da FIG. 1; e FIG. 13C é uma tela de administração para alterar os valores padrão, que é uma interface de usuário para o sistema de conflimação da FIG. 1.

ADVOGADO DOCKET NO. 02045461.

-9-DESCRIÇÃO DA FORMA DE REALIZAÇÃO PREFERIDA.

2 Embora a presente invenção seja capaz de realizar diversas formas, é mostrada nos desenhos e será descrita a seguir uma 4 forma de realização presentemente preferida com o entendimento de que a presente descrição deve ser considerada como uma exemplificação da invenção, e não é destina-se a limitar a invenção à concretização específica 6 ilustrada.

FIG. 1 mostra um diagrama de blocos de um sistema de confirma�o 10, que �uma modalidade 8 exemplificativa da presente inven�o. O sistema de confirmação 10 tem um sistema de processamento 12 que tipicamente reside num fornecedor de serviços de terceiros. O sistema de processamento 12 é tipicamente fornecido por um fornecedor terceirizado independente do comerciante e da contraparte. Um exemplo de tal terceiro é a Intercontinental Exchange, que oferece 12 serviços de confirmação para produtos derivativos relacionados à energia. O sistema de processamento 12 pode também residir com um comerciante ou uma contraparte. Tanto o comerciante como a 14 contraparte concordam antecipadamente como parte de um Acordo Geral de que o sistema de processamento 12 serve como confirmação de negociações entre eles.

16 O sistema de processamento 12 tem um motor correspondente 14 tendo um processador central 16.

Um programa de confirmação 18 é armazenado no motor de correspondência 14 e é executado pelo processador central 18 16. O sistema de processamento 12 tem uma entrada de dados externa 20 que está ligada a computadores de negociação, como computadores 22, 24, 26 e 28. O processamento O sistema 12 pode fazer parte de uma intranet incluindo os computadores de negociação 22, 24 e 26 e, portanto, pode residir com o mesmo filme de negociação. Alternativamente, os computadores de negociação 22, 24, 26 e 28 de patente.

ADVOGADO DOCKET NO. 02045461.

-10-podem ser computadores acoplados ao sistema de processamento 12 através da Internet no caso do dia 2 comerciantes ou outros filmes comerciais que usam o sistema de processamento 12 para confirmar as suas negociações.

Como será explicado, cada um dos computadores 22, 24, 26 e 28 tem software diferente para a submissão de dados de comércio ao sistema de processamento 12. É claro que é para ser entendido que os computadores 22-28 são meramente mostrados como exemplos e pode haver 6 numerosos computadores que submetem dados de comércio ao sistema de processamento 12.

As operações de balcão que envolvem derivativos, como um swap de petróleo bruto no mercado financeiro de 8 petróleo, são feitas entre um negociante e outro negociante denominado uma contraparte.

Tal negociação envolve duas entidades comerciais que celebram um contrato de petróleo bruto que deve ser liquidado com base em um índice de preços acordado, como o da Platt. O comércio entre o comerciante e a contraparte pode ser feito por telefone ou através de uma ligação segura à Internet através de um programa de negociação, como a plataforma de negociação oferecida pela Intercontinental Exchange. Naturalmente, outras maneiras de conduzir negócios podem ser usadas. Uma vez que a negociação é acordada entre o comerciante e a contraparte, os detalhes do negócio, tais como o tipo de produto energético, preço, data, etc., são registrados pelo comerciante e pela contraparte. Em uma empresa de trading 16, os sistemas de back office podem ser executados em um computador de back office 30 que também interage com outros sistemas internos, como contabilidade, para rastrear o negócio. O 18 computador de escritório de retaguarda 30 pode estar ligado a computadores de negociação, como o computador de negociação 28. Para confirmar que o comércio é um comércio legítimo, os detalhes do negócio compreendidos pelo comerciante e pela contraparte devem ser os mesmos.

Uma vez que os detalhes são combinados, a transação é liquidada e considerada executada.

ADVOGADO DOCKET NO. 02045461.

-11-Os dados para o negócio, como entendidos pelo comerciante e pela contraparte, são 2 inseridos separadamente através dos computadores de negociação 22, 24, 26 e 28, cada um representando um meio diferente de comunicação de dados ao sistema de processamento 12. Os dados dos 4 computadores de negociação são enviados para um módulo de interface de dados 40 do sistema de processamento 12 através de uma interface segura usando SSL e encriptação de 128 bits. Claro, outras alternativas ou 6 medidas de segurança adicionais podem ser empregadas. O programa de correspondência 18 no sistema de processamento 12 classifica a negociação em uma das cinco categorias diferentes com base na consistência dos dados com aquela enviada pela contraparte usando um módulo de processamento de dados 42 acoplado ao módulo de interface 40. Os dados do as negociações são armazenadas em um módulo de banco de dados 44, que é acoplado ao módulo de processamento de dados 42.

Os campos de dados relativos ao comércio de um tipo específico de produto podem ser codificados,

12 por exemplo, pela International Swaps and Derivatives Association ("ISDA"). Normalmente, os dados em uma transação incluem preço, data de negociação, parte contrária, termos de liquidação, instruções de pagamento 14 e termos de entrega. Alguns dos campos de dados são específicos para o tipo de produto e mercado. Por exemplo, para swaps de petróleo bruto no mercado financeiro, termos específicos podem incluir uma provisão para preços comuns. A identificação do produto é um número atribuído pelo sistema de processamento 12 atribuído ao tipo de produto. Certos campos de dados são classificados como chave que representam dados que são usados ​​para correspondência de primeiro nível da negociação.

Os campos-chave incluem preço, quantidade, quantidade total, parte contrária, data de troca e identificação do produto para todos os produtos. Certos campos de dados são classificados como obrigatórios, que é um campo para o qual um usuário deve enviar um valor de dados. Por exemplo, um campo obrigatório é o preço PATENT.

ADVOGADO DOCKET NO. 02045461 em uma troca de óleo bruto. Os campos de dados necessários são usados ​​para a correspondência de segundo nível do comércio 2. Certos campos de dados são classificados apenas como informação, o que representa dados que são fornecidos apenas para fins informativos, como o corretor para um swap de petróleo bruto. O programa 4 também permite que um administrador de sistema gerencie os usuários autorizados para acessar os dados e visualizar os resumos dos negócios. Um utilizador pode ver negcios, apresentar dados 6 sobre negcios, editar, cancelar, confirmar e disputar negcios atravs do programa 18 atravs dos computadores 22, 24, 26 e 28 na FIG. 1.

8 O programa 18 permite que um utilizador submeta dados relativos a um negócio através de um dos computadores 22, 24, 26 e 28 e que o comércio será categorizado e permite que um utilizador adicione informação adicional ou edite informação inconsistente para finalizar quaisquer negociações que façam não tem o acordo inicial das partes. As cinco categorias de negociações apresentadas são 12 combinadas, alegadas, não correspondidas, pendentes e canceladas. Uma negociação casada é o resultado final desejado de uma negociação submetida que indica que todos os campos de dados são correspondidos exatamente e todas as 14 contrapartes concordam com o comerciante. Uma negociação sem correspondência é aquela em que os principais campos de dados coincidem, mas os campos secundários, como campos obrigatórios e de informação, não correspondem a 16 entre o comerciante e a contraparte. Uma negociação pendente é uma negociação em que um ou mais dos principais campos de dados não correspondem entre o comerciante e a contraparte. UMA.

18 comércio cancelado são os negócios inicialmente apresentados, mas depois retirados pelo comerciante. Uma transação alegada é uma negociação que uma contra-parte alega ter feito com o comerciante, mas o comerciante não tem uma correspondência exata dos campos de dados para a negociação.

ADVOGADO DOCKET NO. 02045461.

-13- Assim, o programa 18 permite que um usuário reveja rapidamente as transações correspondentes e identifique 2 negociações que tenham problemas, como termos sem correspondência ou discordância da contraparte. Ao identificar tais negociações disputadas com um indicador na categoria correspondente, a contraparte e o usuário podem reconciliar o conflito e corrigir os dados usando o programa 18. Maior eficiência no processo de reconciliação é obtida pela identificação de 6 transações problemáticas e também pela identificação do termos específicos que estão em conflito.

Neste exemplo, o sistema de processamento 12 pode interagir com um utilizador através de um computador 8 utilizador 46, que pode ser um computador pessoal com um programa de navegador da Internet com a capacidade de executar HTML e JavaScript. O usuário é assim apresentado com uma interface web exibida no computador do usuário 46 para executar as funções do programa 18.

Com a devida autorização, o computador do utilizador 46 permite ao utilizador controlar as 12 funções acima, bem como gerar relatórios de dados relacionados com as transacções confirmadas pelo programa 18. É claro, deve ser entendido que qualquer um dos outros computadores de negociação 22 24 e 26.

14 e 28 também podem ser capazes de executar a interface do usuário por meio de um programa de navegador da web.

FIG. 2 é um diagrama de blocos dos componentes do sistema de processamento 12. O módulo 16 de interface de dados 40 tem duas interfaces de dados 52 e 54, que são uma interface XML 52 e uma interface de arquivo delimitada por tabulações 54 através do protocolo HTTPS. É claro que outros tipos de 18 protocolos de interface de dados, como o SOAP, podem ser usados ​​para inserir dados no sistema de processamento 12. Outros delimitadores, como vírgulas, também podem ser usados ​​para separar campos de dados no arquivo simples.

ADVOGADO DOCKET NO. 02045461 Os dados dos usuários podem ser inseridos através de quatro mecanismos de entrada diferentes: uma página da Web de 2 em um computador conectado à Internet, como um comerciante de computadores 22; uma página Web dedicada com capacidade de carregamento de ficheiros delimitada por tabulações, como o comerciante 24;

um ficheiro 4 delimitado por tabulações automatizadas através de um computador com capacidade para HTTPS, tal como o computador trader 26;

e uma interface de programao de aplicao XML (API) num computador conectado, tal como o computador 6 trader 28. O mdulo de interface de dados 40 tambm tem uma API XML.

mulo 56 e uma interface de notificao por e-mail 58. O mulo API XML 56 e a comunicao 8 por notificao por e-mail 8 fornecem mecanismos de saida baseados em pedidos de um utilizador.

A interface fornece um mecanismo de resposta XML para solicitações recebidas por meio do XML.

interface 52. A interface de notificação por e-mail 58 fornece respostas a pedidos com base em eventos específicos dentro do sistema. Essas respostas notificam o usuário de eventos dentro do 12 sistema 12 que afetam objetos de dados específicos associados ao destinatário da notificação por e-mail.

14 O computador conectado à Internet 22 pode ser conectado diretamente ao módulo de interface 40. O usuário efetua login e uma página da Web é exibida com um formulário de entrada de dados.

O utilizador 16 preenche os dados na página Web e transmite os dados. Os dados são então recebidos na interface XML 52. Esse método permite que os usuários enviem os campos de dados de uma negociação a cada 18 horas.

O segundo computador 24 permite acesso a uma página da Web que possui o script XML necessário para permitir o upload de um arquivo delimitado por uma única guia. O arquivo delimitado por tabulação pode estar no formato de dados proprietários do usuário e pode conter registros de campos de dados refletindo PATENT.

ADVOGADO DOCKET NO. 02045461.

-15-muitos negócios. Assim, um arquivo separado delimitado por tabulações pode ser escrito para todos os negócios do dia, 2 ou todos os negócios de um determinado mercado ou produto. O conte�o de dados no ficheiro delimitado por tabs �ent� lido pelo sistema de processamento 12 atrav� da interface 54 delimitada por tabulações, como ser�descrito 4 abaixo.

O terceiro computador 26 contém um agente de upload de arquivos que inclui um HTTPS.

6 agente de postagem compatível, como uma ferramenta Open Source, cURL. Como explicado acima, o arquivo delimitado por tabulação pode conter campos de dados relacionados a qualquer número de negociações.

O programa 8 é utilizado para verificar periodicamente um determinado diretório no computador 26, ler quaisquer arquivos atualizados delimitados por tabulação no diretório e publicá-lo com segurança no sistema de processamento 12 usando SSL. Esta é uma criptografia de 128 bits neste exemplo, mas outros protocolos de segurança podem ser usados. Os arquivos delimitados por tabs enviados são inseridos na interface de upload de arquivos 54.

12 O quarto computador 28 tem uma API XML que aceita dados e campos de negociação no formato padrão que será descrito abaixo. Esse formato padrão permite que os dados 14 sejam inseridos na interface XML 52. O uso de uma API XML é preferencial porque permite que o usuário e a contraparte enviem informações comerciais em tempo real como as negociações.

16 estão entrando em seus sistemas de backoffice, como no computador 30. Neste exemplo, a API XML no computador 28 é baseada em mensagens XML founat para permitir que os usuários usem a linguagem de programação e de desenvolvimento de sua escolha.

The API on the computer 28 may use XML over the HTTP or HTTPS to enable transmission of data over the Internet to the processing system 12. The data scheme becomes a binding contract between the user and the counter party if both parties match PATENT.

ATTORNEY DOCKET NO. 02045461 all required fields of the trade, as will be detailed below. In order to use the HTTPS.

2 protocol, the user registers a digital certificate with the owner of the processing system 12 and handles cookies sent from the processing system 12.

4 Alternatively, the API may use XML messaging over HTTPS to enable transmission of data over the Internet to the processing system 12. The XML.

format 6 message uses stored libraries to facilitate protocol handling and to interface with XML.

The body of the XML message contains mandatory information intended for the ultimate 8 recipient of the message.

The data processing module 42 includes an Internet web server cluster 60, a weblogic application server cluster 62, a trade mapping engine 64, and an e-mail server 66. The application server cluster 62 may include a server to store the trade matching 12 engine 14 that is based on Oracle 8i, but other kinds of software and hardware which have database functionality may be used. The processing module 42 is protected by a 14 firewall 70 which is interposed between the Internet web server cluster 60 and the interface module 40. The firewall 70 protects the Internet web server cluster 60 from 16 unauthorized data from unidentified computers. The firewall 70 in this example is a Checkpoint firewall, but other types of firewalls may be used.

18 A second firewall 72, which is preferably a Checkpoint firewall, connects the Internet Web Cluster 60 with the processing module 42 and the database module 44 to protect data stored in them. The database module 44 includes a primary database server 74 and a backup database server 76 that access the database using shared storage. The PATENT.

ATTORNEY DOCKET NO. 02045461.

-17-database servers 74 and 76 supporting the database include the data described below 2 which relate to trade infoiniation and confirmation data. This data includes internal identification and submission company identification for each company and trader using 4 the system 10. The primary and backup database servers 74 and 76 support the Oracle databases in the preferred embodiment with a Sun Cluster to manage the cluster of 6 database server 76 with the primary database server 74 and the shared storage.

In this example, the Internet web server cluster 60 includes Microsoft Internet 8 Information servers which act as a gateway into the core components of the processing module 42. The Internet web server cluster 60 is used to store and send HTML.

pages which are used to build the graphical user interfaces for the confirmation program 18.

The weblogic server cluster 62 is responsible for hosting the XML web services from the 12 XML interfaces 52 and 54. The cluster 62 also receives uploaded tab delimited files, parses XML and converts the inputs to Java objects. The server cluster 62 also interfaces 14 with the database module 42 via an interface 78. The interface 78 in this example is a JDBC connection pool, but it is to be understood that other connections may be used.

16 As will be explained below, the program has a standard fonnat for the needed data field for a trade of a particular set of markets and products. This standard may be,

18 for example, set by Intercontinental Exchange through the XML interface 52. This standard format is the native language of the confirmation system 10. Users may use different field and data formats through the tab delimited file input interface 54. If data is PATENT.

ATTORNEY DOCKET NO. 02045461 input in a different field and data folinat than the system standard, the mapping engine 64 2 converts the submitted data to the standard format.

The foundation of the matching engine 14 consists of a database design 4 supporting the definition of products and trades. The matching engine 14 employs a rules based model enabling the matching process for any defined: product. FIG. 3 is a chart of 6 a database design 100 having the tables which support the products and trades. These tables include a CODE_TYPE table 102, an ECONFIRM_PRODUCT_MASTER table 8 104, a TRADE_DETAIL table 106, a TRADE table 108, a CODE_TYPE_XREF table 110, a FIRM_PRODUCT table 112, a PRODUCT_DEFAULT table 114, a TRADE TYPES table 116 and a MARKET TYPE table 118. Each of the tables 102-118 have different data fields which support the products and trades.

12 These tables provide the primary functions supporting the rule based architecture of the matching engine 14. The CODE_TYPE table 102 maintains the values of all trade 14 components identified by the business for all the products within the system 10. The PRODUCT_MASTER table 104 defines the detailed information for all associated 16 products by identifying the product value with the components defined in the CODE_TYPE table 102. The TRADE_DETAIL table 106 defines the components of the 18 trade which includes the association of the trade to the user's trade values defined using the CODE TYPE table 102. The TRADE table 108 provides the header information for the trade and identifies the TRADE primary key and the user's trade identification. The trade primary key is the association key used within all other tables. The 1158139 02045461 ' PATENT.

ATTORNEY DOCKET NO. 02045461.

-19-CODE _ TYPE_ XREF table 110 identifies the available product components defined in 2 the CODE_ TYPE table 102 to the associated market type defmed in the MARKET _ TYPE table 118. The FIRM_ PRODUCT table 112 provides the definition of 4 the product which includes the common definition of the product used by the system 10.

The PRODUCT_ DEFAULT table 114 provide the user default values for each product 6 component and identifies the association between the component (XML_TAG) identifier in the CODE TYPE table 102 and the component value identified in the CODE TYPE.

The PRODUCT MASTER table 104 defines the primary product category. The 12 matching process utilizes the customer defined rules stored in the PRODUCT_MASTER.

table 104 as matching criteria for trades between two companies. This matching process 14 occurs within the database of the matching engine 14 after the trade validation process.

The basis of the matching engine 14 revolves around the identification of the 16 XML tag. The XML tag provides the definition of each product characteristic and identifies the matching criteria used by the matching engine 14. Each product includes 18 one or more characteristics that define the matching criteria. These characteristics, or XML tags, define the make up of the matching components of each product and support the matching criteria of each trade. The product definition and matching criteria reside within the PRODUCT _MASTER table 104. The table 104 includes a PATENT.

ATTORNEY DOCKET NO. 02045461.

-20-PRODUCT MASTER ID field which is the primary, unique identification of the 2 product master component. A PRODUCT_ID field is the product associated with the product component. An XML_TAG JD field identifies the component or components of 4 the product master. A DETAIL _ID field identifies a default or standard value for the component. A PART_OF_PRODUCT_FG field defines the products which default to 6 the product master value as defined in DETAIL _ID. A PART_OF_KEY_FG field identifies the primary matching criteria that comprises the main components of the trade.

8 A MATCH REQUIRED FG field defines the secondary components of the matching criteria that determines the final and more detail components of the trade. An IS REQUIRED FG field identifies components required within the product definition.

The complete definition of the components relies on the unique relationship 12 between the product definition and the CODE_TYPE table 102. The CODE_TYPE table 102 provides a single physical object supporting a large number of logical objects with 14 the same internal attributes, such as the component definitions. The CODE_TYPE table 102 provides a common definition and identification for these components. For the 16 architecture of the system 10, the CODE_TYPE table 102 supports the definition of the XML tabs, as well as the components and the component values. The CODE_TYPE.

18 table 102 supports the component values as most component values consist of predefined values. Therefore, the values of the XML tag, components and component values consist of the same structure and correlation to the CODE_TYPE table 102.

ATTORNEY DOCKET NO. 02045461.

-21-The CODE_TYPE table 102 includes a correlation of the XML tags and 2 components. The CODE_TYPE table 102 includes a CODE_TYPE _ID field which correlates with the XML TAG ID and DETAIL ID defined below. UMA.

4 CODE TYPE ID field includes a XML TAG ID field which is the identifier corresponding with the component and identifying the component type and a 6 DETAIL ID field which is the identifier of the CODE_TYPE corresponding with the value of the component. A SHORT NAME field is the short description or identification 8 of the code type defining the component or component value. A LONG_NAME.

field is = the complete description or name of the component or component value.

The trade validation process reviews submitted trade details and determines the validity of the trade details utilizing predefined criteria. The CODE_TYPE and 12 CODE TYPE XREF tables 102 and 110 provide the mechanism for the predefined criteria as it identifies the valid codes or component values for each associated market 14 type. This association structure provides validation levels using the market type, as currently performed, or other potential criteria. Other potential criteria includes product 16 or trade type. The supporting components within the validation criteria revolve around the XML TAG ID and CODE TYPE ID fields in the CODE_TYPE table 102.

18 The rules definition process consists of defining the product, product components, and product default values. The product definition includes the product name and entries within the FIRM PRODUCT table 112. The product components correlate the defined product with the multiple components or multiple entries within the PATENT.

ATTORNEY DOCKET NO. 02045461.

-22-PRODUCT MASTER table 104. Each entry defines the component and component 2 attributes, including the matching criteria. The matching criteria identifies the key components, match components, and required components, as well as the components 4 comprising the product master and the default values of the product master components.

The rules definition details the matching criteria for the matching process.

6 The matching process associates two distinct trades from two separate companies identifying a successful transaction between two companies. The matching process 8 includes a key match and a component match. The key match identifies a subset of potential matching trades using the product components identified with a value of 'Y' in the PART OF KEY FG field of the PRODUCT MASTER table 104. These trades with matching key components identify unmatched trades and define a subset of potential 12 matching trades. The completed match between two distinct trades successfully match when all components of the product and trades match on the components with a Y' in 14 the MATCH REQUIRED FG field of the PRODUCT MASTER table 104. These components match the XML_TAG _ID and DETAIL _ID of the PRODUCT_MASTER.

16 and TRADE DETAIL tables 104 and 106, based on the product and market type.

The matching process must match all components identified as 18 MATCH REQUIRED and PART OF KEY fields in the PRODUCT MASTER table 104 and contain matching values for each of these components for two trades.

For trades matching this criteria, the first two trades, identified by the date/time component of PATENT.

ATTORNEY DOCKET NO. 02045461.

-23-TRADE DATE, comprise a matched trade. The following sections are identified by the 2 step by step process of the matching engine 14.

FIGs. 4A ¨ 4D show a flow diagram of the process followed by the matching 4 engine 14 and the processing system 12. The beginning of the user upload process is performed in step 122, where external validation provides initial user feedback 6 identifying valid trade components using the information accessed from the PRODUCT MASTER and the CODE TYPE tables 104 and 102. This process also 8 prepares the trade components for transfer to the matching engine 14.

The processing system 12 then identifies the transfer of the company trade from the XML format to the database structure in step 124. This transfer utilizes an object structure and uses Oracle's Advanced Queuing for performance to submit data to the 12 Oracle database. The matching engine 14 reads the trade object from the queue and begins processing the queue using the TRADE_ACTION attribute of the trade object.

14 The TRADE ACTION values are either 'CANCEL' or 'SUBMIT' which identify the cancel action or insert action respectively.

16 The matching engine 14 determines if the trade action value is 'CANCEL', identifying the trade object as a cancel request from the customer in step 126. If the trade 18 object is a cancel request, the processing continues to step 128, which starts the cancel process, defined in FIG. 4C. If the trade status value is not 'CANCEL', processing continues to step 130.

ATTORNEY DOCKET NO. 02045461.

-24-The other valid trade action is 'SUBMIT', which indicates the trade is either an 2 insert or update trade request. The matching engine 14 determines whether the trade exists, defined by the trade date and the customer's trade number in step 130.

If the trade 4 exists, the request is an update trade request and the processing continues to step 132, which is an update trade routine that is continued in FIG. 4D. Otherwise, the trade does 6 not exist and the matching engine 14 continues to step 134 which provides additional validation, defines the Trade ID field and sets the initial trade status to pending. While 8 processing the trade action, the engine 14 inserts the appropriate trade values into the TRADE table 108 and the TRADE DETAIL table 106 and continues to step 136.

The initial matching process in step 136 identifies a subset of trades which match on a primary subset of components, identified as key values within the 12 PRODUCT MASTER table 104. This process identifies all trades with matching key values, using the current trade object as the match source and all stored trades with a 14 status of pending or unmatched. All target trades that match the source trade on these values are considered unmatched with the source trade. The process sets an internal flag 16 distinguishing the subset of target trades from other trades only for this matching transaction and continues to step 138. The matching engine 14 uses the 18 PRODUCT MASTER table 104 and identifies all components identified as 'MATCH REQUIRED' which match between the source and subset of the target trades in step 138. The process then continues with step 140 which loops to FIG. 4B.

ATTORNEY DOCKET NO. 02045461.

-25-The matching engine 14 then determines if the matching process consists of key 2 matches, unmatched or component matches, matched, in step 142. If any of the 'MATCH REQUIRED' components do not match, as specified by the 4 PRODUCT MASTER table 104, then the source trade is unmatched with the subset target trades and processing continues to step 144. The matching engine 14 determines if 6 the target trades are currently unmatched with other trades in step 144.

If the target trades are currently unmatched, the source trade is unmatched with the unmatched group 8 and the source trade receives a MatchID value of the target trades in step 146. If the target trade or trades do not have a MatchID setting, then the matching engine generates a new MatchID in step 148. The matching engine 14 then proceeds to step 150, which sets the MatchID for the trades and sets the status to unmatched for the trades.

12 If all components match based on the settings in the PRODUCT_MASTER.

table 104, source trade and identified target trades in step 142, the matching engine 14 14 determines whether there is more than one match in step 152. There can only be one target trade and one source trade of a match; thus if there is more than one matching trade 16 in step 152, the matching engine 14 identifies the earliest trade based on the trade date as the target trade in step 154 and then continues processing to step 156. If there is only one 18 target trade, processing continues to step 156.

The matching process supports matches with both pending and unmatched target trades. The matching engine 14 detennines the current status of the target trade and manages the disposition of the target trade based on the status. The matching engine 14 PATENT.

ATTORNEY DOCKET NO. 02045461.

-26-deteimines whether the trade is matched with an unmatched trade in step 156.

If the 2 status is pending i. e. no match with an unmatched trade is determined in step 156, the matching engine 14 branches to step 158 which identifies a new MatchID using an Oracle 4 sequence. If the target trade is unmatched, i. e. a match with an unmatched trade is determined in step 158, then the matching engine 14 starts the disposition process for the 6 unmatched target trade and the trades unmatched with the target trade in step 160.

The disposition process begins with step 160, which determines the depth of the 8 unmatched trade. The matching engine 14 determines if there are other trades identified as unmatched trades between the submitting companies of the source and target trades in step 160. If there are not other unmatched trades between these two companies, the matching engine 14 performs the preliminary steps of the matching process between the 12 trades and cleans up the remaining unmatched trade. The matching module identifies the partner to the target trade, resets the status to pending and resets the MatchID of the 14 partner to zero (0) in step 162. The matching engine 14 then identifies the existing MatchID of the target trade as the new MatchID of the matched trade between the source 16 trade and the target trade in step 164.

If there are other unmatched trades between these two companies in step 160, the 18 matching engine 14 identifies anew MatchID by generating it using an Oracle sequence in step 166. Following steps 158, 164 and 166, the matching engine 14 continues processing in step 168, which creates the match association. In step 168, the matching engine 14 performs the final match by setting the MatchID for both the source and target PATENT.

ATTORNEY DOCKET NO. 02045461.

-27-trade and sets the status of the source and target trade to matched. The transaction is 2 committed and processing passes back to the trade process.

FIG 4C identifies the steps associated with processing a cancel request from the 4 customer trade submission from step 128 of FIG. 4A. The matching engine 14 validates the trade as a potential cancel prospect, determining if the trade is a matched trade in step 6 170. If the trade is a matched trade, the trade is not canceled by the matching engine 14, as both counter parties of the matched trade must approve the cancellation of a matched 8 trade. If the trade is matched, the processing continues to step 172, which writes an error to a message log table stored in the database 74 and proceeds to the next trade. If the trade is not a matched trade in step 170, the processing begins the cancellation process.

The cancellation process consists of resetting the status of the source trade and 12 potential unmatched trades. The matching engine 14 determines if the trade is unmatched in step 174. If the status of the trade is not unmatched, the status of the source trade is set 14 to canceled in step 176 and the routine branches to process the next trade. If the trade is unmatched in step 174, the processing determines the fate of the partner(s) of the source 16 trade by identifying the depth of the unmatched trades, determining if there are other trades identified as unmatched between the submitting companies of the source trade in 18 step 178. If there are not other unmatched trades between the companies, the trades are canceled and cleaned up. The cancellation of the trade is performed in step 180 which sets the status of the source trade to canceled and resets the value of the MatchID to zero (0). The matching engine 14 then proceeds to step 182 which identifies the partner PATENT.

ATTORNEY DOCKET NO. 02045461.

-28-trade(s) of the source trade from the other company, resets the MatchID to zero (0) and 2 resets the status of the trade to pending.

If there are other trades between the submitting companies in step 178, the status 4 of the source trade is reset to canceled and the MatchID is reset to zero (0) of only the source trade in step 184. Upon completion of the cancellation process in steps 182 or 6 184, the processing terminates and begins processing the next trade.

FIG 4D identifies the steps associated with an update trade request from the 8 customer trade submission. Step 132 identifies the entry point of the update process from FIG. 4A and begins by identifying the status of the trade as matched in step 186. If the trade status is matched, as identified by step 186, the trade cannot be updated, since the update may change a component required by the matching criteria and is not supported 12 by both parties of the trade. If the trade is matched, the processing continues to step 188 which writes an error to the message log and exits to the matching routine to process the 14 next trade.

If the status is not matched, the matching engine 14 updates the trade process and 16 the identification of the affected trades of the transaction. The matching engine 14 determines if the trade is unmatched in step 190. If the trade status is not unmatched the 18 status is reset to pending in step 192 and the processing routine exits to process the next trade. If the source trade status is unmatched in step 190, the matching engine 14 determines if there are other trades identified as unmatched between the submitting companies of the source trade in step 194. If there are no other unmatched trades PATENT.

ATTORNEY DOCKET NO. 02045461.

-29-between the companies, the matching engine 14 performs the update and clean up of the 2 identified trades. The update of the source trade is performed by setting the status of the source trade to pending and resetting the value of the MatchID to zero (0) in step 195.

4 The matching engine 14 then identifies the partner trade(s) of the source trade from the other company, resets the MatchID to (0) and resets the status of the trades to pending in 6 step 196.

If there are other trades between the submitting companies, the matching engine 8 14 resets the status of the source trade to pending and resets the MatchID to zero (0) of only the source trade in step 198. Upon completion of the update process in steps 196 or 198, the processing returns back to the main engine for the actual update of the component values and re-entry to the matching process.

12 FIG. 5 shows a summary screen 200 of the program which is displayed after a user logs in and proper authorization is received. The summary screen 200 has a menu 14 bar 202. The menu bar 202 has an administration menu option 204, a data mapping menu option 206, a confirm summary menu option 208, a new confirmation menu option 16 210, a logs menu option 212, a file upload menu option 214, a reports menu option 216, a help menu option 218 and a log out menu option 220. Activating the various menu 18 options 204-220 provides functionality in the matching process described above. The menu options 204-220 are displayed on many of the subsequent screens and will be numbered the same for consistency. The help menu option 218 activates various help files while the log out menu option 220 exits the program.

ATTORNEY DOCKET NO. 02045461.

-30-The summary screen 200 and subsequent screens also have a title bar 222 which 2 displays the menu title of the screen. The title bar 222 has a company selection box 224 which allows a user to select different subsidiaries for which summaries of trades are to 4 be displayed on the trade screen.

After the matching process takes place, the program allows additional 6 functionality. Logging in or selecting the summary menu option 208 from any screen results in the display of the summary screen 200 which enables a user to display the 8 results of the matching engine in accordance with all of the trades which have been compared using the above process. The summary screen 200 also has a filter bar 252, a status tab section 254 and a summary table 256. The filter bar 252 has a drop down market type box 262, a product box 264, a counter party box 266, a trade identification 12 box 268, a delivery location box 270, a breaks box 272, a date type box 274, a date drop down box 276, a search button 278 and a reset button 280. By selecting the arrows in a 14 box, a pull down menu with the stored options for a particular box such as the different types of markets or products in the market type box 262 and product type box 264 are 16 displayed. A user may thus define search criteria for trades using the pull down menus with the boxes 262-276. The user may specify a particular counter party or display trades 18 of all counter parties using the counter party box 266. The user may find a single trade by entering the trade identification number in the trade ID box 268. The user may search by a particular delivery location or select all delivery locations in the delivery location box 270. The user may search by broken fields after a first query is made by selecting a PATENT.

ATTORNEY DOCKET NO. 02045461.

-31-list of unmatched fields from the breaks box 272. The user may select from a date type 2 field as the date of the trade in the trade type box 274. The user may also select a range of dates for the date type selected in the trade type box 274 by entering date information 4 in the trade date box 276.

Once the user has defined the search parameters and has clicked the search button 6 278, the details of the trades that satisfy these criteria are displayed in the summary table 256. A new search may be run by selecting the reset button 280 which clears the search 8 fields in boxes 262-276. The trades which meet the criteria the user selects from the filter bar 252 are further separated by their status. Trades of the same status that meet the =

selected criteria are displayed in the summary table 256 by selecting tabs 282-290 in the status tab section 254. Thus, the status tab section 254 has a matched tab 282, an 12 unmatched tab 284, a pending tab 286, a canceled tab 288 and an alleged tab 290.

Selecting any of these tabs 280-290 will display data relating to all trades that satisfy the 14 search criteria and all trades of that status. As explained above, selecting the matched tab 282 will display all trades in the summary table 256 that have all matchable fields 16 matched and both trader and counter party are in agreement with the confirmation details.

The confirmation details agreed and match upon depend on the particular product.

18 Selecting the unmatched tab 284 will display all trades in the summary table 256 that have all key fields matched and one or more of the non-key fields unmatched.

Selecting the pending tab 286 will display all trades in the summary table 256 that do not have all key fields matched. The counter party for the confirmed pending trades will see PATENT.

ATTORNEY DOCKET NO. 02045461.

-32-those trades under their alleged trades. Selecting the canceled tab 288 will display all 2 trades in the summary table 256 that have been chosen by the user to be canceled.

Selecting the alleged tab 290 will display all trades in the summary table 256 which have 4 been alleged to the user by the counter party. These trades are displayed to the counter party as pending if the counter party accesses the program.

6 The summary table 256 has various information from data fields which may be displayed relating to the selected trades under the status of the selected tabs 282-290. In 8 this example, the summary table 256 has all matched trades (from selecting tab 282) which are of the market type physical power (selected from box 262), of all product types (selected from box 264), with Palo Verde as a delivery location (selected from box 270) and for the dates between March 25, 2002 to April 25, 2002 (selected from box 276).

12 The summary table 256 has a headings row 292 which displays different types of information. Different trade rows 294 under the headings row 292 represent different 14 trades and the information from the data fields relating to those trades. The information in the headings row 292 depends on the market selected.

16 In the example in FIG. 5, the infonnation displayed in each of the trade rows 294 is specific to the physical power market and includes a message column 296, an internal 18 identification number column 298, a trade date column 300, a product traded column 302, a reference price column 306, a buy/sell selection column 308, a counter party column 310, a start and end date column 312, a quantity column 314, a total quantity column 316, a price column 318, a date column 320, and a notes column 322. These data fields are PATENT.

ATTORNEY DOCKET NO. 02045461 -.33-selected to provide the best overview of the trade details. Of course, other data fields 2 such as delivery location may be displayed in the summary table 256.

The user may view the message column 296 to determine whether any flags are 4 indicated for a specific trade. These flags indicate whether a trade is disputed, click and confirmed, novated or cleared. A disputed trade is a transaction where all data fields are 6 matched but one of the parties does not agree that the trade occurred. UMA.

click and confirmed trade is a trade that one user chooses to accept the trades alleged to them, and 8 then clicks on the screen to confirm, rather than submitting the actual matching data through the matching engine 14. When. user clicks to confirm the trade, a match to the alleged trade is generated by the system 12, and the trade moves in its pair to the matched status. A novated trade is a trade that has been processed through the matching engine 12 14, deemed matched, and passed on to a clearing house such as the LCH. UMA.

novated trade cannot be disputed or canceled. A cleared trade is a trade that is sent into the 14 system 12 and noted as cleared. This trade, once matched, will be processed and sent on to a clearing house.

16 The notes column 322 contains various icons which indicate various comments that are electronically associated with the page. An icon with a pencil indicates that a no 18 comments have been attached to the trade, an icon with a pad and pencil indicates that the comment has been read and an icon with a pencil inside a notebook indicates that the comments have not been read. The information in the summary table 254 may be imported to a spread sheet by selecting an export button 324. A split screen button 326 PATENT.

ATTORNEY DOCKET NO. 02045461 provides a user with the option of splitting the screen and displaying a second summary 2 table 256 for purposes of comparisons.

All of the data fields relating to a trade may be displayed by selecting the trade 4 identification of a trade in the rows 294 of the summary table 256 in FIG. 5. FIG. 6A.

shows a pending trade details screen 350 that is displayed on selecting a specific pending 6 trade from the screen 200 in FIG. 5. The pending trade details screen 350 has the title bar 222 and an alleged trade details table 352. The alleged trade table 352 has a status 8 column 354, a data field column 356 and a value column 358. The data field column 356 . lists all of the data fields relating to the trade that is displayed if a pending trade is selected from the summary table 256 in FIG. 5. The values of the data fields from the user (trader) are displayed under the value column 358. The user may view the status 12 column 354 to determine the matching significance of a particular data field. For example, a PM flag (PM) indicates that only one value is applicable for that product in 14 that data field. Fields with the PM flag represent data that is derived from the product master values, for example, reference price or quantity unit. Such fields will 16 automatically be designated by the data values from the product master.

In addition, other fields which have default values will be assigned the default value initially.

18 A K flag indicates the data field is a Key field and required for first level matching. These fields include buyer, seller, price or quantity. An R flag indicates the field is Required for second level matching such as payment from or pricing frequency.

An I flag indicates that the data field is for informational purposes only such as the broker PATENT.

ATTORNEY DOCKET NO. 02045461 or trader identity. Finally, an * indicator on any flag indicates the data field is required 2 for submission.

Arrow buttons 360 and 362 allow a user to move to the previous or next trade in 4 sequence and display the details of that trade in the trade table 352. An edit button 364 allows a user to edit the details of the trade by selecting a new value in the value column 6 358 for any data field under the data field column 354. A cancel button 366 allows a user to cancel pending trades which are submitted. Selecting the cancel button 366 will result 8 in a pop-up screen asking the user to confirm the cancellation.

FIG. 6B is a trade details screen 370 accessed for matched or canceled trades.

The trade details screen 370 displays all values of both sides of the trade for each of the data fields. The trade details screen 370 has the title bar 222 and a user trade table 372 12 and a counter party table 374. The user trade table 372 has a status column 376, a data field column 378 and a value column 380. The counter party table 374 has a value 14 column 382 that corresponds with the data fields listed in the data field column 378. All matchable required fields will match between the parties on the screen 370 in the case of 16 a matched trade. As in the case of the details screen 350 in FIG. 6A, the user may view the status column 376 for a flag to determine the matching significance of a particular 18 data field. A user may scroll to the next or previous trade using arrow keys 360 and 362.

The matched trade details screen 370 allows a user to dispute a trade via a dispute button 384. The dispute button 384 is not present if the trade is canceled. By selecting the dispute button 384, the user may elect to flag the matched trade as in dispute between PATENT.

ATTORNEY DOCKET NO. 02045461 the parties. An indicator of a disputed trade will then be displayed in the summary table 2 254 in FIG. 5.

FIG. 6C is a trade details screen 390 accessed for unmatched trades. The trade 4 details screen 390 displays all values of the trade for the user and any other parties for each of the data fields. The trade details screen 390 has the title bar 222, a user trade 6 table 392 and a counter party table 394. The user trade table 392 has a status column 396, a data field column 398 and a value column 400. The counter party table 394 has a 8 value columns for each alleged trade which may match the trade in the user trade table 392. In this case there are three alleged value columns 402, 404 and 406 each of which have values corresponding with the data fields listed in the data field column 398. All matchable required fields will match between the parties on the screen 370 in the case of 12 a matched trade. As in the case of the details screen 350 in FIG. 6A, the user may view the status column 396 for a flag to determine the matching significance of a particular 14 data field. A user may scroll to the next or previous trade using arrow keys 360 and 362.

The data values that do not match between the two tables 392 and 394 will be 16 highlighted as shown in a row 408 which is the pricing frequency data field. In the preferred embodiment, such values will be placed in a signifying color. Of course it is to 18 be understood that other signifying symbols may be used such as bolding, underlining, flashing, etc. The details screen 390 also allows a user to edit the unmatched trades via the edit button 364 and the cancel button 364 as explained above.

ATTORNEY DOCKET NO. 02045461 FIG. 6D is a trade details screen 410 accessed for pending trades. The trade 2 details screen 410 displays all values of the pending trade for the user.

The trade details screen 410 has the title bar 222 and a user trade table 412. The user trade table 412 has a 4 status column 414, a data field column 416 and a value column 418. As in the case of the details screen 350 in FIG. 6A, the user may view the status column 414 for a flag to 6 determine the matching significance of a particular data field. A user may scroll to the next or previous trade using arrow keys 360 and 362. The details screen 410 also allows 8 a user to print the screen and corresponding data fields by selecting a print button 420.

The user may also confirm the trade without submitting his or her own trade details by selecting a confirm button 422. =

Returning to the menu selections of any screen such as the screen 200 in FIG.

5, 12 selecting the logs menu option 212 allows a user to display a log screen 450 shown in FIG. 7A. The log screen 450 has the menu bar 202, a title bar 222, a log tab section 452 14 and a filter bar 454. The log tab section 452 has a file upload log tab 456, a message log tab 458 and an audit tab 460. The logs may be filtered by adjusting a date range box 462 16 in the filter bar 454. The logs each provide various information relating to the trades processed by the program. In FIG. 7A, the log tab 456 is selected and displays a file 18 upload summary table 464.

The file upload summary table 464 has a heading row 466 and rows of files 468 that have been uploaded in the selected date range. The rows of files 468 are updated by the date parameters selected in the date range box 462 by selecting a search button 470.

ATTORNEY DOCKET NO. 02045461 The heading row 466 has a date/time column 472, a file name column 474, a status 2 column 476, a total records column 478, a pass column 480 and a fail column 482. The date and time column 472 displays when the file was uploaded into the system.

The file 4 name column 474 displays the file name of the uploaded file. As explained above, a file may have the data fields for multiple numbers of trades. Such a file has different records 6 with the data fields for each of the different trades. The status column 476 indicates whether the matching engine 14 has completed its processing of the trade or not. The 8 total records column 478 displays the total number of trades stored in the file. The pass column 480 displays the nui-nber of records in the file that are compliant with the input data standards, while the fail column 482 displays the number of records in the file that are corrupted or not compliant. By selecting the fail column 482, the program will 12 display a pop up window with the identification number of each record that failed and the reason for the failure.

14 A message log screen 490 which is shown in FIG. 7B is displayed by selecting the message log tab 458. The menu bar 202, title bar 222, log tab section 452 and filter bar 16 454 are the same as in FIG. 7A. A message log summary table 492 is displayed. The message log summary table 492 has a heading row 494 and rows of messages 496 which 18 have been received in the selected date range. The rows of messages 496 are updated by the date parameters selected in the date range box 462 by selecting the search button 468.

The heading row 494 has an expansion column 500, a message column 502, a reference ID column 504, a date column 506, a type column 508 and a code column 510. The PATENT.

ATTORNEY DOCKET NO. 02045461 message column 502 displays messages related to errors generated by the system due to 2 actions such as upload, cancel, etc. The reference ID column 504 displays the trade reference identification number of the message. The date column 506 displays the date 4 and time when the message was received from the system. The type column 508 displays an internal system tracking number and the code column 510 displays an internal 6 reference code for use in troubleshooting errors. The expansion column 500 allows a user to expand the details of the trade by displaying additional values in the columns 8 when a plus is selected or simply the message text when a minus is selected.

An audit log screen 520 which is shown in FIG. 7C is displayed by selecting the audit log tab 460. The menu bar 202, title bar 222 and log tab section 452 are the same as in FIG. 7A. A filter bar section 522 with a trade ID box 524 is displayed. By entering 12 the trade identification number, a specific trade may be displayed by selecting a search button 526. An audit summary table 528 has a heading row 530 and rows of actions 532 14 which have been taken relating to the trade with the selected identification number. The audit data displayed allows a user to follow the life cycle of each trade that is in the 16 program. The heading row 530 has date/time column 540, a trade status column 542, a trade action column 544 and a detail column 546. The date time column 540 displays the 18 date and time of the trade action. The trade status column 542 displays whether the trade is matched, unmatched, pending or canceled. The trade status column 544 describes the action taken to the trade. The details column 546 provides further information that is useful in following the cycle of the trade through the system.

ATTORNEY DOCKET NO. 02045461 Returning to the menu selections of any screen such as the screen 200 in FIG.

5, 2 selecting the reports menu option 216 allows a user to display a report screen 550 shown in FIG. 8A. The report screen 550 has a manager's view tab 552, a breaks tab 554 and a 4 filter section 556. FIG. 8A shows the manager's view tab 552 selected which displays a summary of the number of trades in each market type and their status. The report screen 6 550 has a date type box 558 that allows selection of values of particular date fields in conjunction with a date range selection box 560. A search button 562 activates the 8 program to screen trades satisfying the date and type parameters from the filter section 556,and display relevant data on a report table 564.

In this example, the table 564 has a header row 566 and rows 568 representing different market types. The table 564 has a matched column 570, an unmatched column 12 572, a pending column 574, an alleged column 576, a canceled column 578 and a totals column 580. The rows 568 show the numbers of each types of trades in columns 14 580 which are referenced to the particular market type during the selected time period. UMA.

bottom totals row 582 shows the total number of each column type. An export button 16 584 allows the user to export the data to a spreadsheet. By selecting a particular number entry in any of the rows 568, the program will display the confirmation summary screen 18 200 as shown in FIG. 5.

Selecting the breaks tab 554 causes a breaks report screen 586 to be displayed as shown in FIG. 8B. The breaks report screen 586 displays the number of trades of each market type that have broken or unmatched data values. An additional counter party PATENT.

ATTORNEY DOCKET NO. 02045461 filter box 588 is in the filter section 556 that allows a user to filter by a specific counter 2 party or to select all. The search button 562 activates the program to screen trades satisfying the date and counter party parameters from the filter section 552 and display 4 relevant data on a report table 590.

In this example, the table 590 has a header row 592 and a data field column 6 with entries representing different data fields. The table 590 also has a series of columns 596 each of which represents a particular market type. A series of rows 598 show the 8 numbers of each trade of a particular market type having a broken or unmatched data field in the data field column 594. The bottom totals row 582 shows the total number of = 10 trades in each broken data type. By selecting the particular number, the program will display the confirmation summary screen 200 as shown in FIG. 5.

12 Returning to the menu selections of any screen such as the screen 200 in FIG. 5, selecting the data mapping menu option 206 allows a user to convert data values to the 14 standard used by the system 10 via a data mapping screen 600 shown in FIG. 9. Once the data is converted using the data mapping screen 600, the matching process shown in FIG.

16 4 may be initiated. The data mapping screen 600 has a filter section 602 and a summary table 604. The summary table 604 displays the data field mapping which is established 18 on the data mapping details screen as will be explained below. The filter section 602 has a market type box 606 and a field box 608. The market type box 606 allows a user to 20 select a market type from the types stored in the database. The field box 608 allows a PATENT.

ATTORNEY DOCKET NO. 02045461 user to select fields such as delivery location, counter party, pricing frequency etc. A.

2 search button 610 when selected will filter the data selected in the filter section 602.

The summary table 604 has a heading row 620. The heading row 620 has a field 4 name column 622, a system value column 624 and a user value column 626.

The data fields entered in the columns 622, 624 and 626 may be sorted ascending or descending by 6 clicking on the column headings. In order to add a new mapped value, the user may select the market type and field via the boxes 606 and 608 and by selecting a map it 8 button 628.

Once the map it button 628 is selected, a data mapping details screen 650 is displayed as shown in FIG. 10. The data mapping details screen 650 has a filter section 652 which has a market type selection box 654, a field selection box 656 and a search 12 button 658. The screen 650 also has a summary table 660. The summary table 660 has a standard data value box 662, a user data value box 664, and various market type 14 selections 666. The summary table 660 includes a map it button 668.

The user selects one field using the field selection box 656 and the market type 16 box 654 and selects the search button 656. After the user selects the field, the standard data value box 662 is updated and provides a list of all of the standard data values for the 18 chosen field. The user selects the desired standard value, and enters the user value in the user data value box 664. The entering of a user value activates various market type selections 666 and the user may select the market types for which the field applies by checking the boxes appearing next to each market type listed. These values are mapped PATENT.

ATTORNEY DOCKET NO. 02045461 to each other such that the user value is now the equivalent of the selected system value 2 by selecting the map it button 668.

The summary table 660 has a mapped value table 670 which shows the result of 4 the mapped value. The mapped value table 670 has a heading bar 672 which has a matching area 674 that displays a user type column 676, a standard value column 678, 6 and a market type column 680. Each successive row 682 displays the user value that is mapped to the system value and the market type. Each row 682 has a check box 684 and 8 the user value and the market type. The value may be deleted by checking the check box 684 and selecting a delete button 686. The user may return to the data mapping screen 600 in FIG. 9 by selecting the done button 688.

Returning to the menu selections of any screen such as the screen 200 in FIG.

5, 12 selection of the new confirmation menu option 210 allows a user to submit confirmation information on a confirmation submission screen 700 shown in FIG. 11. The submission 14 screen 700 represents the submission of trade data through a web enabled computer such as the computer 22 in FIG. 1. Once the trade data is submitted via the submission screen 16 700, the matching process described in FIG. 4 is performed to confirm the submitted trade.

18 A selection area 702 has a market type box 704, a product box 706, a counter party box 708 and an action box 710. The market type box 704 and product box have pull down lists that allow a user to select the desired market and product. The counter party box has a pull down list which includes all known counter parties for the PATENT.

ATTORNEY DOCKET NO. 02045461 user to select. The action box 710 allows the user to define the trade action as either 2 buying or selling.

After selecting a certain type of trade, a data table 720 is populated with various 4 data values. The data table 720 has a fields column 722 and a user values column 724.

The data table 720 has data rows 726 for each data field with the selected trade and a 6 value for that data field. Each data field has a flag (PM, K, R, I or *) which signifies its importance to the matching process as explained above in FIG. 6A. Of course other 8 indicators such as type style or color may be used to designate the status of the fields.

Certain fields such as a data field 730 which is the payment terms of the trade have a pull down menu with listed potential options for payment terms. The user may select a value from the list or enter his or her own value for the field which accepts 19 unique values. Once a user has insured that values have been entered in all required fields, he or she may submit the trade data for confirmation by the matching engine by 14 selecting a submit button 732. The user may close the screen 700 by selecting a close button 734.

16 Returning to the menu selections of any screen such as the screen 200 in FIG. 5, selection of the file upload menu option 214 allows a user to upload files via a file upload 18 screen 750 as shown in FIG. 12. The file upload screen 750 represents the submission of trade data via a tab delimited file uploaded through a web enabled computer such as the computer 24 in FIG. 1. As explained, above, such a file must be written in a fonnat with PATENT.

ATTORNEY DOCKET NO. 02045461 different trades in separate records that may be converted by the system to the system 2 format.

The file upload screen 750 has an upload area 752. The upload area 752 has file 4 selection boxes 754 and browse buttons 756. The selection boxes 754 and browse buttons 756 may be used to access the files stored on the computer or another networked 6 computer. As may be seen in this example, up to three different files may be uploaded simultaneously; but it is to be understood that different numbers of files may also be 8 uploaded. Once the files are selected, an upload button 758 is selected to send the files to the system.

Returning to the menu selections of any screen such as the screen 200 in FIG.

5, selection of the administration menu option 204 allows an administrative user to manage 12 the system via an administrative screen 800 as shown in FIG. 13A. The administrative screen 800 includes a counter party filter tab 802, a default values tab 804, a users tab 14 806, a parents tab 808 a companies tab 810, a products tab 812 and a data values tab 814.

By selecting the user tab 806, a screen is presented to allow the user to associate a 16 company name with system users, enter user data, add new users, set parameters for use such as the permissible market types for trades submitted by a user. The user screen may 18 also be used to activate and deactivate users authorized for access to the system 10 as well as set passwords for those users.

By selecting the parents tab 808, a screen is displayed to allow the administrative user to change data relating to parent companies. By selecting the companies tab 810, a PATENT.

ATTORNEY DOCKET NO. 02045461 screen is displayed to allow the administrative user to change data relating to the 2 companies allowed to trade. By selecting the products tab 812, a screen is displayed to allow an administrative user to change data relating to the products associated with the 4 system. By selecting the data values tab 814, the administrative user may change the data values associated with the system.

6 By selecting the counter party filter tab 802, the screen 800 is displayed with a filter bar 816 and a summary table 818. Before trade data is accepted from a counter 8 party, a counter party filter must be set up via the screen 800 that allows confirmations between various counter parties and traders. The filter bar 814 has a market type box 820 that allows the selection of a particular market type to classify counter parties. The summary table 818 has a user settings column 822, a counter party settings column 824, a 12 user set counter party to column 826, a company name column 828, a counter party has user set to column 830. Once the market type is selected via the market type box 820, a 14 list of companies (counter parties) will be listed in the summary table 818. The user settings column 822 is used to hide fields containing economic values that are sent to the 16 counter party for which the user does not have a match and which appear as alleged trades. This functionality is used to protect fields such as price, quantity, total quantity, 18 start date, end date, etc. from being seen by a counter party a user may not be familiar with. Similarly, the setting column 824 is a read only column which displays whether the counter party has hidden these details. Both the user and the counter party must leave the PATENT.

ATTORNEY DOCKET NO. 02045461 respective settings columns 822 and 824 as not hidden in order for both to view price, 2 volume and trade durations fields from the alleged screens.

The user set counter party to column 826 is used to enable or disable confirmation 4 of trades with the counter party. The counter party has user set to column 828 is read only and shows the status that the counter party has designated the user to either enable or 6 disable confiunation of trades via the system. In order to confirm trades both the user and the counter party must set the columns 826 and 828 to yes or enable.

8 A check all button 832 enables a user to check all the boxes at the same time. UMA.

clear all button 834 enables a user to clear the checks from all the boxes at the same time.

A save button 836 allows a user to save the settings for the counter parties shown in the summary table 818.

12 The capability to change data information in the display shown in FIG.

13A or 13B, a default values screen 850 is displayed as shown in FIG. 13B. The default values screen PATENT.

ATTORNEY DOCKET NO. 02045461 850 allows a user to enable default values for certain fields in trades of a certain market 2 type or counter party. The default values screen 850 has a filter bar 852 with a market type box 854 and a product box 856. By selecting a market type box 854 and a product 4 box 856, a user may display all counter party information and default values in a summary table 860.

6 The summary table 860 includes a counter party column 862 and various other columns of field values 864 that represent different data values for the selected market 8 type and product. The summary table 860 has other rows 866 each of which represents different counter parties that trade in the market type and product. The rows 866 each have a selection box 868. By checking the selection box 868, a user may select a clear button 870 to clear out all of the values for the selected row for the counter party. A user 12 may also select a check all button 872 to check all of the rows 866. A.

user may clear all the checks by selecting a clear all button 874.

14 Certain fields in the summary table 860 such as a settlement frequency field 880 have "none" entered. In order to enter values, a user may select the field 880 which 16 causes a pop up window 890 as shown in FIG. 13C to be displayed. The pop up window 890 has a filter bar 892 with a market type box 894 and a product box 896 which will 18 initially have the selected market type and product from the default data screen 850 in FIG. 13B. The pop up window 890 will have selection boxes 898 that correspond to the fields that were selected from FIG. 13B. Each selection box 898 has a pull down list 900 which lists different default values. A user may select a default value or enter another PATENT.

ATTORNEY DOCKET NO. 02045461 value in the box 898. The default values will be initially selected to none until changed 2 by the user.

A show all button 902 allows a user to display other fields that may have default 4 values set up for the particular product and market. The entered default values may be saved via a save button 904 and the pop up window 890 may be closed via a close button 6 906.

It will be apparent to those skilled in the art that various modifications and 8 variations can be made in the method and system of the present invention without departing from the spirit or scope of the invention. Thus, the present invention is not limited by the foregoing descriptions but is intended to cover all modifications and variations that come within the scope of the spirit of the invention and the claims that 12 follow.

Claims ( 45 )

PRIVILEGE IS CLAIMED ARE DEFINED AS FOLLOWS:

interface for receiving XML-type trade data; a tab delimited file interface for receiving trade data in a tab delimited format; and a Simple Object Access Protocol (SOAP) data interface protocol for inputting trade data to the system.

tags for defining trade product characteristics, the trade product characteristics being used as matching criteria.

categorizing by the computing device the trade based on the comparing step to indicate which of the subsets of data fields are inconsistent; storing by the computing device the trade data according to the trade category; and generating by the computing device an electronic trade confirmation if certain of the subsets of data fields are consistent.

matched indicating that all data fields are consistent; unmatched indicating that key data fields are consistent but at least one other data field is inconsistent; pending indicating that one or more key data fields are inconsistent; alleged indicating that a counter party has submitted the trade; and canceled indicating that the trade has been withdrawn.

connecting both a trader and a counter party electronically to a matching engine; submitting trader data including different data fields relating to a trade to the matching engine; submitting counter party data including different data fields relating to the trade to the matching engine; in the matching engine, comparing pre-defined subsets of the trader and counter party data fields and categorizing the trade based on the comparison to indicate which of the subsets of data fields are inconsistent;

storing the trade according to the trade category; and generating an electronic trade confirmation if certain of the trader and counter party subsets of data fields are consistent.

electronic Confirmation Matching.

electronic Confirmation Matching, eCM, live since 2004, is the established standard for confirmation matching in the European energy trading industry. eCM is a solution for energy trading market participants that helps reduce operational risk, cost and delays in processing electronic deal confirmations. The software implements standardised business processes compliant with the EFET standards that automate the exchange and processing of data between traders and brokers.

• Exchange electronic documents with more than 60 organisations on connection.

• Automatically match trade confirmation documents.

• Multiple user roles to control access.

• Multiple organisations to enable intercompany matching.

• Extensive search and reporting functions.

• Lower manual intervention, so lower risk of error.

• Detailed, secure audit trail.

• Immediate connection to over 60 market participants, both traders and brokers.

FIELD OF THE INVENTION.

The following relates generally to electronic data processing, and more particularly to systems and methods for processing electronic trade confirmation data produced upon execution of trades in financial markets.

BACKGROUND OF THE INVENTION.

Specialized computing systems and communications protocols that enable high-volume data processing and communications in financial markets are complex. In a given trading day, millions of electronic messages, signals and reports embodying buy orders, sell orders, change orders, trade confirmations, quotes and the like are created, modified, transmitted, relayed, received, and otherwise processed amongst electronic trading venues, venue members, buy-side managers, beneficial clients, market makers, settlement houses, custodians, investment banks and other members and participants in financial markets. These complex, highly specialized systems and processes must be highly-reliable, accurate, rapid and efficient in order to fulfill their intended functions.

Orders to buy or sell financial instruments, such as securities, bonds, derivatives and the like are typically posted to an electronic trading venue on behalf of beneficial owners by a licensed member of the trading venue, known as a venue member. The beneficial owner may be a direct client of the venue member, or may be a client of an intermediary, such as a buy-side fund manager, that is itself the client of the venue member.

Venue members route electronic orders to the appropriate trading venue for posting, and the trading venue employs matching engines to automatically execute trades by matching posted buy and sell orders. For a given trade, the side removing an order matched to an original, previously-posted order is known as the liquidity-taker, whereas the side posting that original order is known as a liquidity-maker.

The venue members that posted the matched orders each receive a respective electronic trade confirmation typically from the trading venue. A clearing house also receives a respective electronic trade confirmation. Each venue member verifies the electronic trade confirmation with the trading venue and, depending upon market rules, one venue member or both venue members forward their respective electronic trade confirmations to the clearing house. Each electronic trade confirmation typically incorporates data concerning various attributes of the trade. For example, a trade confirmation may include symbol of the financial instrument, buy or sell, quantity, execution price, liquidity flag, and trading venue.

Trading venues establish pricing models that set applicable fees or rebates for trades that are executed for venue members. Pricing models include symmetrical and asymmetrical models. At the trade level, with a symmetrical pricing model both venue members typically pay a fee to the trading venue, whereas with an asymmetrical pricing model one venue member pays a fee and the other venue member receives a rebate. Which venue member pays a fee and which venue member receives a rebate depends upon whether the particular asymmetrical pricing model being employed offers the rebate to the liquidity-maker on the trade or to the liquidity-taker. For example, according to make/take pricing, the maker receives a rebate and the taker pays a fee. According to take/make pricing, the taker receives a rebate and the maker pays a fee. Trading venue pricing models may also be structured to establish variable fees/rebates based on a venue member's overall average trading volume or other factors as determined by the trading venue.

Each trading venue tracks trades executed over a given billing period, such as a month. At the end of the billing period the trading venue reports to each venue member only a respective aggregate fee/rebate amount that is owed by that venue member to the trading venue according to the applicable pricing model and the venue member's trading activity. The aggregate fee/rebate is treated by the venue member as an expense, and the expense is generally considered covered by the commissions the venue member charges to its clients, for example the buy-side managers. However, because the venue member and the buy-side managers are ultimately fiduciaries of the beneficial owner, it could be argued that they should be passing individual trade-level fees as well as rebates along to the beneficial owners.

A technical difficulty arises for the venue members however in passing individual fees or rebates to beneficial owners. This is primarily because, as only the aggregate fee/rebate is reported by the trading venue, the individual trade-level fees or rebates that were combined to form it are individually irretrievable from the aggregate by the venue member or any other downstream systems. The aggregate fee/rebate is simply not granular enough to enable accurate allocations to beneficial owners. The venue member therefore receives rebates subsumed in the aggregate fee/rebate that cannot be fairly divided out and passed on to the buy-side managers so they may be allocated to the beneficial owners. This technical difficulty creates a potential for conflict between the buy-side manager and the venue member: the venue member, by potentially receiving rebates it cannot technically pass along, has an incentive to route orders based on trading venue rebates rather than based on best liquidity for the beneficial owner. Even if the entire aggregate fee/rebate is able to be passed back to a buy-side manager thus alleviating the venue member's conflict, the conflict simply shifts to between the buy-side manager and the beneficial owner. This is because the buy-side manager is similarly unable to properly allocate individual fee/rebates to the individual beneficial owners that it services. As a result of this technical limitation, the venue members and buy-side managers are generally failing to pass back trading venue rebates to the beneficial owners and failing to receive from the beneficial owners trading venue fees.

With symmetrical pricing no rebates are paid such that the beneficial owner may be roughly passed the payable fees through proper application of commissions and service fees passed from the venue member to the beneficial owners. However, such commissions and services fees cannot work in the same way to pass rebates to beneficial owners, so the problem is particularly difficult where asymmetrical pricing models are being employed.

To compound the problem, buy-side manager legacy computing systems adapted to process a specific format of trade confirmation report relayed by the venue member are often not capable of receiving or reconciling any additional electronic messages incorporating additional data respecting the particular trade, such as any trading venue fees/rebates applicable to the trade. As result, the venue member is confronted with a further technical barrier to electronically transmitting data about individual fees/rebates, should it even have such information, to the buy-side managers.

In an effort to compensate for the technological barriers described above, some buy-side managers may have an arrangement whereby a portion of an aggregate trading venue fee/rebate incurred in a given month is passed along to the client by way of incorporation into a monthly invoice. However, several conflicts persist through such arrangements because the venue member is not receiving trade-level fee/rebate information.

SUMMARY OF THE INVENTION.

In accordance with an aspect, there is provided a computer-implemented method for processing electronic trade confirmation data generated by at least a first server computer upon execution of a trade in a data processing system comprising at least a second specifically programmed server computer coupled over a communications network to the first server computer, the method comprising: using the second server computer, determining an execution price from the electronic trade confirmation data generated by the first server computer; using the second server computer, determining at least one fee/rebate for a side of the trade; using the second server computer, determining a modified execution price for the side of the trade based at least on the execution price and the at least one fee/rebate; and using the second server computer, associating the modified execution price with the trade in data store stored on a persistent memory accessible by the second server computer.

The electronic trade confirmation data may be determined from an either transitory or non-transitory electronic trade confirmation report that incorporates or refers to data concerning the trade, including the execution price (i. e. the trading venue clearing price) of the trade.

By determining a modified execution price based at least on the execution price and the at least one fee/rebate that is determined to be applicable to the trade, the at least one fee/rebate may be allocated to the beneficial owner on a trade-by-trade basis by way of being passed to the beneficial owner via the modified execution price. Because the beneficial owner is allocated the fee/rebate on a trade-by-trade basis, the venue member and the buy-side manager are technically enabled to pass on the fee/rebate to the beneficial owner. This deals with the conflict between the venue member and the buy-side manager, and between the buy-side manager and the beneficial owner.

In an embodiment, a modified electronic trade confirmation report incorporating the modified execution price in lieu of the execution price is produced and may be transmitted downstream to, for example, a buy-side manager system. The buy-side manager system is able to handle the modified electronic trade confirmation report as it had previously handled an incoming electronic trade confirmation report without necessarily requiring additional modifications to its legacy systems.

In an embodiment, determining the modified execution price comprises calculating a sum of, or difference between, the execution price and the at least one fee/rebate. In another embodiment, determining the modified execution price comprises calculating a sum of, or difference between, the execution price and an estimate of the at least one fee/rebate. In another embodiment, determining the modified execution price comprises calculating a sum of, or difference between, the execution price and a portion of the at least one fee/rebate.

In an embodiment, during a billing period, payments are accrued based on modified execution prices that are received from, or sent to, beneficial owners for trades executed and, after the billing period, accrued payments are balanced against an aggregate fee/rebate applied by the trading venue and the execution prices of trades executed during the trading period.

In an embodiment, payments received from, and sent to, beneficial owners are received from, and sent to, respective representatives of the beneficial owners.

In an embodiment, payments received incorporate commission amounts, and the balancing comprises balancing the accrued payments, less the commission amounts, against the aggregate fee/rebate.

In an embodiment, the electronic trade confirmation data is determined from an electronic trade confirmation report. In an embodiment, associating the modified execution price with the trade comprises producing a modified electronic trade confirmation report incorporating the modified execution price.

In an embodiment, both the electronic trade confirmation report and the modified execution price are transmitted to at least one downstream system. In an embodiment, the electronic trade confirmation report and the modified execution price are transmitted to respective, different downstream systems.

In an embodiment, producing the modified electronic trade confirmation report comprises creating a copy of the electronic trade confirmation report and replacing the execution price in the copy with the modified execution price. In another embodiment, producing the modified electronic trade confirmation report comprises replacing the execution price in the electronic trade confirmation report with the modified execution price.

In an embodiment, the modified execution price is incorporated in a modified electronic trade confirmation report. In an embodiment, the modified electronic trade confirmation report incorporates a different number of attributes of the trade than does the electronic trade confirmation report. In another embodiment, the modified electronic trade confirmation report incorporates only the modified execution price and an identifier uniquely identifying the electronic trade confirmation report. In an embodiment, the identifier is an order identifier uniquely identifying the order that was filled by the trade.

According to another aspect, there is provided a non-transitory computer readable medium embodying a computer program executable on a computing system for processing electronic trade confirmation data upon execution of a trade, the computer program comprising computer program code for determining an execution price from the electronic trade confirmation data; computer program code for determining at least one fee/rebate for a side of the trade; computer program code for determining a modified execution price for the side of the trade based at least on the execution price and the at least one fee/rebate; and computer program code for associating the modified execution price with the trade.

According to another aspect, there is provided a computing system comprising at least one processor executing instructions for processing electronic trade confirmation data upon execution of a trade, the at least one processor configured therewith to determine an execution price and associate with the trade a modified execution price determined based on the execution price and at least one fee/rebate applicable to the trade.

The computing system may be incorporated as part of one or more larger systems, such as an order management system, a direct market access system, an execution management system, an algorithmic trading platform, a middle-office settlement system, or a prime brokerage system. The computing system may be incorporated as part of a trading venue.

According to another aspect, there is provided a non-transitory computer readable medium embodying a computer program executable on a computing system for processing electronic trade confirmation data upon execution of a trade to determine an execution price and associating with the trade a modified execution price determined based on the execution price and at least one fee/rebate applicable to the trade.

BRIEF DESCRIPTION OF THE DRAWING.

Embodiments of the invention will now be described with reference to the appended drawings in which:

FIG. 1 is a schematic diagram showing a flow of electronic information in a trade settlement process implemented in a networked computing environment;

FIG. 2A is a schematic diagram showing a flow of electronic information in a trade settlement process implemented in a networked computing environment for processing an electronic trade confirmation report on two sides of a trade, according to an embodiment;

FIG. 2B is a schematic diagram showing a flow of electronic information in a trade settlement process implemented in a networked computing environment for processing an electronic trade confirmation report on only one side of a trade, according to an embodiment;

FIG. 3A is a schematic diagram showing a flow of electronic information in an alternative trade settlement process implemented in a networked computing environment processing an electronic trade confirmation report on two sides of a trade by or at the direction of the trading venue, according to an embodiment;

FIG. 3B is a schematic diagram showing a flow of electronic information in the alternative trade settlement process implemented in a networked computing environment processing an electronic trade confirmation report on only one side of a trade at the direction of the trading venue, according to an embodiment;

FIG. 3C is a schematic diagram showing a flow of electronic information in the alternative trade settlement process implemented in a networked computing environment processing an electronic trade confirmation report on one side of a trade by or at the direction of the trading venue and on the other side of the trade by or at the direction of a venue member, according to an embodiment;

FIG. 4 is a flow chart depicting steps in a computer-implemented method of processing an electronic trade confirmation report, according to an embodiment;

FIG. 5 is a schematic diagram of an aspect of the computing environment which may be used to implement on or more embodiments of the method;

FIG. 6 is a representation of an electronic trade confirmation report produced by a trading venue for a liquidity-taker buyer, according to an embodiment;

FIG. 7 is a representation of a pricing schedule with consolidated trading venue pricing, according to an embodiment;

FIG. 8 is a representation of a consolidated order book incorporating orders from multiple venues, according to an embodiment;

FIG. 9 is a representation of a modified electronic trade confirmation report produced for the liquidity-taker buyer based on the execution price of the electronic trade confirmation report of FIG. 6 and an applicable fee/rebate, according to an embodiment;

FIG. 10 is a representation of an electronic trade confirmation report produced by the trading venue for a liquidity-maker seller, according to an embodiment;

FIG. 11 is a representation of a modified electronic trade confirmation report produced for the liquidity-maker seller based on the execution price of the electronic trade confirmation report of FIG. 10 and an applicable fee/rebate, according to an embodiment;

FIG. 12 depicts a table having multiple electronic trade confirmation reports;

FIG. 13 lists computer-readable program code that is storable in a non-transitory computer-readable medium establishing a function having hardcoded example fee schedules; e.

FIG. 14 lists computer-readable program code that is storable in a non-transitory computer-readable medium establishing a function for retrieving a. csv file containing the electronic trade confirmation reports depicted in FIG. 12.

DETAILED DESCRIPTION.

FIG. 1 is a schematic diagram showing a flow of electronic information in a basic trade settlement process implemented in a networked computing environment. In this arrangement, a trading venue 12 has, amongst its members, venue members 14 a and 14 b . A buy-side manager 16 a is a client of venue member 14 a . In this arrangement, there is also a beneficial owner 18 a who is, in turn, is a client of buy-side manager 16 a . Similarly, a buy-side manager 16 b is a client of venue member 14 b . Beneficial owner 18 b is, in turn, a client of buy-side manager 16 b . A clearing house 20 is available for clearing trades.

Each of the entities described above, and others, include special purpose, specifically programmed client computers and server computers coupled to each other for facilitating communications via a wired or wireless communications network such as a local area network, wide area network, the Internet or other proprietary or publicly-accessible networks. For the sake of brevity, these computers are referred to herein by entity name. For example, trading venue 12 refers to one or more trading venue computers, e. g., server computers. Similarly, venue members 14 a and 14 b refers to one or more venue member computers, e. g., servers and/or client computers etc. Communications between the client and server computers, particularly when traversing one or more publicly-accessible networks, are preferably encrypted to ensure the security of the information incorporated therein.

To initiate, the buy-side manager 16 a places a parent order pORDa with venue member 14 a based on instructions from beneficial owner 18 a . Venue member 14 a subsequently posts a child order cORDa at trading venue 12 . Similarly, venue member 14 b posts a child order cORDb at trading venue 12 on behalf of beneficial owner 18 b.

In the process depicted in FIG. 1, child orders cORDa and cORDb are matched by a matching engine at trading venue 12 , which then produces electronic trade confirmation reports TCa, TCb and TCc for venue member 14 a , venue member 14 b , and clearing house 20 , respectively. Electronic trade confirmation reports contain electronic trade confirmation data specific to the trade and trading venue. Because venue member 14 a posted the order cORDa that was later filled by venue member 14 b 's later-posted order cORDb, a liquidity field in electronic trade confirmation report TCa for venue member 14 a includes a value that indicates liquidity-maker, whereas the liquidity field in electronic trade confirmation report TCb for venue member 14 b includes a value that indicates liquidity-taker.

Electronic trade confirmation report TCa is passed by venue member 14 a to both buy-side manager 16 a and clearing house 20 . Electronic trade confirmation report TCa is, in turn, passed by buy-side manager 16 a to both beneficial owner 18 a and clearing house 20 .

Similarly, electronic trade confirmation report TCb is passed by venue member 14 b to buy-side manager 16 b and the clearing house 20 , and the electronic trade confirmation report TCb is, in turn, passed by the buy-side manager 16 b to both beneficial owner 18 b and clearing house 20 . Clearing house 20 manages clearing the trades.

It can be seen that, in the process depicted in FIG. 1, the beneficial owners 18 a , 18 b receive respective electronic trade confirmation reports TCa, TCb that each incorporate the execution price as cleared (i. e., clearing price). As the electronic trading venue 12 has not provided information about any trading venue fee/rebates at this trade level, the beneficial owners 18 a , 18 b receive no information regarding the trading venue fee/rebates at the trade level. The beneficial owners 18 a , 18 b therefore are not able to determine from the report the true price of the trade.

It will be understood that various alternative arrangements of parties in a market may exist. For example, an arrangement may exist in which the buy-side manager 16 a trades on its own behalf, either on the trade in question or on all trades it handles. In such an arrangement, the buy-side manager 16 a would not pass an electronic trade confirmation report outside of itself and on to a beneficial owner client 18 a due to the buy-side manager 16 a being, in effect, the beneficial owner 18 a . This could be the case on one side of the trade or on both sides, as depicted generally using the dotted-line box 16 a / 18 a.

Turning now to FIG. 2A, there is shown a schematic diagram showing a flow of electronic information in a trade settlement process implemented in a networked computing environment for processing electronic trade confirmation data that may be determined from an electronic trade confirmation report, according to an embodiment. The trade settlement process in this embodiment is similar to that shown in FIG. 1 and described above. However, in this embodiment, after the venue member 14 a receives the electronic trade confirmation report TCa from trading venue 12 , for example, at least a first server computer, the electronic trade confirmation report TCa is subjected to processing by one or more computing devices 90 , for example, at least a second server computer, in order to determine the electronic trade confirmation data and produce a modified trade confirmation report MTCa incorporating a modified execution price determined based at least on the execution price in the electronic trade confirmation report TCa and a trading venue fee/rebate that is determined to be applicable to the trade. The modified electronic trade confirmation report MTCa is provided downstream to the buy-side manager 16 a for use in allocating the trading venue fee/rebate to beneficial owner 18 a (and/or for its own use) through the modified execution price.

In this scenario, the electronic trade confirmation report TCb is also subjected to processing by one or more computing devices 90 (hereinafter referred to as “process 90 ”) in order to produce a modified electronic trade confirmation report MTCb incorporating a modified execution price based at least on the execution price determined from the electronic trade confirmation report TCb and a trading venue fee/rebate that is determined to be applicable to the trade. The modified electronic trade confirmation report MTCb is provided downstream to the buy-side manager 16 b for use in allocating the trading venue fee/rebate to beneficial owner 18 b (and/or for its own use) through the respective modified execution price.

While, in the scenario described above, processing by the one or more computing devices 90 has been independently executed for the benefit of both the buyer side and the seller side, this is not required. For example, processing by the one or more computing devices 90 could be executed for the benefit of only one side of the trade. Such a scenario is depicted in FIG. 2B, in which process 90 is executed downstream from venue member 14 a , but not executed downstream from venue member 14 b.

Each venue member 14 a , 14 b receives its respective electronic trade confirmation reports TCa, TCb and stores, for further use, data incorporated in the respective electronic trade confirmation reports as an electronic trade confirmation report. The electronic trade confirmation report may be held as a record in persistent memory such as in a database or other data store on a hard disk, held in random access memory, or otherwise made available for further use. The electronic trade confirmation report may be held in exactly the same form as the received electronic trade confirmation report or may be re-formatted in some manner to suit processing or the technical requirements of the venue member system or other system handling the processing.

The venue members 14 a , 14 b typically each execute a standard computer implemented process of confirming that the received electronic trade confirmation data is proper, such as ensuring it correlates properly to the order cORDa, cORDb that the venue member 14 a , 14 b has record of posting. For example, the venue member 14 a , 14 b may store an electronic order record. Forwarding the electronic trade confirmation report TCa also to the buy-side manager 16 a is part of the confirmation process, as the buy-side manager 16 a is able to provide confirmation of the correctness of the trade.

During clearing, the clearing house 20 executes a standard computer implemented process for clearing the trade, and settlement is thereafter handled in a known manner.

The computer implemented process by devices(s) 90 can be executed at any time after the trade has been executed, for example at a point downstream from the trading venue 12 and upstream from the beneficial owner 18 a . As such, the process 90 may be executed by one or more venue member systems (or one or more systems overseen by venue members 14 a / 14 b ) receiving its respective electronic trade confirmation report TCa/TCb, or may be conducted by another system either downstream from, or receiving the electronic trade confirmation report TCa/TCb in parallel to, the venue member 14 a / 14 b responsible for handling the trade for the beneficial owner 18 a / 18 b . For example, the process 90 may be conducted at an order management system, at a direct market access system, at an execution management system, at an algorithmic trading platform, at a middle-office settlement system, at a prime brokerage system, or at some other suitable point.

In an alternative embodiment, the process 90 may be executed at the trading venue 12 by being incorporated into a trading venue system (or otherwise at the direction of the trading venue 12 ), at a point during the trade settlement process that enables the modified electronic trade confirmation reports MTCa, MTCb to be provided to respective venue members 14 a , 14 b along with (or instead of) the electronic trade confirmation reports TCa, TCb. FIG. 3A is a schematic diagram depicting a flow of electronic information in such an alternative trade settlement process implemented in a networked computing environment. The modified trade confirmation reports MTCa, MTCb may be provided before, at the same time, or after the electronic trade confirmation report TCa, TCb. In fact, in one embodiment the trading venue 12 does not produce electronic trade confirmation reports that are subsequently modified, but simply operates on electronic trade confirmation data to produce a modified price that can subsequently be included as part of an electronic trade confirmation report TCa or TCb.

Furthermore, the trading venue 12 may choose to selectively produce modified electronic trade confirmation report MTCa for provision to venue member 14 a but not produce modified electronic trade confirmation report MTCb for provision to venue member 14 b (or vice versa), due to differences in membership levels between venue member 14 a and venue member 14 b , or some other factor. FIG. 3B is a schematic diagram depicting a flow of electronic information in such an alternative scenario implemented in a networked computing environment, in which process 90 is executed for the benefit of venue member 14 a and those downstream from venue member 14 a , but not executed for the benefit of venue member 14 b and those downstream from venue member 14 b.

In one scenario venue member 14 a could first implement process 90 for itself and then, at a later time—perhaps even years later—trading venue 12 could implement process 90 , to provide the benefit to all of its venue members. Venue member 14 a already having implemented process 90 to produce modified electronic trade confirmation reports MTCa for itself may negotiate temporarily or permanently opting-out of receiving such modified trade confirmation reports MTCa from trading venue 12 . FIG. 3C is a schematic diagram depicting such an alternative scenario, in which process 90 is executed by or at the direction of trading venue 12 for the benefit of venue member 14 b and those downstream from venue member 14 b , but not executed by or at the direction of trading venue 12 for the benefit of venue member 14 a and those downstream from venue member 14 a . Rather, venue member 14 a executes process 90 for its own benefit and the benefit of those downstream from venue member 14 a.

In another scenario a venue member such as venue member 14 a could decide to start implementing process 90 for itself, even if trading venue 12 had long been able to produce the modified trade confirmation reports MTCa for venue members. As an example, venue member 14 a may choose to do this if it has determined that it is more cost-effective, more controllable or quicker to implement process 90 on its own to produce its own modified trade confirmations MTCa, rather than rely on trading venue 12 to produce them.

FIG. 4 is a flowchart of the process 90 , according to an embodiment. During processing of the electronic trade confirmation data, generally an execution price (i. e., “clearing” price) is determined from the electronic trade confirmation data (step 100 ), at least one fee/rebate applicable to the trade is determined (step 200 ), a modified execution price is determined based at least on the execution price and the at least one fee/rebate (step 300 ), and the modified execution price is then associated with the trade (step 400 ).

In this embodiment, process 90 is executed on a special purpose computing system 1000 such as that shown in FIG. 5. The computing system 1000 may be incorporated into an order management system, a direct market access system, an execution management system, an algorithmic trading platform, a middle-office settlement system, a prime brokerage system, or other system between a trading venue and the beneficial owners of trades.

Computing system 1000 includes a bus 1010 or other communication mechanism for communicating information, and a processor 1018 coupled with the bus 1010 for processing the information. The computing system 1000 also includes a main memory 1004 , such as a random access memory (RAM) or other dynamic storage device (e. g., dynamic RAM (DRAM), static RAM (SRAM), and synchronous DRAM (SDRAM)), coupled to the bus 1010 for storing information and instructions to be executed by processor 1018 . In addition, the main memory 1004 may be used for storing temporary variables or other intermediate information during the execution of instructions by the processor 1018 . Processor 1018 may include memory structures such as registers for storing such temporary variables or other intermediate information during execution of instructions. The computing system 1000 further includes a read only memory (ROM) 1006 or other static storage device (e. g., programmable ROM (PROM), erasable PROM (EPROM), and electrically erasable PROM (EEPROM)) coupled to the bus 1010 for storing static information and instructions for the processor 1018 .

The computing system 1000 also includes a disk controller 1008 coupled to the bus 1010 to control one or more storage devices for storing information and instructions, such as a magnetic hard disk 1022 , and a removable media drive 1024 (e. g., floppy disk drive, read-only compact disc drive, read/write compact disc drive, compact disc jukebox, tape drive, and removable magneto-optical drive). The storage devices may be added to the computing system 1000 using an appropriate device interface (e. g., small computing system interface (SCSI), integrated device electronics (IDE), enhanced-IDE (E-IDE), direct memory access (DMA), or ultra-DMA).

The computing system 1000 may also include special purpose logic devices (e. g., application specific integrated circuits (ASICs)) or configurable logic devices (e. g., simple programmable logic devices (SPLDs), complex programmable logic devices (CPLDs), and field programmable gate arrays (FPGAs)).

The computing system 1000 may also include a display controller 1002 coupled to the bus 1010 to control a display 1012 , such as a liquid crystal display (LCD) screen, for displaying information to a computer user. The computing system 1000 includes input devices, such as a keyboard 1014 and a pointing device 1016 , for interacting with a computer user and providing information to the processor 1018 . The pointing device 1016 , for example, may be a mouse, a trackball, or a pointing stick for communicating direction information and command selections to the processor 1018 and for controlling cursor movement on the display 1012 . In addition, a printer may provide printed listings of data stored and/or generated by the computing system 1000 .

The computing system 1000 performs a portion or all of the processing steps discussed herein in response to the processor 1018 executing one or more sequences of one or more instructions contained in a memory, such as the main memory 1004 . Such instructions may be read into the main memory 1004 from another computer readable medium, such as a hard disk 1022 or a removable media drive 1024 . One or more processors in a multi-processing arrangement may also be employed to execute the sequences of instructions contained in main memory 1004 . In alternative embodiments, hard-wired circuitry may be used in place of or in combination with software instructions.

As stated above, the computing system 1000 includes at least one computer readable medium or memory for holding instructions programmed according to the teachings of the invention and for containing data structures, tables, records, or other data described herein. Examples of computer readable media are compact discs, hard disks, floppy disks, tape, magneto-optical disks, PROMs (EPROM, EEPROM, flash EPROM), DRAM, SRAM, SDRAM, or any other magnetic medium, compact discs (e. g., CD-ROM), or any other optical medium, punch cards, paper tape, or other physical medium with patterns of holes, a carrier wave (described below), or any other medium from which a computer can read.

Stored on any one or on a combination of computer readable media, includes software for controlling the computing system 1000 , for driving a device or devices to perform the functions discussed herein, and for enabling the computing system 1000 to interact with a human user (e. g., print production personnel). Such software may include, but is not limited to, device drivers, operating systems, development tools, and applications software. Such computer readable media further includes the computer program product for performing all or a portion (if processing is distributed) of the processing performed discussed herein.

The computer code devices of discussed herein may be any interpretable or executable code mechanism, including but not limited to scripts, interpretable programs, dynamic link libraries (DLLs), Java classes, and complete executable programs. Moreover, parts of the processing of the present invention may be distributed for better performance, reliability, and/or cost.

A computer readable medium providing instructions to a processor 1018 may take many forms, including but not limited to, non-volatile media, volatile media, and transmission media. Non-volatile media includes, for example, optical, magnetic disks, and magneto-optical disks, such as the hard disk 1022 or the removable media drive 1024 . Volatile media includes dynamic memory, such as the main memory 1004 . Transmission media includes coaxial cables, copper wire and fiber optics, including the wires that make up the bus 1010 . Transmission media also may also take the form of acoustic or light waves, such as those generated during radio wave and infrared data communications.

Various forms of computer readable media may be involved in carrying out one or more sequences of one or more instructions to processor 1018 for execution. For example, the instructions may initially be carried on a magnetic disk of a remote computer. The remote computer can load the instructions for implementing all or a portion of the present invention remotely into a dynamic memory and send the instructions over a telephone line using a modem. A modem local to the computing system 1000 may receive the data on the telephone line and use an infrared transmitter to convert the data to an infrared signal. An infrared detector coupled to the bus 1010 can receive the data carried in the infrared signal and place the data on the bus 1010 . The bus 1010 carries the data to the main memory 1004 , from which the processor 1018 retrieves and executes the instructions. The instructions received by the main memory 1004 may optionally be stored on storage device 1022 or 1024 either before or after execution by processor 1018 .

The computing system 1000 also includes a communication interface 1020 coupled to the bus 1010 . The communication interface 1020 provides a two-way data communication coupling to a network link that is connected to, for example, a local area network (LAN) 1500 , or to another communications network 2000 such as the Internet. For example, the communication interface 1020 may be a network interface card to attach to any packet switched LAN. As another example, the communication interface 1020 may be an asymmetrical digital subscriber line (ADSL) card, an integrated services digital network (ISDN) card or a modem to provide a data communication connection to a corresponding type of communications line. Wireless links may also be implemented. In any such implementation, the communication interface 1020 sends and receives electrical, electromagnetic or optical signals that carry digital data streams representing various types of information.

The network link typically provides data communication through one or more networks to other data devices, including without limitation to enable the flow of electronic information depicted in FIGS. 2A-3C. For example, the network link may provide a connection to another computer through a local network 1500 (e. g., a LAN) or through equipment operated by a service provider, which provides communication services through a communications network 2000 . The local network 1500 and the communications network 2000 use, for example, electrical, electromagnetic, or optical signals that carry digital data streams, and the associated physical layer (e. g., CAT 5 cable, coaxial cable, optical fiber, etc). The signals through the various networks and the signals on the network link and through the communication interface 1020 , which carry the digital data to and from the computing system 1000 may be implemented in baseband signals, or carrier wave based signals. The baseband signals convey the digital data as unmodulated electrical pulses that are descriptive of a stream of digital data bits, where the term “bits” is to be construed broadly to mean symbol, where each symbol conveys at least one or more information bits. The digital data may also be used to modulate a carrier wave, such as with amplitude, phase and/or frequency shift keyed signals that are propagated over a conductive media, or transmitted as electromagnetic waves through a propagation medium. Thus, the digital data may be sent as unmodulated baseband data through a “wired” communication channel and/or sent within a predetermined frequency band, different than baseband, by modulating a carrier wave. The computing system 1000 can transmit and receive data, including program code, through the network(s) 1500 and 2000 , the network link and the communication interface 1020 . Moreover, the network link may provide a connection through a LAN 1500 to a mobile device 1300 such as a personal digital assistant (PDA) laptop computer, or cellular telephone.

Alternative configurations of computing system 1000 , such as those that are not interacted with directly by a human user through a graphical or text user interface, may be used to implement process 90 .

While various trade-related messaging protocols are known, further details of the above steps according to one embodiment will be described below in terms of messages and fields formatted according to Financial Information eXchange (“FIX”) Protocol, Version 4.2. It will be understood by a skilled reader that a different implementation could alternatively employ a different version of FIX, could employ one or more different protocols for its messaging and field formats, or could involve fewer or more fields or messages for determining a modified execution price based at least on the execution price and at least one fee/rebate applicable to the trade. Such slight modifications may be made without departing from the spirit, purpose and scope of the invention disclosed herein.

In this embodiment, the electronic trade confirmation report pushed by the trading venue computer (s) and in which the electronic trade confirmation data is incorporated is otherwise known as an Execution Report (FIX MsgType=8) where tag (or “field”) 39 has a value of either 1 (order partially filled) or 2 (order filled). This electronic trade confirmation report is pushed by the trading venue computer (s) in an ASCII format or another text format, with several individual fields separated from each other by a <start of header> character. Among other fields, the electronic trade confirmation report includes an OrderID (field 11 ), a venue of execution (field 30 ), an execution price otherwise known as an “average” price (field 6 ), a financial product symbol (in field 55 or both fields 55 and 65 ) such as a stock symbol, liquidity flags (field 851 LastLiquidityInd), and the side of the order (field 54 ) such as buy or sell or short.

In this embodiment, the execution price is determined from field 6 in the Execution Report. This may be done by the computer system parsing the text of the electronic trade execution report directly to retrieve the value of field 6 , retrieving the value of field 6 that has been stored as part of a record in a corresponding field in a data store such as a database or table based on the text of the electronic trade execution report, or some other known technique.

There are several additional fields in a typical electronic trade confirmation report, many of which may be used for determining the fee/rebate.

In this description, a fee/rebate is a fee if it has a zero value or a positive value such as 0.0025 cents, and is a rebate if it has a negative value such as −0.0025 cents. For ease of understanding, the fee/rebate described in the following is a single fee/rebate considered by a trading venue computer(s) to be applicable to the trade. However, it will be understood that the fee/rebate applicable to the trade may alternatively be based on one, several or all of multiple fees/rebates considered by the trading venue computer(s) to be applicable to the trade.

In this embodiment, during determining the fee/rebate applicable to the trade, it the computer system first determines whether there is a fee/rebate applicable to the trade. For example, the venue member system or other downstream system processing the electronic trade confirmation reports may choose not to pass to beneficial owners a trading venue fee/rebate in a particular instance. In such a case the modified execution price will be determined to be equal to the execution price. Alternatively, in the event that the liquidity flag(s) in the electronic trade confirmation report is (are) blank or otherwise not indicative of whether the side of the trade receiving the electronic trade confirmation report was liquidity maker or liquidity taker in the trade, either a flat fee or rebate is set, or no fee/rebate is applicable to the trade.

One of these options may be selected by the venue member computer system or other downstream computer system in accordance with internal policies, regulations or relationships with beneficial owners. In the latter instance, where no fee/rebate is considered applicable to the trade, the fee/rebate is either set at zero causing the modified execution price to be calculated as equal to the execution price, or no calculation is done and the modified execution price is simply set at the execution price.

In this embodiment, in the event that it is determined by the computer system that a fee/rebate is applicable to the trade, the particular fee/rebate is determined by first determining one or more attributes of the trade from the electronic trade confirmation report and determining the at least one fee/rebate based on the one or more attributes of the trade.

In this embodiment, multiple attributes of the trade are used as a basis for determining the at least one fee/rebate applicable to the trade. These include: the venue of execution (field 30 ) identifying the trading venue, and the liquidity flags (field 851 ) indicating liquidity maker or liquidity taker.

The fee/rebate applicable to the trade is, in this embodiment, retrieved from an electronic data store based on an association in the data store with the attributes of the trade. The electronic data store may be one or more of a table, an array, a database, a structured data file, an XML file, or some other functional data store, such as hard disk 1022 or removable media 1024 . In another embodiment, the fee/rebate applicable to the trade is included by the venue 12 in a field of the electronic trade confirmation report itself, or in a subsequent report from the venue 12 that can be matched to the electronic trade confirmation report. In such an arrangement, the venue member computer system receiving this information in the electronic trade confirmation report could immediately calculate the modified execution price without referring to another electronic data store, and a modified electronic trade confirmation report would not necessarily be required.

The electronic data store embodies a data structure which is, in this embodiment, a table that includes fee/rebates of various trading venues, each with respective fees/rebates for liquidity maker and liquidity taker. A representation of a pricing schedule with consolidated trading venue pricing, according to an embodiment, is shown in FIG. 7. While not included in FIG. 7 for the sake of simplicity, it will be understood that a trading venue pricing schedule may also incorporate tiers of fees that are applicable depending on overall volume of trades executed during a given trading period, for example during a given month.

In this embodiment, determining the modified execution price includes calculating a sum of, or difference between, the execution price and the fee/rebate as applied on a per-share basis. Whether the calculation is a sum or a difference is based on whether the side of the trade for whom the electronic trade confirmation is produced by the trading venue is the buyer or the seller.

For example, in the event that the side of the trade for whom the electronic trade confirmation report is produced by the trading venue computer system for the buyer, determining the modified execution price includes calculating the sum of the execution price and the fee/rebate applicable to the trade. In this event, should the fee/rebate applicable to the trade be a rebate, then the modified execution price will have a lower amount than the execution price due to the rebate amount being less than zero.

Similarly, in the event that the side of the trade for whom the electronic trade confirmation report is produced by the trading venue computer system for the seller, determining the modified execution price includes calculating the difference of the execution price and the fee/rebate applicable to the trade (i. e., by subtracting the fee/rebate applicable to the trade from the execution price). In this event, should the fee/rebate applicable to the trade be a rebate, the modified execution price will have a higher amount than the execution price due to the rebate amount being less than zero.

One or more additional price modifiers may be determined as applicable to the trade and the modified execution price may be determined based also on the one or more additional price modifiers. Such additional price modifiers may be at least one of the charges selected from the group consisting of: a market data fee, a regulatory monitoring fee, a clearing fee, a connectivity fee, a tax, or some other applicable charge. The charge is added to the modified execution price that was determined based on the fee/rebate applicable to the trade.

In this embodiment, the modified execution price is associated with the trade by the computer system by producing a modified electronic trade confirmation report that incorporates the modified execution price. This is done by creating an electronic copy of the electronic trade confirmation report and replacing the execution price in the electronic copy with the modified execution price. Furthermore, in this embodiment the modified execution price is incorporated in the modified electronic trade confirmation in lieu of the execution price that was received in the electronic trade confirmation from the trading venue by incorporating the modified execution price in the execution price field of the modified execution confirmation report. One advantage of this approach is that downstream systems, such as buy-side manager systems, do not have to modify the internal workflows programmed into their system in order to have the modified execution prices (which account for trading venue fee/rebates on a trade-by-trade basis) automatically allocated to the beneficial owners.

With the modified execution price having been determined and associated with the trade, the modified execution price is transmitted by the system to a downstream system such as the buy-side manager system so that the fee/rebate on which the price modification is based may be allocated to the beneficial owner. The modified execution price may be transmitted in real-time or as part of a batch of modified execution prices for respective trades to be transmitted periodically to the respective computer(s) in the networked computing environment, such as those shown in FIGS. 2A-3C herein.

The modified execution price may be transmitted as part of a modified trade confirmation report or otherwise. Both the modified electronic trade confirmation report and the electronic trade confirmation report may be transmitted to one or more downstream systems, such as the buy-side manager system and/or directly to the beneficial owner. As described above, the electronic trade confirmation report is transmitted to the clearing house for handling street side clearance and settlement. However, the modified trade execution report is not required to be transmitted to the clearing house because the clearing house handles clearing based only on the execution price, and not on the modified execution price.

The modified electronic trade confirmation report may be transmitted by the system to at least one downstream system pursuant to transmitting the electronic trade confirmation, so as to update the previously-transmitted electronic trade confirmation with the modified execution price.

Modified execution prices associated with respective trades may be determined by the system and transmitted in real-time, or near real-time (such as on a t+1 basis, for example) downstream to beneficial owners and/or to buy-side managers representing beneficial owners so the applicable fee/rebate on which the price modification is based can be accounted for and allocated to beneficial owners at that time. During a trading period, payments received from the buy-side managers (who buy a financial product on behalf of the beneficial owners) and payments sent to buy-side managers (who sell a financial product on behalf of the beneficial owners) for trades executed during the trading period are made on a t+3 basis (i. e., after clearing). The payments made and received by the venue member are based on the modified execution prices rather than the execution prices and are accrued by the venue member over the trading period. As such, when the venue member receives notice of an aggregate fee/rebate applied by the trading venue after the trading period, the venue member balances the aggregate fee/rebate and the execution prices of the trades executed during the trading period against the accrued payments.

Where commissions are applied by the venue member that are payable by the buy-side manager, payments received from the buy-side manager may include the commission amounts. As such, the balancing includes balancing the accrued payments, less the commission amounts, against the aggregate fee/rebate and the execution price of the trades.

The above-described process may be applied for determining a modified execution price for a trade based on a fee/rebate that is applicable on an asymmetrical basis (i. e. a fee or a rebate depending on whether maker or taker) or on a symmetrical basis (i. e. a fee or a rebate, most typically a fee, for both maker and taker).

Furthermore, the process may be executed in real-time as electronic trade confirmation reports are received, or periodically such as daily or several times per day on batches of electronic trade confirmations received.

An example of a computer implemented method for determining a modified execution price for a trade and associating the modified execution price with the trade will now be described with reference to FIGS. 6 through 11. FIG. 6 is a representation of an electronic trade confirmation report produced by a trading venue A for a liquidity-taker (Active) buyer of a financial product identified by symbol ABC. The electronic trade confirmation report has an execution price (per share, or “average” price) of 10.00, and a quantity of 100. The ID of the trade is 1.

FIG. 7 is a representation of an electronic pricing schedule with consolidated trading venue pricing for each of trading venues A, B and C, and respective fees/rebates for liquidity-takers and liquidity-makers. It can be seen that each of the venues A, B and C employ a make/take pricing structure where the liquidity maker receives a rebate (negative value) and the liquidity-taker is charged a fee (positive value). The fees and rebates are expressed in mils ( 1/100 of a cent) and on a per-share basis.

FIG. 8 is a representation of a consolidated order book incorporating orders from order books of venues A, B and C. FIG. 9 is a representation of a modified electronic trade confirmation report produced for the liquidity-taker buyer and incorporating a modified execution price in lieu of the execution price. The modified execution price is based on the execution price of the electronic trade confirmation report of FIG. 6 and the applicable fee/rebate. The applicable fee/rebate in this case is determined from the “Active” column and Venue A row in the table of FIG. 6, as 29 mils, or 0.0029 cents. Because the electronic trade confirmation of FIG. 6 was produced for the buyer, the execution price and the applicable fee/rebate (a fee and therefore a positive number) are added together, to result in a modified execution price of 10.0029.

FIG. 10 is a representation of an electronic trade confirmation report produced by the trading venue for a liquidity-maker seller (Passive), according to an embodiment.

FIG. 11 is a representation of a modified trade confirmation report produced for the liquidity-maker seller and incorporating a modified execution price in lieu of the execution price. The modified execution price is based on the execution price of the electronic trade confirmation report of FIG. 10 and the applicable fee/rebate. The applicable fee/rebate in this case is determined from the “Passive” column and Venue A row in the table of FIG. 7, as −25 mils, or −0.0025 cents. Because the electronic trade confirmation report of FIG. 10 was produced for the seller, the applicable fee/rebate (a rebate and thus a negative number) is subtracted from the execution price, to result in a modified execution price of 10.0025.

Although embodiments have been described with reference to the drawings, those of skill in the art will appreciate that variations and modifications may be made without departing from the spirit, scope and purpose of the invention as defined by the appended claims.

For example, while messages and fields formatted according to FIX protocol version 4.2 have been described herein, it will be understood that the particular messages and fields have been chosen for illustrative purposes, and that alternative protocols and message formats may be employed in various systems. Furthermore, it will be understood that a particular system receiving a message formatted according to a particular protocol may convert the message into another protocol for its own use or for use by a downstream system.

While embodiments described have included incorporation of the modified execution price into the modified trade confirmation report in lieu of the execution price, alternatives are contemplated. For example, the modified execution price could be incorporated in the modified electronic trade confirmation in addition to the execution price. Such a format of modified electronic trade confirmation may require basic additional logic on the part of the downstream system such as the buy-side manager in order to use the provided data to allocate the trading venue fee/rebate applicable to the trades to respective beneficial owners.

For example, if the modified execution price is in the execution price field, and the execution price is itself positioned in another field in the modified electronic trade confirmation report, then the downstream system simply processes the modified execution price as it had processed the execution price with no adjustments, thereby automatically allocating each fee/rebate to a respective beneficial owner via the modified execution price. However, if the modified execution price is positioned in a field other than the execution price field, the downstream system will have to be modified to process each modified execution price rather than each execution price in order to allocate the fee/rebate to the beneficial owner via the modified execution price. As will be understood, the advantage of putting modified execution prices in the execution price positions of respective modified electronic trade confirmation reports is that the downstream system does not have to be modified to have the fees/rebates automatically allocated to the beneficial owners.

While embodiments have been described that involve producing a modified electronic trade confirmation report that incorporates the modified execution price, alternatives are contemplated. For example, associating the modified execution price with the trade may include associating the modified execution price with the electronic trade confirmation report, without necessarily producing a modified trade confirmation report.

In such an embodiment, the modified execution price may be stored electronically in a database table along with only a trade identifier that is in common with, or otherwise indirectly associated with, the trade identifier that is also in the electronic trade confirmation report. The modified execution price and trade identifier may be transmitted as a set to downstream systems that have already received the electronic trade confirmation report in order to update the execution price in the received electronic trade confirmation report with the modified execution price.

In another alternative embodiment, associating the modified execution price with the trade includes associating the modified execution price with an electronic order record corresponding to an order posted by the trading venue that corresponds to the trade by virtue of the trade being the result of matching the posted order with a contra order, without producing a modified electronic trade confirmation report. The modified execution price may stored in association with an electronic order record corresponding to a child order, or stored in association with an electronic order record corresponding to a parent order that is associated with a plurality of electronic order records corresponding to child orders one of which is associated with the electronic trade confirmation report, thereby to associate the modified execution price with the trade. In this alternative, the modified execution price may be stored electronically in a database table in its own record but associated with the electronic trade confirmation report record by sharing a common order identifier.

While embodiments have been described that produce a modified electronic trade confirmation report by copying the electronic trade confirmation report and replacing the execution price in the copy with the modified execution price, alternatives are contemplated. For example, once the electronic trade confirmation report is confirmed as being successfully transmitted downstream, it may be subsequently modified simply by replacing the execution price in the trade confirmation report with the modified execution price in order to produce the modified electronic trade confirmation report. The modified electronic trade confirmation report may then be transmitted downstream in order to be stored in association with the previously-transmitted electronic trade confirmation report or to be used to replace the execution price in the downstream, previously-transmitted report with the modified execution price.

While embodiments have been described in which determining the modified execution price includes calculating a sum or difference of the execution price and the at least one fee/rebate, alternatives are contemplated. For example, in an alternative embodiment, determining the modified execution price includes calculating a sum or difference of the execution price and an estimate of the at least one fee/rebate. The estimate of the at least one fee/rebate may be retrieved from an unofficial set of fees/rebates maintained by a venue member or other downstream system that are estimates of the corresponding official fees/rebates. This may be done in order for the venue member system or other downstream system to determine a reasonable modified execution price in real-time despite it not being certain exactly which fee/rebate will be actually applied by the trading venue at the end of a trading period. The uncertainty may exist because fee/rebate amounts actually applied by the trading venue to trades may depend on aggregate trading volume by the venue member over the whole trading period. As would be understood, this volume is not necessarily precisely known by the venue member or even the trading venue at the time of the actual trade.

In an alternative embodiment, the uncertainty as to which fee/rebate will actually be applied at the end of a trading period by the trading venue may be compensated for by determining the modified execution price for the trade by calculating a sum or difference of the execution price and a portion of the official fee/rebate of the trading venue. The portion may be a set percentage of the official fees/rebates of the trading venue, such as for example 90%.

While embodiments have been described in which an electronic data store includes fees/rebates for multiple trading venues, in an alternative embodiment, multiple electronic data stores may be provided that each include fees/rebates for a single respective trading venue. In this embodiment, the electronic data store from which the fee/rebate is to be retrieved is selected based on the venue of execution attribute of the trade. Other alternatives are possible. For example, fees/rebates for a particular venue may be included in different data stores based on whether they are applicable to liquidity makers or liquidity takers.

While embodiments have been described in which the at least one fee/rebate applicable to the trade is retrieved from an electronic data store based on an association in the data store with the attributes of the trade, alternatives are contemplated. For example, the at least one fee/rebate applicable to the trade may be part of the electronic trade confirmation data produced by the trading venue 12 , and incorporated into the electronic trade confirmation report. As another example, in an alternative embodiment, determining the at least one fee/rebate based on one or more attributes of the trade may include providing as input to a software module one or more attributes of the trade and receiving the at least one fee/rebate as output from the software module in response to the one or more attributes of the trade. The software module may have computer-readable program code that is “hardcoded” with one or more tables or arrays with the at least one fee/rebate in association with the one or more attributes of the trade.

For example, FIG. 12 depicts a table having multiple electronic trade confirmation report records that can be processed by such a software module either in batches or individually. FIG. 13 lists computer-readable program code that is storable in a non-transitory computer-readable medium establishing a function having hardcoded example fee schedules for two different trading venues, namely the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ abbreviated to NASD). The function of FIG. 13 is capable of receiving a table of electronic trade confirmation report records such as is depicted in FIG. 12, and determining fee/rebates based on the Size of the trade and the Rebate amount specified in the function. FIG. 14 lists computer-readable program code that is storable in a non-transitory computer-readable medium establishing a function for retrieving a. csv file containing the electronic trade confirmation report records depicted in FIG. 12, securing the applicable fee/rebates using the function of FIG. 13, and calculating the modified execution prices for the respective trades based on the Price and the applicable fee/rebate. With the code of FIGS. 13 and 14, the multiple electronic trade confirmation report records of FIG. 12 are processed in batches. It can be seen by the example of FIG. 13 that the trading venue fee/rebate may be applied in a different manner should the execution price be under (or over) a threshold amount. In this case, for example, when the execution price is below $1.00 for NYSE trades, the Active side fee/rebate is calculated using basis points instead of simply the execution price.

While examples herein involve trades of equities, the principles and concepts described herein are applicable to trades of various kinds of financial instruments, such as other equities, exchange-traded funds (ETFs), exchange-traded notes (ETNs), debentures, options, warrants, futures, fixed income, currencies, SWAPs and other instruments.