Rules engine having user activated rules of selectable scope and selectable outcomes

Abstract

Orders for execution of securities transactions and requests for asset movement are screened by a rules engine and may be automatically approved. The rules engine has rules which are user configurable. The rules may be configured to provide different outcomes, to provide a user selectable scope of application and to provide user selectable parameters. A transaction is processed against the rule set applicable thereto in order of increasing scope of the rules. That is, rules applicable to the account level are processed before rules applicable to the registered representative, office or firm. Individual broker-dealer firms may each configure rules applicable to their own firms independently of rules applicable to any other firm serviced by the rules engine.

Description

CROSS REFERENCE TO RELATED APPLICATIONS[0001]This invention disclosed herein is related to and claims priority from co-pending U.S. Provisional Patent Application Ser. No. 60 / 195,196 filed Apr. 7, 2000 by inventors Syed K. Quraishi et al. and entitled RULES BASED ORDER PROCESSING, which is hereby incorporated herein in its entirety by reference.BACKGROUND OF THE INVENTION[0002]1. Field of the Invention[0003]The invention disclosed herein relates to computer systems and, more particularly, to rules-based systems for order execution and asset movement processing.[0004]2. Description of Related Art[0005]In the securities industry, the traditional approach to placing orders is for a customer to call his stock broker who, typically, is associated with a broker-dealer firm which has personnel or connections with personnel on the floors of various trading exchanges. The customer's order is reviewed by the registered representative with whom he works and a plurality of reviews take place wi...

AI Technical Summary

Benefits of technology

This patent introduces a rules engine that helps prevent difficulties in managing, approving, and executing orders. It also ensures compliance with regulatory requirements and allows firms to create policies that meet their specific needs. In summary, the rules engine provides flexibility and real-time customization options for broker-dealers.

Problems solved by technology

There are a number of problems associated with the techniques of the prior art.

First, the regulatory environment of securities trading is extremely complex and changes rapidly.

When market conditions are good, hiring of registered representatives occurs rapidly creating an immediate training problem.

When market conditions are bad, downsizing results in reallocation of responsibilities which may also require new training for particular individuals who survive the downsizing.

As in any environment in which large amounts of money are involved, there is always a potential for fraud.

Images