Automated Batch Trading System for Financial Asset Processing
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Solution Overview
Problem
Existing automated online transaction systems are inefficient and time-consuming, requiring manual processing of each deal, leading to high costs and increased time for customers, especially when dealing with large volumes of small-value transactions, and lack the ability to automatically net transactions or process batches with minimal human intervention.
Innovation Solution
An automated system that allows customers to process multiple deals in batches, automatically quoting, accepting, and settling transactions with minimal instructions, using a batch management server to compute netted values and account for customer preferences, credit profiles, and regulatory requirements, reducing the need for human intervention at the counterparty bank.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If manual systems are used for negotiating, executing, confirming and settling transactions, then flexibility and customization are maintained, but processing speed and efficiency deteriorate
Solution Approach 1:
The patent segments transactions into different categories (high-value requiring manual review, low-value for automated processing) and routes them through different processing paths. This allows the system to maintain flexibility for complex transactions while achieving high-speed automated processing for routine transactions, resolving the contradiction between operational flexibility and processing speed.
Solution Approach 2:
The system dynamically adjusts the level of automation based on transaction characteristics, customer preferences, and market conditions. Transactions can be routed to automated or manual processing depending on their complexity, value, and risk profile, enabling the system to optimize both flexibility and processing speed adaptively.
2Productivity
If automated online transaction systems are introduced, then processing speed improves, but the ability to handle complex negotiation and customization deteriorates
Solution Approach 1:
The patent introduces an intermediary layer (the automated system with intelligent routing) that mediates between fully automated processing and manual negotiation. The system can handle routine aspects automatically while escalating complex negotiations to human traders, preserving negotiation capability while maintaining overall processing speed advantages.
Solution Approach 2:
The system enables self-service automated processing for transactions that don't require complex negotiation, allowing customers to execute trades automatically based on pre-set criteria. This maintains processing speed for suitable transactions while reserving negotiation capabilities for cases where they are truly needed.
3Measurement precision
If each deal is processed individually, then customization and attention to detail are maintained, but processing time and costs increase
Solution Approach 1:
The patent segments deals into individual and batch processing categories. Routine deals with standard parameters are processed in batches with automated attention to detail, while complex deals requiring specialized attention are processed individually. This segmentation reduces overall processing time while maintaining necessary attention to detail where required.
Solution Approach 2:
The system merges multiple similar transactions into batch processing when they share common characteristics (same counterparty, similar terms, standard conditions). This combining approach maintains adequate attention to detail through automated validation while dramatically reducing processing time and costs compared to individual handling of each transaction.
4Productivity
If batch processing is implemented, then processing efficiency improves, but system complexity increases
Solution Approach 1:
The patent segments batch processing into standardized templates for different transaction types. Each batch type has predefined processing rules and validation criteria, which reduces the complexity of implementing batch processing while maintaining high efficiency. The segmentation allows the system to handle complexity through modular, reusable processing logic rather than monolithic complex systems.
Data Source
AI summary
Method and apparatus for trading financial assets, such as foreign exchange and money market instruments, commodities and securities. The invention, which may be accessed over an interconnected data communications network, such as the Internet, using a standard Web browser, as well as via a proprietary user interface, receives customer requirements, automatically combines and organizes those requirements into a batch of orders according to a set of customer preferences, and displays the batch of orders to the customer, along with indicative or actual price quotes, such that the customer may select and process multiple orders and multiple requirements simultaneously. Orders are priced and booked automatically.