Versatile Financial Mechanism Transaction Generator Interface
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Solution Overview
Problem
Current financial systems lack an effective solution to create and execute complex versatile financial mechanisms, requiring individual trades of contracts and resulting in unnecessary transactional risk exposure and complexity, especially in entering into spreads that represent alternative futures.
Innovation Solution
A versatile financial mechanism and transaction generator and interface (VFMTGI) that allows users to select an underlying financial mechanism, identify versatile variant financial mechanisms composed of multiple subcomponent transactions, look up these transactions in a database, and execute trades on available subcomponents, simplifying complex transactions and reducing risk exposure.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If individual trades of contracts are executed to create complex financial mechanisms, then the financial mechanisms can be constructed, but transactional risk exposure and complexity increase
Solution Approach 1:
The patent combines multiple individual contract trades into a single integrated financial mechanism transaction. The system allows users to define complex financial instruments that bundle multiple underlying contracts (options, futures, swaps) into one executable unit, eliminating the need for separate trades and reducing transactional risk exposure while maintaining the desired financial mechanism complexity
2Adaptability or versatility
If multiple individual trades are executed to create versatile financial mechanisms, then the mechanisms can be constructed, but the number of transactions and operational complexity increase
Solution Approach 1:
The system merges multiple transaction operations into a single integrated execution unit. By defining financial mechanisms as composite structures that encompass multiple underlying contracts, the system allows complex instrument variety to be achieved through one transaction rather than multiple separate trades, thereby reducing operational complexity
3Adaptability or versatility
If complex financial mechanisms are constructed through individual trades, then the mechanisms can be created, but ease of operation decreases
Solution Approach 1:
The patent introduces an intermediary system that acts as a mediator between the user and the complex financial mechanism construction process. The system provides automated tools for defining, validating, and executing composite financial instruments, translating complex multi-contract structures into simplified user operations while maintaining full mechanical capability
Data Source
AI summary
Versatile Financial Mechanisms and Transactions Generators and Interfaces (VFMTGI) involve the creation of effective apparatuses, methods, and systems for solutions to create and/or leg complex versatile financial mechanisms. The VFMTGI facilitates user removal of significant transactional risk exposure as the methods, systems and apparatuses facilitate user data entry into spreads that represent alternative futures. Aspects of an implementation of the VFMTGI facilitate investor execution and completion of multiple financial transactions, simultaneously, as a single transaction. The methods, systems and apparatuses facilitates simplification of complex transactions. An implementation of the VFMTGI involves changing risk exposure and/or otherwise hedging a user's underlying position, enabling a user to make a selection to buy or sell an interrelated multi-leg financial transaction from the user's underlying position, which enables identification of subcomponent financial instruments for generating a new position for the user's underlying position.