Managed-Account Transaction Architecture Using Sleeve Objects
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Solution Overview
Problem
Conventional computing architectures for managed-account transactions face challenges such as reliance on settlement-date data, shadow accounting, and lack of data quality checks, leading to reporting and reconciliation issues.
Innovation Solution
A computing system that receives investment allocation data from multiple managers, generates investment strategies, instantiates sleeve objects for asset allocation, and dynamically adjusts asset holdings based on market valuations and allocation changes, while ensuring data integrity and compliance with asset restrictions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If shadow accounting and settlement-date data are used in conventional architectures, then existing systems can maintain simplicity, but reporting and reconciliation accuracy deteriorates
Solution Approach 1:
The patent segments the investment account into multiple sleeves, each representing a distinct investment strategy. This segmentation allows for separate tracking and valuation of different strategies within a single account, improving reporting accuracy without requiring multiple separate accounts. The sleeve objects act as organizational units that isolate different investment strategies while maintaining unified account-level control.
Solution Approach 2:
The patent introduces sleeve objects as intermediary data structures between the account object and individual asset holdings. These sleeve objects serve as mediators that track allocations and valuations for specific investment strategies, enabling accurate reporting and reconciliation without fundamentally changing the underlying account structure or requiring shadow accounting systems.
2Productivity
If real-time market valuation and dynamic allocation adjustments are implemented, then asset allocation optimization improves, but computational processing time increases
Solution Approach 1:
The system performs preliminary actions by pre-calculating and storing base allocation percentages for each asset within sleeves during strategy creation. When rebalancing is needed, the system only needs to calculate adjustments from these pre-established bases rather than performing complete recalculations, significantly reducing processing time while maintaining real-time valuation capabilities.
Solution Approach 2:
The patent implements feedback mechanisms where the system continuously monitors current allocations against target allocations stored in sleeve objects. When deviations exceed thresholds, the system triggers rebalancing operations. This feedback loop enables optimized asset allocation by comparing actual performance against predetermined targets and automatically initiating corrections only when necessary, rather than continuous computational adjustments.
3Adaptability or versatility
If multiple investment strategies are managed within a single account, then client flexibility and adaptability improve, but data management complexity increases
Solution Approach 1:
The patent divides the account data structure into segmented sleeves, where each sleeve corresponds to a specific investment strategy. This segmentation allows multiple strategies to coexist within a single account by organizing holdings and allocations into distinct, manageable units. The sleeve objects provide a hierarchical structure that simplifies data management compared to flat account structures by grouping related assets and tracking their allocations separately.
Solution Approach 2:
The patent adds a dimensional layer to the account structure by introducing sleeves as an intermediate level between the account and individual assets. This dimensional change transforms a two-level structure (account-assets) into a three-level hierarchy (account-sleeves-assets), enabling multiple investment strategies to be managed within a single account while maintaining organized, manageable data structures through the intermediate sleeve layer.
Data Source
AI summary
An improved computing architecture for managed-account transactions is presented. In accordance with embodiments, a computing system may receive data indicating modifications to various investment allocations prescribed by different investment managers and may update corresponding stored investment strategies previously generated by the computing system in accordance with the modifications. The computing system may identify a stored account object associated with a client having funds allocated amongst the updated investment strategies and may modify objects stored in sleeve objects of the account object that represent units of assets prescribed by the investment managers in accordance with the modifications to the allocations.