Managed-Account Transaction Architecture with Real-Time Asset Rebalancing
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Solution Overview
Problem
Conventional computing architectures for managed-account transactions face challenges due to their reliance on settlement-date data, shadow accounting, and lack of data schemas and 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 each strategy, and dynamically reallocates assets based on market valuations and allocation modifications, while managing transactions and dividends through trading platforms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional shadow accounting and settlement-date data are used, then existing computing architectures can process transactions, but reporting and reconciliation challenges arise
Solution Approach 1:
The patent creates a digital twin (object model) that replicates the account and its assets in real-time, mirroring the physical account structure. This digital copy enables accurate tracking and reporting without relying on shadow accounting, resolving the reconciliation challenges while maintaining data integrity.
Solution Approach 2:
The object model serves as an intermediary layer between the physical account data and the reporting systems. It standardizes data representation and provides a unified view of account assets, eliminating the need for complex shadow accounting reconciliations while ensuring reliable data reporting.
2Productivity
If real-time market valuations and automatic reallocation are implemented, then transaction management and reporting improve, but system complexity increases
Solution Approach 1:
The system enables self-service through automated reallocation mechanisms that automatically adjust asset distributions based on market valuations and investment strategies. The object model autonomously tracks and reports transaction data, eliminating manual intervention and improving efficiency without proportionally increasing system complexity.
Solution Approach 2:
The patent implements dynamic asset allocation that automatically adjusts to market conditions in real-time. The system continuously monitors market valuations and reallocates assets according to predefined investment strategies, enabling adaptive transaction management that improves productivity while maintaining manageable complexity through automation.
3Measurement precision
If data schemas and structures are designed from the outset for managed-account transactions, then data quality improves, but initial system development complexity increases
Solution Approach 1:
The patent applies preliminary action by designing and implementing a standardized object model data schema before processing managed-account transactions. This pre-established data structure ensures high data quality and consistency from the outset, as the schema is specifically tailored to capture all necessary transaction details in a unified format.
Solution Approach 2:
The data schema is segmented into distinct object models representing different account components (account object, asset objects, transaction objects). This segmentation organizes complex data into manageable, standardized units that improve data quality while making the overall system design more systematic and less overwhelming.
Data Source
AI summary
An improved computing architecture for managed-account transactions is presented. In accordance with embodiments, responsive to receiving data indicating elective options for a dividend to be paid by an issuer of an asset included in various investment allocations prescribed by different investment managers, a computing system may generate a ballot comprising the elective options and may communicate the ballot to computing devices associated with the investment managers. Responsive to receiving, from the computing devices, data indicating elections made by the investment managers, via the ballot, indicating how the dividend should be paid for assets invested in accordance with investment strategies generated based on the prescribed allocations, the computing system may store, for each unit of the asset held by a client having funds allocated amongst the strategies, data indicating how the dividend should be paid for the unit.