Managed-Account Transaction Architecture with Modular Sleeve Objects
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Solution Overview
Problem
Conventional computing architectures for managed-account transactions face challenges due to 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 allocations from multiple managers, generates strategies, instantiates sleeve objects for asset management, and dynamically reallocates assets based on market valuations and allocation modifications, while handling dividend payments and asset restrictions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If shadow accounting and settlement-date data are used for managed-account transactions, then existing computing architectures can process transactions, but reporting and reconciliation challenges arise
Solution Approach 1:
The patent segments the computing architecture into distinct modular components: account information modules, transaction processing modules, and reporting modules. Each module handles specific aspects of managed-account transactions independently, eliminating the need for shadow accounting while improving reporting accuracy and reducing overall system complexity.
Solution Approach 2:
The system performs preliminary actions by establishing proper account structures and data schemas before transactions occur. Account information is organized and validated in advance, with transaction data captured at the time of occurrence rather than relying on settlement-date reconciliation, thereby eliminating reporting challenges.
2Reliability
If data schemas and structures are not designed from the outset for managed-account transactions, then existing systems can operate with generic structures, but data quality checks and reconciliation become problematic
Solution Approach 1:
The patent implements preliminary action by designing and establishing specialized data schemas and account structures before any managed-account transactions occur. The system configures account information modules with appropriate data validation rules and structures in advance, ensuring data quality is maintained from the outset without requiring complex post-processing reconciliation.
3Reliability
If real-time asset management and allocation adjustments are implemented, then transaction reporting and reconciliation improve, but system complexity increases
Solution Approach 1:
The patent segments real-time processing functions into separate modular components that handle specific tasks: transaction capture, account information maintenance, and reporting generation. This modular architecture enables real-time asset management and allocation adjustments without overwhelming system complexity, as each module processes its designated function independently.
Solution Approach 2:
The system implements self-service mechanisms where account information modules automatically maintain accurate records and generate reports without requiring complex external reconciliation processes. The architecture enables the system to self-manage transaction data integrity through built-in data validation and automated reporting capabilities.
Data Source
AI summary
An improved computing architecture for managed-account transactions is presented. In accordance with embodiments, responsive to receiving a request to allocate funds of a client amongst different investment strategies, a computing system may determine based on percentages to be invested indicated by the strategies and an allocation of the funds amongst the strategies indicated by the request, a number of units of the asset to purchase for the client. A memory of the computing system may comprise a client object associated with the client and comprising an account object having a sleeve object for each of the investment strategies. And for each of the units, the computing system may instantiate, in the client object, an object comprising a variable for storing a basis for the unit and may instantiate, in a sleeve object for the investment strategy for which the asset is to be purchased, an object representing the unit.