Modular Financial Asset Management System with Sequential Data Verification
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Solution Overview
Problem
Current computer systems for managing financial assets face challenges in ensuring timely and accurate execution of trades, reconciliation of payments, and provision of detailed financial reporting, particularly due to daily variations in security prices and net asset values, which can result in significant losses and compliance issues.
Innovation Solution
A computer system with modular components for expense calculation, pricing, trading, settlement, and accounting processes that verify and store data daily, ensuring each process is completed before proceeding to the next, and updates accounting ledgers accordingly, with modular processes executed in a specific order to maintain accuracy and integrity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If multiple calculations and processes are performed daily to manage financial assets, then accurate financial reporting and trade execution are achieved, but the complexity of the system increases and errors may occur due to daily variations in prices and net asset values
Solution Approach 1:
The system divides the complex daily financial management process into separate modular components: expense calculation module, pricing module, trading module, settlement module, and accounting module. Each module performs a specific function and operates independently, reducing overall system complexity while maintaining accuracy through structured separation of concerns.
Solution Approach 2:
The system performs preliminary verification of data integrity and completion status before each module executes its calculations. This preliminary checking ensures that all necessary data is available and valid before processing, preventing errors and maintaining reliability without requiring complex real-time validation throughout the entire process.
2Reliability
If verification processes are implemented for each data type, then accuracy and reliability of financial data are improved, but processing time increases
Solution Approach 1:
Verification processes are performed preliminarily before each module executes its main calculations. The system checks data integrity and completion status in advance, ensuring that verification does not interrupt the main processing flow. This allows verification to be completed efficiently without significantly delaying subsequent calculations.
Solution Approach 2:
The modular architecture allows verification and calculation processes to proceed in a continuous sequence without interruption. Each module completes its verification and execution in a streamlined manner, passing data to the next module without idle time. This continuous processing minimizes total processing time while maintaining thorough verification at each stage.
3Reliability
If sequential processing of modules is required to maintain accuracy, then data integrity is preserved, but productivity decreases
Solution Approach 1:
The system segments the financial management process into independent modular components that can be executed sequentially in a structured manner. Each module operates independently with well-defined input and output interfaces, allowing for efficient sequential processing that maintains data integrity while minimizing processing delays through clear module boundaries and optimized data transfer.
Solution Approach 2:
The sequential module processing is designed to continue without interruption, with each module passing verified data to the next module in a continuous flow. This continuous processing approach maintains data integrity through structured sequential execution while maximizing productivity by eliminating idle time and optimizing the flow of information between modules.
Data Source
AI summary
A computer system for management of financial data relating to funds holding investments includes a data storage device and a server configured for execution of computer-readable instructions embodied in components. The components include an expense component for accessing and verifying fund expense calculation data, and storing the verified fund expense data in a common data format; a pre-trade component for receiving data relating to fund ownership, determining and storing data indicative of fund trading requirements in the common data format; a settlement component for accessing data indicative of instructions for execution of trades, determining data indicative of instructions for payment in settlement of trades consistent with the trade instructions data and providing output data signals indicative of the instructions for payment; and an accounting component for accessing accounting ledgers stored in the data storage devices and updating the accounting ledgers.