Unified Transaction Pipeline for Consistent Multi-Instrument Processing
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Solution Overview
Problem
Institutions face inefficiencies and inconsistencies when processing complex, inter-related transactions for different financial instruments using separate systems and software programs, which prevents new products from being programmed on a universal system.
Innovation Solution
A unified system comprising a receiver, transaction interpreter, rollup interpreter, and rules interpreter processes transactions by retrieving instrument data, applying transactions, aggregating states, and applying rules to generate final states for database commitment.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If separate systems and software programs are used for each financial instrument, then each instrument can be processed with dedicated functionality, but system complexity increases and consistency between interrelated transactions deteriorates
Solution Approach 1:
The patent merges multiple separate transaction processing systems into a single unified processing core that handles diverse financial instruments (securities, derivatives, cash instruments) through a common architecture. This consolidation eliminates inconsistencies between interrelated transactions while reducing overall system complexity.
Solution Approach 2:
The processing core implements a universal transaction processing framework that can handle multiple instrument types and transaction kinds through configurable processing rules and state machines. This multi-functional approach allows a single system to replace multiple dedicated systems while maintaining consistency across all instrument types.
2Device complexity
If a single universal system is used for all financial instruments, then system complexity is reduced and consistency is improved, but adaptability to new products and specific instrument requirements deteriorates
Solution Approach 1:
The processing core employs dynamic, configurable processing rules and state transition definitions that can be modified without changing the underlying system architecture. This allows the universal system to adapt to new financial products and instrument types by simply configuring new rules and states rather than developing new systems.
Solution Approach 2:
The system uses parameter-driven configuration where processing behavior is determined by configurable parameters, rules, and state definitions specific to each instrument type. This allows the same processing core to handle diverse instruments by changing parameters and rules rather than requiring dedicated systems for each instrument.
3Reliability
If multiple separate systems are used for different instruments, then specific instrument requirements can be met, but processing efficiency and interoperability between interrelated transactions deteriorates
Solution Approach 1:
The processing core segments transaction processing into distinct, modular components: transaction interpretation, state determination, rule evaluation, and action execution. Each component handles specific aspects of processing independently, allowing efficient parallel processing while maintaining instrument-specific accuracy through configurable rules.
Solution Approach 2:
The patent introduces an intermediary processing core that acts as a mediator between various financial instruments and the underlying processing engine. This intermediary layer translates diverse instrument-specific requirements into a unified processing language, enabling efficient processing while maintaining accuracy for each instrument type.
Data Source
AI summary
A banking pipeline for processing various transactions for multiple financial instruments is disclosed herein. The pipeline may have three distinct interpreters, a transaction interpreter, a rollup interpreter, and a rules interpreter. Different aspects of the transaction may be performed on separate interpreters and each interpreter may perform its aspect of the transaction before the next interpreter begins.