Abstract: In various embodiments, a system and method manages custody and mitigates counterparty credit risk exposure associated with a trade of a financial instrument. A custodian computer system receives an initial margin payment from a pledgor and electronically posts initial margin or collateral payment in a custody account record maintained in the database. A control agreement between the pledgor and a secured party includes agreement details stored in the database. The dual-custody control agreement gives control of the custody account to the pledgor if the secured party defaults on trade obligations, and gives control of the custody account to the secured party if the pledgor defaults on trade obligations based upon default rules. In the event of default, a waiting period is imposed in accordance with the control agreement before the margin payment/collateral is returned to the non-defaulting party and reports are provided to parties involved with the financial transaction.

Abstract: A system for settling trades in Tri-Party repurchasing agreements includes one or more processors configured to execute one or more computer program modules. The computer program modules are configured to obtain, on electronic storage media accessible to the one or more processors, security information associated with a plurality of securities securitizing a Tri-Party repurchasing agreement between a dealer and an investor. The computer program modules are also configured to execute one or more computer program modules configured to receive a cash amount from the dealer, the cash amount being less than required to repurchase an entirety of the plurality of securities. The computer program modules are further configured to execute one or more computer program modules configured to release a subset of the entirety of securities to the dealer, the subset of the entirety of securities being repurchased by the cash amount received from the dealer.

Abstract: A new method and system for providing financial services is provided. These methods and systems can include providing banking and investment services to hedge fund money managers and other customers without the assistance or need for a prime broker. While employing the present invention a money manager may receive prime brokerage services from a bank or other financial service while at the same time be able to pursue investment opportunities with this bank or financial institution and other banks, institutions, and brokerages. The prime brokerage services that a money manger may receive can include accounting services, loan services, and cash management.

Abstract: A method for creating trust shares in a physical commodity, the trust shares being tradable over an electronic communications network, includes receiving a creation order comprising a request to create the trust shares, confirming delivery into a trust account of an amount of physical commodity associated with the trust shares being requested, and releasing the requested trust shares based upon the amount of physical commodity delivered into the account. A method for redeeming trust shares associated with a physical commodity, the trust shares being tradable over an electronic communications network, includes receiving a redemption order comprising a request to redeem an amount of trust shares associated with an amount of the physical commodity held in a trust account, receiving the amount of the trust shares, and releasing from the trust account the amount of the physical commodity associated with the amount of the trust shares received.

Abstract: A system and method for facilitating tri-party repurchase (or other) agreement transactions. A dealer or trader sends instructions to an intermediary third party characterizing a previously agreed-upon set of terms for a repurchase agreement between the dealer and an investor. The parties can thereafter approve or reject the deal allegement via an on-line system. In addition to, or instead of, dealer or investor approval, an instruction matching utility is provided to automatically or substantially automatically match instructions received from dealers and investors related to a plurality of deal allegements. In either case the status of the trade will be displayed to all parties.

Abstract: A system and method for performing a security check may include using at least one processor to periodically check a status of a flag, generate and store a baseline representation of modules stored on the device where the flag is determined to be set to a first state, and, where the flag is determined to be set to a second state, generate an active representation of modules stored on the first device, compare the active representation of modules to the baseline representation of modules, and, responsive to a determination in the comparing step of a difference between the baseline and active representations of modules, output an alert. The flag status may depend on an association of the device with one of a plurality of authorization policies, each mapped to one of the two states. Results of the comparison may be appended to an activity log of the device.

Abstract: A data processing system processes information associated with an underlying corporate action (CA) and includes a communications module; a message processing module that receives corporate action data; an assignment module that parses the data; an external data feed module queries and receives third party information related to the notice and identifies discrepancies between data elements and the third party information and requests confirmation and/or correction of the information responsive to an identification of discrepancies; an announcement processing module which, responsive to approval of a golden event, generates an announcement concerning the underlying corporate action to one or more of the issuer, a securities exchange, and a securities clearinghouse over the communications network, and responsive to the publication of the announcement, the external data feed module again queries and receives third party information related to the announcement and reverifies consistency of the third party informat

Abstract: Tools are provided for identifying outliers or variations in trade data derived from financial asset transactions, such as securities lending transactions, foreign exchange transactions, over the counter and exchange traded derivative transactions, and equity and fixed income transactions. Such outliers may provide an indication that a given trade is suspicious or potentially inappropriate from a customer relationship point of view, a regulatory perspective, or a legal standpoint. Trades identified as outliers can be utilized in regression analyses to analyze specific trades, trader-broker relationships, or other trading activity.

Abstract: A computer-implemented method and system for converting ineligible collateral including a plurality of differently securitized asset types into non-trust collateral eligible for use to cover a margin requirement for securities trading includes a processor and a memory coupled to the processor and a database configured to at least store financial information relating to the ineligible collateral, A network connection is operatively coupled to the processor, and the processor is configured to receive the financial information over the network and store the financial information in the database; create a plurality of universal collateral units (UCU) backed by the pool of ineligible collateral. Each of the created UCUs represents the non-trust collateral eligible for use to cover the margin requirement. At least a portion of the UCUs are issued as a letter of credit in an electronic form, and the letter of credit is made available to a clearinghouse or a central counterparty via the network connection.

Abstract: In various embodiments, a computerized system and method manages custody and mitigates counterparty credit risk exposure associated with a trade of a financial instrument. A custodian computer system is established that receives an initial margin payment from a pledgor and electronically posts the initial margin payment in a custody account record maintained in the database. A control agreement is established between the pledgor and a secured party with agreement details stored in the database. The dual-custody control agreement gives control of the custody account to the pledgor if the secured party defaults on trade obligations, and gives control of the custody account to the secured party if the pledgor defaults on trade obligations. During the life of the trade, the custodian may invest a current margin deposit in the custody account directly through the network into one or more investment vehicles to achieve a greater return.

Abstract: A system and method facilitates tri-party repurchase transactions for whole loans. The system and method obtain details regarding a whole loan to be used for collateral in a tri-party agreement transaction with an investor, from both the dealer or trader offering the whole loan as collateral and one or more third parties with access to those details. Based on the received details, the system formulates a valuation of the whole loan collateral and posts a whole loan collateral entry to facilitate tri-party repurchase of the whole loan collateral.

Abstract: A system and method for performing a security check may include using at least one processor to periodically check a status of a flag, generate and store a baseline representation of modules stored on the device where the flag is determined to be set to a first state, and, where the flag is determined to be set to a second state, generate an active representation of modules stored on the first device, compare the active representation of modules to the baseline representation of modules, and, responsive to a determination in the comparing step of a difference between the baseline and active representations of modules, output an alert. The flag status may depend on an association of the device with one of a plurality of authorization policies, each mapped to one of the two states. Results of the comparison may be appended to an activity log of the device.

Abstract: A data processing system manages collateral risk associated with a trade of a financial instrument includes memory coupled to a processor, the memory containing a database configured to store a ruleset relating to determining eligibility of collateral to be considered for a desired trade. A collateral analysis module determines a collateral preference ranking of one or more security positions eligible for use as collateral for the trade by applying the ruleset via an algorithm executed by the processor so as to confirm an eligibility of security positions eligible for use as collateral for the trade by testing in accordance with the ruleset.

Abstract: A method for creating trust shares in a physical commodity, the trust shares being tradable over an electronic communications network, includes receiving a creation order comprising a request to create the trust shares, confirming delivery into a trust account of an amount of physical commodity associated with the trust shares being requested, and releasing the requested trust shares based upon the amount of physical commodity delivered into the account. A method for redeeming trust shares associated with a physical commodity, the trust shares being tradable over an electronic communications network, includes receiving a redemption order comprising a request to redeem an amount of trust shares associated with an amount of the physical commodity held in a trust account, receiving the amount of the trust shares, and releasing from the trust account the amount of the physical commodity associated with the amount of the trust shares received.

Abstract: Systems and methods for providing a tradable (e.g., exchange-listed) instrument by securitizing foreign currency using a foreign currency trust or other special-purpose vehicle that is established to hold one or more particular foreign currency and to issue foreign currency trust shares and/or receipts corresponding to the value of the foreign currency(s) held by the Trust. The foreign currency trust shares may represent a proportional interest in the Trust and/or the foreign currency held by the trust. The Trust may include one or more Trust accounts to receive and store the foreign currency deposited with the Trust. The Trust can operate to receive an investment amount in a first currency and provide shares or Trust receipts having a value in a second currency. The shares or receipts of the trust can be listed, quoted, and traded on a trading system.

Abstract: Systems and methods are provided for a CDS trustee and collateral manager. In some embodiments, the systems and methods of the invention may provide a holistic approach to CDS transactions which facilitates such transactions, enables the management of such transactions, streamlines the resolution of these transactions, improves market information relating to these transactions, and provides other advantages. In some embodiments, a CDS trustee is provided that manages CDS documentation throughout the CDS transaction market and therefore can determine the positions and exposure of all market players. In some embodiments, the CDS trustee may also monitor for and process credit events of a reference entity to a CDS transaction. Furthermore the CDS trustee may facilitate payments to and from counterparties to CDS transactions, facilitate unwinding of CDS transactions, facilitate settlement of CDS transaction in the event of a credit default, and/or provide other features and functions.

Abstract: A system for reconciling financial data is configured to retrieve first and second financial data from respective data sources. The first and second financial data each contains one or more respective records, each containing a respective name, date, and monetary amount. The system attempts to match one of the first records with one of the second records, initially based on general equivalence of the names, dates, and the first and second monetary amounts. If any of the records remain unmatched, the system is configured to attempt to match two or more of the second records with one of the first records, utilizing the sum of the second monetary amounts, and attempt to match two or more of the first records with one of the second records based on the sum of the first monetary amounts.

Abstract: Systems and methods for providing a tradable (e.g., exchange-listed) instrument by securitizing foreign currency using a foreign currency trust or other special-purpose vehicle that is established to hold one or more particular foreign currency and to issue foreign currency trust shares and/or receipts corresponding to the value of the foreign currency(s) held by the Trust. The foreign currency trust shares may represent a proportional interest in the Trust and/or the foreign currency held by the trust. The Trust may include one or more Trust accounts to receive and store the foreign currency deposited with the Trust. The Trust can operate to receive an investment amount in a first currency and provide shares or Trust receipts having a value in a second currency. The shares or receipts of the trust can be listed, quoted, and traded on a trading system.

Abstract: A system and method for providing a tradable (e.g., exchange-listed) instrument by securitizing a commodity using a commodity trust or other special-purpose vehicle that is established to hold one or more physical commodities and to issue commodity trust shares and/or receipts corresponding to the value of the physical commodity held by the Trust. The commodity trust shares may represent a proportional interest in the Trust and/or the physical commodity held by the trust, e.g., precious metals such as gold, or base metals such as copper. The Trust may include one or more Trust accounts to receive and store the physical commodity deposited with the Trust. The shares or receipts of the trust can be listed, quoted, and traded on a trading system, e.g., an Electronics Communication Network (ECN), and may be traded as Exchange Traded Fund (ETF) shares on a securities exchange.

Abstract: A data processing system manages collateral risk associated with a trade of a financial instrument includes a processor and a memory that contains a database configured to store a ruleset relating to determining eligibility of collateral to be considered for a desired trade. A search module searches for accounts that could potentially accept a security position based upon established search criteria. Search results are stored in the memory, and are used to identify one or more security positions eligible for use as collateral for the trade. A collateral analysis module determines a collateral preference ranking by at least applying the ruleset via an algorithm executed by the processor so as to confirm an eligibility of security positions eligible for use as collateral for the trade by testing in accordance with the ruleset. The processor outputs a relative collateral preference indication via a user interface.