System And Method For Facilitating Unified Trading And Control For A Sponsoring Organization's Money Management Process

Abstract

An embodiment of the present invention provides a system, method, process, software and standards that enable a unified trading and control process utilized by sponsoring organizations and asset managers (money managers) for sub advised or externally managed investment portfolios as to increase control over the trading process by a sponsoring organization, enhance regulatory compliance, substantially lower trading costs and improve investment performance on a recurring basis for the shareholders and beneficiaries investing in registered and non registered mutual funds and institutional investment portfolios.

What is claimed is: 
     
         1 . A method for facilitating money management processes of a plurality of sponsoring organizations using a plurality of asset managers to manage the sponsoring organizations' investment portfolios, the method comprising:
 receiving, through a computer-based communications network, orders of the plurality of asset managers, each order of an asset manager comprising a number of asset units to buy or sell on behalf of a sponsoring organization;   determining, for each order, whether the sponsoring organization associated with the each order or the asset manager associated with the each order is assigned discretion for facilitating execution of the each order, wherein the associated sponsoring organization is assigned discretion if the each order is a low touch order expected to have low market impact and the associated asset manager is assigned discretion if the each order is a high touch order expected to have high market impact; and   facilitating, based on the assignment of discretion to the associated sponsoring organization, execution of each low touch order by at least one trading organization designated at the discretion of the associated sponsoring organization.   
     
     
         2 . The method of  claim 1 , further comprising facilitating, based on the assignment of discretion to the associated asset manager, execution of each high touch order by at least one trading organization designated at the discretion of the associated asset manager. 
     
     
         3 . The method of  claim 2 , further comprising facilitating execution of the each high touch order by a plurality of trading organizations and facilitating execution of the each low touch order by a plurality of trading organizations. 
     
     
         4 . The method of  claim 3 , wherein the plurality of trading organizations executing the each high touch order comprises a plurality of executing brokers designated by the associated asset manager and the plurality of trading organizations executing the each low touch order comprises a plurality of executing brokers designated by the associated sponsoring organization. 
     
     
         5 . The method of  claim 1 , wherein each order is received through a computer-based graphical user interface and associated software program. 
     
     
         6 . The method of  claim 1 , wherein facilitating execution of the each low touch order comprises routing a group of low touch orders to a trading system of a sponsoring organization associated with the group of low touch orders and routing the group of low touch orders from the trading system to a network of trading organizations designated by the sponsoring organization associated with the group of low touch orders. 
     
     
         7 . The method of  claim 2 , wherein facilitating execution of the each low touch order comprises providing at least one standard communication protocol at a trading system, wherein the at least one standard communication protocol enables communication between at least two pluralities of the plurality of sponsoring organizations, the plurality of asset managers, and a plurality of executing brokers. 
     
     
         8 . The method of  claim 1 , wherein facilitating execution of the each low touch order comprises routing a group of low touch orders to a network of executing brokers designated by the sponsoring organization associated with the group of low touch orders. 
     
     
         9 . The method of  claim 8 , wherein the group of low touch orders is executed among the network of executing brokers. 
     
     
         10 . The method of  claim 2 , wherein facilitating execution of the each high touch order comprises routing a group of high touch orders to a network of executing brokers designated by the asset manager associated with the group of high touch orders. 
     
     
         11 . The method of  claim 10 , wherein the group of high touch orders is executed among the network of executing brokers. 
     
     
         12 . The method of  claim 1 , wherein facilitating execution of each low touch order comprises facilitating a direction by the associated sponsoring organization to the associated asset manager to route low touch orders, consistent with the associated asset manager's regulatory requirements, to one or more trading organizations designated by the associated sponsoring organization. 
     
     
         13 . A method for facilitating money management processes of a plurality of sponsoring organizations using an asset manager to manage investment portfolios of sponsoring organizations, the method comprising:
 receiving, through a computer, orders of the asset manager, each order of the asset manager comprising a number of asset units to buy or sell on behalf of a sponsoring organization;   determining, for each order, using a computerized rules-based logic engine, whether the sponsoring organization associated with the each order or the asset manager is assigned discretion for facilitating execution of the each order, wherein the associated sponsoring organization is assigned discretion if the each order is a low touch order expected to have low market impact and the asset manager is assigned discretion if the each order is a high touch order expected to have high market impact; and   facilitating, based on the assignment of discretion to the associated sponsoring organization, execution of low touch orders by at least one trading organization designated at the discretion of the associated sponsoring organization.   
     
     
         14 . The method of  claim 13 , further comprising facilitating, based on the assignment of discretion to the asset manager, execution of high touch orders by at least one trading organization designated at the discretion of the asset manager. 
     
     
         15 . A method for facilitating money management processes of a plurality of sponsoring organizations using a plurality of asset managers to manage investment portfolios of sponsoring organizations, the method comprising:
 receiving, through a computer-based communications network, orders of the plurality of asset managers, each order of an asset manager comprising a number of asset units to buy or sell on behalf of a sponsoring organization;   determining, for each order, using a computerized rules-based logic engine, whether the each order is a low touch order expected to have low market impact or is a high touch order expected to have high market impact; and   facilitating execution of each low touch order by at least one trading organization designated by the sponsoring organization associated with the each low touch order such that the associated sponsoring organization has discretion over execution of the each low touch order.   
     
     
         16 . The method of  claim 15 , further comprising facilitating execution of each high touch order by at least one trading organization designated by the asset manager associated with the each high touch order such that the associated asset manager has discretion over the each high touch order. 
     
     
         17 . The method of  claim 16 , further comprising facilitating execution of the each high touch order by a plurality of trading organizations and facilitating execution of the each low touch order by a plurality of trading organizations. 
     
     
         18 . The method of  claim 17 , wherein the plurality of trading organizations executing the each high touch order comprises a plurality of executing brokers designated by the associated asset manager and the plurality of trading organizations executing the each low touch order comprises a plurality of executing brokers designated by the associated sponsoring organization. 
     
     
         19 . A method for managing investment portfolios of a sponsoring organization, the method comprising:
 receiving, through a computer, orders of an asset manager managing the investment portfolios of the sponsoring organization, each order comprising a number of asset units to buy or sell, wherein the orders are received through a computer-based graphical user interface and associated software program;   determining, for each order, using a computerized rules-based logic engine, whether the each order is a high touch order expected to have high market impact or a low touch order expected to have low market impact; and   facilitating execution of low touch orders by at least one trading organization designated by the sponsoring organization.   
     
     
         20 . The method of  claim 19 , further comprising facilitating execution of high touch orders by at least one trading organization designated by the asset manager. 
     
     
         21 . The method of  claim 20 , wherein the at least one trading organization designated by the asset manager comprises at least one executing broker designated by the asset manager. 
     
     
         22 . The method of  claim 19 , wherein the at least one trading organization designated by the sponsoring organization comprises at least one executing broker designated by the sponsoring organization. 
     
     
         23 . The method of  claim 22 , wherein the at least one executing broker comprises a network of executing brokers, and wherein the low touch orders are executed among the network of executing brokers. 
     
     
         24 . The method of  claim 19 , wherein facilitating execution of the low touch orders comprises automatically routing the low touch orders to a trading system that routes the low touch orders to the at least one trading organization designated by the sponsoring organization. 
     
     
         25 . The method of  claim 19 , wherein facilitating execution of the low touch orders comprises facilitating a direction by the sponsoring organization to the asset manager to route the low touch orders, consistent with the asset manager's regulatory requirements, to the at least one trading organization designated by the sponsoring organization. 
     
     
         26 . A computer system for managing investment portfolios of a sponsoring organization, the computer system comprising:
 a computer-based graphical user interface and associated software program configured to receive orders of an asset manager managing the investment portfolios of the sponsoring organization, each order comprising a number of asset units to buy or sell; and   a computerized rules-based logic high touch-low touch engine configured to receive rules for categorizing an order as a low touch order expected to have low market impact or a high touch order expected to have high market impact, wherein the rules facilitate a determination of for each order, whether the sponsoring organization or the asset manager is assigned discretion for facilitating execution of the each order, wherein the sponsoring organization is assigned discretion for low touch orders expected to have low market impact and the asset manager is assigned discretion for high touch orders expected to have high market impact.   
     
     
         27 . The computer system of  claim 26 , wherein the high touch-low touch engine is configured to determine, based on the rules, whether the sponsoring organization or the asset manager is assigned discretion for facilitating execution of the each order, wherein the sponsoring organization is assigned discretion for low touch orders expected to have low market impact and the asset manager is assigned discretion for high touch orders expected to have high market impact. 
     
     
         28 . The computer system of  claim 27 , further comprising one or more trading systems collectively configured to:
 facilitate, based on the assignment of discretion, execution of the high touch orders by at least one trading organization designated at the discretion of the asset manager, and   facilitate, based on the assignment of discretion, execution of the low touch orders by at least one trading organization designated at the discretion of the sponsoring organization.   
     
     
         29 . The computer system of  claim 26 , further comprising a trade routing rules database on which the rules are stored. 
     
     
         30 . The computer system of  claim 26 , wherein the high touch-low touch engine is further configured to receive changes to the rules and adjust the rules in real time.