Compliance data management systems and methods

Abstract

A method and system for detecting potentially manipulative order patterns and assisting compliance professionals with analyzing and determining whether remedial actions are required with respect to such patterns to comply with governing regulations. The method includes receiving market-wide data from different sources of marketplace data, receiving local order data and accounts corresponding to local trading activity, applying a compliance event detection module to the local order data and market-wide data, integrating a portion of the market-wide and the local order data into a combined stream, comparing the state of one account's local order book to the state of the market-wide order book, identifying a concentration of the local order book on one side, identifying a compliance-related event, generating a score associated with a compliance-related event, and providing a user-interactive interface that displays the state of the local market order book, the market-wide order book, and a compliance related event.

What is claimed is: 
     
         1 . A computer-implemented method for detecting potentially manipulative order patterns and assisting compliance professionals with analyzing and determining whether remedial actions are required with respect to such patterns to comply with governing regulations, comprising:
 in a compliance system, receiving market-wide order data from a plurality of different sources of marketplace data, wherein the market-wide data comprises a market-wide history of market-wide order book states in correspondence with an incrementing external timestamp;   consolidating the market-wide order data from the different sources into a consolidated stream of order book states;   storing the consolidated stream of market-wide order data in a first database;   in the compliance system, receiving local order data, wherein the local order data comprises data that identifies local order book states and a corresponding local timestamp, and wherein at least a portion of the local order book data comprises a history of local orders in correspondence with the local timestamp and including one or more hidden local orders, which are received from a source external to the different sources of marketplace data;   storing the local order data in a second database;   receiving a list of accounts corresponding to local order activity;   implementing a compliance event detection module in the compliance system;   in the compliance system, applying the compliance event detection module to the stored local order data and market-wide order data, comprising:
 integrating a portion of the market-wide order data and a portion of the local order data into a combined stream of local order and market-wide order states; 
 comparing, at a particular time reference, the state of at least one account's local order book in a listed security to the state of the market-wide order book in that listed security; 
 in response to comparing, identifying a concentration of the local order book on one side of the order book; 
 identifying an individual compliance event, by applying a plurality of factors to the state of the account's local order book in the listed security and the state of the market-wide order book in the listed security, and in response, identifying a compliance-related event based on the identified concentration, one or more local orders by the account or a related account on the other side of the order book, a corresponding local timestamp, one or more compliance threshold requirements that are variable based on the particular listed security, and a corresponding external timestamp; 
 generating a score in association with the compliance-related event, wherein the score represents a corresponding level of significance of the event, and 
   providing a user-interactive interface that displays a view of the combined stream of local order and market-wide order states during the compliance-related event, marks the compliance related event, and provides a user with the ability to sequentially select to move through the stream and view the combined stream in graphical and table formats before, during, and after the compliance-related event.   
     
     
         2 . The method of  claim 1  further comprising processing market-wide data and local order data and determining that a subsequent event in the local order book is part of an identified compliance-related event. 
     
     
         3 . The method of  claim 1  wherein identifying the compliance-related event is further based on a number of price levels used by the account and a quantity of local orders by the account in connection with that particular security. 
     
     
         4 . The method of  claim 1  further comprising processing and setting filtering or processing parameters associated with each account, data source, or listed security. 
     
     
         5 . The method of  claim 1  further comprising receiving market-wide data from an external network and receiving local market data from an internal log of local trading activity. 
     
     
         6 . The method of  claim 5  wherein the internal log is received from an external network that is separate from the external network for the market-wide data, wherein the internal log is generated and maintained by a network that receives the local orders for transmission to exchanges. 
     
     
         7 . The method of  claim 1  wherein a portion of the steps are performed using a online storage accessible through a firewall that protects the storage. 
     
     
         8 . The method of  claim 1  further comprising providing the user with the option to select and save a threshold criteria for each particular listed security that will trigger the identification of compliance related event for that listed security. 
     
     
         9 . The method of  claim 1  further comprising considering a plurality of accounts as if they were a single account and providing the user with the option to select which accounts should be included in the view. 
     
     
         10 . The method of  claim 1  further comprising implementing the compliance event detection module to automatically process local market data on a periodic basis and identify a plurality of compliance-related events and an associated score for each. 
     
     
         11 . The method of  claim 15  comprising automatically applying the module on a day-after trading basis. 
     
     
         12 . The method of  claim 1  further comprising combining different groups of accounts and applying the module to evaluate whether a compliance-related event has occurred. 
     
     
         13 . The method of  claim 1  wherein the external timestamp and the local timestamp are from separate clocks without a having a synchronization relationship. 
     
     
         14 . A system for detecting, identifying, and addressing local trading behavior that signifies compliance concerns, comprising:
 a market order component that is configured to:
 receive market-wide order data from a plurality of different sources of marketplace data, wherein the market-wide data comprises a market-wide history of market-wide order book states in correspondence with an incrementing external timestamp; 
 consolidate the market-wide order data from the different sources into a consolidated stream of order book states; 
   a first database that is configured to store the consolidated stream of market-wide order data;   a local order server that is configured to:
 receive local order data, wherein the local order data comprises data that identifies local order book states and a corresponding local timestamp, and wherein at least a portion of the local order book data comprises a history of local orders in correspondence with the local timestamp and including one or more hidden local orders, which are received from a source external to the different sources of marketplace data; 
 receive a list of accounts corresponding to local trading activity; 
   a compliance event detection module that is configured to:
 apply compliance event detection to the stored local order data and market-wide order data, by:
 integrating a portion of the market-wide order data and a portion of the local order data into a combined stream of local order and market-wide order states; 
 comparing, at a particular time reference, the state of at least one account's local order book in a listed security to the state of the market-wide order book in that listed security; 
 in response to comparing, identifying a concentration of the local order book on one side of the order book; 
 identifying an individual compliance event, by applying a plurality of factors to the state of the account's local order book in the listed security and the state of the market-wide order book in the listed security, and in response, identifying a compliance-related event based on the identified concentration, one or more local orders by the account on the other side of the order book, a corresponding local timestamp, one or more compliance threshold requirements that are variable based on the listed security, and a corresponding external timestamp; 
 generating a score in association with the compliance-related event, wherein the score represents a corresponding level of significance of the event; 
 
   a second database that is configured to store the local order data; and   a viewer component that is configured to provide a user-interactive interface that displays a view of the combined stream of local order and market-wide order states during the compliance-related event, marks the compliance-related event, and provides a user with the ability to sequentially select to move through the stream and view the combined stream in graphical and table formats during the compliance-related event.   
     
     
         15 . The system of  claim 14 , the compliance event detection module further configured to process market-wide data and local order data and determine that a subsequent event in the local order book of that account is part of an identified compliance related event. 
     
     
         16 . The system of  claim 14  wherein identifying the compliance related event is further based on a number of price levels used by the account and a quantity of local orders by the account in connection with that particular financial traded product. 
     
     
         17 . The system of  claim 14 , the compliance event detection module further configured to process and set filtering or processing parameters associated with each account, data source, or listed security. 
     
     
         18 . The system of  claim 14 , the market order component further configured to receive market-wide data from an external network and the local order server further configured to receive local market data from an internal log of local trading activity. 
     
     
         19 . The system of  claim 14  wherein the internal log is received from an external network that is separate from the external network for the market-wide data, wherein the internal log is generated and maintained by a network that receives the local orders for transmission to exchanges. 
     
     
         20 . The system of  claim 14  wherein a portion of the steps are performed using online storage that is accessible through a firewall that protects the online storage. 
     
     
         21 . The system of  claim 14 , the viewer component further configured to provide user with the option to select and save a threshold criteria for each listed security that will trigger the identification of a compliance-related event for that listed security. 
     
     
         22 . The system of  claim 14 , the viewer component further configured to associate a plurality of accounts with each account and provide the user with the option to select which accounts should be included in the view. 
     
     
         23 . The system of  claim 14 , the compliance event detection module further configured to automatically process local market data on a periodic basis and identify a plurality of compliance-related events and an associated score for each. 
     
     
         24 . The method of  claim 23 , the compliance event detection module further configured to automatically apply the module on a day-after trading basis. 
     
     
         25 . The system of  claim 14 , the compliance event detection module further configured to combine different groups of accounts in an account and apply the module to evaluate whether a compliance-related event has occurred. 
     
     
         26 . The system of  claim 14  wherein the external timestamp and the local timestamp are from separate clocks without a having a synchronization relationship.