System and method for intraday netting payment finality with supplemental funding

Abstract

A system and method are disclosed for continuous intraday final settlement of payment orders among a plurality of participants, each participant having facilities configured to electronically send and receive the payment orders in the form of payment messages. Primary positions, corresponding to balances in a prefunded balance account, are stored. Supplemental positions, corresponding to balances in the prefunded balance account, are stored. Payment messages are received from sending participants. A selected payment message is released, such that the sending participant's supplemental position is decreased by the payment amount and the receiving participant's supplemental position is increased by the payment amount, if it is determined that: (i) the sending participant's supplemental position, after subtraction of the payment amount, is greater than or equal to the predetermined minimum for the sending participant's supplemental position, and (ii) the receiving participant's supplemental position, after addition of the payment amount, is less than or equal to the predetermined maximum for the receiving participant's supplemental position.

1 - 27 . (canceled) 
     
     
         28 . A method for conducting continuous electronic intraday final settlement of payment orders, the method comprising:
 storing a plurality of primary positions, corresponding to balances in a prefunded balance account, each primary position representing a right of a corresponding one of a plurality of participants to payment from the prefunded balance account;   storing a plurality of supplemental positions, corresponding to supplemental   balances in the prefunded balance account, each supplemental position representing a right of a corresponding one of the participants to payment from the prefunded balance account;   determining if a sending participant's supplemental position, after subtraction of a payment amount of a payment message, is no less than a predetermined minimum for the sending participant's supplemental position; and   releasing a payment message to cause the sending participant's supplemental position to decrease by the payment amount of the payment message and a receiving participant's supplemental position to increase by the payment amount when it is determined that the sending participant's supplemental position, after subtraction of the payment amount, is no less than the predetermined minimum for the sending participant's supplemental position.   
     
     
         29 . The method of  claim 28 , further comprising:
 receiving a plurality of payment messages from sending participants and holding the payment messages in a queue; and   accepting designation of at least one of the plurality of payment messages received from sending participants as a priority message.   
     
     
         30 . The method of  claim 28 , further comprising determining whether the sending participant's supplemental position is sufficient to cover the payment amount. 
     
     
         31 . The method of  claim 30 , wherein the determining of whether the sending participant's supplemental position is sufficient to cover the payment amount includes determining whether releasing the payment message would not cause the sending participant's supplemental position to go below zero. 
     
     
         32 . The method of  claim 28 , further comprising determining whether a primary position of a sending participant is sufficient to cover a remainder of an amount not covered by the sending participant's supplemental position. 
     
     
         33 . The method of  claim 32 , wherein the determining of whether the primary position of the sending participant is sufficient to cover the remainder of the amount not covered by the sending participant's supplemental position is performed if the sending participant's supplemental position is not sufficient. 
     
     
         34 . The method of  claim 33 , wherein the payment message is one of a plurality of payment messages including a priority message, an urgent message, a preferred message, or a non-priority message. 
     
     
         35 . A computer-readable medium storing instructions which, when executed by a computer processor, cause the computer processor to perform a method for conducting settlement, the method comprising:
 determining a usable supplemental position of a sending participant;   releasing a payment if it is determined that the usable supplemental position is no less than an amount of the payment;   if the usable supplemental position of the sending participant is not sufficient to cover the amount of the payment, determining whether a primary position of the sending participant is sufficient to cover a remainder of a payment amount not covered by the usable supplemental position of the sending participant; and   releasing the payment, if the primary position of the sending participant is sufficient to cover the remainder of the payment amount.   
     
     
         36 . The computer-readable medium of  claim 35 , wherein the determining of the usable supplemental position includes:
 subtracting a portion of a reserved supplemental position of a sending participant from a supplemental position of the sending participant;   determining a usable supplemental position by determining a lesser of a result of the subtracting and an amount by which a maximum supplemental position of the receiving participant exceeds a current supplemental position   
     
     
         37 . A system, comprising:
 a memory storing a program;   a computer processor arranged to execute the program for performing a method comprising:   determining a usable supplemental position of a sending participant,   releasing a payment if it is determined that the usable supplemental position is no less than an amount of the payment,   if the usable supplemental position of the sending participant is not sufficient to cover the amount of the payment, determining whether a primary position of the sending participant is sufficient to cover a remainder of a payment amount not covered by the usable supplemental position of the sending participant, and   releasing the payment, if the primary position of the sending participant is sufficient to cover the remainder of the payment amount.   
     
     
         38 . The system of  claim 37 , wherein the determining of the usable supplemental position includes:
 subtracting a portion of a reserved supplemental position of a sending participant from a supplemental position of the sending participant;   determining a usable supplemental position by determining a lesser of a result of the subtracting and an amount by which a maximum supplemental position of the receiving participant exceeds a current supplemental position   
     
     
         39 . The system of  claim 38 , wherein the method further comprises determining if the usable supplemental position is no less than the payment amount. 
     
     
         40 . The system of  claim 39 , wherein the method further comprises releasing the payment where the usable supplemental position is determined to be no less than the payment amount. 
     
     
         41 . The system of  claim 40 , wherein the method further comprises performing at least one of deducting the payment amount from the supplemental position of the sending participant, and adding the payment amount to the supplemental position of the receiving participant. 
     
     
         42 . The system of  claim 37 , wherein, if the primary position of the sending participant is not sufficient to cover the remainder of the payment amount, the payment is not released. 
     
     
         43 . The system of  claim 37 , wherein the method further comprises, releasing a next payment message if the primary position of the sending participant is not sufficient to cover the remainder of the payment amount. 
     
     
         44 . The system of  claim 37 , wherein the method comprises, if the usable supplemental position of the sending participant is sufficient to cover the amount of the payment, determining whether a primary portion of the payment message would cause a receiving participant's maximum primary position would be exceeded. 
     
     
         45 . The system of  claim 37 , wherein the method further comprises releasing a next payment message but not the payment message, if it is determined that a primary portion of the payment message would cause a receiving participant's maximum primary position would be exceeded. 
     
     
         46 . The system of  claim 37 , wherein the method further comprises, if it is determined that a primary portion of the payment message would not cause a receiving participant's maximum primary position would be exceeded, performing at least one of:
 deducting an amount of the primary portion from the sending participant's primary position;   adding the amount of the primary portion to the receiving participant's primary position;   deducting a supplemental portion of the amount from a sending participant's supplemental position; and   adding the supplemental portion of the amount from the sending participant's supplemental position.   
     
     
         47 . The system of  claim 37 , wherein the payment message is one of a plurality of payment messages including a priority message, an urgent message, a preferred message, or a non-priority message.