GB2243465A - System for processing redemption notification data - Google Patents

Abstract

A computer system and method are provided for interactively processing redemption notification data pertaining to financial instruments such as bonds. A first data file, generated at a communications agent computer 20 and containing a list of financial instruments called for redemption, is transmitted to a depository computer 32 for comparison with a list of financial instruments held by the depository. A second data file is prepared containing a list of the called financial instruments that the depository claims to hold. The first and second data files are compared in the communications agent computer to identify called financial instruments not claimed by the depository. A notice for publication is prepared listing the unclaimed financial instruments. Any number of depositories can be notified of the redemption. Various verification and validation steps are provided to ensure that data is correctly transferred and that bonds identified by depositories are in fact held by the depositories and have been called for redemption. <IMAGE>

Description

COMPUTER SYSTEM AND METHOD FOR DATA IDENTIFICATION The present invention relates a computer system and method for data identification and is applicable to a system for notifying bond owners, depositories, and other who hold financial instruments that specific securities are being redeemed. More particularly, the invention is applicable to a special purpose computer system and method for processing and transmitting information, e.g. concerning bond certificates called for redemption.

The prior art procedures used for notifying bond owners of redemptions have existed for centuries.

These procedures have been largely manual in nature, and are therefore time consuming, labor intensive, and expensive. After painstakingly preparing a list of all the financial instruments to be redeemed, including the certificate numbers, relevant dates, and amounts to be redeemed, the information is published in a newspaper notice directed to depositories and other holders of the instruments. The manner in which depositories discover that some of the certificates in their vaults have been called for early redemption has often been haphazard and unreliable. Further, undesirable "backoffice costs, financial liability associated with missing a bond redemption, and needlessly slow or outdated manual procedures have plagued the redemption notification process.

The participants in the process typically include a trustee bank that is responsible for the issues to be redeemed, the newspaper which publishes the notice of bond certificates or other financial instruments called for early redemption, a typesetting or advertising agency that acts as a "middle man" in arranging for publication of the notice of redemption, and the depositories that must respond to the notices of redemption and determine whether any of the bond certificates they are holding have been called for redemption.The "backoffice" costs and outdated procedures referred to above include the manual entry and re-entry of the same data in numerous organizations, the proofreading of data by a communications agent that serves as an interface between the trustee bank and depositories, further proofreading by the trustee bank, the placement of large and costly newspaper notices, the manual process by which the depositories check the published notice against their own holdings, and the high percentage of mistakes that inevitably results. The cost of the required newspaper notice can in some instances exceed $500,000. In addition, lost interest on called bonds which have not been submitted for timely redemption can exceed several hundred thousand dollars per redemption.

It would be advantageous to provide a system and method for obviating the need to place costly newspaper advertisements to convey information about redeemed bonds. It would be further advantageous to provide such a system and method that reduces the "back-office" costs and outdated manual procedures associated with current redemption procedures.

According to one aspect of the invention, there is provided a computer system for data indentification comprising: computer means for generating a first data file containing a list of data records; means operatively associated with said computer for transmitting said first data file to a remote station and for subsequently receiving a second data file from said station containing a list of each of said data records that the station claims to hold; means for comparing said first and second data files at said computer means to identify data records from said first data file not in said second data file; and means responsive to said computer means for creating a list of the data records identified by said comparing means.

In accordance with another aspect of the present invention, computer system is provided for financial instrument redemption notification and data verification.

Computer means generate a first data file containing a list of financial instruments to be redeemed.

Means operatively associated with the computer transmit the first data file to a depository. A second data file is received from the depository containing a list of each of the called financial instruments that the depository claims to hold.

Means responsive to the computer compares the first and second data files to identify financial instruments from the first data file not claimed by the depository. A list of the unclaimed financial instruments is then created and formatted into a notice for publication. In this manner, those financial instruments held by one or more depositories can be eliminated from the newspaper notice, saving substantial costs. It is typical for a majority of the financial instruments to be redeemed to be held by one or more depositories.

In a preferred embodiment, the first data file is transmitted to a plurality of depositories. Each depository transmits a separate second data file back to the computer means, each second data file containing a list of the financial instruments that the originating depository claims to hold. The comparing means then identifies financial instruments from the first data file that are not claimed by any of the depositories.

First verification means are provided for comparing the second data files received from each depository to identify any financial instruments claimed to be held by more than one depository.

Means responsive to the first verification means generate an error report of financial instruments claimed to be held by more than one depository. The error report is transmitted to each depository claiming to hold a financial instrument claimed by another depository. Corrected second data files are then received from the depositories, and the generation and transmission of error reports is repeated until a set of mutually exclusive second data files has been received.

Second verification means associated with the computer compares the first and second data files to identify any financial instrument listed in any second data file that is not listed in the first data file. Means responsive to the second verification means generate an error report designating the improperly listed financial instrument. This error report is then transmitted to the depository that improperly listed the financial instrument. The error report received by the depository is used to prepare a corrected second data file that is transmitted back to the computer means. The process is repeated until a set of correct second data files has been received.

Means are also provided for producing a final report designating what depositories hold which of the financial instruments to be redeemed and identifying which of the called financial instruments are not held by any depository. In a preferred embodiment, the financial instruments are bonds and the final report specifies the bond certificate numbers.

Another aspect of the present invention concerns the verification of each data transfer to and from a depository. In one embodiment, the financial instruments are bonds and the data files contain data indicative of each bond certificate number and the amount of money to be paid upon redemption of each bond. The data for each bond in a data file is identified by a record number. In order to verify proper data transfer, the certificate number of each bond is multiplied by the redemption amount for that bond to provide a first product for each bond. The first product for each bond is then multiplied by the record number corresponding to that bond to provide a second product for each bond. The second products of all the bonds in a data file are summed to provide a grand total. The grand total is then compared to a total computed in the same manner at the remote end of a communication line over which the data file was transferred. If the totals match, it is assumed that a complete and proper data transfer has occurred.

The system of the present invention can further comprise means for electronically receiving various information from a trustee (e.g., a trustee bank) that is necessary to generate the first data file.

The integrity of the electronic data transfer from the trustee is verified upon receipt of the information.

Computer means are provided at the depository for receiving the first data file. The depository computer compares the list of financial instruments to be redeemed to a list of financial instruments held by the depository. In response, the second data file is generated and transmitted. Means are provided at the depository computer for verifying the integrity of data transfer each time data is received from and transmitted to a communications agent.

A method is provided for interactively processing redemption notification data. A first data file is generated at a communications agent computer containing a list of financial instruments called for redemption. The first data file is transmitted to a depository computer for comparison at the depository with a list of financial instruments held by the depository. A second data file is prepared containing a list of the called financial instruments that the depository claims to hold. The first and second data files are compared in the communications agent computer to identify called financial instruments not claimed by the depository. A notice for publication is then prepared listing the unclaimed financial instruments. In a preferred embodiment, the first data file is transmitted to a plurality of depository computers for processing.All of the second data files received from the various depository computers are cross-checked to determine if more than one depository claims to hold the same called financial instrument. Any errors discovered are corrected. Any second data files that list financial instruments that have not been called are also identified and corrected.

BRIEF DESCRIPTION OF THE DRAWINGS Figure 1 is a block diagram illustrating hardware components of a computer system in accordance with the present invention; Figure 2 is a flowchart illustrating the prior art procedures for redemption notifications; Figure 3 is a flowchart illustrating the redemption notification procedures of the present invention; Figure 4 is a flowchart illustrating a data transfer verification technique used in a preferred embodiment of the present invention; Figure 5 is a flowchart illustrating a verification technique for identifying errors in data files received from depositories; Figure 6 is a flowchart illustrating another verification routine used to identify errors in data files received from depositories; Figure 7 is a flowchart illustrating a routine for identifying financial instruments that have been called and are not claimed by any depositories;; Figure 8 is a flowchart illustrating a routine for combining a list of financial instruments with issue related data in a typesetting file to form a notice of redemption to be sent to newspapers for publication; and Figure 9 is a flowchart of a routine for generating a final report.

DETAILED DESCRIPTION OF THE INVENTION Figure 1 illustrates the hardware components of a computer system in accordance with the present invention. Three different entities are involved.

These are the issuers of the obligations to be redeemed or the trustees for such issues, the depositories that are likely to hold a large number of the financial instruments to be redeemed, and the communications agent who provides an interface between the issuer or trustee (hereinafter "trustee") and generates the necessary redemption notifications.

Each of the entities described communicates via one or more computers. A trustee computer 10 is used by the trustee to provide raw data to the communications agent which the latter uses to generate a data file containing a list of the financial instruments to be redeemed. Trustee computer 10 is coupled to one or more storage devices such as a tape drive 12 and a memory 14.

Memory 14 can comprise, for example, one or more Winchester disks of a type well known in the art.

Trustee computer 10 is provided with a modem 16 for communication with a communications agent computer 20 via a data path 18.- Data from the trustee is received by the communications agent computer via a modem 30. Computer 20 is also coupled to storage devices such as a tape drive 26 and conventional memory 28. In addition, computer 20 interfaces with a typesetter 22 and a printer 24. Printer 24 is used to print various reports used in connection with the redemption procedures, including a final report designating what depositories hold which of the financial instruments to be redeemed and which of the financial instruments are not held by any depository. Typesetter 22 is used to compose a newspaper notice of financial instruments to be redeemed that are not held by any of the depositories.A newspaper notice can be transmitted to one or more newspapers, after appropriate validation, by electronic means via one or more ports 40 coupled to data path 18. Alternately, the typeset notice can be transmitted to the newspaper(s) by mail, facsimile, or other well known means.

Communications agent computer 20 communicates with a depository computer 32 via modems 30, 38 and data path 18, or alternately by transferring physical tapes generated by tape drive 26 at the communications agent computer and read by a tape drive 34 at the depository computer. For security purposes, some depositories require all received data to be input by way of magnetic tapes instead of from a communication network and modem. Depository computer 32 also includes memory 36, which is typically hard disk storage.

The system of the present invention provides data communication, verification, analysis and processing of financial instrument redemption notification. Typically, the financial instruments to be redeemed are bonds held by individual bond holders or stored in vaults at various depositories throughout the world. The present invention obviates the need for costly newspaper advertisements to convey information about redeemed bonds. Instead, a data file is transmitted to each of the depositories holding bonds affected by a redemption. Following transmission of the file to the depositories by the communications agent, each depository transmits back to the communications agent a list of certificate numbers named in the original file and held by that depository. The communications agent verifies the accuracy of the depository's list and so informs the depository.

The communications agent further analyzes the data received from the depositories to determine which bonds affected by a redemption are not held by any of the depositories. Then, the communications agent publishes one or more newspaper advertisements listing issue information and certificate numbers of called bonds not held by depositories. For each bond held by a depository, the depository informs the beneficial bond owner of the redemption and submits called certificates to the paying agent for redemption. These procedures are much more efficient than prior art redemption procedures and substantially reduce the costs associated with a redemption.

Prior art procedures for redemption notification are illustrated in the flowchart of Figure 2 which is arranged in four columns. The first column illustrates acts taken by a trustee bank. The second column illustrates acts taken by the communications agent. The third column illustrates the activity of one or more newspapers, and the fourth column illustrates the activities of one or more depositories.

A trustee bank that has been instructed by an issuer to undertake a redemption obtains a list of all the certificates outstanding from the bond issue of interest, as indicated at box 50. Then, at box 52, a random lottery is performed on the list to produce a new list of certificates to be called for redemption, as indicated at box 54. At box 56, the list of certificates to be called is supplemented with other information relating to the specific bond issue and transmitted by facsimile or mail to a printer or advertising agency. The printer or advertising agency enters the certificate numbers into a typesetting computer at 66, and typesets it in the form of a draft notice of redemption at 68.

Then, at box 70 the communications agent compares the original notice of redemption generated by the trustee at box 56 against the typeset notice of redemption using a manual process of comparison. If the manual comparison process finds a portion of the new notice which is not identical to the version received from the trustee bank, the communications agent version is revised as indicated at boxes 72, 74 to match the original version received from the trustee. After revision, a new comparison process is undertaken at box 72 and the process repeats until the typeset version is identical to the version received from the trustee bank.

When both versions of the notice of redemption are found to be identical in text and numbers, the typeset notice is transmitted by the communications agent to the trustee for proofreading at box 60.

The trustee compares the typeset notice against their original file of numbers and text. If, after proofreading the typeset version of the notice of redemption, the trustee decides that a portion or portions of the new notice are not accurate, the notice is transmitted back to the communications agent for revision as indicated at boxes 62, 78.

The communications agent then makes the requested revisions, proofreads the revised version as indicated at box 76, and transmits the latest version back to the trustee. Once the trustee is satisfied that the typeset version matches the information in the trustee's original file, they transmit a signed authorization to the communications agent, approving the notice for publication in one or more newspapers as indicated at box 64. The communications between the trustee and communications agent are made via messenger, facsimile, or mail.

Having received the signed authorization, the communications agent arranges to have the notice of redemption published in newspapers, as indicated at box 80. The notice of redemption is printed at box 82, and depositories and other holders of bonds must read the newspapers daily in an effort to learn of bond redemptions as shown at box 84. If the depository does not receive the newspaper, the redemption notice will be missed as indicated at box 85. This can result in substantial liability for bonds that are not properly redeemed. Even if the depository receives the newspaper carrying the notice, there is no assurance that it will properly identify all of the called bonds it holds.

Therefore, the manual system of the prior art is subject to failure.

Assuming that the depository receives the newspaper carrying the notice, it will compare the certificate information in the notice with its own holdings as indicated at box 86. If the depository is holding one or more of the called bonds, the certificate numbers will match as determined at box 88 and at box 90 the pertinent bonds will be removed from the depository vault and sent to the trustee for redemption as indicated at box 92. If, at box 88, it is determined that none of the called bonds are held by the depository, the depository will close its file for this redemption as indicated at box 89.

Figure 3 is a flowchart depicting the redemption notification procedure in accordance with the present invention. The various procedures illustrated in the flowchart of Figure 3 are divided into three columns. The left column illustrates the steps taken by the trustee bank. The middle column illustrates the steps taken by the communications agent. The right column illustrates the steps taken by each depository.

At box 100, the trustee runs a lottery using the entire list of certificates outstanding from a bond issue to create a new list of certificates (comprising a subset of the universe of outstanding bonds) to be called for early redemption. An output file of the chosen bond numbers is prepared at box 102. This file is output in hardcopy form as indicated at 104 and as a computer file as indicated at box 106. The hardcopy list containing the certificate numbers to be called for redemption is transmitted to the communications agent, e.g., by mail or facsimile. Receipt of the hardcopy list by the communications agent is indicated at box 110.

The computer file containing the list of certificate numbers to be called is transmitted to the communications agent via electronic means. For example, a trustee computer 10 as illustrated in Figure 1 can transmit the list via modem 16, data communications path 18, and modem 30 to a communications agent computer 20. The computer file is received as indicated at box 112, and a verification routine commences as indicated at box 108 to ensure that the data was properly transferred from the trustee to the communications agent. A similar verification occurs each time data is transferred between the communications agent and a depository. A specific embodiment of the verification routine is explained below in connection with Figure 4.

After the computer file is received by the communications agent, it is restructured into a standardized transmission format as indicated at box 114 for transmission to a depository computer. Any well known standard transmission format may be used.

For example, the file can be sent as an ASCII file via a modem as indicated at box 126, for receipt at the depository as indicated at box 130. Upon receipt at the depository, the integrity of the data transfer is verified as indicated at box 128.

After receipt by the depository, the issue and certificate information contained in the file is compared with the depository's holdings, as indicated at box 132. This comparison process is undertaken using either manual or automated means.

Upon completion of this comparison, the depository issues a report that lists the certificates held by it which match the certificates listed in the data file received from the communications agent. This report is then sent back to the communications agent as indicated at box 134. Again, the integrity of the data transfer is verified at box 136.

Although a single depository is illustrated in the flowchart of Figure 3, it should be understood that typically a plurality of depositories will receive the redemption notification file from the communications agent, process it, and send a corresponding report back to the communications agent. Upon receipt of a report from the depository listing the certificates claimed to be held by that depository, the communications agent computer commences a data analysis routine which compares the received report with the reports received from other depositories for the purpose of checking whether any certificates are claimed to be held by more than one depository. This is indicated at box 138. The routine for comparing the reports is discussed below in connection with Figure 5.

The comparison process of box 138 is repeated with respect to files received from each depository.

If it is determined that matching certificate numbers have been transmitted to the communications agent from two or more different depositories, a report is sent to each relevant depository as indicated at box 146 listing the conflicting claims of certificates held. The report is received by each depository as indicated at box 150 and the integrity of data transfer is verified as indicated at box 148. The depositories receiving the report of conflicting claims resolve the conflicts through their own research. After attempting to resolve each conflict noted in the report of conflicting claims, by invoking the comparison set forth in box 132, the depository sends a new, revised data file of certificate numbers to the communications agent via box 134 where the data comparison program of box 138 is implemented again.The process repeats until all conflicting claims of certificates held by the depositories are resolved.

The fully analyzed and validated files from the depositories, which have now been assured to be free of duplicated or conflicting claims, are next introduced to a second level of analytic review at box 140. This step locates any certificates listed by a depository which are not contained in the original data file submitted by the trustee. A routine for this step is explained below in connection with the flowchart of Figure 6. If a file sent by a depository designates one or more certificates not called for redemption, a report is generated and sent back to the depository as indicated at box 152. The report is received at box 150 and the integrity of data transfer is verified at box 154. The report is analyzed at the depository, the problem corrected, and a new data file is sent to the communications agent by the depository as indicated at box 134.The process continues until a set of correct and mutually exclusive second data files has been received from all of the depositories.

At this point, the communications agent will have received a set of data files from the depositories that lists all of the called bonds that are held by the depositories. This information is consolidated into a report at box 142. The report is compared, at box 144, with the list of certificates called for redemption by the trustee to determine which certificates in the trustee's original list are not held by any depositories.

This process is described in more detail in connection with the flowchart of Figure 7. The list output from box 144 contains those certificate numbers that are to be displayed in a notice of early redemption to be published in the newspaper.

If all of the called bonds are held by depositories, there is no need to publish a newspaper notice.

Returning to box 112 of Figure 3, where the computer file of bonds to be redeemed was received by the communications agent, it is seen that subsequent to the receipt of the trustee's file, a separate database format "source" file is constructed from the received data (box 116). The database file is stored in the communications agent computer for use in generating various reports. At box 118, the source file is updated with the output from box 144 to reflect which depositories, if any, hold called certificates. At box 120, a report listing the certificates not held by depositories is generated. At box 122, a notice of redemption for the certificates not held by depositories is typeset. After approval by the trustee, the notice of redemption is sent to one or more newspapers for publication.Information contained in the notice of redemption, together with other information that may be of interest from the database file, is sent to interested institutions as indicated at box 124.

The procedures for generating the notice of redemption and transmitting information to interested institutions are illustrated in greater detail in Figures 8 and 9, respectively, discussed below.

Figure 4 is a flowchart illustrating a routine for verifying the data transfer between the communications agent and the trustee and depositories. This routine is performed at each of boxes 108, 128, 136, 148, and 154 of Figure 3. The purpose of the verification routine is to create output to validate and uniquely identify the data which emanates from the sending party in order to assure that the data, when received by the receiving party in the processing chain, is identical to the original source data. The computer file of bond certificate numbers is introduced into the verification program at box 160 by the party intending to send the data. Each record in the file includes data intended to identify the precise bond issue involved in the redemption, the certificate numbers from each such issue which are impacted by the redemption, and the redemption value of each such certificate.The data for each bond in a data file is identified by a record number. At the beginning of the routine, a register is set to zero as indicated at box 164. At box 166, the routine retrieves the first record corresponding to an individual certificate impacted by the redemption.

At box 168, two fields of data are multiplied together. These are the certificate number and the amount called per certificate number. The product of this multiplication is input to box 170 where it is multiplied by the record number corresponding to the certificate being processed. The product of this multiplication is added to the register at box 172. As each consecutive certificate record total is attained, it is added to the register. This is accomplished by determining at box 174 if the last record in a file has been reached. If not, the next record is retrieved at box 175 and the process continues until every record has been processed.

When the last record total has been added to the register, the register contains the grand total as indicated at box 176. The grand total is the "output" of the verification process, and is printed in a report presented to management as indicated at box 178.

The same file verified by the sending party is transmitted by electronic means to the receiving party with verification as indicated at box 162.

The receiving party completes the same "grand total" process as the sending party as indicated at boxes 182-198. Then, at box 180 the sending party and the receiving party manually or electronically compare their respective outputs from the verification program. If the outputs are identical, as determined at box 200, the files are assumed to be identical as indicated at box 204. If they are not identical, management's attention is focused via a report issued at box 202, new files are exchanged, and the verification process is attempted again.

Figure 5 illustrates a routine for determining whether two or more depositories claim to be holding the same financial instrument for redemption.

Figure 5 assumes, for purposes of illustration, that a different file of bond certificate numbers is received from each of four different depositories.

These four files are represented by boxes 210, 216, 222, and 228. The routine compares each of the received files with each of the other received files. The process is illustrated by comparing the depository 1 file of box 210 to the files from the other three depositories in consecutive stages.

First, the depository 1 file is compared with the depository 2 file at box 212. If any matching numbers are found between the two files, a report is issued at box 214. Next, the depository 1 file is compared with the depository 3 file at box 234. If any matching numbers are found between the two depositories, a report is issued at box 236. Then, the depository 1 file is compared with the depository 4 file at box 238. If any matching numbers are found between the two depositories, a report is issued at box 240. This process is repeated with respect to the files received from each depository. If the routine discloses that matching certificate numbers have been transmitted to the communications agent from two or more different depositories, a report is sent to each relevant depository as discussed above in connection with Figure 3.The report lists the conflicting claims of certificates held, and the depositories receiving the report resolve the conflicting claims.

Figure 6 is a flowchart illustrating a routine for determining if any depository included certificate numbers in its data file that were not called. A source file 248, which is the validated data file containing the list of bond certificate numbers called for early redemption, is compared to each of the data files received from the depositories. In the example, four depositories are shown. However, it will be appreciated that the actual number of depositories involved in a particular redemption may vary.

Each certificate number contained in the depository 1 file of box 256 is compared with each certificate number contained in the source file. If any bond certificate numbers contained in the depository 1 file are found to be missing from the source file at box 250, a report is issued at box 252. This report is sent by the communications agent via electronic means to depository 1, with verification of the data transferred indicated at box 254. The depository resolves the conflict and sends a new, revised report via electronic means to the communications agent, with verification as indicated at box 258. The communications agent again compares the certificates listed by the depository with those contained in the source file to determine if the depository has reported any certificates not contained in the source file.If so, the process continues until a correct file is received from the depository. The same process is carried out with respect to depository 2 at boxes 260, 262, 264, 266, and 268. Similarly, the process is carried out for depository 3 at boxes 270-278, and for depository 4 at boxes 280-288.

Figure 7 illustrates a routine for preparing a report containing the certificate numbers to be redeemed by the trustee which are not held by any of the depositories contacted by the communications agent. The source file from the trustee, containing the list of all certificates to be redeemed, contains one record for each called bond certificate. The bond certificate numbers comprise a complete database of those bond certificate numbers originally contained in the file received from the trustee. Each of the certificate records has been appended with a field labeled "flag". The flag is initialized with the letter "S" for each field. This indicates that each particular bond certificate represented by each individual certificate record is a part of the "source" file.

Processing of data files from four different depositories is illustrated in Figure 7. It will be appreciated that the actual number of depositories may vary.

The file from depository 1 is read into the communications computer active memory at box 302.

At box 304, each certificate number in the depository file is compared with each certificate number in the source file. For each certificate number contained in both files, the character "S" in the flag field is replaced with the number representing the depository in which it is held.

Thus, for example, where a match is found at box 304, the data identifying the certificate is output to box 306 where the "S" flag is changed to a "1" flag. At box 308, a report is generated containing a list of all the certificates held by depository 1.

All of the certificates not held by depository 1 and identified in the source file will continue to have "S" flags, and this data is passed from box 304 to box 312 where a comparison is made with the certificates held by depository 2. Boxes 310-316 repeat the process explained above for depository 2.

Boxes 318-324 repeat the process for depository 3.

Boxes 326-332 repeat the process for depository 4.

The result is a series of four reports which together identify which depositories hold which bond certificates. At the same time, box 328 outputs to box 334 the data identifying all of the certificates from the source file still having an "S" flag.

These are the certificates that are not held by any of depositories 1-4. At box 334, a list of these "unclaimed" certificates is generated for use in preparing a notice of redemption for publication in one or more newspapers.

Figure 8 is a flowchart illustrating the process for production of the newspaper notice. The file of bond certificate numbers from the "source" file, still containing the "S" flags, is read into a new file at box 340. Other data received from the trustee at box 342, such as the issuer name, issue title and CUSIP numbers is combined with the source file in various fields in a new database at the communications agent computer. This new database, sometimes referred to as the "notice database", is indicated at box 344. At box 346, the notice database is reformatted into an ASCII file that is useable for computerized typesetting. A file is opened in a computer typesetting program as indicated at box 348, and the ASCII file is "flowed" into this file at box 350. Preprogrammed "style sheets" are utilized to further format the data at box 352.

Once the appearance of the redemption notice is considered satisfactory by the typesetter, the notice is printed in hardcopy as indicated at box 354, and transmitted to the trustee for final approval at box 356. Transmission of the printed notice of redemption can be made by facsimile or any other well known means. Once the trustee approves the notice, e.g., by return facsimile, the communications agent sends the notice to one or more newspapers for publication as indicated at box 360.

If any revisions are necessary in the printed notice of redemption, they are attended to by the communications agent as indicated at box 358.

The communications agent also transmits information contained in the notice of redemption to other interested institutions, such as depositories, banks, and brokerage firms. A routine for accomplishing this is illustrated in the flowchart of Figure 9. The file of bond certificate numbers from the "source" file with the "S" flags is received at box 370. Other information from the trustee, such as the issuer, issue title and CUSIP information is received at box 372. Additional information relating to communications between the bond holder and the paying agent may also be received from the trustee at box 372, and all this information is combined with the source file into various fields in a database at box 374. An output file, formatted in order that the file may be processed by the receiving party, is created at boxes 376 and 378.This file is then transmitted to the interested parties as indicated at box 380.

The various hardware components of the present invention are well known. For example, the trustee and communications agent computers can comprise IBM 386-based personal computers or the equivalent.

Typically, the depository computers are mini computers or mainframes. The software routines illustrated in connection with the present invention can be implemented in dBASE IV language. Any well known communications software, such as the SMARTCOM program marketed by Hayes Microcomputer Products, Inc. can be used for the transfer of data between the communications agent computer and the trustee and depository computers. Where the depositories do not accept data via communications networks, standard nine track reel-to-reel tapes may be used to accomplish the data transfer. The typesetter used by the communications agent can be any well known product such as the Aldus Pagemaker product.

It will now be appreciated that the present invention provides a computer system and method for financial instrument redemption notification and data verification. Substantial savings in time and cost are achieved by the present invention and errors in the redemption notification process are virtually eliminated.

Although the invention has been described in connection with a preferred embodiment thereof, those skilled in the art will appreciate that numerous adaptations and modifications may be made thereto

Claims (24)

Claims:

1. A computer system for data indentification comprising: computer means for generating a first data file containing a list of data records; means operatively associated with said computer for transmitting said first data file to a remote station and for subsequently receiving a second data file from said station containing a list of each of said data records that the station claims to hold; means for comparing said first and second data files at said computer means to identify data records from said first data file not in said second data file; and means responsive to said computer means for creating a list of the data records identified by said comparing means.

2. A system according to claim 1 in combination with second computer means at each of a plurality of remote stations, each second computer means having means for producing its own second file, and the comparing means being operable to identify all data records in its first data file not in any of the second data files.

3. A system according to claim 2 and comprising means for cross-checking all of the second data files to determine if more than one remote station holds the same data record.

4. A computer system for financial instrument redemption notification and data verification comprising: computer means for generating a first data file containing a list of financial instruments to be redeemed; means operatively associated with said computer for transmitting said first data file to a depository; means operatively associated with said computer for receiving a second data file from said depository containing a list of each of said financial instruments that the depository claims to hold; means responsive to said computer for comparing said first and second data files to identify financial instruments from said first data file not claimed by said depository; and means responsive to said computer for creating a list of the financial instruments identified by said comparing means.

A A computer system in accordance with claim It further comprising: means for formatting the list of financial instruments identified by said comparing means into a notice for publication.

6. A computer system in accordance with claim 4 wherein said first data file is transmitted to a plurality of depositories, a separate second data file is received from each depository containing a list of the financial instruments that the depository claims to hold, and said comparing means identifies financial instruments from said first data file not claimed by any of said depositories.

7 .. A computer system in accordance with claim further comprising: first verification means operatively associated with said computer for comparing the second data files received from each depository to identify any financial instruments claimed to be held by more than one depository; means responsive to said first verification means for generating an error report of financial instruments claimed to be held by more than one depository; and means responsive to said computer for transmitting said error report to each depository claiming to hold a financial instrument claimed by another depository.

t. A computer system in accordance with claim 7 further comprising: means for receiving corrected second data files and for repeating the generation and transmission of error reports until a set of mutually exclusive second data files has been received.

GJ A computer system in accordance with claim 7 further comprising: second verification means associated with said computer for comparing the first and second data files to identify any financial instrument listed in any second data file that is not listed in the first data file; means responsive to said second verification means for generating an error report designating the improperly listed financial instrument; and means responsive to said computer for transmitting said error report to the depository that improperly listed the financial instrument.

10. A computer system in accordance with claim 9 further comprising: means for receiving corrected second data files and for repeating the generation and transmission of error reports until a set of correct and mutually exclusive second data files has been received.

II . A computer system in accordance with claim lo further comprising: means for formatting the list of financial instruments not claimed by any of the depositories into a notice for publication.

12 . A computer system in accordance with claim If further comprising: means operatively associated with said computer for producing a final report designating what depositories hold which of the financial instruments to be redeemed and which of said financial instruments are not held by any depository.

13: . A computer system in accordance with claimed wherein said financial instruments are bonds and said final report specifies the bond certificate numbers.

14. A computer system in accordance with claim 10 further comprising: means for verifying the integrity of data transfer each time data is transmitted to and received from a depository.

1.5 . A computer system in accordance with claim 14 wherein said financial instruments are bonds and said data files contain data indicative of each bond certificate number and the amount of money to be paid upon the redemption of each bond.

16. A computer system in accordance with claim 15 wherein the data for each bond in a data file is identified by a record number and said verifying means comprises: means for multiplying the certificate number of each bond by the redemption amount for that bond to provide a first product for each bond; means for multiplying the first product for each bond by the record number corresponding to that bond to provide a second product for each bond; means for summing the second products of all the bonds in a data file to provide a grand total; and means for comparing the grand total to a total computed in the same manner at the remote end of a communication line over which the data file was transferred.

A .Acomputer system in accordance with claim Zt further comprising: means for electronically receiving from a trustee information necessary to generate said first data file; and means for verifying the integrity of the electronic data transfer upon the receipt of said information.

18. A computer system in accordance with claim 4 further comprising: computer means at said depository for receiving said first data file; means operatively associated with said depository computer for comparing said list of financial instruments to be redeemed to a list of financial instruments held by said depository; means responsive to said depository comparing means for generating said second data file; and means for transmitting said second data file.

A .Acomputer system for use by a depository in obtaining and processing financial instrument redemption notifications comprising: computer means for receiving a first data file from a communications agent identifying a plurality of financial instruments to be redeemed; means operatively associated with said computer for comparing said plurality to a list of financial instruments held by said depository; means responsive to said comparing means for generating a second data file containing a list of financial instruments identified in said first data file and held by the depository; and means for transmitting said second data file to a communications agent.

A . A computer system in accordance with claim 9 further comprising: means for verifying the integrity of data transfer each time data is received from and transmitted to said communications agent.

21 . A method for interactively processing redemption notification data comprising the steps of: generating a first data file at a communications agent computer containing a list of financial instruments called for redemption; transmitting said first data file to a depository computer for comparison at the depository with a list of financial instruments held by the depository; preparing a second data file containing a list of the called financial instruments that the depository claims to hold; comparing said first and second data files in the communications agent computer to identify called financial instruments not claimed by said depository; and preparing a notice for publication listing the unclaimed financial instruments.

A . A method in accordance with claim comprising the further steps of: transmitting said first data file to a plurality of depository computers; preparing a separate second data file for each depository containing a list of the called financial instruments that the depository claims to hold; and comparing the first data file with all of the second data files to identify called financial instruments not claimed by any of said depositories.

23 . A method in accordance with claim comprising the further steps of: cross-checking all of the second data files to determine if more than one depository claims to hold the same called financial instrument; and correcting any errors discovered in said cross-checking step.

24. A method in accordance with claim comprising the further step of: identifying and correcting any second data files that list financial instruments that have not been called.

A . A system or method substantially as hereinbefore described will reference to the accompanying drawings.