WO2001086546A1 - Procede et systeme d'acheminement et de traitement de donnees sur les operations financieres - Google Patents

Procede et systeme d'acheminement et de traitement de donnees sur les operations financieres

Info

Publication number
WO2001086546A1
WO2001086546A1 PCT/US2001/014343 US0114343W WO0186546A1 WO 2001086546 A1 WO2001086546 A1 WO 2001086546A1 US 0114343 W US0114343 W US 0114343W WO 0186546 A1 WO0186546 A1 WO 0186546A1
Authority
WO
WIPO (PCT)
Prior art keywords
financial
transaction
financial service
allowing
registration
Prior art date
Application number
PCT/US2001/014343
Other languages
English (en)
Inventor
Sam Borenstein
Deborah Bennett
Anthony Trivelli
Michael Grandcolas
Original Assignee
Crossmar, Inc.
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Crossmar, Inc. filed Critical Crossmar, Inc.
Priority to AU2001262972A priority Critical patent/AU2001262972A1/en
Publication of WO2001086546A1 publication Critical patent/WO2001086546A1/fr

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Classifications

    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00—Commerce
    • G06Q30/06—Buying, selling or leasing transactions

Definitions

  • the present invention relates generally to the field of electronic commerce and more particularly to a method and system for routing and processing financial transaction data, for example, for electronic marketplaces.
  • An electronic marketplace is a business-to-business web site that enables buyers and sellers to meet and transact.
  • E-marketplaces take many forms. They may be structured as catalog services where goods are listed at a fixed price, exchanges where buyers and sellers negotiate terms of a deal, or auctions where buyers post orders for which sellers can bid and vice versa. Buyers and sellers may or may not be anonymous to each other and may or may not be able to transact with all the participants in the marketplace. To participants, e-marketplaces offer obvious advantages, such as transparent and instantaneous pricing, ease of ordering, sale of excess supply, anonymity, leverage- for small buyers, and geographical and time swaps. Through real-time exchanges, purchasers have a transparent view on market prices for goods.
  • E-marketplaces Through Internet-based procurement, buyers can eliminate time on the phone and time spent filling out paperwork. E-marketplaces put sellers instantly in touch with many potential buyers of surplus inventory. In anonymous exchanges, buyers and sellers can post offers without revealing the source of these offers to competitors. Small buyers in some cases can aggregate through some exchanges to gain better terms as well as in general more easily shop for the best price available. E-marketplaces allow participants to search markets they previously would not be able to reach. E-marketplaces help participants conduct their buying and selling real time, online among many counter-parties, thereby improving price and availability information. Consequently, inventory requirements are lowered and working capital needs reduced. However, to realize their full market potential, e-marketplaces need to ensure that their participants can complete all aspects of their transactions online.
  • e-marketplaces ultimately need to link in the financial services their participants require as they transact online.
  • Financial service requirements of e- marketplaces may be generally grouped as credit to eliminate credit concern for new and/or unknown counter-parties, settlement to automate payment/collection process and provide currency conversion, and financing to service funding needs of buyers and sellers.
  • these services have been provided by financial institutions, and e-marketplace participants look to their own financial institutions to become trusted third parties for their e-commerce transactions, such as serving the role of qualifying trading partners, offering guarantees, acting as payment intermediaries, and financing transactions.
  • e-marketplaces There is a need for e-marketplaces to be able to integrate these services into their web site without limiting the choice of provider for their participants and consequently participation in their marketplace.
  • an embodiment of the present invention provides a method and system for routing and processing financial transactions utilizing, for example, a participant database, a transaction database/history, various navigators, an interface to financial service providers and marketplaces, links to logistic providers and industry platforms, and a data warehouse.
  • members post offers, for example, on an exchange, and the system displays clearing status and attributes.
  • a transaction confirmation is generated and populated with clearing and settlement data from a system database.
  • Transactions are settled via the system according to rules defined for a particular member.
  • the system tracks the status of transactions and performs reconciliation and/or advisory services.
  • Financial services provided for e- marketplaces via the system for an embodiment of the present invention include credit services, such as providing credit information about potential counter-parties or actually providing credit to members of the e-marketplace.
  • Other financial services provided include currency exchange services and payment and settlement services, in which a buyer and seller meet at a website, enter into a transaction, and process and extract payments, respectively, for the transaction.
  • a prospective electronic marketplace member signs up for membership registration at the web site of the electronic marketplace and is presented with a registration form on a set of screens hosted by the electronic marketplace.
  • the prospective member completes and submits the registration form, and the registration data is sent by the electronic marketplace to the system of the present invention hosted, for example, by a financial institution, such as a bank, for verification that the prospective member is a legitimate or authentic entity.
  • the system performs various checks on the prospective member, including a blacklist check.
  • a financial institution hosted system server compares the prospective member against a database of existing financial institution customers to verify if the prospective member is an existing financial institution customer.
  • the system server extracts a global identifier for the prospective member from a database of existing financial institution customers.
  • the system may perform various additional trade and credit verifications of the prospective member if the prospective member is ascertained to be a non-financial institution customer.
  • the system server sends a report of the response to the electronic marketplace. Based on the verification, the electronic marketplace approves the prospective member and sends notification of the approval to the system server, which updates a profile of the member with the approval information.
  • the marketplace sends the member an advice to apply for one or more financial services.
  • the system server makes a determination of one or more financial services for which the approved member is eligible to apply, based at least in part on the approval information and pre- defined financial service eligibility rules, and updates a member profile with information about the eligibility that determines what financial service registration screens the member will be allowed to access and display.
  • the member is allowed to access the registration screen for one or more financial services for which the member is eligible to apply by clicking on a "sign-up for financial services" hotlink in the electronic marketplace homepage, and the financial service registration screen of a financial service provider is displayed for the member according to the member profile eligibility information.
  • the member is allowed to enter application information via the financial service registration screen of one or more of the financial service providers.
  • the financial services available fall into categories, for example, of credit services, payment and settlement services, and currency exchange services.
  • a notice of the approval is sent from the financial service provider to the system server, which in turn, sends a notice of the approval to the electronic marketplace.
  • the member Upon completion of the registration process, the member is allowed to perform a transaction with a counter-party via the electronic marketplace utilizing the financial service or services of the financial service provider or providers for which applications were approved. In order to perform a transaction with a counter-party, the member is allowed to post an offer to enter the transaction on the electronic marketplace web site.
  • the system server displays a clearing status displaying the financial services of the financial service provider or providers for which applications were approved in a profile of the member posting the offer.
  • Such clearing status can include, for example, a trade credit system settlement, a credit settlement, a letter of credit settlement, a confirmed letter of credit settlement, an on account settlement, a purchasing card settlement, and an escrow service settlement.
  • the member posting the offer and the counter-party are allowed to negotiate a payment term for the transaction selected from the clearing statuses. If the offer is accepted, the system server generates a transaction confirmation populated with an agreed payment term and pertinent transaction settlement data and records the transaction in a transaction database with a status of pending. If delivery is made and accepted pursuant to the transaction, the system server processes payment for the member and the counter- party according to the agreed payment term and tracks and reconciles the transaction.
  • Fig. 1 is a block diagram which illustrates an overview example of key components and the flow of information between the key components of the system for an embodiment of the present invention
  • Fig. 2 is a flow chart which illustrates an example of transaction flow in the system for an embodiment of the present invention
  • Fig. 3 is a flow chart which illustrates an example of the trade credit instrument settlement process for an embodiment of the present invention
  • Fig. 4 is a flow chart which illustrates an example of a credit settlement between two financial institution counter-parties for an embodiment of the present invention
  • Fig. 5 is a flow chart which illustrates an example of a credit settlement between a financial institution seller and a non-financial institution buyer for an embodiment of the present invention
  • Fig. 6 is a flow chart which illustrates an example of a credit settlement between two non-financial institution counter-parties for an embodiment of the present invention
  • Fig. 7 is a flow chart which illustrates an example of a card settlement for an embodiment of the " present invention.
  • Fig. 8 is a flow chart which illustrates an example of an escrow services settlement for an embodiment of the present invention
  • Fig. 9 is a block diagram which illustrates an overview of the architecture for an embodiment of the present invention and provides further detail regarding key components shown in Fig. 1 ;
  • Fig. 10 is block diagram which illustrates and an example of communication between the system for an embodiment of the present invention and members of the e- marketplace;
  • Figs. 11-12 is a flow chart which illustrates an example of the process of registering with the system for an embodiment of the present invention
  • Fig. 13 is a flow chart which illustrates an example of the process of registering for financial services with the system for an embodiment of the present invention
  • Fig. 14 is a flow chart which illustrates an example of the process of registering for trade related services with the system for an embodiment of the present invention
  • Fig. 15 is a flow chart which illustrates an example of the process of registering for trade credit system accounts related services with the system for an embodiment of the present invention
  • Fig. 16 is a flow chart which illustrates an example of the process of registering for escrow services with the system for an embodiment of the present invention
  • Fig. 17 is a table which illustrates examples of financial services provided by the system and method for an embodiment of the present invention
  • Fig. 18 is a table which illustrates examples of clearing and settlement services provided by the system and method for an embodiment of the present invention.
  • Fig. 19 is a table which illustrates examples of other services provided by the system and method for an embodiment of the present invention.
  • the system and method for an embodiment of the present invention provides, for example, a facility to add financial services to e-marketplaces in three broad categories.
  • One such category is providing credit services to the e-marketplaces, such as publishing credit information about potential counter-parties, so that e-marketplace members feel more secure about a potential counter-party, or actually providing credit to members of the e-marketplace.
  • Another such category is payment and settlement services.
  • the user can also go to the same web site and monitor the payment. Thus, the transaction is much more convenient.
  • the present system connects the payment and settlement function to the e-marketplace meeting between the seller and buyer.
  • a further such category includes various other types of financial services that are involved with commercial transactions, such as currency exchange, to the extent that counter-parties are located in different countries.
  • Fig. 1 is a block diagram which illustrates an overview example of key components and the flow of information between the key components of the system for an embodiment of the present invention.
  • the system 10 utilizes, for example, a financial services manager 11, a participant database 12 and a transaction database/history 14.
  • the system 10 also includes navigators, such as a loan navigator 16, a foreign exchange (F/X) navigator 18, an escrow navigator 20, a logistics navigator 22, a credit navigator 24, a payment or settlement navigator 26, and a letter of credit (L/C) navigator 28.
  • navigators such as a loan navigator 16, a foreign exchange (F/X) navigator 18, an escrow navigator 20, a logistics navigator 22, a credit navigator 24, a payment or settlement navigator 26, and a letter of credit (L/C) navigator 28.
  • F/X foreign exchange
  • L/C letter of credit
  • the system 10 provides an interface to financial service providers, such as the preferred provider bank 30 or another bank 32, and marketplaces 34, such as a trade credit instrument system, links to logistic providers, and industry platforms, and a data warehouse 36.
  • financial service providers such as the preferred provider bank 30 or another bank 32
  • marketplaces 34 such as a trade credit instrument system, links to logistic providers, and industry platforms, and a data warehouse 36.
  • the system 10 is disposed between various e-marketplaces 38 and the various external parties 30, 32, 34.
  • a major component of the system 10 is the customer information file 12, whereby virtually all of the members served by the e-marketplace 38 are registered.
  • the customer information file 12 includes information on all participants in the e-marketplace 38, as well as information on how their settlements occur and information on their credit arrangements.
  • Another major component of the system 10 is the transaction history file 14. As transactions are entered into, they are recorded in the transaction history file 14.
  • the system 10 performs transaction tracking, reporting and reconciliation services.
  • An additional major component of the system 10 is a workflow manager 40, which is a type of traffic agent that takes messaging from and between the e-marketplace 38, coordinates updates within the system 10 itself, and then through various other parties.
  • An additional major component of the system 10 is the financial services manager 11 which will describe for each financial service offered through the system the criteria used to determine whether or not a member is eligible for a particular financial service.
  • Other components of the system 10 include value added services 42 which the system 10 can produce, such as aggregation 44 or adding up transaction information, and service scorecard performance 46 or reporting the history of a particular counter-party, which enables the system 10 to provide performance indication to potential counter-parties.
  • value added services 42 which the system 10 can produce, such as aggregation 44 or adding up transaction information, and service scorecard performance 46 or reporting the history of a particular counter-party, which enables the system 10 to provide performance indication to potential counter-parties.
  • Another value added service of the system is a best quote service 48, by which a user can obtain quotes from different providers of goods and/or services and select the best quote.
  • An additional value added service of the system 10 is netting 50. For example, if several parties owe sums of money to one another, netting 50 provides the service of netting out the payments, so that only a single payment or receipt by each party can provide a settlement between all the parties.
  • Additional components of the system 10 include, for example, the various
  • the system 10 directs messaging out to those different types of services. For example, almost all transactions have a payment associated with them, and the payment navigator 26 directs an exchange of messages between the system 10 and a source of payment, such as a bank. Likewise, to the extent that there is need for a loan for settlement of a transaction, the loan navigator 16 directs an exchange of messaging related to a loan for the transactions.
  • the infrastructure for the system 10 of an embodiment of the present invention incorporates the participant file 12 describing the participant along with its credit qualifications and settlement mechanisms, including financial institution or non- financial institution settlement information.
  • the system 10 also includes the transaction database 14 for tracking the settlement status of current transactions and providing historical transaction data.
  • the system 10 includes the navigators linking in financial services as required on a transaction- by-transaction basis. These include the links to payment mechanisms 26, foreign exchange services (FX) 18, credit 24, loans 16, and escrow service 20.
  • FX foreign exchange services
  • the system 10 also provides interfaces into the financial institution 30 and other financial service providers 32, logistics companies, industry infrastructures, and financial service marketplaces 34, such as a trade credit instrument system.
  • the system 10 includes data warehousing 36 and value-added services applications 44 as well.
  • the system 10 incorporates a financial services manager 11, which describes for each financial service offered through the system 10 the criteria used to determine whether or not a particular member is eligible for a particular financial service. As financial services are added and as the eligibility criteria for financial service offerings are updated, the system 10 will present services to customers for which they are newly eligible.
  • the system 10 of the present invention encompasses functionality, such as registration, credit profiling, settlement processing, reporting of transaction status and reconciliation services, and enrollment and access to various financial services, such as financing, escrow, and FX services.
  • acceptable payments terms such as a trade credit instrument system settlement in which both counter-parties have an account, on account if the buyer has a pre-established credit relationship with the seller, or purchase card if the seller is a registered merchant are established.
  • Credit profiling is done initially through a display of the mechanisms described above. Over time, credit profiling can be done through the application of internal credit scoring procedures and/or a portrayal of history within the present system 10.
  • Settlement processing functionality includes the ability to process payments mtra-fmancial institution or inter- financial institution via various payment mechanisms, such as Automated Clearing House (ACH), IMP, SWIFT messaging system, or card association network. Payments may be cleared though a financial institution omnibus account or through the trade credit instrument system.
  • the present system 10 can be a clearing organization that becomes a counter-party to all member trades and assumes a guarantor role.
  • the system 10 displays additional information about a potential counter-party on a display screen of the party's terminal.
  • the system 10 also displays, for example, ways that the party and the counter-party can clear or settle an exchange between them, such as the existence of a credit relationship or a credit line with a particular financial institution or a trade credit settlement account of a type disclosed in co- pending U.S. Patent Application Serial No. 09/ 626,838, entitled “System and Method of Transaction Settlement Using Trade Credit", filed July 27, 2000, incorporated herein by this reference.
  • the system 10 can display for the party a warning that settlement with the particular counter-party should only be through escrow service.
  • the system 10 provides the user with information and intelligence about the potential counterparty to limit the payment terms that would be acceptable for a particular buyer or seller.
  • the system 10 provides information such that the transaction confirmation generated by the e-marketplace 38 can be enriched with data such as payment terms and settlement instructions, so the user knows how the user should settle with a particular counter-party.
  • the transaction is settled according to rules set up for the particular user. For example, for users or their counter-parties that have decided to settle using trade credit instruments, the buying counter-party issues trade credits, and/or the selling member is credited at the time.
  • the system 10 tracks the status of a transaction throughout, until the point at which it is settled, maintains a record of the transaction, and performs reconciliation and advisory services.
  • the system 10 provides credit profiling, coordinates the settlement process, performs transaction reporting/reconciliation services, and provides enrollment in new services/access to financial services.
  • members post offers on the exchange 38 and clearing status and attributes are displayed. Once an offer is accepted, a settlement/financing option is selected, transaction confirmation is generated and populated with clearing and settlement data from the system database 12.
  • Transactions are settled via the system 10 according to rules defined for a particular member.
  • the system 10 tracks the status of the transaction and performs reconciliation/advising .
  • the system 10 of the present invention provides services for e- marketplaces 38, such as the new electronic market infrastructure for the settlement and financing of trade payments described in co-pending U.S. Patent Application Serial No.
  • 09/628,838 which has created a new rated instrument that is readily convertible to cash, reduces the cost of financing, and reduces working capital needs resulting from late payment.
  • the new trade payment instrument is rated based on obligations of investment grade companies, and users of the present system 10 can have a trade payment instrument account which allows them to transfer value to other users.
  • the present system 10 also provides FX services for dozens of currencies with the ability to produce hundreds of crosses, posted bids in multiple currencies, 24-hour pricing, benchmark pricing to address compliance issues, a single credit line, spot/forward crosses, and swaps (i.e., simultaneous buying and selling of same currencies for different value dates).
  • Fig. 2 is a flow chart which illustrates an example of transaction flow in the system for an embodiment of the present invention.
  • each participant is registered in the system 10, the participant's credit profile is established, settlement account(s) determined, and funds movement agreements obtained.
  • buyers and sellers post offers to buy or sell, and at S3, clearing status(es) and attribute(s) are extracted from the clearing database 12 for display in the profile of any party posting an offer.
  • the profile includes, for example, clearing status, company type, date company established, office location, revenue range, and clearing attributes.
  • Potential clearing statuses include, for example, financial institution credit buyer, financial institution letter of credit buyer, financial institution purchasing card buyer, confirmed letter of credit buyer, trade settlement instrument participant, escrow service buyer, and on account.
  • Fig. 3 is a flow chart which illustrates an example of the trade credit instrument settlement process for an embodiment of the present invention.
  • goods are shipped and accepted, and linkages to logistics companies automatically update shipping status.
  • the buyer issues trade credits in the trade credit instrument settlement system in favor of its supplier through the trade credit instrument settlement system interface, and the trade credits are immediately deposited in the supplier's trade credit instrument settlement system account.
  • suppliers can discount trade credit instrument settlement system credits to cash, use the credits to pay their own suppliers, or hold the credits to maturity.
  • the system 10 tracks the status of the transaction and performs reconciliation/advising.
  • Fig. 4 is a flow chart which illustrates an example of a credit settlement between two financial institution counter-parties for an embodiment of the present invention.
  • goods are shipped and accepted, and linkages to logistics companies automatically update shipping status.
  • payment is initiated, and the system processes debits/credits between the buyer and seller and financial institution accounts, and funds flow through a system omnibus account.
  • customers can monitor payments and receipts through a banking service of the financial institution.
  • the system 10 tracks the status of the transaction and performs reconciliation/advising.
  • Fig. 5 is a flow chart which illustrates an example of a credit settlement between a financial institution seller and a non- financial institution buyer for an • embodiment of the present invention.
  • goods are shipped and accepted, and linkages to logistics companies automatically update shipping status.
  • payment is initiated, and the system 10 processes a debit to the buyer's settlement account via SWIFT, ACH or IMP.
  • funds flow through a system omnibus account and are credited to the seller's financial institution account.
  • the system 10 tracks the status of the transaction and performs reconciliation/advising.
  • Fig. 6 is a flow chart which illustrates an example of a credit settlement between two non-financial institution counter-parties for an embodiment of the present invention.
  • goods are shipped and accepted, and linkages to logistics companies automatically update shipping status.
  • payment is initiated, and the system processes a debit to the buyer's settlement account via SWIFT, ACH or IMP.
  • funds flow through a system omnibus account and are credited to the seller's non-financial institution account via ACH, IMP, or SWIFT.
  • the system 10 tracks the status of the transaction and performs reconciliation/ advising.
  • Fig. 7 is a flow chart which illustrates an example of a card settlement for an embodiment of the present invention.
  • the system initiates a debit to the buyer's card account via transmission or batch processing of purchase, debit or proprietary card transactional information to merchant acquiring institutions for the card.
  • goods are shipped and accepted, and linkages to logistics companies automatically update shipping status.
  • funds flow through the card associations, NYCE or proprietary financial institution account to be credited to the seller's financial institution or non- financial institution account via ACH.
  • the system 10 tracks the status of the transaction and performs reconciliation/advising.
  • Fig. 8 is a flow chart which illustrates an example of an escrow services settlement for an embodiment of the present invention.
  • the buyer transfers funds to escrow services.
  • escrow services notifies the seller that funds have been received and to ship the goods.
  • the seller delivers the goods through an authorized delivery provider.
  • the delivery provider notifies escrow services when the shipment is delivered.
  • the buyer has a pre-determined time to reject the shipment, and upon expiration of that time period, escrow services delivers the funds to the seller.
  • the system 10 tracks the status of the transaction and performs reconciliation/ advising.
  • An important aspect of the system 10 of the present invention focuses in general e-marketplaces, where many buyers and many sellers are found.
  • businesses have attempted different models for doing business over the Internet. For example, a large seller or buyer can put up a web site and attempt to find counter-parties with which to do business, or a large company may use such a web site to attempt to expand sales to new geographic regions.
  • the Internet provides a relatively easy way for a company to accomplish such objectives via what can be referred to as buyer-centric or seller-centric models.
  • an important aspect of the system 10 of the present invention focuses in particular on those types of what can be referred to as buyer-centric or seller-centric models, which is one buyer to many sellers or one seller to many buyers, as opposed to many buyers or sellers to many sellers or buyers, respectively.
  • the buyer-centric and seller-centric models must deal with the same kinds of problems as the many-to-many models, such as not knowing the counter-parties and endeavoring to streamline transactions.
  • a buyer-centric model an automobile manufacturer may put up a website and ask for proposals from vendors for supplies.
  • the system 10 of the present invention is useful in the case for such a company in its attempt to expand its supplier base.
  • the automobile manufacturer has a website and is seeking sellers. Potential vendors can register with the system 10 of the present invention for service, for example, so the automobile manufacturer can be confident that the sellers are qualified. It is not necessary for the automobile manufacturer to be qualified. It is the automobile manufacturer's website, and the automobile manufacturer is the exchange.
  • Another important focus of the system 10 of the present invention is the concept of offering a variety of services over the same platform.
  • This aspect involves, for example, the development of the database 12 on the customers and the database 14 on the transactions that pass tlirough the system 10.
  • Useful information can be gleaned from both of these databases 12, 14, such as what types of customers deal with what other types of customers.
  • information that is available on a particular member of the exchange 38 can be shared across various services that are offered up via the system 10. For example, when a credit check is performed on a particular customer, that information can be shared across services.
  • the information is leveraged, which makes it more efficient for the financial institution 30, as well as for the other services 32, 34.
  • infonnation can be used for marketing purposes, customer support, and customer relationship management. Further, as such information becomes available, it can be used in connection, for example, with transaction information to develop additional services from the website, such as information type products that can be used for revenue opportunities.
  • Information about a particular company can be shared across the databases between services, such as currency exchange and settlement services. For example, a new member may initially qualify only for escrow services, but after a period of time, the financial institution 30 may see a payment history for the member and feel comfortable in offering the member a credit line or insurance product.
  • e-marketplaces are in their infancy and financial transaction processing has not been fully automated. Stumbling blocks so far have been in the areas of credit analysis, settlement of transactions, and financing options.
  • a representative example of the type of e-marketplace in which the system 10 of the present invention can be used is an exchange-style business-to-business e- marketplace, such as an online chemicals exchange.
  • an e-marketplace currently matches buyers and sellers based on bid and asking prices, but leaves the two counter-parties to complete the actual financial transaction between them.
  • the counter-parties receive confirmation of their deal via e-mail, finalize their deal with each other through fax, and inform the exchange of completion of the deal via fax.
  • the system 10 of the present invention brings about the automation of these manual processes and is made available to business-to-business e-marketplaces and their members.
  • the system 10 is web-enabled, such that most end-user transactions can be performed using a browser. Communications with e-marketplaces are handled through Extensible Mark-up Language (XML) messaging services.
  • XML Extensible Mark-up Language
  • the system 10 for an embodiment of the present invention is an integrated financial services infrastructure powering business-to-business transactions in e- marketplaces.
  • the system 10 meets the credit, settlement, and financing needs of these marketplaces, allowing customers to complete most aspects of their transactions online.
  • the system 10 is a neutral, intelligent router of financial messaging associated with commercial transactions that allows banks and non- traditional providers of financial service solutions to ensure the straight through processing of these transactions. It resolves the present inadequacies of e- marketplaces, for example, by registering settlement relationships for system- participants, providing credit profiling services, coordinating the settlement process, providing transaction reporting and reconciliation services, and offering enrollment in and access to various financial services provided by the financial ' institution 30 and the other financial services providers 32, 34.
  • the system 10 also integrates other financial institution systems, and is essentially a gateway that brings together these systems and connects them to the business-to-business e- marketplaces through XML messaging interfaces. Examples of such financial institution-hosted systems include, for example, credit systems, escrow and currency exchanges.
  • the system 10 also connects to other external financial service providers 34, such as a trade credit instrument system.
  • Fig. 9 is a block diagram which illustrates an overview of the architecture for an embodiment of the present invention and provides further detail regarding key components shown in Fig. 1.
  • the system 10 for an embodiment of the present invention utilizes, for example, company browsers 60 to communicate with the system over the Internet 61 via web pages 64.
  • Exchanges or e-marketplaces 38 including buyer-centric and seller-centric marketplaces, communicate with the system via XML, which provides a type of computer-to-computer messaging. From the perspective of a member of the exchange, when the system 10 obtains information about the member from the exchange 38, it is transparent to the member. The member simply asks to sign up for one or more services, and the exchange 38 provides certain information about the member. When the system 10 needs additional information from the member or the member wishes to use a service, the system 10 presents a web page 64 for the member.
  • a business process transaction manager 66 represents various services provided by the system 10 of the present invention, a key aspect of which is a message broker function 68.
  • the system 10 performs processing related to the various services, such as community services 70, clearing 72, settlement 74, billing 76, surveillance 78, reconciliation 80, information services 82, and value-added services 84.
  • the system 10 of the present invention also includes databases used by the system in connection with its message broker function storing information on transactions and positions 14, a rules engine 86, and data about the members 12.
  • community services 70 include services which all of the service providers might find useful.
  • An example of such a community service is a global Internet process run on new members to assure that they are not on a list of entities with which the financial institution 30 is forbidden to transact business. Such process is run by the system 10 on behalf of all of the service providers.
  • Surveillance 78 includes, for example, observing the transactions of members for suspicious activities.
  • Infrastructure services 88 include security, user authentication, permissioning, integrity, and non-repudiation.
  • System performance monitoring 90 involves, for example, monitoring the volume of transactions passing tlirough the exchange 38.
  • the adapters 92 represent connections to various service providers, such as the XML and Hypertext Mark-up Language (HTML) connections to the marketplaces 38 and the customers 60.
  • HTML Hypertext Mark-up Language
  • the adapters 92 represent the many different ways in which the system 10 connects to the different service providers.
  • Various services may be connected in different ways even within the same financial institution.
  • the connections are via XML, which can be easily implemented.
  • XML which can be easily implemented.
  • the adapters 92 represent many different types of connections to the financial institution 30 or with other financial institutions 34.
  • the financial institution 30 links in information from a logistics provider 94 for tracking the status of a shipment and whether or not to release funds to a buyer.
  • Fig. 10 is block diagram which illustrates and an example of communication between the system for an embodiment of the present invention and members of the e- marketplace.
  • the buyer/seller 110 is a member of the exchange or e-marketplace 38 that is transacting
  • the vertical business is the exchange 38.
  • the buyer/seller 110 uses the web browser 60 to come in via the vertical business 38 to transact.
  • the vertical business 38 comes to the system 10 to communicate that it has a buyer and seller 110 that wish to transact via the system 10 and furnishes data about the buyer and seller 110 using XML 112.
  • the transaction can be to register or to perform a financial transaction.
  • the system HTML 112 represents the web pages that the buyer and seller 110 must complete with incremental data that is required by the system 10 but that is not supplied by the vertical business 38. Incremental infonnation is transmitted to the system via XML to the system switch 68 directly from the web page 112.
  • the system switch 68 communicates with the system database 12 as well as the various financial services providers, such as the credit system 114 and/or FX and ACH systems 116 using XML.
  • the service providers include, for example, a trade credit instrument system 118, a currency exchange 120, an escrow service 122, credit system 114, and/or the settlement facility 116.
  • the system 10 of the present invention performs several types of roles, such as a switching hub for financial services, a data and trade event repository, an event notification engine, and a web application server.
  • the system 10 utilizes a database repository 12 for company information and event tracking, supports "faceful" web browser to web server HTML sessions over Secure Sockets Layer (SSL), supports “faceless” server to server exchange of XML messages over SSL, and supports a publish and subscribe event notification capability.
  • SSL Secure Sockets Layer
  • Examples of components of a platform for the system 10 include Oracle database repository, Java web/web application server, a combination of Java Server Pages (JSPs), Java Servlets, Java Beans with Java Database Connectivity (JDBC) connections to Oracle database for application, Extricity B2B XML software for server to server messaging middleware, and a suitable publish/subscribe mechanism.
  • the system 10 of the present invention provides a global financial services infrastructure that supports multiple e- marketplaces and service providers in all regions through a uniform XML message interface.
  • An important aspect of the system and method for an embodiment of the present invention is registration of members for the service provided by the system 10.
  • Users come to the system via the e-marketplace 38, and a user must be a member of the marketplace 38 which has been signed up as a customer of the system 10.
  • e-marketplace membership a number of chemical companies can register with one or more of a number of Internet marketplaces that serve buyers and sellers in the chemical industry. These e-marketplaces are web sites where such buyers and sellers, large or small, can post offers to buy and sell chemical products and meet and transact business on-line.
  • Potential customers for the system 10 of the present invention include, for example, e-marketplaces that are seller-centric or buyer- centric sites.
  • Those customers can bring their members to the system 10 of the present invention to be registered for the service provided by the system 10.
  • the registration process is transparent to the user and involves an exchange of information, for example, through XML messaging between the e-marketplace 38 and the system 10 for an embodiment of the present invention.
  • a potential member is directed into the database 12 to register a member profile.
  • Available information is collected and additional incremental information is requested that is needed in the registration process.
  • the incremental information includes, for example, information for use in determining eligibility for financial services.
  • the incremental information is collected and a certain amount of validation is performed with respect to the prospective member.
  • Such validation is necessary because membership in the system 10 of the present invention involves access for the member to financial services.
  • the financial institution 30 cannot simply rely exclusively on the exchange or marketplace 38 for assurance that the prospective member company is an authentic entity, but must perform its own independent validation. This type of validation is known as know-your-customer (KYC) checking, and the results are provided back to the marketplace 38 by the financial institution 30 so the marketplace 38 knows whether the financial institution 30 considers the prospective member to be authentic.
  • KYC know-your-customer
  • the financial institution 30 goes through a process of looking at the demographics of the member to determine what services the financial institution 30 has to offer up to the particular member. The member is then requested to apply for any of the services for which it is eligible. It may be necessary to obtain more incremental information, since the registration process may not capture all of the information that is necessary for the use of certain services. For example, one type of incremental information may be needed in connection with the use of escrow service, but a different type of incremental information may be needed in connection with the use of other services. However, the system 10 of the present invention minimizes or actually eliminates any re-keying, because only incremental information is required.
  • the system 10 incorporates a financial services manager 86, which describes for each financial service offered through the system 10 the criteria used to determine whether or not a particular member is eligible for a particular financial service.
  • the system 10 allows members to register for any financial services for which they are eligible.
  • a feature of the system 10 of the present invention focuses on assisting the e- marketplace exchange 38 with company validation upon membership registration, and facilitating the registration for financial services.
  • the transaction database 14 is populated with transaction data from the exchange 38 and can be used to provide fee collection services for the e-marketplace 38, as well as for a variety of settlement services.
  • Fee collection services involve, for example, the collection of transaction fees on behalf of the e-marketplace 38 via an ACH system, in connection with which the system 10 collects transaction information from the exchange 38, calculates the transaction fees owed, and hands off a file formatted for ACH processing.
  • the system 10 also maintains member profiles and supports multiple user profiles within each member. Members are allowed to update initial registration data and provide updates to financial service providers as required.
  • the system 10 of the present invention provides the ability, for example, to query one or more third party credit agency databases in order to validate the membership information and update member profiles with credit rating information.
  • the system 10 performs transaction monitoring and data hand-off to financial service providers.
  • the system 10 passes information on deals struck on the e-marketplace 38 to the appropriate financial service provider based on the settlement terms of the deal and receives updates from the financial service provider on settlement status in order to allow an automated processing of the financial aspects of the transaction between the buyer and seller, to allow the system 10 to centralize the tracking of settlement status, and to provide management information systems (MIS) of "cross-sell" revenues generated by the system 10.
  • MIS management information systems
  • system 10 includes, for example, providing a facility for members to process a payment through payment services, which involves the system 10 collecting appropriate buyer and seller account information and handing off appropriate data to payment systems.
  • the system 10 also provides a facility for banks other than the financial institution 30 to provide credit services to members, which involves the system 10 handing off membership information to the additional providers and receiving updates to the member profiles when members are accepted for service.
  • the system 10 provides a facility for members to electronically confirm the details of a transaction as well as any amendments to a transaction.
  • the present system 10 provides for the authorization of transaction amounts against open credit lines and flag when a credit facility is determined to be inadequate to meet impending trade deal, which involves the system 10 tracking credit balances.
  • the functionality of the system 10 includes providing other settlement systems, such as netting/aggregation services, providing a facility for additional banks to provide credit services to members, providing competitive and efficient FX short- dated forwards which can be executed in parallel to the underlying trade transaction on the exchange 38 instead of the members having to execute this in an off-line model, providing links into the process of physical settlement of goods tlirough electronic confirmation received from logistics providers, and data mining services.
  • settlement systems such as netting/aggregation services, providing a facility for additional banks to provide credit services to members, providing competitive and efficient FX short- dated forwards which can be executed in parallel to the underlying trade transaction on the exchange 38 instead of the members having to execute this in an off-line model, providing links into the process of physical settlement of goods tlirough electronic confirmation received from logistics providers, and data mining services.
  • Figs. 11-12 is a flow chart which illustrates an example of the process of registering with the system for an embodiment of the present invention.
  • Fig. 11 at S44, when an e-marketplace prospect signs up for membership registration at the web site of the e-marketplace 38, it is presented with the company registration form on a set of screens hosted by the e-marketplace 38.
  • the form includes information required to register with the e-marketplace 38 and provides sufficient financial information to the system 10 to enable basic validation of company existence to be carried out.
  • the registration data is sent from the e-marketplace to the system 10.
  • the system 10 assigns a company identification (ID) to the prospect, which is used to identify prospects and members in messages exchanged between the system 10, and e-marketplace 38, and the participating financial service providers.
  • ID company identification
  • the system matches the prospect against a financial institution customer database to verify if the prospect is an existing financial institution customer and therefore a legitimate entity, and if verified, the system 10 extracts a global identifier for the financial institution.
  • the system 10 performs blacklist checks.
  • the system 10 performs off-line trade and credit checks.
  • the system 10 updates the prospect profile in the database 12 and the e-marketplace 38 correspondingly.
  • the e-marketplace 38 decides on membership approval and sends an email to the customer with the registration outcome.
  • the e-marketplace 38 also updates the system 10 of the approval so that the prospect profile can be updated in the database 12.
  • an email of the e-marketplace 38 advises the member to apply for financial services through the web site of the e-marketplace 38.
  • the system 10 also determines the financial services for which the prospect is eligible to apply, based on the rules set by the respective financial service providers in 11 and updates the member profile in the database 12.
  • Fig. 13 is a flow chart which illustrates an example of the process of registering for financial services with the system for an embodiment of the present invention.
  • the e-marketplace 38 accepts a prospect as a member, at S63, the e-marketplace 38 sends an email to the new member informing the member of the approval.
  • the email advises the member to apply for financial services through the exchange 38, such as banking services, trade credit instrument system services, escrow services, and/or currency exchange services.
  • the member registers for financial services by signing on to e-marketplace 38 using the selected user name and a password and clicking on a "sign-up for financial services" hotlink in the e-marketplace homepage. This brings the member to the respective financial service registration screens.
  • Registering for each of the offered financial services entails an online application process and an offline approval process.
  • members fill up additional information that may vary between financial service providers.
  • the application process is designed to minimize re-keying of information previously supplied by the member.
  • each financial service provider may contact members separately to request for supporting documentation, and when the approval process has been completed, the respective financial service provider informs members by email or letter of the outcome of the application, while sending an asynchronous message to the system 10 informing the system 10 of the same outcome.
  • These messages typically contain basic "yes/no" confirmation to the approval of financial services or even account number information necessary for the system 10 to establish existence of financial instruments to support the bid and settlement process, but do not include detailed financial information of the associated accounts such as balances and limits.
  • the system 10 also informs the e-marketplace 38 of the financial services its members may access.
  • This information can also be useful by the e-marketplace 38 for display in a member profile, such as the member is a financial institution credit customer, and/or for display as possible payment terms during the bidding and countering process, such as the member can settle via the trade credit instrument system or escrow.
  • the system 10 of the present invention incorporates a financial services manager 11 which describes for each financial service the criteria used to determine whether or not a particular member is eligible for a particular financial service.
  • a financial services manager 11 which describes for each financial service the criteria used to determine whether or not a particular member is eligible for a particular financial service.
  • the types of financial services that are displayed to a particular member at the initial financial services registration are determined according to pre-determined criteria which can vary by country, including, for example sales in last fiscal year, number of years of commercial activity, whether the prospect falls into an industry supported by a credit granting institution within the domicile country.
  • pre-determined criteria can vary by country, including, for example sales in last fiscal year, number of years of commercial activity, whether the prospect falls into an industry supported by a credit granting institution within the domicile country.
  • As each participating financial service provider adds a supported country and confirms the eligibility criterion for application of its financial services such updates are communicated to the system 10 via an asynchronous message,
  • the system 10 runs a process to poll the registration database 12 to find members which have become eligible for the particular financial service based upon the newly added attribute.
  • the polling process is a periodic process that looks first for new attributes and then scans the database 12. Members which become newly eligible for a service are notified by email and asked to sign up for the service following the same procedure as for initial financial services registration.
  • Fig. 14 is a flow chart which illustrates an example of the process of registering for trade credit related services with the system for an embodiment of the present invention.
  • the member is invited to enter the financial services screen for details of approved credit facilities available for transactions generated on-line.
  • certain members seeking increased facilities can apply by completing further screens on the system website, which, for example, requires two additional buyer references.
  • Credit and trade products offered to the e-marketplace members include, for example, letters of credit, cash management, foreign exchange services, and funded and/or non-funded trade financing.
  • a notification message containing a simple "yes/no" confirmation that credit facilities have been opened for the member is sent to the system 10 to update the system member profile.
  • E-marketplace members who are current trade credit instrument system customers can activate their trade credit system accounts to be used for settlement of trades within the e-marketplace 38.
  • the system 10 hosts the activation screen for the trade credit instrument system and collects customer data from an existing trade credit instrument system customer. Upon confirmation by the member, the system 10 sends an XML message to the trade credit system with the member's trade credit system account number.
  • E-marketplace members are able to register as receivers of trade credit system credits with the e-marketplace 38 acting as a sponsor.
  • Fig. 15 is a flow chart which illustrates an example of the process of registering for trade credit system accounts related services with the system for an embodiment of the present invention.
  • the system 10 hosts the trade credit instrument system registration screen, and at S75, a member is asked to provide customer information in applying to be a receiver of trade credit system credits. In addition, at S76, the system 10 sends all data elements collected during company registration to the trade credit instrument system, except for data elements relating to fee collection. At S77, when the trade credit instrument system completes the offline application approval process, a notification message confirming whether the member is approved as a trade credit instrument system credit issuer or receiver is sent to the system 10 to update the system member profile. Correspondingly, at S78, the system 10 sends the same notification message to the e-marketplace 38 to update the e-marketplace member profile.
  • Fig. 16 is a flow chart which illustrates an example of the process of registering for escrow services with the system for an embodiment of the present invention.
  • the system re- directs the member to the membership registration page up on the escrow website.
  • the escrow system displays the registration screen, it first sends an XML message to the system 10 to request membership information that was collected by the system 10 during the company registration process.
  • the system 10 responds to the escrow system with another XML message with the required information.
  • the escrow system presents the member with the registration screen, upon which the member is asked to provide the additional information over and above what has been stored in the system 10 at company registration.
  • a notification message containing a simple "yes/no" confirmation that the member is approved for escrow membership is sent to the system 10 to update the system member profile.
  • the system 10 sends the same notification message to the e-marketplace 38 to update the e-marketplace's member profile.
  • Fig. 17 is a table which illustrates examples of credit services provided by the system and method for an embodiment of the present invention, a purpose of which is to allow counter-parties to feel more secure about transacting with an unknown counter-party.
  • Fig. 18 is a table which illustrates examples of clearing and settlement services provided by the system and method for an embodiment of the present invention, a purpose of which is provide members with a total solution for their exchange transactions by providing for the financial settlement of these transactions with the ultimate goal of guaranteeing financial settlement.
  • Fig. 19 is a table which illustrates examples of other services provided by the system and method for an embodiment of the present invention, a purpose of which is to provide members with additional financial services that they may require as part of a transaction.
  • the change in status is communicated to the system 10.
  • the same is true for membership status changes within the e-marketplace exchange 38.
  • the system 10 is updated with the latest membership status change in the e-marketplace 38.
  • the membership status of the e-marketplace 38 has values, such as active trading, active non-trading, rejected, suspended, or terminated. This status update is supported by the provided XML message for the e-marketplace 38 to notify the system 10 of membership approval/rejection during company registration.
  • the system correspondingly updates credit institution 114 with the e-marketplace membership status change, • also through the provided XML message that the system 10 uses to update credit institution 114 on membership approval/rejection.
  • the system 10 for an embodiment of the present invention provides a web based financial clearing switch support "face” or web enabled and “faceless” XML messaging interfaces for access to general financial services, such as credit verification, funds transfer, foreign exchange, escrow processing, loans and any other financial service required.
  • the system 10 supports, for example, a vertical market e-marketplace 38.
  • the system 10 provides switching and messaging between the participants, such as a primary business interface 112, vertical exchange business 38, a global consumer bank, foreign exchange and ACH processing 116, a large-scale trade credit instrument system 118, escrow services 122, and currency exchange 120.
  • the system 10 includes separate functional units, such as XML message switching, HTML form processing, and database processing.
  • the system XML and HTML processors are capable of processing SSL requests.
  • the system processor is a separate system from the database processor.
  • the messaging between the system 10 and cooperating systems, such as foreign exchange and ACH 116, trade credit instrument system 118, credit institution 114, and escrow service 122 is in secure XML 1.0 format.
  • the system application consists of three aspects, including a system XML application that interfaces to the associated systems, a system HTML user browser interface, and a database that tracks information about users, businesses and transaction deals.
  • the system application has two functional entry points, namely an XML-only interface and the HTML presentation interface.
  • the XML "faceless" interface application processing supports XML messaging, for example, for business registration, registration on credit systems 114, credit system information updates, e- marketplace updates, credit system financial registration, trade credit system financial registration, and currency exchange demographic information requests.
  • Each XML message consists of two parts, namely an initial request and the associated response. The response message is required so that the sender can guarantee that the receiver received the message. If no response is received in a pre-determined number of seconds, a retry can be required, and the failure to deliver is logged for operational consideration.
  • the first contact from the vertical business 38 establishes the prospective business and a user and also supports the nth user registration for the same business.
  • the registration process includes forwarding information to credit systems 114. After the first registration request is made to the credit system 114, the process may take some number of days to accomplish the credit system information update. Either when complete screening or when a business status changes, the credit system information update message is sent to the system 10 to update the database. E-marketplace update responses that update the database information are forwarded to the vertical business 38.
  • the result of user input to the registration form and certain fields from the database are logged and sent to the credit system 114 for processing.
  • trade credit instrument system financial registration the result of user input to the registration form and certain fields from the database are logged and sent to the trade credit instrument system for processing.
  • the request for demographic data from the system 10 of the present invention is initiated by the currency exchange 120 to facilitate user enrollment.
  • the application processing for the system 10 of the present invention supports HTML "face full” presentations, for example, for credit services registration, trade credit instrument system registration, escrow registration, and currency registration.
  • the product option list is provided by the system 10 of the present invention to the user.
  • This product list provides either a set of forms or routing to the selected product registration and forwards a XML message to the credit system 114 for processing.
  • the trade credit instrument system registration form ' collects certain sponsors information and forwards an XML message to the trade credit instrument system 118 for processing.
  • a pass through to the escrow web site 122 for registration passes a key for retrieving the data from the system 10 for the customer.
  • a pass through to the currency exchange 120 for registration passes a key for retrieving the system data on the customer.
  • the system database contains information about the status or state of business, users and transaction deals.
  • There are a number of related tables in the database primary ones of which include, for example, a business table, a member table, an address table, and an event table.
  • the business table contains the primary business information company name, type, date in market, registration numbers, and phone numbers, keyed by source, business name and GFCID.
  • the member table includes the primary user or contact information in a many to one relationship with the business table and includes job title, function and buyer/seller authorization.
  • the address table can have a many to one relationship with the business table. Each business may have several possible addresses, and each user may have an address.
  • the event table is used by event queue processing to time, and schedule XML processing based on database content.
  • All messaging from non-local systems such as credit systems 114, foreign exchange and ACH 116, currency exchange 120, the e- marketplace 38, and the trade credit instrument system 118, is over secure SSL Hypertext Transfer Protocol (Secure) HTTP(S) fully encrypted.
  • SSL Hypertext Transfer Protocol Secure
  • the processing network isolates the external firewall/ XML and web server from the database server by configuring them on separate local area networks (LANs).
  • the system web server resides in a DMZ and connects to the application server and database server, which reside in a GRN behind the firewall, through a controlled port. Communication between the web server and the application and database servers are secured through 128-bit SSL and digital certificates.
  • the XML message interface between the present system 10 and servers of financial service providers and target e-marketplaces is also secured through SSL and digital certificates.
  • Members of the e-marketplace 38 are subject to initial authentication through the e-marketplace via a user ID and password administered by the e- marketplace 38. Subsequent access to the system 10 is through hyperlink redirects.
  • Such redirects of HTML pages are secured through a session token, such as an encrypted key containing member identification information, that is embedded within the linking URL to enable the present system to establish the identity of the originator of the hyperlink redirect.
  • the system 10 of the present invention is an internet-based system that facilitates the offering of both internal financial institution and external services to the business-to-business exchange marketplaces 38 and their associated members. These services consist of exchange member validation, services registration and subsequently, indirectly, actual financial transactions. Encryption is used to secure transactions and information classified as RESTRICTED or CONFIDENTIAL.
  • RESTRICTED information is encrypted whenever it is stored or transmitted in any manner or when stored on any physical electronic, magnetic or optical media.
  • CONFIDENTIAL information is encrypted whenever it is transmitted through any user-accessible environment where access by user and/or process is not clearly controlled and the ability to monitor violations is not comprehensive. All passwords stored on disk in the host environments are encrypted in the data communication equipment (DCE) security registry using standard DCE hashed password mechanism.
  • DCE data communication equipment
  • All communications are encrypted using SSL over the public Internet or Smartgate over the vendor networks. All SSL communications are encrypted with at least a 128-bit key.
  • Transaction integrity is maintained at all times. This means that once a transaction enters the system 10 it cannot be lost.
  • the integrity to the backend system is managed by the application middleware.
  • Middleware such as Extricity, is responsible for successfully completing a transaction.
  • the data held on the system databases must be current, valid and its referential integrity ensured.
  • the system 10 of the present invention provides application-level referential integrity and validates all changes to transactional and reference data.
  • the database management system such as Oracle, maintains a database-level referential integrity check to prevent logical or physical damage to database structure or contents.
  • the system 10 of the present invention provides non-repudiation.
  • the system automatically generates a log showing the activity of each of its servers.
  • the logs contain the details received from each user request together with the user ID that uniquely identifies the end-user. Using the log, it is possible to trace back through a particular user's activity to determine the circumstances of a registration request that may be in question.
  • the system 10 of the present invention also provides encrypted connectivity.
  • the client workstation connects to the appropriate web server through either a fixed vendor network, a corporate Internet connection or a dial-up. Once a session is begun at the web server, a 128-bit SSL encrypted session is begun.
  • SGC Server-Gated Cryptography
  • an e-marketplace exchange site 38 re-directs it members to the system web site 10, along with an exchange assigned security token over SSL.
  • the system web application 10 achieves authentication by generating an XML based ValidateUser request message back to the originating exchange 38, along with the security token received during the redirect process.
  • the originating exchange 38 must authenticate the user, via the security that is passed in the XML message, therefore having the exchange 38 authenticate the user it originally re-directed to system web site 10.
  • the exchange 38 Upon the exchange 38 authenticating the user, it responds back to the system 10 of the present invention via an XML based ValidateUser response, which is either a positive or negative authenticate.
  • This response message is also forwarded between the exchange site 38 and system site 10 over HTTPS leveraging digital certificates in the mutual authentication process.
  • This XML based messaging is perfo ⁇ ned over HTTPS, including mutual authentication using server certificates both on the exchange site 38 and on the system application server site 10.
  • the TCP/IP address of the exchange 38 is not extracted from the actual IP message to avoid spoofing.
  • the exchange site IP address used to request user authentication from the exchange site 38 is kept within a configuration table within the system application 10, therefore adding another level of protection against security attacks.
  • the computer applications of partner exchange sites involved with the system 10 of the present invention communicate with the system via XML messages over the Internet using the HTTPS protocol. It is implemented by using server certificates both on the exchange site 38 and on the system server site 10.
  • the system 10 of the present invention initiates outbound XML messages to its client exchanges over the internet leveraging HTTPS and digital certificates.
  • the services implemented by the system 10 of the present invention can be broken down into three phases consisting of exchange member initial registration/validation, pre-financial service registration authorization and financial services registration, in that sequence.
  • a company (user at the web browser 60) is a user of an exchange site 38, wherein the exchange is the exchange site web server 38.
  • the user of the company logs on to the exchange 38 in which the exchange 38 authenticates using login ID and passwords.
  • the user desires to be validated and registered for financial institution services, and therefore selects a financial institution validation from the exchange's web site 38.
  • the exchange web site 38 presents the user with the financial institution user validation information collection screens, which the user fills out.
  • the exchange 38 forwards both the screen- entered information along with exchange's previously collected user/company information to the system application server 10 via an XML message.
  • This XML message is transmitted to the system 10 from the exchange 38 over a HTTPS/SSL session leveraging digital certificates for mutual authentication.
  • Embedded within the XML message is an exchange-assigned company and user ID, in addition to the exchange's unique identifier.
  • the system application server 10 receives the validation request message, it is processed utilizing back services, such as credit granting organization 114.
  • back services such as credit granting organization 114.
  • two XML responses are returned back to the exchange 38 based upon the back-end service processor consisting of an immediate response that indicates whether the company is validated for financial institution services, out-right denial or requires additional manual checking.
  • additional manual checking is required, a subsequent and asynchronous message is generated by a credit system 114 to the system 10, and therefore propagated to the exchange 38, via XML, again over the secure XML channels.
  • the status of these validations, user and company IDs and results are maintained with the system database.
  • the pre-financial services registration authorization enables user access to the web site of the system 10 for an embodiment of the present invention.
  • the member Once a member of the exchange 38 is validated for financial institution services, the member, through a variety of mechanisms, is presented an available financial services screen from which the member can apply for the available financial services. Prior to displaying the screen, the member is validated/authorized between the system 10 and the exchange 38. Once a member/company pair are successfully validated, the user can select the financial services registration hot link on the exchange's web site 38. The selection of this hotlink re-directs the user's browser 60, along with an exchange assigned security token, to the system web site 10. The security token is appended to the URL re-direct as HTTPS query string parameters.
  • This re-direct is facilitated over HTTPS between the user's browser 60 and the system web site 10.
  • the system web site 10 Prior to displaying the available financial services registration screen to the user, the system web site 10 extracts the security token from the query parameters and via the system application server 10 and requests authentication of the user/security token from the originating exchange 38.
  • the system application server 10 forwards the security token and other parameters in an XML HTTPS request back to the exchange site 38 in order for the exchange 38 to authenticate the user that it redirected to system 10. This is accomplished by the exchange 38 using the passed security token that it originally generated to identify/authenticate the user.
  • the IP address of the exchange 38 is not determined from the redirected message. It is determined by a configuration file that specifies the IP address of the pre-registered exchanges, therefore adding an additional layer of protection against spoofing.
  • the exchange 38 returns an authorization pass/fail XML message to the system application server 10.
  • Both XML messages between the exchange 38 and the system application server 10 are over HTTPS utilizing X.509 certificates to identify and authenticate each other.
  • the system server 10 returns the information to the system web server.
  • the system web server holds this information for the current session for the company and continues the session. If the exchange 38 authenticates the user, the system web site displays the financial services for which the exchange member can register.
  • the system web server In the financial services registration, once an exchange member is authenticated and the system web server displays the list of financial services registration screen, the member can select a service. The actions taken vary based upon the service.
  • the system web server presents an information capture screen to the member in order to fill out the required credit registration information. Once filled, the system web server, via the system application server and XML messages, formulates a credit registration request to the credit system. Once a credit response is received, positive or negative, the member is informed.
  • the exchange member For escrow service registration, the exchange member is re-directed to the escrow web site, along with the security token. The escrow system uses the security token in an XML message to request additional user information and validity from the system.
  • An embodiment of the present invention utilizes server-to-server security, such as encryption, authentication, authorization and non-repudiation. Encryption prevents external parties from comprehending intercepted network traffic.
  • the XML interface is provided over the HTTPS transport protocol.
  • the SSL provides 128-bit RC4 encryption on the network.
  • the physical network between the exchange web site and the system web site is over the Internet 62 or leased line. In the event of a leased line, further encryption can be employed in the form of hardware encryption devices. Regardless of such additional encryption, the exchange web site must still communicate HTTPS to the system web server.
  • the system XML web site can be authenticated using a server-side digital certificate.
  • the system web server has a high-grade SSL server certificate issued, for example, by Verisign, configured to use server-gated cryptography (SGC).
  • SGC is a technology that allows the encryption of SSL sessions to be "stepped up" in cases where the remote exchange web site has less than 128-bit SSL encryption.
  • exchange site authentication in order to start a session with the system application, it is necessary for the exchange site to provide an exchange site ID via the XML messaging that references a site account within the system database. It also provides the exchange site server side digital certificates.
  • the exchange site digital certificate allows the system XML site to authenticate the exchange site system. This mutual authentication between the exchange site and the system XML application site is the basis of a trusted relationship.
  • the system XML server can authenticate the identity of the sender of each XML message, and the exchange site can authenticate the sender of each returned XML message.

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  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

L'invention concerne un système (10) destiné à l'acheminement et au traitement de données sur les opérations financières, destiné à un cybermarché (38). Ce système (10) comprend, par exemple, des explorateurs permettant la communication avec le système sur Internet par l'intermédiaire de pages Web et un gestionnaires d'opérations des processus commerciaux (40), un élément essentiel de ce système étant la fonction de gestionnaire de flux (message broker). Lorsque des informations concernant un membre arrivent du cybermarché (38) et/ou du membre lui-même, le système (10) effectue le traitement associé à plusieurs services. Le système (10) comprend des bases de données (36) utilisées par le système en connexion avec son gestionnaire de flux, destinées au stockage des informations relatives aux opérations et aux positions ainsi qu'aux données concernant les membres, ainsi qu'un moteur de transformation.
PCT/US2001/014343 2000-05-05 2001-05-04 Procede et systeme d'acheminement et de traitement de donnees sur les operations financieres WO2001086546A1 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU2001262972A AU2001262972A1 (en) 2000-05-05 2001-05-04 Method and system for routing and processing financial transaction data

Applications Claiming Priority (2)

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US20221700P 2000-05-05 2000-05-05
US60/202,217 2000-05-05

Publications (1)

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WO2001086546A1 true WO2001086546A1 (fr) 2001-11-15

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AU (1) AU2001262972A1 (fr)
BR (1) BR0101785A (fr)
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JP2007200310A (ja) * 2005-12-28 2007-08-09 Matsui Securities Co Ltd 有価証券即時決済システム、株式即時決済システム及び有価証券即時決済装置
US7840477B2 (en) 2005-06-07 2010-11-23 Bgc Partners, Inc. System and method for routing a trading order based upon quantity
US7881996B1 (en) * 2004-08-03 2011-02-01 Federal Reserve Bank Of Atlanta Method and system for screening financial transactions
US7979339B2 (en) 2006-04-04 2011-07-12 Bgc Partners, Inc. System and method for optimizing execution of trading orders
US20150006561A1 (en) * 2007-06-04 2015-01-01 Bce Inc. Methods and systems for handling online requests based on information known to a service provider
US10692057B1 (en) 2017-03-03 2020-06-23 Wells Fargo Bank, N.A. Prepayment validation by originator and beneficiary

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US5677955A (en) * 1995-04-07 1997-10-14 Financial Services Technology Consortium Electronic funds transfer instruments
US5694552A (en) * 1995-07-24 1997-12-02 Aharoni; Amos Financing method incorporating new use of trade acceptance drafts
WO2000052555A2 (fr) * 1999-03-05 2000-09-08 Trade Finance Service Corporation Procede de financement de transactions commerciales, instruments et systemes

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Cited By (8)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US7881996B1 (en) * 2004-08-03 2011-02-01 Federal Reserve Bank Of Atlanta Method and system for screening financial transactions
US7840477B2 (en) 2005-06-07 2010-11-23 Bgc Partners, Inc. System and method for routing a trading order based upon quantity
JP2007200310A (ja) * 2005-12-28 2007-08-09 Matsui Securities Co Ltd 有価証券即時決済システム、株式即時決済システム及び有価証券即時決済装置
US7979339B2 (en) 2006-04-04 2011-07-12 Bgc Partners, Inc. System and method for optimizing execution of trading orders
US20150006561A1 (en) * 2007-06-04 2015-01-01 Bce Inc. Methods and systems for handling online requests based on information known to a service provider
US10831840B2 (en) * 2007-06-04 2020-11-10 Bce Inc. Methods and systems for handling online requests based on information known to a service provider
US10692057B1 (en) 2017-03-03 2020-06-23 Wells Fargo Bank, N.A. Prepayment validation by originator and beneficiary
US11568374B1 (en) 2017-03-03 2023-01-31 Wells Fargo Bank, N.A. Prepayment validation by originator and beneficiary

Also Published As

Publication number Publication date
AU2001262972A1 (en) 2001-11-20
BR0101785A (pt) 2001-12-18

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