Patent AU-2017202375-A1 (AU)
Title: A robust position detection, cause-and-effect and rule determinants to govern excessive risks for global regulatory compliance
Inventor: SEN PRABIR
IPC: G06Q40/06
Filed: 2017-04-11
Abstract: A computer-implemented method for reporting short position information, the method including receiving position information, into a memory coupled to a processor, from one or more data sources, by the processor executing a communications interface, wherein the position information identifies positions of one or more holding types, wherein the positions are from one or more entities including one or more clients of one or more financial institutions, or the one or more financial institutions, or both, executing, by the processor, instructions stored in the memory, the instructions detecting a short position from the position information, wherein the short position includes levels of thresholds, identifying internal inclusion and exclusion rules applicable to the short position and external inclusion and exclusion rules applicable to the short position, wherein the internal inclusion and exclusion rules include internal rule criteria and the external inclusion and exclusion rules include external rule criteria, identifying cause and effect of the short position using the position information, and according to one or more of the levels of thresholds, where each of the levels of thresholds indicate a level of difficulty to achieve the short position applying the applicable internal inclusion and exclusion rules and the applicable external inclusion and exclusion rules to the position information, arranging the short position information for analysing reporting metrics, testing impact on short position reports in relation to the applicable internal inclusion and exclusion rules and the applicable external inclusion and exclusion rules, validating the short position reports according to the internal rule criteria and the external rule criteria, determining, using an internal inclusion and exclusion rule engine, whether to report the arranged short position information by the internal inclusion and exclusion rule engine by attempting to attribute the applicable internal inclusion and exclusion rules to at least two of the entities, and when the internal inclusion and exclusion rule engine cannot attribute one or more of the internal inclusion and exclusion rules to the at least two of the entities, then restricting communication of the arranged short position information, configuring a system that is affiliated with a financial institution to trigger a pop-up window for displaying a rule exceptions display as a two-dimensional grid in the pop-up window, wherein inference sources for rule exceptions are identified when a conflict of trading position exists between the financial institution and a user, and selecting the inferences using attributes and pay-offs having values that are selectable from a lookup table, performing an exceptions handling process on short position information that failed in the attempt to apply the applicable internal inclusion and exclusion rules and short position information that failed in the attempt to apply the applicable external inclusion and exclusion rules, wherein the exceptions handling process includes generating a causal network representing direct effect of positions, and receiving and processing modifications to the applicable internal inclusion and exclusion rules and the applicable external inclusion and exclusion rules to re-process the failed short position information. Position Reference Data Data Rule Engine Workbench 0 Data Aggregation w U - e ~Apply Rules-a. -Test & Validate - 2 Output _ Data-Mart & -6 Algorithms Analytics Position Analyses & Price Discovery -6 Cause - Effect Analyses 9_ 0__ _ _ _ Analysis of underlying positions [Risk, Control, Simulations & L- .= Audit Controls >U0 __ _ __ _ __ _ _ Reporting or S- 0 Submit report to regulator o for verified branch