Patent ID: 7818239

Claim:
A computer-implemented method of allocating dividends to a plurality of long positions held by a financial services firm in a security from a first issuer, the method comprising: receiving with a computer data indicating that a dividend has been paid by the issuer on the security, wherein the computer comprises: a processor; and a memory in communication with the processor, wherein the memory is selected from the group consisting of a read only memory (ROM) and a random access memory (RAM); receiving with the computer data indicating an amount of the dividend; receiving account data describing positions held by the financial services firm; identifying with the computer, and considering the account data, a plurality of short positions, wherein the plurality of short positions comprise at least one short position held outright by the financial services firm and at least one short position held by the financial services firm on behalf of a client, and wherein the plurality of short positions are described by the account data; matching using the computer the plurality of short positions with long positions selected from the plurality of long positions, wherein the plurality of long positions comprise at least one long position held outright by the financial services firm and at least one long position held by the financial services firm on behalf of a client, and wherein the plurality of long positions are described by the account data; allocating with the computer a manufactured dividend to each of the selected long positions, wherein each manufactured dividend originates from one of the plurality of short positions; and allocating with the computer a real dividend to any long positions remaining in the plurality of long positions.