Pre-clearance trading system and method

A method of pre-clearing a transaction using a processor comprising:

• a. receiving and storing client profile information in a database;
• b. receiving an order comprising trade execution criteria;
• c. monitoring market conditions which meet the trade execution criteria;
• d. generating and sending, for evaluation by a requiring entity, a pre-clearance request in connection with detecting the trade execution criteria;
• and
• e. receiving a pre-clearance decision from the requiring entity.

A method of pre-clearing a transaction using a processor by and between one or more parties comprising the steps of:

• a. deriving a pre-clearance procedure using parameters selected from the list in a database consisting of specific trading instructions, a type of trading strategy associated with the transaction, a transaction identifier, an account indicator of the one or more parties to the transaction, and a combination thereof;
• b. associating the pre-clearance procedure with the transaction;
• c. reconciling, with the transaction, one or more corresponding transactions having one or more pre-existing account numbers, wherein the process of reconciling comprises a request selected from the group consisting of a request to assign, a request to match, and a request to enrich the pre-clearance procedure to the one or more corresponding transactions;
• and
• d. transmitting a pre-clearance authorization or a pre-clearance rejection.

A method of facilitating or receiving a pre-clearance using a processor comprising the steps of:

• a. receiving a request for one or more pre-clearance authorizations from one or more parties to one or more transactions, wherein an identifier is associated with the one or more transactions;
• b. deriving the pre-clearance authorization, wherein each pre-clearance authorization is unique, and wherein the process of deriving the one or more pre-clearance authorizations ensures association with the one or more parties;
• c. associating the one or more pre-clearance authorizations with the one or more transactions, where pre-clearance approval allows for the transaction's execution and pre-clearance rejection does not allow for the transaction's execution;
• d. sending one or more transmissions to the one or more parties, wherein the one or more transmissions include the one or more transactions and the one or more pre-clearance authorizations;
• and
• e. receiving a request to issue the pre-clearance for the one or more transactions so that one or more final transactions corresponding to the one or more transactions can be transmitted to the one or more parties, wherein the one or more final transactions include the one or more pre-clearance authorizations, and wherein the request is selected from the group consisting of a request to assign, a request to match, and a request to enrich the one or more pre-clearances to the one or more transactions.