Pre-trade compliance checking in a portfolio management system

A method for pre-trade compliance checking in a portfolio management system, comprising the steps of:

• recording, by a server, interpretations and assumptions of each trade rule and limit with a compliance engine performing the steps of:
• determining, by the server, entity exposure for each security traded;
• said
• determining step comprising the steps of:
• determining, by the server, a role an entity seeking compliance plays in context of a particular security;
• determining, by the server, an amount of exposure, wherein an amount of exposure is determined by analyzing a security involved in a trade o determine entity, type, and amount of exposure for each trade;
• wherein any changes to a characteristic of a security automatically cause a recalculation of exposure and an update to system accumulators;
• and
• determining, by the server, limits for each security traded, wherein each security traded in said portfolio management system is a money market fund;
• performing, by the server, trading compliance checks, wherein a user may press a button to check compliance at any time;
• wherein, at authorization time, compliance checks are always run;
• and
• displaying, by the server, a window when there is an exception to a rule and, for each compliance check, values are shown for an amount of room available both before and after execution of a trade being considered.

A method for pre-trade compliance checking in a portfolio management system, comprising the steps of:

• determining, by a server, entity exposure for each security traded, wherein determining entity exposure for each security traded comprises determining, by the server, a role an entity seeking compliance plays in context of a particular security, and determining, by the server, an amount of exposure, wherein determining an amount of exposure comprises first determining if the particular security is to be treated as a government security, and if the particular security is treated as a government security, then characterizing the particular security as exempt, and if the particular security is not treated as a government security, then continuing to determine the amount of exposure, wherein entity exposure is determined by analyzing a security involved in a trade to determine entity, type, and amount of exposure for each trade, wherein any changes to a characteristic of a security automatically cause a recalculation of exposure and an update to system accumulators;
• determining, by the server, limits for each security traded;
• and
• displaying, by the server, the limit, in a display, for each security traded.

An apparatus for pre-trade compliance checking in a mutual funds portfolio management system, comprising:

• a compliance engine comprising stored procedures on a database server for recording interpretations and assumptions of each trade rule and limit, said compliance engine comprising:
• a module for determination of entity exposure for each security traded;
• said module for determination of entity exposure comprising:
• a role an entity seeking compliance plays in context of a particular security;
• and
• an amount of exposure, wherein entity exposure is determined by analyzing a security involved in a trade to determine entity, type, and amount of exposure for each trade;
• wherein any changes to a characteristic of a security automatically cause a recalculation of exposure and an update to system accumulators;
• a module for determination of limits for each security traded,
• wherein each security traded in said portfolio management system is a money market fund;
• and
• a module for trading compliance checks,
• wherein a user may press a button to check compliance at any time and at authorization time, compliance checks are always run,
• wherein each rule has a start and end date indicating the period of time each rule is effective,
• a display wherein when there is an exception to a rule, a window is displayed and, for each compliance check, values are shown for an amount of room available both before and after execution of a trade being considered.