US 8,078,511 B2 · Method and system for foreign exchange price procurement and automated hedging

Abstract

In the present invention, a hedging engine processor and method monitors business transactions to provide foreign currency exchange hedging instructions and to provide foreign currency price information for goods of commerce. The hedging engine receives business transaction information that relate to purchases or sales of goods by a customer, receives hedging rules, that define rules to exchange a first type of currency to a second type of currency, and receives pricing rules, that define rules to update public foreign currency prices of the goods. The engine also generates public price information to provide foreign currency prices of the goods, based on the pricing rules, and generates hedging instruction information to provide instructions on whether to exchange from the first type of currency to the second type of currency, based on the hedging rules.

Claims35

Dependent claims

A hedging processor for monitoring business transactions for goods of commerce of a customer in a first type of currency, comprising:

at least one input for receiving business transaction information regarding a plurality of business transactions including purchases or sales of goods by a customer, for receiving hedging rules from the customer and set by the customer, wherein said hedging rules define a first user-specified event to initiate an exchange of the customer's first type of currency to a second type of currency on the customer's behalf, for receiving pricing rules from the customer and set by the customer, wherein said pricing rules define a second user-specified event to update foreign currency prices of said goods, and for receiving public price information from at least one of a plurality of foreign exchange (FX) rate providers or FX liquidity providers;
and
a processor operably arranged with said at least one input, the processor containing a computer readable program code for generating hedging instruction information to provide instructions to at least one of the plurality of FX rate providers or FX liquidity providers to exchange said first type of currency to said second type of currency, based on said hedging rules and the occurrence of the first user specified event, and for generating public price information to provide updated foreign currency prices of said goods to the customer, based on said pricing rules.

A computerized method for administering transactions involving goods of commerce with a plurality of currency types comprising the steps of:

receiving, by a hedging processor, currency exchange rules from a customer and set by the customer, wherein said currency exchange rules define a first customer-specified event relating to the customer's transactions involving said goods in a first type of currency that triggers the hedging processor to initiate an exchange of said first type of currency to a second type of currency for the customer;
generating, by the hedging processor, currency exchange instruction information to provide instructions to exchange said first type of currency to said second type of currency for the customer;
receiving, by the hedging processor, transaction information concerning the customer's transactions involving said goods;
upon the occurrence of said first customer-specified event, forwarding, by the hedging processor, the currency exchange instruction information to at least one of a plurality of foreign exchange (FX) rate providers based on said currency exchange rules.

1 more element

Dependencies are inferred from the claim text.

Method and system for foreign exchange price procurement and automated hedging

Life of this patent

Method and system for foreign exchange price procurement and automated hedging

Life of this patent

Abstract

Claims35