# US 8,751,364 B2 · Wire speed monitoring and control of electronic financial transactions > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 8,751,364 B2 - Document ID: US8751364B2 - Status: Granted - Kind: B2 - Application number: 13/296,393 - Filed: 2011-11-15 - Published: 2012-05-24 - Granted: 2014-06-10 - Earliest claimed: 2010-11-19 - Assignees: Deutsche Bank AG - Applicants: Konstantin Gaber; Gregory Reider; Ralf Roth - Inventors: Konstantin Gaber; Gregory Reider; Ralf Roth - Web page: https://patentgrep.com/patent/US8751364B2 ## CPC - G06Q 40/04: Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange - G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR ## Abstract An in-line hardware message filter device inspects incoming securities transactions. The invention is implemented as an integrated circuit (IC) device which contains computer code in the form of on-chip hardware instructions. Data messages comprising orders enter the device in exchange-specific formats. Messages that satisfy pre-determined risk assessment filters are allowed to pass through the device to the appropriate securities exchange for execution. The system functions as a passive device for all legitimate network traffic passing directly or indirectly between a customer's computer and a securities exchange's order-acceptance computer. Advantageously, the invention allows the broker-dealer to check and pass messages or orders as they come through the system without having to store the full message before making a risk assessment decision. The hardware-only nature of the invention serves to maximize the speed of order validation and to perform pre-trade checks in a cut-through or store-and-forward mode. ## Claims ### Claim 1 A computer system for performing risk assessment of a securities transaction at wire speed without processing software instructions, the computer system comprising: (A) memory; (B) a network connection; and (C) a reprogrammable integrated circuit (IC) device comprising non-transitory embedded hardware instructions coding for a method comprising the steps of: a) receiving by the IC device an incoming order for the securities transaction; b) parsing the order by the IC device into a plurality of order components; c) evaluating by the IC device one or more order components in accordance with pre-established risk criteria; and d1) if the order components pass the pre-established risk criteria, permitting the order to pass to a securities exchange for subsequent handling; or d2) if the order components do not pass the pre-established risk criteria, truncating the order before passing the order to a securities exchange, wherein the embedded hardware instructions are non-transitory and are processed without software instructions loaded in volatile computer memory. ### Claim 2 (depends on 1) The computer system according to claim 1, wherein the IC device is an FPGA, PAL, PLA, or CPLD device. ### Claim 3 (depends on 1) The computer system according to claim 1, wherein the IC device can handle a throughput of about 500,000 incoming orders per second and support a minimum of about 30 TCP sessions. ### Claim 4 (depends on 1) The computer system according to claim 1, wherein the IC device is reprogrammable locally or remotely. ### Claim 5 (depends on 1) The computer system according to claim 1, wherein the pre-established risk criteria comprise one or more risk management criteria selected from the group consisting of a restricted securities trading list; minimum or maximum order size; minimum or maximum order dollar value; minimum or maximum notional value; order type; broker identification; and securities or currency settings. ### Claim 6 (depends on 1) The computer system according to claim 1, wherein the IC device further comprises embedded hardware instructions to periodically receive updated pre-established risk criteria. ### Claim 7 (depends on 1) The computer system according to claim 1, wherein the IC device further comprises embedded hardware instructions for logging inspected orders. ### Claim 8 (depends on 1) The computer system according to claim 1, wherein the incoming order enters the device in an exchange-specific format. ### Claim 9 (depends on 8) The computer system according to claim 8, wherein the format is FIX, OUCH, or ArcaDirect. ### Claim 10 (depends on 1) The computer system according to claim 1, wherein the IC device further comprises embedded hardware instructions for completely truncating an order before the order can pass to the securities exchange. ### Claim 11 (depends on 1) The computer system according to claim 1, wherein the IC device further comprises embedded hardware instructions for blocking a session due to a securities breach or a transaction failing one or more criteria. ### Claim 12 A method for performing risk assessment of a securities transaction using a reprogrammable integrated circuit (IC) device containing non-transitory embedded hardware instructions for performing the method, the method performed by computer hardware at wire speed without processing software instructions and comprising the steps of: a) forwarding to the IC device an order for the securities transaction; b) parsing the order by the IC device into a plurality of order components; c) evaluating by the IC device one or more order components in accordance with pre-established risk criteria; and d1) if the order components pass the pre-established risk criteria, permitting the order to pass to a securities exchange for subsequent handling; or d2) if the order components do not pass the pre-established risk criteria, truncating the order before passing the order to a securities exchange. ### Claim 13 (depends on 12) The method according to claim 12, wherein the IC device is an FPGA, PAL, PLA, or CPLD device. ### Claim 14 (depends on 12) The method according to claim 12, wherein the securities transaction is a purchase or sale of equity securities, debt securities, or currency instruments.