Restriction of Soft Dollar Overpayments

摘要

A computer-implemented method, including retrieving, by a computer system from a data repository, a trade execution agreement that specifies an amount of soft dollars payment to be paid to a service provider for execution of a trade order; retrieving, by the computer system from the data repository, information indicative of a soft dollar agreement with the service provider, with the soft dollar agreement specifying an amount of soft dollar payments to be paid to the service provider within a predetermined period; accessing by the computer system trade settlement information that specifies an amount of soft dollar payments that have previously been paid to the service provider; determining by the computer system whether to restrict the amount of soft dollar payments for the trade order.

主权项

1. A computer-implemented method, comprising:
retrieving, by a computer system from a data repository, data pertaining an original amount of soft dollar payments to be paid to a service provider for execution of a trade order; retrieving, by the computer system from the data repository, data pertaining to an amount of soft dollar payments to be paid to the service provider within a predetermined period; accessing by the computer system trade settlement information that specifies an amount of soft dollar payments previously been paid to the service provider during a specified period; executing by the computer system a settlement process to settle trades with the trade settlement process comprising a soft dollar restriction engine to predict when a soft dollar payment would result in an overpayment of soft dollars by determining whether an aggregate of the original amount of the soft dollar payments and the amount of soft dollar payments previously been paid will exceed the amount of soft dollar payments specified to be paid within the predetermined period; determining, by the computer system based on execution of the soft dollar restricting engine prediction to restrict the amount of soft dollar payments for the trade order; determining by the computer system a restriction amount that is the aggregate of the original amount of the soft dollar payments and the amount of soft dollar payments previously paid that exceed the amount of soft dollar payments specified in the soft dollar agreement and reducing the original amount of soft dollar payments by the restriction amount; and transmitting to a device of a broker a trade settlement payout and instructions to distribute the reduced amount of soft dollar payments to the service provider.