Basically the system pulls the long and short positions held by a Broker Dealers for the purpose of electronic calculation and electronic reporting haircuts from Net Capital.
- The system relates to positions held by Broker-Dealer Net Capital and not that of the Banks.
- The system includes only the deductions off of Net Capital known as "haircuts" and excludes Broker-Dealer Fail Charges, Non-Allowable Assets, etc.
What is claimed is:
1. A computer system for automatically calculating broker-dealer disclosure data for a publicly traded security that the broker-dealer holds to comply with current SEC rules for regulating said broker-dealer data...
Disclosure of positions is elemental to the calculation of "Haircuts" but the many benefits to the electronic transmission of positions the Transparent Benefits page.
From Objects and Summary of The Invention:
"To ensure that the system of this invention is accurately operational in view of the law, certain checks and balances are preferably included herein. In particular, upon authorized inquest to the system (by an I/O device known in the art), the system data would be accessible to an auditor of a regulatory entity, such as the SEC, the broker-dealer and authorized accounting firms of same."
Though the Patented System represents just the Haircut Deductions from Net Capital, a systemic calculation of Net Capital without such calculation of haircuts is less than comprehensive, and inaccurate
Systemic regulation can not be circumvented on the front end without real time calculations of regulatory capital, and the calculation of regulatory capital for Broker Dealers is not comprehensive without systemic calculation of haircuts. .
The Regulators also have an opportunity to set an example for the respect of Intellectual Property for the Chinese Government who have received criticism of Intellectual Property Violations but are also the largest buyers of Treasuries.
Basically the Regulators can not genuinely Regulate what they can not see. The patent enables visibility in real-time. Hence, Patented Transparency.