Abstract

Data processing for an improved securities brokerage/cash management system supervises, implements and coordinates a margin securities brokerage account; a participation in one or more short term money market or comparable funds; and subscriber-initiated use of electronically responsive subscriber identity credit/debit media and/or checking systems. Subscriber expenditures, effected as by "charge card" check and/or cash advance are applied on a hierarchal basis, seriatim, against the subscriber's free credit balance, short term investment and the lendable equity in his securities account. On a periodic basis, e.g., daily, received card charges, check, securities and deposit transactions for the ensemble of account participants are verified and employed to compute an updated credit limit for each subscriber. The short term investment position of each account is modified as necessary to permit money market or comparable earned yields on the account free credit cash balance.In accordance with one aspect of the present invention, daily funds demands for the totality of subscribers are satisfied by predicting and executing money funds sales requirements prior to completing individual account data processing before definitive per-account information becomes available. This substantially eliminates the time-interest cost of system float, i.e., money paid by the system proprietor to satisfy customer expenditures while subscriber accounts continue to earn unwarranted interest.

Other References

• CMA Money Trust-Prospectus, Aug. 25, 1978
• "Merrill Lynch Cash Management Account", published Oct. 1978 by Merrill Lynch, Pierce, Fenner & Smith Inc
• France, H., "Sales Forecasting, Production Control and Financial Planning (A Working System)," British Joint Computer Conference, 1966, 269-272
• "Corporate Cash Management" and "Portfolio of Cash Management Services," published Mar. 1983 by NS&T Bank