MAIMUUTA TONTUNDUM US009818156B2 UT (12 ) United States Patent ( 10 ) Patent No. : US 9 ,818 , 156 B2 Quinton ( 45 ) Date of Patent: Nov. 14 , 2017 ( 54 ) MULTIPLE MODULAR ASSET 2005/ 0108146 A1 * 5 /2005 Bond . .. .. G06Q 40 /06 CONSTRUCTOR APPARATUSES , METHODS 705 / 37 AND SYSTEMS 2010 / 0057636 Al* 3 / 2010 Brennan . .. .. .. .. G06Q 40 / 06 705 / 36 R ( 71 ) Applicant : FMR LLC , Boston , MA ( US ) * cited by examiner ( 72 ) Inventor: Keith Quinton , Hanover, NH (US ) Primary Examiner - Robert R Niquette (74 ) Attorney , Agent, or Firm — Hanchuk Kheit LLP ; (73 ) Assignee : FMR LLC , Boston , MA (US ) Walter G . Hanchuk ( * ) Notice : Subject to any disclaimer , the term of this patent is extended or adjusted under 35 ( 57 ) ABSTRACT U . S . C . 154 (b ) by 388 days . The Multiple Modular Asset Class Constructor Apparatuses, Methods and Systems (“ MMACC " ) transforms collateral (21 ) Appl. No. : 14 /601 , 061 ized equity obligation structure parameters , asset search , tranche selections inputs via MMACC components into (22 ) Filed : Jan . 20 , 2015 asset income distribution message, principal distribution message outputs . In one embodiment, the MMACC is an (65 ) Prior Publication Data apparatus, with a memory having a component collection , including: a capital structure component, a preferred share US 2016 /0210696 A1 Jul. 21 , 2016 class component, and a common share class component. The MMACC also has a processor to issue instructions from the (51 ) Int. Cl. component collection including instructions to obtain a G060 40 / 08 ( 2012 .01 ) capital structure input via said capital structure component G06Q 40 / 06 ( 2012 .01 ) from a system user and determine a preferred share class ( 52 ) U . S . CI. allocation via said capital structure input and said preferred CPC G06Q 40/ 06 (2013 .01 ) share class component. The MMACC may use the preferred (58 ) Field of Classification Search share class allocation derived from said capital structure None input and said preferred share class component and deter See application file for complete search history . mine a common share class allocation via said capital structure input and said common share class component. The (56 ) References Cited MMACC may also output said common share class alloca tion derived from said capital structure input and said U . S . PATENT DOCUMENTS common share class component. 8 ,595 ,116 B1 * 11/ 2013 Bettinger, II .. G06Q 40 / 04 705 / 36 R 6 Claims, 25 Drawing Sheets Client (s ) 186b Client ( s ) 1876 MMACC 1996 ers 187, User (5 ) 1862 to??????? ?y?MMAC 1992 3rdrd party / Market Market 19841985 Asset Buyers 187a All MACC Collateralized obligation datastructure Equity Obligation structures 27 parameters ( CEO) Asset search parameters 101 message 102 request 107 Asset search 106 Pool Tranche Instantiation Component ( e. g. , see Fig . Display asset search 2a ) 143 Assetsearch response 109 Asset Tranche response 108 Offer Message 104 Asset tranche Select asset tranche 110 Tranche Asset Transact Component purchase order (e .g ., see Fig . 2b ) 142 111 Distribute Income less dividend ,etc .) Tranche Income distribution Component ie. 9 ,see Fig. 2c : 143 message 114 Income Distribution (13 Message 113 YR Distribute Principalte . g , capita appreciation /corpus / position proceeds / etc .) Tranche Component (0 . 5 . See Fig. 20 344 Principal distribution Principal Distribution message 117 : MMACC — Datagraph ml Message 116 Www atent Nov . 14 , 2017 Sheet 1 of 25 US 9 ,818 , 156 B2 AssetBuyers18 Assetsearch106 Displayassetsearch response109 Selectassettranche110 distributionIncome message114 Principaldistribution message117 Client(s)187b response108 Assetsearch request107 Assetsearch Assettranche orderpurchase 111 Message116 104 Message113 3rdparty/Market1986MMACC1996 AssetTranche OfferMessage TrancheAssetTransactComponent (e.g,seeFig2b)142 IncomeDistribution PrincipalDistribution DistributeIncome(2.g DistributePrincipal(c.g,capital Component(e.g,seeFig Component(eg.,seeFig2c)143 appreciation/corpuspositionproceedsetc.)TrancheComponent(29 PoolTrancheInstantiation 1412a) wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww 12 divident,etc)Tranche seeFig.2c)144 ??zedquity obligation datastructure/ CEOparameters)( message102 Client(s)186ba VIMACCCollateralizedOEquityObligationstructures parameters101 Auser(s)186a ARRARA Fig.1:MMACC-Datagraph G U . S . Patent Nov . 14, 2017 Sheet 2 of 25 US 9 ,818 , 156 B2 AssetBuyer287 Market/3rdParty298 - - - - - - - - 1 { { { 11 { Setectassetiste.gindex,high Foreachasset(e.specifiedg,my 216message)parameterCEO productAcent. appreciationslicedata trancheseeFig.create;assettoeach databaseassociatedwithslices)234 Start/Stop202 yield,highincomespecificequities 214etc) MMACCDB219 structure222 Foreachslicetype226 Selectallassetsforslice type(e.g,OBselectslicefor 22810) >StoresSticeassoc.WithCEO Createaprincipal InstantiateCEOproduct (e.g,createnewelectronicrecordinall Pooltrancheinstantiationcomponent241 MMACCServer299 slicedatastructure(I.e,anew CEOexists(e.g,and extracapacity)?212 230Fig.10)parameters;seeper databaseassociatedtonewCEO 218product) Next/Moreassets? Generateslicetype componentfornewCEO product(e.g,addingslicevalues types?232 Createanewcurrentyield recordinelectronictypeg.,;eslice Createanewdividend growthslicedatastructure 220 224 Hext/Morestice -- Fig.2a:MMACC-PoolTrancheInstantiationComponentLogicFlow allowediting(e.g, Client286 DisplayLogin/Create Screen204 IrParametersfornew107 206product Display"make another”messageor 208form)web CEOnewforParametersi confirm210 ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ?? ?? ? ?? ?? ?? ?? ?? ?? ?? atent Nov . 14 , 2017 Sheet 3 of 25 US 9 ,818 ,156 B2 DisplayAsset(e.g, DisplayLogin/Create (e.g,fundingsourceetc)| AssetBuyer287 Screen240 Assetsearch245 CEO)andSliceType optionsforpurchase 247 posetectproduct/tranche 248 Error,retry260 Trancheassettransactcomponent242 Purchaseadditionalassets/ Requestfundstocover collateralizedpurchaseof (e.g,stocks)252 tranche256 Market3rdMarket/3rdParty298 - AllocatepurchaseinCEO - Start/Stop202 SearchDB246 250 product254 258Sufficient? trancherecordtoasset buyer262 MMACCServer299-- MMACCDBZT9 ATYw/inlimits AllocatecollateralCEO MMACCServer299 1 - 1 I - - - Fig.2b:MMACC—TransactComponentLogicFlow Client286 atent Nov . 14 , 2017 Sheet 4 of 25 US 9 ,818 , 156 B2 - - - !- - - - - -+425) DisplayAsset(e.g, AssetBuyer287 CEO)andSliceType optionsforpurchase 246 Setectproduct/tranche(e.g,fundingsourceetc) 248 Error,retry260 Displayfundupdate 278 Displayfundupdate anddoseoutwith capitalreturn280 - Distributeincometranchecomponent243 Distributeprincipaltranchecomponent244 - - - 29PartyMarkeurdMarket/3rdParty298. Moreassetbuyer slices?282 Provide/requestfundsto covercollateralized performanceoftranche 275 Provide/requestfundsto collateralizedcover performanceoftranche andreturnofcapital276 - - - 5 - Maturity?27tomany - dynamically,on-demand povertime(e.g,seeFig3for calculations;i.e,update - Start/Stop202 Lithenextlende periodicte.g,secondminute semi/biannual,etc.)realtime etc)?268 MMACCDB)272 - ForeachCEOproduct2607 hr,dayweekmonthquarterly ForeachCEOproduct tranche/sliceassetbuyer 270 Determinetranchevalue - - - - C - MMACCServer299 - MMACCDB219 ; ??? ? ?? ? ? ? ? ?? ? ?? ? ? ??? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ? ? ? ? ? ?? ? ? ?? ? ? Fig.2c:MMACC-DistributeComponentsLogicFlow Client286 U . S . Patent Nov . 14, 2017 Sheet 5 of 25 US 9 ,818 , 156 B2 Tranche#2 Tranche#1 Tranche#3 310 1 .. - - - ** * - - . - - - - - - - 306 - - - - - - - - TATATATATATATATATATATATATATATATATA4. Maturity -Sellpositions andistribute pY9Cec1s tranche#N Years1thruT 304 v - - 22- - - - Q8 - - - - -- - - -Distribute dividend - - - - +=. Pooled$ Tranche#1 Tranche#2 Tranche#3 tranche#N 302 308 (74777777777777777777777777777777777 -Buysinitial portfolio *-=+ . - - - . Tranche#1 Tranche#2 Tranche#3 I Tranche#N 387 ????????????????????????????????????????????????????? Buyer Buyer Buyer Buyer Fig.3:MMACC—Datagraph/Structure atent Nov . 14 , 2017 Sheet 6 of 25 US 9 ,818 , 156 B2 309.0% 33.2% Tranche3 $1,844745 $2,087523 $3,100000 $3,100000 $3,100000 $13,232268 26.1% 5.1% Tranche123 DividendAllocation MarketValueAllocation $100,000395740879 Tranche2Tranche1 $3,100000 $3,100000 $3,1000004244385 $7,4518743100000 $3,1000008205821 $15,50000026102079 15.5% 3.1% Total: AnnualIRR: Income 8,044745 8,287523 10,444385 13,651874 14,405821 Portfolio Portfolio Dividend MarketValue 2013$595,740879 5YearSimpleReturn: Fig.4:MMACC—ExampleCEOParameters2008Vintage 2009 2010 2011 2012 2013 U . S . Patent Nov . 14 , 2017 Sheet 7 of 25 US 9 ,818 , 156 B2 505 12/312013 Sellportfolio $595,740879 - - * - * * - * Growth& ,000$3100 ,821$8205 Capital ,000$3100 2013 .821$14,405 income Appreciation Distribute income AppreciationCapital879,740395 507$ Growth&income $100.000 }nme $100,000 mm50 Income $3,100.000 Growth Income $7,451.874 Capital Appreciation $3,100000 2012 Distribute income $13.651874 Growth& Income $3,100000 Income $4,244385 Capital Appreciation $3,100000 2011 Distribute ???? $10,444385 Growth:% Income 100,000$3 incone 100,000$3 Capital Appreciation 087,523$2 2010 ???? c?? 287,523$8 Growth& 504 000100,3$ $3,100000 Capital $1,844745 Cate $8,044745 Income Income Appreciation 503 Distribute 12/312008 BuyPortfolio $300,000 502 501 Income 000,$100 &IncomeGrowih 000.$100 AppreciationCapital 000,$100 MMACC—2008VintageFlowchartFig.5: U . S . Patent Nov . 14 , 2017 Sheet 8 of 25 US 9 ,818 ,156 B2 CapitalAppreciation Independence Growth Company tiittisissa* ** *** * * * * FidelityFund *** * * ** ** * Growth