Computer-based systems and methods for computing market-adjusted elasticities for accounts

Abstract

Relating resources expended by a securities research entity to revenue received by a financial services firm including the securities research entity. A computer system may receive account revenue data indicative of revenue received by the financial services firm from a first customer investment account for at least securities trade execution by the financial services firm for the first customer investment account. The computer system may also receive account expense data indicative of expenses incurred by the securities research entity on behalf of the first customer investment account. The computer system may determine a market condition-adjusted elasticity for the first customer investment account. The market condition-adjusted elasticity, determined based on at least one market condition for securities, may indicate a relationship between the expenses incurred by the research entity on behalf of the first customer investment account and the revenue received by the financial services firm from the first customer investment account.

1 - 21 . (canceled) 
     
     
         22 . A computer-implemented system for relating resources expended by a securities research entity to revenue received by a financial services firm including the securities research entity, the system comprising:
 a computer-based data storage system, the data storage system comprising:
 a revenue and expenses data store comprising data describing revenue generated by the securities research entity and expenses incurred by the securities research entity; and 
 a fund account data store comprising data describing securities transactions associated with the securities research entity; 
   a computer device comprising a processor circuit and a memory circuit, wherein the processor circuit is programmed to:
 receive, from the fund account data store, revenue data indicating revenue received by the financial services firm for a first customer investment account from securities trade execution by the financial services firm for the first customer investment account; 
 receive, from the revenue and expense data store, expense data indicating expenses incurred by the securities research entity on behalf of the first customer investment account; 
 determine a market condition-adjusted elasticity for the first customer investment account, wherein the market condition-adjusted elasticity indicates a relationship between the expenses incurred by the securities research entity on behalf of the first customer investment account and the revenue received by the financial services firm for the first customer investment account from securities trade execution by the financial services firm for the first customer investment account, wherein the market condition-adjusted elasticity is determined based on at least one market condition for securities, and wherein determining the market condition-adjusted elasticity comprises determining a lag between changes in the expenses incurred by the securities on behalf of the first customer investment account and corresponding changes in the revenue received by the financial services firm from the first customer investment account for securities trade execution by the financial services firm for the first customer investment account. 
   
     
     
         23 . The system of  claim 22 , wherein determining the market-condition adjusted elasticity comprises fitting a model form to the account revenue data and the account expense data. 
     
     
         24 . The system of  claim 23 , wherein the model form is expressed as:
   ln(Revenue)=β*ln(Expense)+ c   0  
   
       wherein:
 Revenue is the revenue received by the financial services firm from the first customer investment account for at least securities trade execution by the financial services firm for the first customer investment account; 
 β is the market condition-adjusted elasticity; 
 Expense is the expenses incurred by the securities research firm on behalf of the first customer investment account; and 
 c 0  is a constant. 
 
     
     
         25 . The system of  claim 23 , wherein the processor circuit is further programmed to receive market conditions data indicative of the at least one market condition for securities, wherein the generated mathematical model further indicates a relationship between the expenses incurred by the research entity, the at least one market condition for securities and the revenue received by the financial services firm. 
     
     
         26 . The system of claim  1 , wherein the account revenue data is also indicative of revenue received by the financial services firm from a plurality of customer investment accounts for securities trade execution by the financial services firm for the plurality of customer investment accounts, wherein the plurality of customer investment accounts comprises the first customer investment account; and
 wherein the account expense data is also indicative of expenses incurred by the securities research entity on behalf of the plurality of customer investment accounts.   
     
     
         27 . The system of  claim 26 , wherein the processor circuit is further programmed to:
 determine a market-condition adjusted elasticity for each of the plurality of customer investment accounts; and   display a graphical user interface to a securities salesperson, wherein the graphical user interface displays the market-condition adjusted elasticity for at least one of the plurality of customer investment accounts.   
     
     
         28 . The system of  claim 26 , wherein the processor circuit is further programmed to:
 apply at least one of a revenue threshold or an expense threshold to the plurality of customer investment accounts; and   remove from consideration any customer investment accounts from the plurality of customer investment accounts that do not exceed the revenue threshold.   
     
     
         29 . The system of  claim 26 , wherein the processor circuit is further programmed to smooth the revenue data with respect to at least one of the plurality of customer investment accounts by distributing revenue from at least one time period to at least a second adjacent time period. 
     
     
         30 . The system of  claim 26 , wherein generating the market condition-adjusted elasticity for the first customer investment account comprises:
 clustering the first customer investment account with at least a second customer investment account selected from the plurality of customer investment accounts;   generating a cluster model of the first customer investment account and the at least a second customer investment account;   receiving additional predictor data indicative of at least one additional predictor of account revenue relating to at least one of the first customer investment account and the at least a second customer investment account;   adding the at least one additional predictor to the cluster model; and   calculating an elasticity of the first customer investment account considering the cluster model.   
     
     
         31 . The system of  claim 26 , wherein the additional predictor comprises the at least one market condition and the cluster model is of the form:
   ln(Revenue cluster )=ln(Expense cluster )*β cluster +ln(MarketCondition cluster )*β 0   +c   0  
   
       wherein:
 Revenue cluster  is indicative of revenue received by the financial services firm from the first customer investment account and at least the second customer investment account for at least securities trade execution by the financial services firm for the first customer investment account and at least the second customer investment account; 
 Expense cluster  is indicative of expenses incurred by the securities research entity on behalf of the first customer investment account and at least the second customer investment account; 
 β cluster  is an elasticity describing the first customer investment account and at least the second customer investment account; 
 MarketCondition cluster  is the at least one market condition; 
 β 0  is an elasticity constant; and 
 c 0  is a constant. 
 
     
     
         32 . The system of  claim 26 , wherein the cluster is generated according to at least one algorithm selected from the group consisting of a Partition Around Medoid (PAM) algorithm and a KMeans algorithm. 
     
     
         33 . The system of  claim 26 , wherein the cluster model is generated according to a Linear Mixed-Effect Model (LME) method. 
     
     
         34 . The system of  claim 26 , wherein the at least one additional predictor is selected from the group consisting of a market condition, a contact of one of the plurality of customer investment accounts, and an analyst team. 
     
     
         35 . The method of  claim 22 , wherein the method comprises generating a forecast of a future revenue to the financial services firm from the first customer investment account for at least securities trade execution by the financial services firm for the first customer investment account considering future account expense data indicative of future expenses to be incurred by the securities research entity on behalf of the first customer and the market condition-adjusted elasticity for the first customer investment account. 
     
     
         36 . A computer-implemented system for related resources expended by a securities research entity to revenue received by a financial services firm including the securities research entity, the system comprising:
 a computer-based data storage system, the data storage system comprising data describing revenue generated by the securities research entity and expenses incurred by the securities research entity;   a computer device comprising a processor circuit and a memory circuit, wherein the processor circuit is programmed to:
 receive, from the data storage system, revenue data indicating revenue received by the financial services firm for a plurality of customer investment accounts from securities trade execution by the financial services firm; 
 receive, from the data storage system, expense data indicating expenses incurred by the securities research entity on behalf of the plurality of customer investment accounts; 
 receive, from the data storage system, at least one market condition for securities; 
 determine a market condition-adjusted elasticity for each of the plurality of customer investment accounts, wherein determining the market condition-adjusted elasticity for a first customer investment account selected from the plurality of customer investment accounts comprises: 
 determining a relationship between expenses incurred by the securities research entity on behalf of the first customer investment account and revenue received by the financial services firm for the first customer investment account from securities trade execution by the financial services firm for the first customer investment account; 
 adjusting the relationship based on the at least one market condition for securities; and 
 determining a lag between changes in the expenses incurred by the securities research entity on behalf of the first customer investment account and corresponding changes in the revenue received by the financial services firm from the first customer investment account for securities trade execution by the financial services firm for the first customer investment account; and 
   display a graphical user interface, wherein the graphical user interface displays the market-condition adjusted elasticity for at least one of the plurality of customer investment accounts, wherein the graphical user interface comprises:
 a summary field showing a graphical representation of modeled market-condition adjusted elasticity for each of the plurality of customer investment accounts; and 
 at least one field showing customer investment account-specific information describing an elasticity of one of the plurality of customer investment accounts. 
   
     
     
         37 . The system of  claim 36 , wherein the summary field comprises:
 a vertical axis indicating elasticity comprising a positive side and a negative side; and   a plot of market-condition adjusted elasticity for each of the plurality of customer investment accounts, and wherein portions of the plot corresponding to positive market condition adjusted elasticities are on the positive side of the vertical axis and portions of the plot corresponding to negative market condition adjusted elasticities are on the negative side of the vertical axis.   
     
     
         38 . The system of  claim 36 , wherein the graphical user interface further comprises a filter field for receiving data from a user indicating a filter to be applied to the plurality of customer investment accounts. 
     
     
         39 . The system of  claim 36 , wherein the graphical user interface comprises a field corresponding to the first customer investment account that, when selected by a user, causes the graphical user interface to provide additional information about the market condition-adjusted elasticity for the first customer investment account. 
     
     
         40 . The system of  claim 36 , wherein the graphical user interface comprises a graph of the revenue received by the financial services firm from the first customer investment account for at least securities trade execution by the financial services firm for the first customer investment account versus the expenses incurred by the securities research entity on behalf of the first customer investment account. 
     
     
         41 . The system of  claim 36 , wherein the graphical user interface comprises a log-log graph indicating a change in the revenue received by the financial services firm from the first customer investment account for at least securities trade execution by the financial services firm for the first customer investment account versus a change in the expenses incurred by the securities research entity on behalf of the first customer investment account.