EP2593917A1

EP2593917A1 - Control system for controlling complex facilities hosting multiple concurrent processes

Info

Publication number: EP2593917A1
Application number: EP11743657.6A
Authority: EP
Inventors: Odd Rune Eikemo Fitje
Original assignee: Individual
Current assignee: Individual
Priority date: 2010-07-16
Filing date: 2011-07-13
Publication date: 2013-05-22
Also published as: WO2012008847A1; NO332053B1; NO20101023A1

Abstract

A control system (100) for controlling complex facilities (10) hosting multiple concurrent processes (P) includes computing hardware (1 10) operable to execute one or more software products, and wherein the computing hardware executing the one or more software products is operable: (a) to monitor inputs to one or more concurrent processes R (b) to receive data indicative of value and/or trend in respect of one or more parameters q of the one or more processes R (c) to receive data indicative of one or more instances in time t when the one or more concurrent process P yield one or more results or outputs O; (d) to compute an instantaneous yield and/or financial value of the one or more concurrent processes R (e) to provide a viewable presentation on a visual display arrangement of the instantaneous yield and/or financial value. The processes P beneficially include a combination of physical technical processes, for example manufacture and/or transport of physical products, and financial investment processes, for example derivatives product investment processes. For example, the control system is beneficially employed for trading derivatives products associated with Thorium LFTR capacity for burning up existing stockpiles of nuclear waste for civil energy generation purposes, thereby turning such "waste" into a useful energy resource. Moreover, the control system is useable for controlling rights and derivatives products associated with Carbon taxes associated with potentially mitigating anthropogenic climate change effects.

Description

CONTROL SYSTEM FOR CONTROLLING COMPLEX FACILITIES HOSTING MULTIPLE

CONCURRENT PROCESSES

Field of the invention

The present invention relates to control systems for controlling complex facilities hosting multiple concurrent processes, for example chemicals production facilities, consumer product manufacturing facilities, food production facilities, financial payment facilities, financial product facilities, and any combinations of these; for example, "financial products" includes derivatives investment products. Moreover, the present invention also concerns management tools for implementing control systems pursuant to the present invention, the tools being implemented using software products recorded on data carriers and executable upon computing hardware. Furthermore, the present invention also relates to methods of operating control systems implemented using software products recorded on machine- readable data storage media and executable on computing hardware. The present invention does not correspond to software as such or business methods as such, and therefore it is not excluded from patentability on account of it being of an abstract nature.

Background of the invention

In many complex facilities 10, for example as illustrated in FIG. 1 , there are multiple concurrent processes P(i) 20 wherein an index /^' is in a range of 1 to n processes which each yield a corresponding output O( at mutually different maturing times T(i), and wherein the yielded outputs 0(i) can be different in nature, for example some outputs can be physical in nature whereas others can be financial in nature. The multiple concurrent processes P(i) 20 can in practice be at least partially mutually coupled and can also be influenced by a time- dependent trend F(t), wherein t represents time, which has mutually different influences upon the concurrent processes P{J). The processes P(i) 20 can, for example, be an array of physical processes and/or financially-defined processes. For example, the processes P(i) can relate to a complex facility wherein certain of the process P are physical processes such as raw materials processing, assembling components to manufacture a product, whereas other of the processes P are financial processes associated with physical processes for optimizing efficiency and/or financial yield of the physical processes, for example cost optimization or manufacturing yield. For example, the complex facility 10 of FIG. 1 is concerned with multiple extraction and processing of raw materials such as oil and gas reserves which can be used to create products ranging from petroleum, fuel oil, gas, plastics materials, fertilizers and road surfacing products which mature at different times and which are subject to mutual different market prices depending upon instantaneous demand for such products. A problem arises in controlling such complex processes 20 for processing, for example, the raw materials to create products at an optimal time to provide a best financial return. Such control requires knowledge of market trends as well as being able to manage opportunities to sell and/or purchase rights in respect of products in order to obtain a best financial return from investment in processing the raw materials. Such opportunities can be derivatives objects or derivatives products on financial markets relating to raw materials and/or physical manufactured products.

Tools for making decisions, in other words providing control, in respect of product investments are known, for example regarding derivatives object investment as a part of a strategy involving a combination of technical aspects having technical effect as well as financial transactions. Such tools are not excluded from patentability when they relate to technical means having technical effect and are not financial transactions as such; considerable earlier patent caselaw supports such conclusion, especially granted patents awarded to company IBM both in the USA and Europe. For example, in a published international PCT patent application WO2003US0007990, there are described methods and systems for replicating derivatives strategies and for trading derivatives strategies in a demand-based trading market. In one embodiment, a set of contingent claims are created to replicate a derivatives strategy. One or more parameters of a contingent claim in the replication set may be determined as a function of one or more parameters of a derivatives strategy and an outcome of the event. An investment amount for a contingent claim in the replication set may be determined as a function of one or more parameters of the contingent claim and a total amount invested in a demand-based auction. In other embodiments, derivatives strategies and/or financial products are enabled to be traded in a demand-based auction and are offered to customers and/or traded in the auction. In another embodiment, a derivatives strategy is replicated by a set of one or more digitals or digital options by determining one or more parameters of the digitals or digital options in the replication set as a function of one or more parameters of the derivatives strategy.

A problem arising when controlling complex facilities hosting multiple concurrent processes is that contemporary professional control tools, for example investment tools as employed in shares and derivates markets such as Wall Street in New York (USA) and the Stock Exchange in London (GB), are too complex for many individual users, for example private individuals, to employ, for example for controlling complex facilities such as chemicals manufacturing facilities or product distribution networks in combination with financial products associated with such facilities or networks. There therefore arises a need for software tools which are: (i) easier to employ for enabling control of complex facilities hosting multiple concurrent processes, for example investments in derivatives investment objects; and

(ii) which are easier for individual users to purchase and employ for wisely controlling processes and investing their capital/material resources.

In a published United States patent no. US 7, 272, 459 B2 (Kokotov et el., Applied Materials Inc.), there is described a method, system and medium of modelling and/or for controlling a manufacturing process. In particular, there is disclosed a method including a step of identifying one or more input parameters. Each input parameter causes a change in at least two outputs. The method also includes as step of storing values of the identified inputs and corresponding empirical output values along with predicted output values. The predicted output values are calculated based on, in part, the values of the identified inputs. The method also includes a step of calculating a set of transform coefficients by minimizing a score equation that is a function of differences between one or more of the empirical output values and their corresponding predicted output values. The method further includes a step of receiving a new set of values for the identified input using the set of coefficients, and calculating a set of predicted output values using the transformed input values.

Summary of the invention

The present invention seeks to provide a control system which enables more effective control and management of complex concurrent processes P.

According to a first aspect of the invention, there is provided a control system as claimed in appended claim 1 : there is provided a control system for controlling complex facilities hosting multiple concurrent processes P, characterized in that said system includes computing hardware operable to execute one or more software products, and wherein said computing hardware executing said one or more software products is operable:

(a) to monitor inputs to one or more concurrent processes P,

(b) to receive data indicative of value and/or trend in respect of one or more parameters q of said one or more processes P;

(c) to receive data indicative of one or more instances in time f when said one or more concurrent process P yield one or more results or outputs O;

(d) to compute an instantaneous yield and/or financial value of said one or more concurrent processes P, and

(e) to provide a viewable presentation on a visual display arrangement of said instantaneous yield and/or financial value. The invention is of advantage in that the control system is capable of providing a more accurate real-time overview of the complex facilities hosting multiple concurrent processes P, for example for enable the facilities to be better managed for providing best yield, for example financial profit.

Optionally, the system is further operable to terminate one or more of the processes P when one or more of their parameters q pass a defined threshold and/or fulfil one or more conditions defined by one or more rules.

Optionally, the system is further operable to control the one or more processes P corresponding to at least one of:

(i) a chemical process for providing an output chemical product;

(ii) a mining process for providing mined raw materials;

(iii) a machining process for providing machines components or products;

(iv) an assembly process for providing an assembly product;

(v) a data processing task for generating output data representative of a real physical entity;

(vi) an investment process for investing financial resources in respect of one or more physical entities having technical effect;

(vii) an investment process for handling investment derivatives products;

(viii) an investment process for trading Carbon taxes associated with anthropogenic Carbon Dioxide emissions; and

(ix) an investment process for trading nuclear waste disposal capacity based on Thorium LFTR technology.

Optionally, the system is employed to control a smart electrical power distribution network for scheduling when and how electrical power is generated, distributed and consumed in order to maintain operation of the distribution network within defined control limits, for example frequency deviation from a nominal central frequency, for example 50.0 Hz +/- 0.5 Hz. Such operation is especially pertinent when attempting to integrate renewable energy systems such as wind turbines and ocean wave energy generators to the smart electrical power distribution network.

According to a second aspect of the present invention, there is provided a method of employing a control system for controlling complex facilities hosting multiple concurrent processes P, characterized in that the system includes computing hardware operable to execute one or more software products for implementing the method including:

(a) monitoring inputs to one or more concurrent processes P;

(b) receiving data indicative of value and/or trend in respect of one or more parameters q of the one or more processes P;

(c) receiving data indicative of one or more instances in time t when the one or more concurrent process P yield one or more results or outputs O;

(d) computing an instantaneous yield and/or financial value of the one or more concurrent processes P; and

(e) providing a viewable presentation on a visual display arrangement (130) of the instantaneous yield and/or financial value.

According to a third aspect of the invention, there is provided a software product recorded on a machine-readable data carrier, wherein the software product is executable on computing hardware for implementing a method pursuant to the second aspect of the invention.

Features of invention are susceptible to being combined together in various combinations within the scope of the invention as defined by the accompanying claims.

Description of the diagrams

Embodiments of the invention will now be described, by way of example only, with reference to the following diagrams wherein:

FIG. 1 is a schematic diagram of a complex facility supporting multiple complex processes P(i),

FIG. 2 is a schematic diagram of a control system pursuant to the present invention coupled to the facility of FIG. 1 ; and

FIG. 3 is an example of the control system of FIG. 2 implemented as a FEDI DVP open system solution;

FIG. 4 to FIG. 13 are examples of output analysis data and user menus provided by the FEDI

DVP open system solution of FIG. 3; and FIG. 14 is an example of trademark logo employed to represent the FEDI open system solution.

Description of embodiments of the invention

Referring to FIG. 2, a complex facility 10 includes multiple concurrent processes P(1) to P(n) 20 having corresponding parameter inputs r(1) to r(n) respectively. The processes P(1) to P(n) 20 provide corresponding outputs 0(1) to O(n) respectively. The processes P are functions of time t and are operable to mutually interact to a lesser or greater extent. It is desirous when controlling the complex facility 10 to optimize the outputs O. For example, the processes P can be manufacturing processes occurring in a factory where utilization of a limited stock of component parts for one of the processes P(1) affects performance of another process P(2) in the factory which is predatory on a same type of component part which is in limited supply. As an alternative example, one or more of the processes P are derivatives products performing in a financial environment, wherein financial gains on one type of derivative product can adversely affect financial gains on another type of derivatives product. Moreover, the processes P can be of mutually different complexity and also yield results in their outputs O in response to corresponding input r at mutually different times f; for example, the process P(1 ) is a simply process yielding rapid results, whereas the process P(2) is complex and yields results slowly. Furthermore, each process P will have a random probability associated therewith whether or not it follows an expected course of development of not to provide its yield in its output O. It will be appreciated that managing inputs r to the complex facility 10 to try to provide an optimal desired output at the outputs O is an extremely complex problem. This problem is well known to brokers investing in financial derivatives products which can be subject to financial market uncertainties, gyrations and inside dealing or similar types of artificial market manipulation.

In order to monitor the outputs O and control the inputs r of the complex facility 10, it is found to require very fast real-time monitoring of the complex facility 10, as well as transparency in respect of inputs parameters being supplied at the inputs r. Furthermore, trend analysis and historical records are also needed for trying to predict how the processes P 20 change with time t. In the case that the processes P 20 are derivatives products or synthetic credit default swaps, these can be nested or hierarchical, namely one process P is dependent on another process P; for example, a default on the process P(2) will also cause a default in the process P(1 ). Pursuant to the present invention, a control system 100 is coupled to interact with the one or more of the complex processes P 20 of the complex facility 10. The control system 100 is implemented using computing hardware 110 coupled to data memory 120 including numerical models and representations of the complex facilities 10 as well as historical data describing a relationship of previous values of the inputs r and the corresponding outputs O as a function of time f. The control system 100 also includes a data entry keyboard 140 for data and/or control entry to the computing hardware 110, and also a graphical display 130 for presenting results generated by the software products executing on the computing hardware 110.

A problem encountered in real control systems when used, at least in part, to manage financial processes P such as derivatives products, synthetic credit default swaps as well as hedge fund options is delay in placing options, for example by way of "call options" and "put options", and yields generated by the options being realized via the complex facility 10. Whether the control system 100 controls a chemical process, a mechanical manufacturing process, a farm production process or financial investment process, or any mixture thereof, there are real technical issues of how to ensure that such processes generate maximum output and/or maximum financial return.

For increasing cost effectiveness and reducing risk when users attempt to make investments in derivatives objects, the present invention is susceptible to being implemented in software as one or more software products for executing on the computing hardware 110 of the control system 100, wherein the software is conveniently referred to as "FEDI", namely Derivatives Valuation and Performance. FEDI can be adapted to control chemical processes, manufacturing processes, mining processes and such like and is not limited to investment in derivatives objects. Software products embodying a FEDI concept are able to provide better overview of risk elements associated with trading financial derivates objects and thereby provide investors with a better foundation for their investment decision, whether or not in association with factories, technical production facilities, mining facilities, harbour facilities, traffic systems and such like.

In the following, the FEDI concept will be elucidated, for example a FEDI module "Derivatives valuation & Performance (FEDI DVP)", with regard to its basic software product functionality and benefits, together with its manner of implementation and design. FEDI software provides a control solution which can be utilized in many markets and manufacturing situations, and places investors in a better state in order to analyse trade in derivates objects, namely by way of its automation of financial processes. The following abbreviations are employed when describing the present invention:

FEDI: Financial engineering using derivative instruments

BHV: Requirements

FEA: Features

DVP: Derivatives Valuation & Performance

Although the aforementioned processes P can take many different forms, for example manufacturing processes, the processes can at least in part concern a derivative instrument (or simply "derivative") which is a financial instrument which derives its value from the value of some other financial instrument or variable. A stock option is a derivative because it derives its value from the value of a stock; the derivative object has no intrinsic value in itself, but is able to deliver value by way of its effect, for example its technical effect. The stock can concern real commodities and materials which are manufactured by way of technical physical processes. An option is a contract, or a provision of a contract, that gives one party (the option holder) the right, but not the obligation, to perform a specified transaction with another party (the option issuer or option writer) according to specified terms.

As aforementioned, options can take many forms. The two most common are:

(i) "Call options", which provide a holder a right to purchase an underlier at a specified price; and

(ii) "Put options", which provide a holder a right to sell an underlier at a specified price.

A call, namely a "put option", as associated therewith a strike price which is a contractual price at which the underlier will be purchased, in other words sold, in the event that the option is exercised. The last date on which an option can be exercised is called the "expiration date". In present financial arrangements which pertain in North America and Europe, options allow for two forms of exercise:

(a) with American exercise, the option can be exercised at any time up to the expiration date; and.

(b) with European exercise, the option can be exercised only on the expiration date.

A class of options refers to all put and call contracts on a same corresponding underlying security. For instance, all XYZ options, namely all the puts and calls at various strikes and expiration months, form one class of options. A series, namely a subset of a class, consists of all contracts of the same class (for example XYZ option) having a mutually similar expiration date and striking price. Since December 2005, the inventor of the present invention has been managing financial instruments, for example standized derivative contracts, noted on the Oslo stock Exchange. These financial instruments are to be considered as a part of the aforementioned processes P however, it must be borne in mind that the control system 100 is beneficially operable to control concurrently real physical processes such as chemical production, manufacturing industrial and other activities having technical effect. The aforesaid management of financial instruments has primarily been in the form of structure/configured financial positions, based on various financial instruments such as shares, futures and options.

On account of the control system 100 managing processes P in real time, for example controlling financial instruments amongst other processes, risk characteristics of the processes P can change rapidly which requires the control system 100 to be highly responsive to inputs A provided thereto. Hitherto, manual arrangements which are labour intensive have hitherto been employed for monitoring the processes P which has prevented their parameters being adjusted at a sufficiently fast rate for the facility 10 to yield optimal desired results, for example financial profit, output production yield from a factory and so forth. From user experience, the inventor has identified that there is a very real requirement for a control system which is capable of operating in real time which can control parameters of multiple concurrent processes P for optimizing their outputs which mature at mutually different times and whose outputs can be continuously varied by ambient conditions, for example market trading positions, price of raw materials for production facilities, renewable electrical energy production and so forth.

Aim of FEDI software product for the system 100: FEDI software is an example of an embodiment of the present invention. FEDI software is operable to provide a better perspective and overview in respect of risk elements which effect the processes P, for example risk elements affecting derivative products. The inventor has developed FEDI software as a single-user flexible generic solution which can be used in all markets in respect of a wide spectrum of processes P, for example a mixture of real physical processes having technical effect and financial investment instruments. The solution provided by FEDI software with its associated automation of commercial processes makes FEDI software an extremely beneficial tool for investors for analyzing and managing derivative products or derivatives objects. Moreover, the solution provided by FEDI software is scalable and compatible with standard interfaces employed in financial markets and/or industrial facilities, for example a firm's multi-user modelling/management system. A first need (BHV1 ) addressed by FEDI software, namely an embodiment of the present invention, is to provide an efficient straight-through management process from volatility/pricing to the profit/loss (P&L) view of open positions and realized transactions. It is cost effective to employ an effective STP (Straight through process) solution which is capable of managing all activities pertaining to volatility assessment and pricing to provide an overview of document trade/business. The present invention is able to provide an improved business process having automated profit/loss (P&L) computations of every open financial position and of all realisable transactions. P&L computations for every realisable transaction beneficially include pre-prepared information which can be used for transaction declarations for accounting purposes. The transactions can, for example, pertain to purchase of electrical power from renewable energy systems for distribution to customers whose energy consumption requirements and energy needs can be dynamically varying in real time.

A second need (BHV2) addressed by FEDI software is to provide clarity in respect of the multiple processes, for example in respect of yield; for example output production yield when one or more of the processes P are chemical processes. When one or more of the processes P concern one or more financial processes, for example an investment process in technical machinery, the second need concerns FEDI software being able to perform a clear P&L attribution within a corresponding open investment position, thereby enabling traders and risk managers within the open position to analyze better the open position and also manage the position using FEDI software; the open position may, for example, concern one or more derivatives products. For example, FEDI software is capable of measuring from input factors to the multiple processes P.

In organisations responsible for handling investment processes in combination with, for example, technical production processes, such organisations are often for effective administration sub-divided onto front office and middle office. When making financial investments, it is very advantageous to measure and analyse a market risk associated with a financial investment position. Such measurement and analysis requires real-time indications of Profit/loss (P&L) to be associated with the financial investment positions as hosted by the complex facility 10 and controlled via the control system 100. Traders and risk managers are thereby placed in better state to analyse and manage their derivatives products portfolios, namely "derivatives books". Such management is very important to avoid large financial losses as a consequence of rapid changes in financial markets. Moreover, avoidance of such losses requires monitoring of trades in potentially several transaction areas:

(a) market-to-market;

(b) market valuation methods; (c) identifying revenue sources;

(d) measuring market risk (i.e. greeks, var);

(e) stress simulation; and

(f) investing forecasts.

The control system 100, for example executing aforementioned FEDI software, is also capable of performing hedging analysis, for example when one or more of the aforesaid processes P pertain to hedge fund investments. Moreover, the control system 100 is also capable of generating derivative (subsets) within a given financial investment position with associated risk analysis being provided. Furthermore, the system is also capable of providing a verified auditing trail of transactions of individual derivatives product investments. It is thereby possible for the control system 100 to generate a graphical representation of a life cycle of a derivatives product investment.

A third requirement (BHV3) for the FEDI software embodiment of the present invention executable on computing hardware of the control system 100 is to provide a strong generic functionality which enables efficient and cost-effective integration with different financial markets, namely corresponding to one or more of the aforementioned processes P The FEDI software is capable of being installed and executed on computing hardware as a standalone solution, and is susceptible to being employed in connection with both shares and raw materials markets; the raw materials, for example, are extracted by technical processes having technical effect. Beneficially, the FEDI software is useable on-line (namely coupled to a digital communication network) and off-line (namely isolated).

When offline, the FEDI software provides an interface whereat a FEDI user can enter various input data. Optionally, the FEDI software has access to a local database for computing various future scenarios, for example pertaining to derivatives products; optionally, the local database is pre-prepared and downloaded onto a personal computer on which the FEDI software has been installed. When online, the FEDI software is operable to cause the control system 100 to present financial market data amongst other functions, amongst other technical function performed by the FEDI software. Individual derivative product data can be optionally presented. The FEDI software is capable of creating a common interface to other software products from other suppliers also running concurrently on the control system 100; such interfacing is susceptible to being user-defined and/or user controlled.

A fourth requirement addressed (BHV4) by the present invention, for example by way of the FEDI software product, is to provide a scalable and flexible solution which can be implemented as a stand-alone solution or deployed alongside/integrated into other system solutions. When integrated and/or scaled accordingly, the FEDI software product is capable of providing front-office, middle-office and back-office functionality known from facilities handling financial investment processes. For example, a FEDI DVP software product is susceptible to being used in a front office and middle office of a financial organization. FEDI software products are capable of being used by personnel in a front office and a middle office of a financial investment organisation representing a part of the control system 100, wherein the FEDI products are integrated with other software products to provide a overall solution; in such case, using the FEDI DVP software product in the middle office is capable of providing accounting transparency and auditing, for example for coping with hectic rapidly-changing investment situations representing a part of the processes P. Table 1 provides a summary of needs addressed by FEDI software products and associated features exhibited when executed on computing hardware of the control system 100.

Table 1 :

Referring to FIG. 3, the FEDI software product (FEDI DVP) is capable of providing several features. It provides an open and flexible solution which is simple to install onto computing hardware and simple to use by way of a graphical interface. By way of its open-source concept, it is susceptible to being integrated with software from other suppliers. For purposes of FEDI software products, functionalities and features will be designated in the following description by a prefix "FEA". A feature FEA1 defines that the FEDI product can be used "stand alone" within a single-user software office pack which is capable of accessing external source data, for example technical database data and/or financial database data ("Mounted resources"). A feature FEA1.1 concerns which of configured companies the user instantaneously is desirous to manage or analyse; graphical features such as "volatility and pricing" are presented first wherein the user is provided with a market overview, namely implied volatility and price, of companies' derivatives products and associated information such as derivative product expiry date. Derivatives products with mutually similar expiration dates are shown in association for example, for example up to sixteen possible alternative groupings are possible. A feature FEA1 .2 concerns the FEDI software product being usable in both share markets and raw materials markets, wherein users operating the control system 100 hosting the FEDI software product can choose their own price model for performing financial transaction as a part of the processes P. For example, such price models can pertain to the cost of generating electrical power from diverse renewable energy generation systems. A feature FEA1.3 under normal operation provides a graphical representation of processes P corresponding derivative products of one or more companies. A user of the FEDI software product is able to choose between one or more following options:

(i) "Volatility&Pricing",

(ii) "Analyze and manage ST";

(iii) "Investing forecasts"; and

(iv) "Recompose lifecycle ST".

Options (i) to (iii) enables the user to evaluate market prices pertinent for a given derivatives product, for example a renewable energy derivatives product, in relation to a theoretical predicted price generated from historical data within a user-defined time period. A further feature FEA1 .4 concerns the FEDI software product being capable of functioning in online and offline modes, wherein the FEDI software product has access to external databases in the online mode and decoupled therefrom in offline mode.

The FEDI software product is operable to provide a cost-effective "straight through" (STP) connection from volatility/pricing to profit and loss (P&L) for investment positions and realized financial transactions within the processes P. P&L computations beneficially utilize pre- processed information, for example which can be used to generate income and tax documentation directly in an automated manner. With regard to volatility and pricing of investment products, the FEDI software product provides a feature (FEA2) to a user of the software product, wherein the feature FEA2 pertains to a main menu being presented when a user of the FEDI software product is desirous to perform analysis and eventually implement actual trading; the user chooses "Analyze and manage ST", wherein a financial investment position has been edited on a previous occasion of execution of the FEDI software product, wherein the investment position is automatically shown. The user is then able from accessible presented lists to select desired derivative product types, and an analysis of market volatility/price of the selected derivative product types. Several different types of derivative product and associated legally-binding contracts can, for example, be concurrently selected in association with the feature FEA2. A sub-feature FEA2.1 concerns when a user has implemented a transaction that confirmation of the completed transaction is provided by pressing a dedicated computing hardware keyboard button, wherein an identity of the user is also provided against the confirmation.

By way of a feature FEA2.2, the FEDI software product used in the control system 100 is operable to provide automated profit and loss (P&L) computations in open investment positions, for example with one or more derivatives products and/or hedge fund investment products being temporally active. The feature FEA2.2 concerns a situation when a user of the FEDI software product has confirmed an implemented trade which increases a number of contracts of a given type of derivatives product, wherein a graphical result of P&L as well as accounting entries of open positions are updated in real time to provide a clear indication of profit and loss (P&L) to the user. When a market price (volatility/price) to individual derivatives products are changed, the extent of the open position is automatically updated within the data memory utilized by the FEDI software product.

The FEDI software product is also operable to provide an automated profit/loss (P&L) indication calculated from an executed transaction. A feature FEA2.3 of the FEDI software concerns a situation when a user has confirmed an implemented transaction which closes all or reduces a number of open contracts associated with a given derivative product within an open position. A result for the realised transaction is as follows:

(i) in the graphical display 130, both in an accounting portion and in a graphical representation of open contracts of derivatives products, a clear real time updated profit/less (P&L) is presented on the display 130. When a market price (volatility/price) to individual derivates products is changed in respect of an open position, the profit loss information of the display 130 is updated by the FEDI software; and

(ii) a user-defined overview for realised transactions is automatically updated with pre- prepared or pre-processed data. Information for each realized transaction includes completed computed profit/less (P&L) and corresponding processed data which is also directly useable for preparation of annual accounts, for example personal annual tax declarations.

The FEDI software is able to provide clear real-time profit/loss (P&L) which enables traders involved in the one or more aforementioned processes P to manage collections of derivatives products, namely "derivatives books". Such assistance to traders is pertinent to front- and middle-offices in financial institutions. Without potential use of the FEDI software, such institutions can easily lose control of their corresponding processes P. A feature FEA3 of the FEDI software provides on the display 130 a main menu list to the user in an event that the user is desirous to analyse and eventually implement actual trades for the processes R. "Analyze and manage ST". As a part of this feature FEA3, a start picture shows an overview of present open financial investment positions with an update and clear profit/loss (P&L) integrated with an identification of each position's characteristics. Based on clear profit/loss (P&L) reference lines presented on the display 130, the user is able in a very precise manner to analyse a position within following areas:

(a) Marking to Market; when an adaptor of the FEDI software is coupled to "online market", a market price (volatility/price information) pertaining to all individual derivatives products within an open position are automatically updated within the FEDI software;

(b) Market Valuation Methods; both "bid" and "ask" market prices (namely implied volatility/price), together with Ask/bid average prices for each individual derivatives product within an open position is automatically updated in real-time; in order to take account of future transaction costs, it is possible for the user via the FEDI software to adjust the Ask/bid average price in order to render it possible to adjust the relationship between Ask/bid prices for each derivatives product within a given investment position for the processes R

(c) Identifying Revenue Sources; when the market price (namely implied volatility/price) associated with individual derivatives products within an open position changes, a profit/loss (P&L) computation of each derivatives product is updated and an overall profit/loss computation executed and its result displayed on the display 130;

(d) Measuring Market risk (namely "greeks", "var"); for a given financial investment position or for each individual derivatives product (or subset thereof) in the given position, it is possible using the FEDI software to analyse risk by the user having access to a list from which various characteristics can be selected in respect of the position. Such characteristics can include profit/loss (P&L), greeks {delta, gamma, vega, theta, rho identifiers) and value of the risk (namely Var"); when graphic representation of a position is selected using the FEDI software, the software is operable to present a corresponding SPAN (namely Standard Portfolio Analysis & Risk); apart from the aforementioned well developed risk management functionality with associated possibilities for analysing scenarios, the FEDI software is also capable of being applied for performing hedging analysis, namely analysis of processes P associated with hedge fund products; the user is able to employ the FEDI software to operate as an insurance actor (namely "hedger") and has the possibility to present a given positions' basis or correlation risk; in a feature FEA3.6 of the FEDI software, within each financial investment position, the user can compare a price of a derivative product (for example future, forward or option) with its corresponding theoretical price; a feature FEA3.7 of the FEDI software, enables the user to employ the FEDI software to manage position comprising groups of derivative products or a plurality of expiration dates, wherein the user as insurance actor ("hedger") is able to manage strategies, for example "neutral time spread"; moreover, a feature FEA3.8 of the FEDI software enables management of two similar financial positions comprising a double set of derivatives products grouped with an identical expiration date, wherein the two positions are defined by market implied volatility market pricing") from two individual different markets which the user is able to compare by way of characteristics of the positions; and

(e) Stress Simulation; a feature FEA3.9 of the FEDI software concerns, when "Analyze and manage ST" is selected via the main menu, the user is able to manage various risk scenarios of a given position which is analyzed and thereby enables the user to select a risk analysis for the position based on a given day that the analysis is performed. In a sub-feature FEA3.10, when the user has chosen which type of characteristic is to be analyzed in respect of a given position (for example P&L or "greeks"), the user is able to select in the display 130 presented options concerning "Investing forecasts" from a main menu; the FEDI software then generates a presentation which shows against a time-line temporal changes in a position's characteristics. After being provided the presentation, the user is able to change parameter values within the FEDI software presentation and regenerate new analysis results for obtaining an indication to sensitivity of the position to the parameter values; a feature FEA3.1 1 of the FEDI software concerns verification (namely audit trail) of individual accounted transactions, thereby making it possible to regenerate a position or individual derivative product in respect of its life cycle (namely transaction history). By selecting "Recompose lifecycle ST" from the main menu presented on the display 130 by the FEDI software, the user is able to reset the system 100 back in time for analyzing and for recreating trade events day-by-day. Such functionality is also useful for training/teaching purposes in respect of the FEDI software; and

(f) Investing forecasts.

The FEDI software product is also susceptible to function as a generic adapter for enabling "resources mounting"; such resource mounting is, for example, highly beneficially when planning renewable energy generating capacity for satsify a future demand for renewable energy. A feature FEA4.1 of the FEDI software concerns, under normal operation or when starting up the FEDI software product, being able to configure the FEDI software by way of "resources element data", namely a chosen configuration profile which includes data pertaining to businesses which is read in via an associated adapter (namely "resources mounting") function. Subsequently, all configuration files can be edited manually or by using a component "resources element builder" present in the FEDI software.

A configuration file for FEDI software includes source data pertaining to a plurality of manually different business and their respective derivative object classes. Within the FEDI software, "class and service" is defined by a class of derivatives products {"options") which is referring to all "put" and "call" contracts in the same underlying form of class; for example, all xyz underlying their corresponding options. A series, namely a subset of a class, comprises all contracts pertaining to the same class, for example xyz, which have the same expiration date and "striking" price.

A feature FEA4.1 in the FEDI software accommodates a chosen configuration which can have data for derivatives products classes associated with different underlying symbols. Within each underlying symbol, there is associated a configuration of series (namely subclasses) grouped by common expiration date, wherein a maximum of two groups (namely derivatives products within two expiration dates) can be configured. Underlying historical trends for the chosen businesses are included in the configuration.

The FEDI software product is as aforementioned capable of being used in a stand-alone mode of operation. Moreover, it is scalable and can be integrated into a user environment of other systems. For example, a feature FEA5 of FEDI software is beneficially compatible with standard proprietary office software, for example excel; "excel" is a registered trade mark A following feature FEA5.2 of FEDI software concerns the FEDI DVP module, which, on account of its compatibility with proprietary software such as excel, being susceptible to being tailored to users new or already existing office software solutions. The module is beneficially, at least in part, an open-source solution to enable other software manufacturers to incorporate the FEDI software product into their proprietary products when developing future process control software, for example software for controlling power stations, nuclear reactors, mining systems and so forth. For example, the FEDI software is capable, for example on a basis of cost via a choice of suitable financial derivatives products, of managing a balance of power generation from a combination of civil nuclear power generators (for example based upon a cluster of highly safe, clean and efficient Thorium LFTR nuclear reactors) in combination with hydroelectric energy storage schemes and wind turbine electricity generating devices. Norway has circa 1 million tonnes of readily accessible Thorium in Telemark which is capable when fissioned in Thorium LFTR to provide the World with energy supply corresponding to present utilization of fossil fuels for a period in excess of 100 000 years whilst producing negligible nuclear waste in comparison to contemporary solid-fuel-rod Zirconia-cased fuel rods. Moreover, Thorium LFTR, by way of its high thermal neutron flux density, can be used to burn up existing stockpiles of conventional nuclear waste for energy generation and thereby create a derivatives market for handling nuclear waste, the derivatives market being addressable and controllable using the FEDI software. Moreover, the FEDI software is also, or alternatively, useable for use in trading options associated with Carbon taxes associated with anthropogenic emissions of Carbon Dioxide which are feared to cause anthropogenic climate change to the Earth's environment.

FEDI DVP software as described in the foregoing is capable of being integrated into other control systems as aforementioned. In a situation of full integration with other data and control systems, it is feasible within several user environments to manage derivative products within a common platform operable to access a plurality of databases; it is thereby possible to achieve process control in all financial office environments, namely front-, middle- and back-office.

In such a system 100, there is provided openness and transparency (namely "transparency in auditing") in a sense that the aforementioned middle office beneficially uses FEDI DVP software for analysing risk when controlling the processes P, wherein positions are defined by the front office. The FEDI software provides an auditing trail within each position with information concerning who originated a give type of trade and at what corresponding price in a hectic market included within the aforementioned processes P. The processes P are one of more of financial processes and technical manufacturing processes. Modifications to embodiments of the invention described in the foregoing are possible without departing from the scope of the invention as defined by the accompanying claims. Expressions such as "including", "comprising", "incorporating", "consisting of, "have", "is" used to describe and claim the present invention are intended to be construed in a nonexclusive manner, namely allowing for items, components or elements not explicitly described also to be present. Reference to the singular is also to be construed to relate to the plural. Numerals included within parentheses in the accompanying claims are intended to assist understanding of the claims and should not be construed in any way to limit subject matter claimed by these claims.

Claims

PATENT CLAIMS

1. A control system (100) for controlling complex facilities (10) hosting multiple concurrent processes (P), characterized in that said system (100) includes computing hardware (110) operable to execute one or more software products, and wherein said computing hardware (110) executing said one or more software products is operable:

(a) to monitor inputs to one or more concurrent processes P;

(b) to receive data indicative of value and/or trend in respect of one or more parameters q of said one or more processes P,

(c) to receive data indicative of one or more instances in time t when said one or more concurrent process P yield one or more results or outputs O;

(e) to provide a viewable presentation on a visual display arrangement (130) of said instantaneous yield and/or financial value.

2. A control system (100) as claimed in claim 1 , wherein the system is further operable to terminate one or more of the processes P when one or more of their parameters q pass a defined threshold and/or fulfil one or more conditions defined by one or more rules.

3. A control system (100) as claimed in claim 1 or 2, wherein the system (100) is further operable to control the one or more processes P corresponding to at least one of:

(i) a chemical process for providing an output chemical product;

(ii) a mining process for providing mined raw materials;

(iii) a machining process for providing machines components or products;

(iv) an assembly process for providing an assembly product;

(vii) an investment process for handling investment derivatives products;

4. A control system as claimed in claim 1 , 2 or 3, wherein a single user utilizing a standard office software suite is capable of using said one or more software products via an icon presented on said display arrangement (130) of the system (100) via said standard office software suite to open software options including:

(a) "analyse and manage";

(b) "workflow automation"; and

(c) "realized transactions"

pertaining to said one or more software products.

5. A control system as claimed in claim 4, characterized in that said system (100) includes a product user interface operable to utilize data from an immediately preceding data save operation at a subsequent software start-up, such that coloured fields on said display arrangement (130) of said system (100) are user-alterable by choice from its list, all the fields of a first colour being user-alterable, wherein a single-user is permitted to edit a user identity code (UserlD), and the single-user is provided with means for saving all changes via said one or more software products via its file selection list corresponding to that of the standard office software suite.

6. A control system as claimed in claim 4, characterized in that a type of underlying symbol corresponding to an actual class of derivative products is user-selectable from a menu list generated by the one or more software products on the display arrangement (130).

7. A control system as claimed in claim 6, characterized in that, when a type of underlying symbol is selected from said menu list, the one or more software products are operable to recommend default data ("default") in a second colour field which is automatically selected, wherein when the menulist is automatically selected to a volatility and pricing mode ("volatility & pricing"), the user is presented with a market overview of implied volatility and price of underlying symbols corresponding to derivatives which are grouped pursuant to mutually different markings with a mutually similar expiration date.

8. A control system as claimed in claim 7, characterized in that derivative objects with mutually similar expiration dates are managed via the one or more software products as a derivative object group, and the one or more software products are operable to manage at least two such groups including mutually different derivates product types within each group.

9. A control system as claimed in claim 7 or 8, characterized in that the user is provided by the one or more software products with a choice from a list regarding which group or investment position is to be presented graphically on said display arrangement (130).

10. A control system as claimed in claim 7, 8 or 9, characterized in that the user is provided by the one or more software products with a choice regarding which type of market's Implied Volatility prices (e.g. "Ask", "Bid" or "Average") are to be shown graphically on said display arrangement (130).

11. A control system as claims in claim 10, characterized in that said selected price model and actual underlying data are operable indicate that the dividend is to be paid out within the expiration dates of one of the two derivatives product groups, wherein the user by pressing/marking a symbol obtains access to an editing field, whereat the user is able to edit dividends and corresponding payout dates.

12. A control system (100) as claimed in any one of the preceding claims, wherein a menulist generated by the one or more software products is operable to show either "Analyze and manage ST", "Volatility&Pricing", or "Investing forecasts", showing market prices of two actual groups of derivatives products in relation to theoretical prices which are based on computed historical volatility within a user-selectable time period from an interval list which is based upon a time span defined in "Historical volatility period".

13. A control system (100) as claimed in any one of the preceding claims, characterized in that the user both in on-line or off-line modes is able to control via the one or more software products market data presented by the system (100) in respect of each individual derivatives product, either to determine/edit a volatility percent or direct price in one or more associated financial investment positions.

14. A control system (100) as claimed in any one of the preceding claims, characterized in that when a user from the menu list chooses "Analyze and manage ST" and when working areas of two positions are "enabled", the user is permitted to update one or more existing positions by way of a "work" area generated by the one or more software products by editing a number of corresponding contracts to each individual derivatives product type which is to be managed.

15. A control system (100) as claimed in claim 14, characterized in that when a user selects from the menulist "Analyze and manage ST" generated on the display arrangement (130) by the one or more software products, the user is enabled from lists in empty fields in each position "work" area to develop existing positions and/or build by way of a desired derivatives product type and in every positions' "Work" area and is able to edit corresponding numbers of contracts which are to be managed using the one or more software products.

16. A control system (100) as claimed in claim 14, characterized in that when a user has executed a trade on a selected derivatives product using the one or more software products, the user is provide with a selection option ""Workflow automation" and, from an accessible accounting list within an area of the display arrangement (130), is able to select recently traded derivatives products and to obtain a confirmation of said derivatives products being accounted by pressing an "Activate" button in a status area of the display arrangement (130).

17. A control system (100) as claimed in any one of the preceding claims, characterized in that, when a menulist is selected to "Analyze and manage ST", the user is provided with an overview of two financial investment positions, wherein each financial investment position has associated therewith an updated and precise profit/less (P&L) line integrated into characteristics of the financial investment positions as presented on the display arrangement (130).

18. A control system (100) as claimed in clam 17, characterized in that when the user selects a desired position from the menulist and financial investment position characteristic type from the menulist, the positions' characteristics are presented on the display arrangement (130).

19. A control system (100) as claimed in any one of the preceding claims, characterized in that when an adapter of the one or more software products is coupled to an "online market", a market price derived therefrom, indicative of volatility and price, in respect of individual derivatives products within two positions are automatically updated, and in a region of the display arrangement (130) in which the positions are displayed, there is operably shown volatility and price for both Bid and Ask market prices, together with an Ask/bid average implied volatility and price in the region of the display arrangement (130).

20. A control system (100) as claimed in claim 19, characterized in that the user is enable, via the one or more software products, to manipulate manually the markets' Ask/bid average price for each derivative product within the two financial investment positions, by way of editing either directly price or volatility (%) via an editing region of the display arrangement (130).

21. A control system (100) as claimed in any one of the preceding claims, characterized in that when an implied volatility/price to individual derivatives products within two investment positions is changed via the one or more software products, a corresponding profit and loss (P&L) is computed and corresponding updated information presented on a display arrangement (130) of the system (100).

22. A control system (100) as claimed in any one of the preceding claims, characterized in that a single user within his/her standard office software suite is enabled via the one or more software products to copy one or more instances of the one or more software products via product icons pertaining to the one or more software products.

23. A control system (100) as claimed in any one of the preceding claims, characterized in that a financial FEDI module provided by said one or more software products is licence- protected to hinder unauthorized copying to other computers.

24. A control system (100) as claimed in any one of the preceding claims, characterized in that the one or more software products correspond to a FEDI DVP module which is excel- compatible, together with said module being provided with an interface for communicating with already existing office software suites.

25. A control system (100) as claimed in claim 24, characterized in that the FEDI DVP module with its industrial-standard interface is adapted to be use expandable and adaptable such the module is susceptible to being integrated internally or externally with a firm's existing or future management systems.

26. A method of employing a control system (100) for controlling complex facilities (10) hosting multiple concurrent processes (P), characterized in that said system (100) includes computing hardware (1 10) operable to execute one or more software products for implementing said method including:

(a) monitoring inputs to one or more concurrent processes P,

(b) receiving data indicative of value and/or trend in respect of one or more parameters q of said one or more processes P;

(c) receiving data indicative of one or more instances in time f when said one or more concurrent process P yield one or more results or outputs O;

(d) computing an instantaneous yield and/or financial value of said one or more concurrent processes P, and (e) providing a viewable presentation on a visual display arrangement (130) of said instantaneous yield and/or financial value.

27. A software product recorded on a machine-readable data carrier, wherein said software product is executable on computing hardware (1 10) for implementing a method as claimed in claim 26.