Systems, methods and computer program products for monitoring credit risks in electronic trading systems
First Claim
1. A system for credit screening an electronic trade of a financial instrument between a first trader and a second trader, comprising:
- means for receiving first credit preference information of said first trader with respect to said second trader, wherein said first credit preference information relates to at least one financial instrument;
means for receiving second credit preference information of said second trader with respect to said first trader, wherein said second credit preference information relates to at least one financial instrument;
means for evaluating said first and second credit preferences with respect to a trade of a first financial instrument to determine respective trade eligibility of said first and second traders to trade with each other; and
means for reporting said respective trade eligibility to said first trader and said second trader.
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Accused Products
Abstract
A credit monitoring system in an electronic trading system forms a complex check to determine if two particular counterparties will except each other for a particular trade based upon their respective predefined credit preferences. In accordance with an embodiment, credit preferences imputed by each counterparty with regard to the other counterparty are referenced to determine the trade eligibility of either party with respect to the other for a particular financial transaction instrument. Indication of whether a counterparty can enter into the proposed trade is conveyed to the respective trader, preferably using a color coding scheme in which various colors represent the relevant credit status with regard to the viewing trader. The complex check performed by the system may be embodied in a simple yes/no statement, in terms of maturity of a particular financial instrument, or in terms of a risk quotient (i.e., risk equivalent or RQ) initially determined by the system, though modifiable by the trader.
197 Citations
28 Claims
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1. A system for credit screening an electronic trade of a financial instrument between a first trader and a second trader, comprising:
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means for receiving first credit preference information of said first trader with respect to said second trader, wherein said first credit preference information relates to at least one financial instrument;
means for receiving second credit preference information of said second trader with respect to said first trader, wherein said second credit preference information relates to at least one financial instrument;
means for evaluating said first and second credit preferences with respect to a trade of a first financial instrument to determine respective trade eligibility of said first and second traders to trade with each other; and
means for reporting said respective trade eligibility to said first trader and said second trader. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A method for screening order information proposing a trade of a financial instrument via an electronic trading system, comprising the steps of:
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receiving first credit preference information defined by a first trader with respect to a second trader;
receiving second credit preference information defined by the second trader with respect to the first trader; and
encoding the order information that is presented to the first and second traders proposing a trade utilizing the first and second credit preference information. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 28)
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20. A computer program product for use with a data processing system for credit screening order information proposing a trade of a financial instrument via an electronic trading system, said computer program product comprising:
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a computer usable medium having computer-readable code means embodied in said medium, said computer-readable code means comprising;
computer readable program code means for receiving first credit preference information of said first trader with respect to said second trader;
computer readable program code means for receiving second credit preference information of said second trader with respect to said first trader;
computer readable program code means for evaluating said first and second credit preferences with respect to a trade of a first financial instrument to determine respective trade eligibility of said first and second traders to trade with each other; and
computer readable program code means for reporting said respective trade eligibility to said first trader and said second trader. - View Dependent Claims (21, 22, 23, 24, 25, 26, 27)
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Specification