Margin release system for an electronic-based market
First Claim
1. A method for managing delivery commitments associated with a contract for goods traded on an electronically based exchange comprises:
- determining a short position in the contract is indicated for delivery;
matching a long position to the short position for the contract;
determining delivery commitments for each party to the contract;
constraining assets against the delivery commitments undertaken by each party;
determining a percentage of the delivery commitments associated with the contract that has been performed by one of the parties; and
releasing the asset constraints held against the performing party at about the determined percentage.
2 Assignments
0 Petitions
Accused Products
Abstract
A system for an electronic-based market is disclosed. The system operates with a model where a trader is designated to enter orders for contracts on behalf of a subscriber. The model uses assets of the subscriber that are placed into an account that is accessible by the electronic market to cover risks associated with trades initiated by the trader. The system includes a plurality of client stations for entering orders into the electronic market by traders and a server to receive the orders and match the orders in accordance with matching criteria. The server maintains for the subscriber and the subscriber'"'"'s associated traders a trading account that is accessible by the electronic market. The server also includes offsetting, clearing, default, and margin protocols functions to administer the market. The market uses species contracts that are derived from a contract genus. Also described is a margin release process triggered upon settlement.
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Citations
15 Claims
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1. A method for managing delivery commitments associated with a contract for goods traded on an electronically based exchange comprises:
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determining a short position in the contract is indicated for delivery;
matching a long position to the short position for the contract;
determining delivery commitments for each party to the contract;
constraining assets against the delivery commitments undertaken by each party;
determining a percentage of the delivery commitments associated with the contract that has been performed by one of the parties; and
releasing the asset constraints held against the performing party at about the determined percentage. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8)
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9. A computer program product residing on a computer readable medium for managing an electronic exchange having delivery commitments associated with a contract for goods traded on the exchange comprises instructions to cause a computer to:
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determine a short position in the contract is indicated for delivery;
match a long position to the short position for the contract;
determine delivery commitments for each party to the contract;
constrain assets against the delivery commitments undertaken by the parties;
determine a percentage of commitments associated with the contract that has been performed by one of the parties; and
release the asset constraints held against the performing party at about the determined percentage. - View Dependent Claims (10, 11, 12, 13, 14, 15)
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Specification