Multiple quote risk management
First Claim
1. A method of protecting a market participant participating in a market, the method comprising:
- allocating an amount of risk to the market participant, the allocated amount of risk being stored in an account;
reducing the stored allocated amount of risk based on a transaction proposed by the market participant; and
determining if the stored allocated amount of risk has been depleted by the reduction and acting in accordance therewith.
1 Assignment
0 Petitions
Accused Products
Abstract
The disclosed systems and methods relate to allowing trading of over the counter (“OTC”) foreign exchange (“FX”) contracts on a centralized matching and clearing mechanism, such as that of the Chicago Mercantile Exchange'"'"'s (“CME”'"'"'s) futures exchange system (the “Exchange”). The disclosed systems and methods allow for anonymous transactions, centralized clearing, efficient settlement and the provision of risk management/credit screening mechanisms to lower risk, reduce transaction costs and improve the liquidity in the FX market place. In particular, the disclosed embodiments increase speed of execution facilitating growing demand for algorithmic trading, increased price transparency, lower cost of trading, customer to customer trading, and automated asset allocations, recurring trades as well as clearing and settlement efficiencies.
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Citations
26 Claims
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1. A method of protecting a market participant participating in a market, the method comprising:
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allocating an amount of risk to the market participant, the allocated amount of risk being stored in an account;
reducing the stored allocated amount of risk based on a transaction proposed by the market participant; and
determining if the stored allocated amount of risk has been depleted by the reduction and acting in accordance therewith. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
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13. A system for protecting a market participant participating in a market, the system comprising:
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a risk allocation processor operative to allocate an amount of risk to the market participant, the allocated amount of risk being stored in an account;
a transaction processor coupled with the account and operative to reduce the stored allocated amount of risk based on a transaction proposed by the market participant;
a monitor processor coupled with the account and operative to determine if the stored allocated amount of risk has been depleted by the reduction; and
a transaction handling processor coupled with the monitor processor and operative to take an action in accordance with the determination of the monitor processor. - View Dependent Claims (14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24)
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25. A system for protecting a market participant participating in a market, the system comprising:
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means for allocating an amount of risk to the market participant, the allocated amount of risk being stored in an account;
means for reducing the stored allocated amount of risk, coupled with the account, based on a transaction proposed by the market participant;
means for determining if the stored allocated amount of risk has been depleted by the reduction, the means for determining being coupled with the account; and
means acting in accordance the determination of the means for determining.
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26. A system for protecting a market participant participating in a market, the system comprising a processor and a memory coupled with the processor, the system further comprising:
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first logic stored in the memory and executable by the processor to allocate an amount of risk to the market participant, the allocated amount of risk being stored in an account in the memory;
second logic stored in the memory and executable by the processor to reduce the stored allocated amount of risk based on a transaction proposed by the market participant; and
third logic stored in the memory and executable by the processor to determine if the stored allocated amount of risk has been depleted by the reduction and act in accordance with the determination.
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Specification