Method and system of managing mutual early termination terms for the electronic trading of financial instruments
First Claim
1. A method for the trading of financial instruments between at least a first party and a second party of tracking, with the aid of a computer system, credit requirements for mutual puts, the mutual puts having an option by at least one said party to unwind said financial instrument in the future, comprising:
- storing a first set of mutual put requirements associated with said first party for trades with said second party;
storing a second set of mutual put requirements associated with said second party for trades with said first party;
at least one of said first set of mutual put requirements and said second set of mutual put requirements requiring the ability to unwind said financial instrument in the future;
receiving a trade indication identifying said first party and said second party; and
calculating a set of mutual put parameters based on said first set of mutual put requirements and said second set of mutual put requirements.
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Accused Products
Abstract
A method and system for tracking and enforcing mutual put, i.e. early termination, requirements for contracts between a first financial institution and a second financial institution for underlying financial instruments is disclosed. The mutual puts comprise an option to unwind the underlying financial instrument at a future time. One embodiment of the system includes storing a plurality of sets of mutual put requirements for a plurality of trading parties, each set of mutual put requirements established by a first party for trades with a counterparty; receiving a trade indication identifying a pair of trading parties; retrieving the mutual put requirements for each of the counterparties; and calculating a set of mutual put parameters for the trade based on the stored bilateral mutual put requirements. The system may further verify that the trade entered into between the parties meets the calculated set of mutual put parameters.
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Citations
18 Claims
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1. A method for the trading of financial instruments between at least a first party and a second party of tracking, with the aid of a computer system, credit requirements for mutual puts, the mutual puts having an option by at least one said party to unwind said financial instrument in the future, comprising:
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storing a first set of mutual put requirements associated with said first party for trades with said second party; storing a second set of mutual put requirements associated with said second party for trades with said first party; at least one of said first set of mutual put requirements and said second set of mutual put requirements requiring the ability to unwind said financial instrument in the future; receiving a trade indication identifying said first party and said second party; and calculating a set of mutual put parameters based on said first set of mutual put requirements and said second set of mutual put requirements. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14)
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15. A method, with the aid of a computer system, of enforcing mutual put credit requirements for the trading of financial instruments between at least a first party and a second party, the mutual puts having an option by at least one said party to unwind said financial instrument in the future, comprising:
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storing a first set of mutual put requirements associated with said first party for trades with said second party; storing a second set of mutual put requirements associated with said second party for trades with said first party; at least one of said first set of mutual put requirements and said second set of mutual put requirements requiring the ability to unwind said financial instrument in the future; receiving a trade indication identifying said first party and said second party, said trade indication further including a negotiated set of mutual put parameters; and verifying that said negotiated set of mutual put parameters satisfy said first set of mutual put requirements and said second set of mutual put requirements.
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16. A system for enforcing mutual put requirements among at least a first party and a second party trading at least one financial instruments, the mutual puts having an option by at least one said party to unwind said financial instrument in the future, comprising:
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a database, said database storing; a first set of mutual put requirements established by said first party for trades with said second party; and a second set of mutual put requirements established by said second party for trades with said first party; at least one of said first set of mutual put requirements and said second set of mutual put requirements requiring the ability to unwind said financial instrument in the future; an interface adapted to receive a trade indication from a trading system, said trade indication identifying said first party and said second party; and a server coupled to said interface and said database, said server adapted to receive said trade indication from said interface, said server further adapted to calculate a set of mutual put parameters, said calculation based on said first set and said second set of mutual put requirements. - View Dependent Claims (17, 18)
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Specification