Clearing system for an electronic-based market
First Claim
1. A method of clearing transactions on an electronic exchange, comprising:
- performing a full settlement run after cessation of trading;
automatically marking-to-market all open positions;
determining which one of a cash based margin protocol or an asset based margin protocol is required by an open position; and
determining margin requirements for the open position according to the determined margin protocol.
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.
101 Citations
22 Claims
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1. A method of clearing transactions on an electronic exchange, comprising:
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performing a full settlement run after cessation of trading; automatically marking-to-market all open positions; determining which one of a cash based margin protocol or an asset based margin protocol is required by an open position; and determining margin requirements for the open position according to the determined margin protocol. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A computer program product residing on a computer readable medium for clearing transactions on an electronic exchange comprises instructions for causing a computer to:
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perform a full settlement run after cessation of trading; automatically mark-to-market all open positions; determine which one of a cash based margin protocol or an asset based margin protocol is required by an open position; and determine margin requirements for the open position according to the determined margin protocol. - View Dependent Claims (13, 14, 15, 16, 17)
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18. A system for clearing transactions on an electronic exchange, comprising:
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a computer system that is fed information regarding trades for traders on behalf of subscribers, current prices for products traded on the exchange, information regarding margin available in a trading account and margin requirements for a contract genus; a process that executes on the compute system, comprising; a computer program product residing on a computer readable medium for clearing transactions on the electronic exchange comprising instructions for causing the computer to; perform a full settlement run after cessation of trading; automatically mark-to-market all open positions; determine which one of a cash based margin protocol or an asset based margin protocol is required by an open position; and determine margin requirements for the open position according to the determined margin protocol. - View Dependent Claims (19, 20, 21, 22)
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Specification