Methods for risk portfolio management within an electronic trading system
First Claim
1. A method for financial instrument management utilizing an electronic trading system, wherein said electronic trading system includes a plurality of traders operationally connected to a central processing center, said method comprising:
- receiving, at a market module of said central processing center of said electronic trading system, at least a financial instrument portfolio from a first trader and a financial instrument portfolio from at least a second trader from the plurality of traders;
calculating, at said market module of said central processing center, relative risk positions of each financial instrument portfolio received from the first and second traders;
matching, at said market module of said central processing center, offsetting relative risk positions of the first and second traders; and
executing, at an execution module of said market module of said central processing center, a switch between the first and second traders for the matching offsetting relative risk positions, wherein the switch comprises an exchange of at least one financial instrument defining a financial risk position for at least one financial instrument defining an opposite financial risk position.
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Accused Products
Abstract
A switch engine module enables advantageous management of a risk portfolio. The switch engine receives interest rate risk portfolios from a plurality of traders, and for each prospective trader, provides available switches based on positions in other counterparty portfolios that offset the viewing traders'"'"' positions. The offsetting positions are encoded with credit preference information in order to identify eligible trades based on both counterparties credit preferences. The credit preferences of the participating traders can be taken in consideration in making switches.
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Citations
68 Claims
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1. A method for financial instrument management utilizing an electronic trading system, wherein said electronic trading system includes a plurality of traders operationally connected to a central processing center, said method comprising:
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receiving, at a market module of said central processing center of said electronic trading system, at least a financial instrument portfolio from a first trader and a financial instrument portfolio from at least a second trader from the plurality of traders; calculating, at said market module of said central processing center, relative risk positions of each financial instrument portfolio received from the first and second traders; matching, at said market module of said central processing center, offsetting relative risk positions of the first and second traders; and executing, at an execution module of said market module of said central processing center, a switch between the first and second traders for the matching offsetting relative risk positions, wherein the switch comprises an exchange of at least one financial instrument defining a financial risk position for at least one financial instrument defining an opposite financial risk position. - View Dependent Claims (2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18)
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3. A computer program product for risk portfolio management utilizing an electronic trading system, wherein said electronic trading system includes a plurality of traders operationally connected, said computer program product comprising a computer usable medium having computer-readable program code embodied in said medium for causing a switch exchange of financial instruments between traders when executed on a computer, said computer-readable program code comprising:
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a first code configured to receive a financial instrument portfolio from a first trader and a financial instrument portfolio from a second trader from the plurality of traders; a second code configured to calculate relative risk positions of each financial instrument portfolio received from the first and second traders; a third code configured to match offsetting relative risk positions of the first and second traders; and a fourth code configured to execute a switch between the first and second traders for the matching offsetting relative risk positions, wherein the switch comprises an exchange of at least one financial instrument defining a financial risk position for at least one financial instrument defining an opposite financial risk position. - View Dependent Claims (19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30)
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31. A method, comprising:
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inputting data for a financial instrument portfolio of a first trader comprising a plurality of financial risk instruments defining financial risk positions of the first trader, wherein the data is input to an electronic trading system; and receiving confirmation of a switch of an exchange of one or more of the financial risk instruments of one or more of the financial risk positions of the first trader with financial risk instruments of one or more offsetting relative risk positions of one or more financial instrument portfolios of at least one of a plurality of second traders based upon an automated calculation of relative risk positions of the financial instrument portfolio of the first trader and of respective ones of the financial instrument portfolios of the second traders and based upon an automated matching of the relative risk positions of the financial instrument portfolios of the first trader and the at least one of the second traders, wherein the first trader and the plurality of second traders are operationally connected by the electronic trading system. - View Dependent Claims (32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52)
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53. A computer program product comprising a computer useable medium having computer-readable program code embodied in said medium for causing confirmation of a switch of instrument between traders when executed on a computer, said computer-readable program code comprising:
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a first code configured to input data for a financial instrument portfolio of a first trader comprising a plurality of financial risk instruments defining financial risk positions of the first trader, wherein the data is input to an electronic trading system; and a second code configured to receive confirmation of a switch of an exchange of one or more of the financial risk instruments of one or more of the financial risk positions of the first trader with financial risk instruments of one or more offsetting relative risk positions of one or more financial instrument portfolios of at least one of a plurality of second traders based upon an automated calculation of relative risk positions of the financial instrument portfolio of the first trader and of respective ones of the financial instrument portfolios of the second traders and based upon an automated matching of the relative risk positions of the financial instrument portfolios of the first trader and the at least one of the second traders, wherein the first trader and the plurality of second traders are operationally connected by the electronic trading system. - View Dependent Claims (54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68)
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Specification