System and method for managing a series of overnight financing trades
First Claim
1. A computer-implemented method of managing financing trades, the method comprising:
- receiving, using at least one user interface device, an original proposed financing trade, the original proposed financing trade comprising a proposed repo trade having a term of a recited number of days starting on a current day;
decomposing, using at least one computer processor, the original proposed financing trade into a series of decomposed trades with a final maturity of a final trade equal to the term of the original proposed financing trade, wherein the series of decomposed trades comprises a current trade that is netted and settled on the current day and a senes of forward trades that are netted and settled on future dates;
storing the series of decomposed trades in a database; and
transmitting, using an electronic connection, the series of decomposed trades to the counterparties for netting and settlement.
2 Assignments
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Accused Products
Abstract
A system and method that decomposes what would otherwise constitute a term securities financing trade contract into one current trade and a plurality of forward trades. The decomposed trades (current and forward) are transmitted back to the contracting parties and executed simultaneously In order to assist in the decomposition of what would otherwise constitute a term trade, a unique forward yield curve is generated that determines the interest rate for each of the current and forward trades. The forward yield curve is based, in part, on the overall interest rate agreed to by the parties as well as the number of days of the term and the prevailing market interest rates at the time of the trade.
272 Citations
31 Claims
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1. A computer-implemented method of managing financing trades, the method comprising:
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receiving, using at least one user interface device, an original proposed financing trade, the original proposed financing trade comprising a proposed repo trade having a term of a recited number of days starting on a current day; decomposing, using at least one computer processor, the original proposed financing trade into a series of decomposed trades with a final maturity of a final trade equal to the term of the original proposed financing trade, wherein the series of decomposed trades comprises a current trade that is netted and settled on the current day and a senes of forward trades that are netted and settled on future dates; storing the series of decomposed trades in a database; and transmitting, using an electronic connection, the series of decomposed trades to the counterparties for netting and settlement. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A computer-implemented method of managing financing trades, the method comprising:
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receiving, using at least one interface device, an original financing trade, the original financing trade comprising a proposed repo trade having a term of a recited number of days starting with a current day; decomposing, using at least one computer processor, the original financing trade into a series of decomposed trades with a final maturity of a final trade equal to the term of the original proposed financing trade, wherein the series of decomposed trades comprises a current trade that is netted and settled on the current day and a seris of forward trades that are netted and settled on future dates; storing the series of decomposed trades in a database; and transmitting, using an electronic connection, the series of decomposed trades to the counterparties for netting and settlement.
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13. A computer-implemented method of managing financing trades, an original proposed financing trade being agreed to in principle by a first party and a second party, the original proposed financing trade comprising a proposed repo trade having a start date, an end date and an interest rate associated therewith, the method comprising:
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receiving, using at least one user interface device, a first proposed financing trade from the first party, the first proposed financing trade reflecting the first party'"'"'s understanding of the original proposed financing trade; receiving, using the at least one user interface device, a second proposed financing trade from the second party, the second proposed financing trade reflecting the second party'"'"'s understanding of the original proposed financing trade; matching, using at least one computer processor, the first proposed financing trade with the second proposed financing trade, thereby generating a matched trade; decomposing, using the at least one computer processor, the matched trade into a series of trades in response to the matched trade, the series of trades including a first trade starting on the start date, a last trade ending on the end date, and intervening overnight trades for the dates between the start and end dates, wherein the first trade being netted and settled on the start date and the intervening overnight trades and the last trade being netted and settled on future dates; storing the series of overnight trades in a database; and transmitting, using an electronic connection, the series of decomposed trades to the counterparties to the original proposed financing trade. - View Dependent Claims (14, 15, 16, 17, 18, 19)
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20. A system for managing financing trades, the system comprising:
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at least one user interface device, the at least one user interface device receiving an original proposed financing trade, the original proposed financing trade comprising a proposed repo trade having a term of a recited number of days starting with a current date; at least one computer processor including a decomposer coupled to the user interface device, the decomposer receiving the original proposed financing trade from the at least one user interface device and decomposing the original proposed financing trade into a series of decomposed trades, wherein the series of decomposed trade comprises a current trade that is netted and settled on the current day and a series of forward trades that are netted and settled on future dates; a memory; and a distributor coupled to the decomposer and coupled to the memory, the distributor receiving the series of decomposed trades from the decomposer and storing the series of decomposed trades in the memory, the distributor further transmitting the decomposed trades to counterparties of the original proposed financing trade. - View Dependent Claims (21, 22, 23, 24, 25, 26, 27, 28, 29, 30)
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31. A system for managing financing trades, the system comprising:
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at least one user interface device, the at least one user interface device receiving an original financing trade, the original financing trade comprising a proposed repo trade having a term of a recited number of days starting with a current date; at least one computer processor including a decomposer coupled to the at least one user interface device, the decomposer receiving the original financing trade from the at least one user interface device and decomposing the original financing trade into a series of decomposed trades, wherein the series of decomposed trade comprises a current trade that is netted and settled on the current day and a series of forward trades that are netted and settled on future dates; a memory; and a distributor coupled to the decomposer and coupled to the memory, the distributor receiving the series of decomposed trades from the decomposer and storing the series of decomposed trades in the memory, the distributor further transmitting the decomposed trades to counterparties of the original proposed financing trade.
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Specification