MULTIPLE QUOTE RISK MANAGEMENT
First Claim
1. A computer implemented method of protecting a market participant participating in a market, the method comprising:
- reducing, by a processor, an allocated amount of risk based on a first transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto;
receiving, by the processor, a second transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto, the second proposed transaction having been proposed prior to the conclusion of the first proposed transaction; and
prior to the conclusion of the first and second proposed transactions, determining, by the processor, if the allocated amount of risk has been depleted by the reduction based on the first proposed transaction and acting, by the processor, on the second transaction 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.
102 Citations
28 Claims
-
1. A computer implemented method of protecting a market participant participating in a market, the method comprising:
-
reducing, by a processor, an allocated amount of risk based on a first transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto; receiving, by the processor, a second transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto, the second proposed transaction having been proposed prior to the conclusion of the first proposed transaction; and prior to the conclusion of the first and second proposed transactions, determining, by the processor, if the allocated amount of risk has been depleted by the reduction based on the first proposed transaction and acting, by the processor, on the second transaction in accordance therewith. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13)
-
-
14. A system for protecting a market participant participating in a market, the system comprising:
-
a transaction processor operative to reduce an allocated amount of risk based on a first transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto, wherein the transaction processor is further operative to receive a second transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto, the second proposed transaction having been proposed prior to the conclusion of the first proposed transaction; a monitor processor operative to, prior to the conclusion of the first and second proposed transactions, determine if the allocated amount of risk has been depleted by the reduction based on the first proposed transaction; and a transaction handling processor coupled with the monitor processor and operative to act on the second transaction in accordance with the determination made by the monitor processor as to the depletion of the allocated amount of risk. - View Dependent Claims (15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26)
-
-
27. A system protecting a market participant participating in a market, the method comprising:
-
means for reducing an allocated amount of risk based on a first transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto; means for receiving a second transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto, the second proposed transaction having been proposed prior to the conclusion of the first proposed transaction; and means for determining, prior to the conclusion of the first and second proposed transactions, if the allocated amount of risk has been depleted by the reduction based on the first proposed transaction and acting on the second transaction in accordance therewith.
-
-
28. 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:
-
first logic stored in the memory and executable by the processor to reduce an allocated amount of risk based on a first transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto, wherein the first logic is further executable by the processor to receive a second transaction proposed by the market participant but not yet matched with another proposed transaction counter thereto, the second proposed transaction having been proposed prior to the conclusion of the first proposed transaction; second logic stored in the memory and executable by the processor to, prior to the conclusion of the first and second proposed transactions, determine if the allocated amount of risk has been depleted by the reduction based on the first proposed transaction; and third logic stored in the memory and executable by the processor to act on the second transaction in accordance with the determination made by the second logic as to the depletion of the allocated amount of risk.
-
Specification