System and method of implementing massive early terminations of long term financial contracts

  • US 8,041,629 B2
  • Filed: 08/20/2010
  • Issued: 10/18/2011
  • Est. Priority Date: 11/24/1999
  • Status: Active Grant
First Claim
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1. A computer-implemented method of exchanging derivatives related data for prematurely terminating derivative related transactions, the method comprising:

  • receiving, at a processing unit, over a communication network, trade data associated with derivative related transactions, wherein the derivative related transactions include outstanding linked derivative related transactions having designated maturity dates and for which trade details are available for parties to the outstanding derivative related transactions,the trade data being based on the outstanding linked derivative transactions and describing an unwind proposal including at least three involved parties and generated according to parameters agreed to by the involved parties, wherein the unwind proposal is for prematurely terminating outstanding linked derivative related transactions of the proposal at a date at which (i) there is no prescribed value and no prescribed method of determining a value at which termination of the outstanding linked derivative related transactions of the proposal should take place, and (ii) there is no obligation for the involved parties to prematurely terminate the outstanding linked derivative transactions of the proposal;

    analyzing, by the processing unit, the unwind proposal to determine whether to accept premature termination of the outstanding linked derivative related transactions of the proposal; and

    communicating, to a communication device, based on a determination by the processing unit to accept premature termination of the outstanding linked derivative related transactions of the proposal, acceptance data indicating acceptance by an involved party among the involved parties of premature termination of the outstanding linked derivative related transactions of the proposal, such that premature termination of the outstanding linked derivative related transactions of the proposal can be executed based on the acceptance data.

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