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

  • US 8,156,038 B2
  • Filed: 07/18/2011
  • Issued: 04/10/2012
  • Est. Priority Date: 11/24/1999
  • Status: Expired due to Term
First Claim
Patent Images

1. A system for prematurely terminating outstanding OTC (Over The Counter) derivative transactions between a plurality of parties before designated maturity dates of the derivative transactions, the system comprising:

  • a processing station arranged to receive transaction data describing a plurality of OTC derivative transactions including the designated maturity date of each transaction, from a plurality of transaction parties via a communications network, the processing station including a processor operable for;

    linking together different versions of the same OTC derivative transaction, each version being received from a different party to that transaction;

    determining a set of linked OTC derivative transactions between a plurality of different transaction parties, wherein each transaction party in the set has both debts and claims towards other parties in the set;

    calculating an aggregated value of each set of linked OTC derivative transactions and selecting the set of linked OTC derivative transactions which has an aggregated value within party-specified tolerance limits acceptable for executing a premature termination, at a date at which there is no prescribed value and no prescribed method of determining a value at which the termination should take place, and at which there is no obligation for the parties to make a premature termination of the linked OTC derivative transactions of the selected set; and

    executing a premature termination of the selected set of linked OTC derivative transactions, prior to their respective designated maturity dates.

View all claims
    ×
    ×

    Thank you for your feedback

    ×
    ×