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

  • US 8,301,551 B2
  • Filed: 08/25/2011
  • Issued: 10/30/2012
  • Est. Priority Date: 11/24/1999
  • Status: Expired due to Term
First Claim
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1. A system for exchanging derivatives related data for prematurely terminating derivative related transactions, the system comprising:

  • a first processing unit adapted to provide, over a communication network, trade data associated with derivative related transactions over a communication network, wherein the derivative related transactions include outstanding derivative related transactions for compression having designated maturity dates; and

    a second processing unit adapted to perform a compression process based on the trade data from the communication network by generating a compression proposal including at least three involved parties, according to parameters agreed to by the involved parties and 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.

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