Listed options position compression system

A computer implemented method comprising:

• receiving, by a compression engine, open option position data indicative of a plurality of open option positions for a plurality of market participants and a desired risk profile associated with each of the plurality of market participants;
• analyzing, by the compression engine, the open option position data;
• identifying, by the compression engine, one or more multilateral option spread trades that result in one or more of the plurality of open option positions being closed based on the desired risk profile;
• and
• compressing one or more of the plurality of open option positions based on the desired risk profile and the identified one more multilateral option spread trades,
• wherein subsequent to the compression, a bandwidth required to process remaining open option positions is reduced.

A non-transitory computer-readable medium comprising computer executable code that, when executed by a processor, cause the processor to implement a compression engine that performs a plurality of operations including:

• receiving open option position data indicative of a plurality of open option positions for a plurality of market participants and a desired risk profile associated with each of the plurality of market participants;
• analyzing the open option position data;
• identifying one or more multilateral option spread trades that result in one or more of the plurality of open option positions being closed based on the desired risk profile;
• and
• compressing one or more of the plurality of open option positions based on the desired risk profile and the identified one more multilateral option spread trades,
• wherein subsequent to the compression, a bandwidth required to process remaining open option positions is reduced.