Methods and systems for commoditizing interest rate swap risk transfers

A graphical user interface method of presenting instrument information for use in electronic trading systems comprising at least one of the sequential, sequence independent and non-sequential steps of:

• displaying an interest rate curve as a grid of discrete grid-point tenors K along a first axis;
• displaying live market rates corresponding to the grid of discrete grid-point tenors K on a second axis;
• displaying at least one instrument on this grid in accordance with its reference tenor and prevailing Entry Level;
• and
• for each instrument, displaying a projected periodic Entry Level adjustment, a probability of mandatory early termination, and information relating to the party's interest rate risk trading activity in that instrument.

A graphical user interface method of presenting user's position information for use in electronic trading systems comprising at least one of the sequential, sequence independent and non-sequential steps of:

• displaying an interest rate curve as a grid of discrete grid-point tenors K along a first axis;
• displaying live market rates corresponding to the grid of discrete grid-point tenors K on a second axis;
• displaying at least one trading position of a user on the grid in accordance with the reference tenor and holding cost of an instrument;
• for each instrument, displaying a projected periodic holding cost adjustment and information relating to the party's interest rate trading activity in that instrument.

A computer implemented method of trading interest rate risks comprising at least one of the sequential, sequence independent and non-sequential steps of:

• receiving at a financial product trading system a trade position in a first interest rate risk from a first party, the trade position comprising a request for a quotation from a second party of the fixed cash amount at which the second party is willing to assume the first interest rate risk;
• receiving at the financial product trading system a trade position in the first interest rate risk from a second party, the trade position comprising a response to the first party's request for a quotation;
• performing a trade for spot settlement through the financial product trading system, between the first position transmitted by the first party and the second position transmitted by the second party, wherein performing the trade comprises:
• recording an instrument associated with the first interest rate risk;
• recording the denomination currency being exchanged, each of the two parties to the transaction, the respective positions of each of the parties, the settlement instructions of each of the parties, an instrument amount, a spot settlement price, a trade date, and a settlement date.