System and method for managing and valuating financial instruments using cumulative subpositions

A system for managing hedging relationships among transaction data stored by the system, comprising:

• a display;
• a processor;
• and
• a computer-readable storage medium storing:
• a first data object corresponding to a position associated with a valuation area, the position identifying an aggregation of the transaction data that matches a set of selection criteria,
• a pair of second data objects, each second data object corresponding to a subposition storing data of the position, wherein a first subposition stores a quantity of position assets to be hedged by a hedging portion of a hedging instrument according to a hedging relationship and the second subposition stores a remaining quantity of position assets, and
• instructions to be executed by the processor, which instructions, when executed, perform a method comprising:
• responsive to user input, opening the position,
• identifying, from user input, the quantity of position assets to be hedged,
• splitting the position into the first and second subpositions, and
• storing the subpositions in the system, wherein
• the system applies a first set of accounting rules to the first subposition according to accounting rules of the hedging relationship, and
• the computer system applies a second set of accounting rules to the second subposition according to accounting rules free from the hedging relationship.

A data structure stored in a computer system memory, the structure associated with managing hedging relationships among transaction data stored by the computer system, the structure comprising:

• data corresponding to a position associated with a valuation area, the position identifying an aggregation of the transaction data that matches a set of selection criteria;
• data corresponding to a first subposition storing data of the position, wherein the first subposition represents a quantity of position assets to be hedged by a hedging portion of a hedging instrument according to a hedging relationship;
• and
• data corresponding to a second subposition storing data of the position, wherein the second subposition represents a remaining quantity of position assets,
• wherein the data structure enables a processor to perform a method comprising:
• responsive to user input, opening the position,
• identifying, from user input, the quantity of position assets to be hedged,
• splitting the position into the first and second subpositions, and
• storing the subpositions in the computer system, wherein
• the computer system applies a first set of accounting rules to the first subposition according to accounting rules of the hedging relationship, and
• the computer system applies a second set of accounting rules to the second subposition according to accounting rules free from the hedging relationship.