Systems and methods for determining optimal pricing ans risk contol monitoring of auctioned assets including the automatic computation of bid prices for credit default swaps and the like

A transparent, on demand, 24×7 real-time computer iterative reverse-auction system, for use by a plurality of underwriters of or dealers in debt-based derivative instruments, such as credit default swaps issued by a plurality of reference entities and that eliminate the opaqueness and lack of adequate risk management of current systems having, in combination, a computer apparatus providing end-to-end reverse auction services over a communication system or network amongst a plurality of automated engines (SAEJ) and engage in soliciting and receiving from the SAEJ engines their automatic real-time bidding price quotations for such instruments and without manual intervention;

• and
• inputs to some of the SAEJ engines engaged in the reverse auction of selected aspects of financial risk control and other parameters of the auction participants, including information that enables the engines to compute in real time a price for the debt-based derivatives or other instrument containing a default risk evaluation of each of the auction participants and any primary or secondary insurance companies protecting default of the instruments.

A transparent, on demand, 24×7 real-time computer iterative reverse-auction system for use by a plurality of underwriters of or dealers in debt-based derivative instruments, such as credit default swaps, issued by a plurality of reference entities and that eliminate the opaqueness and lack of adequate risk management of current systems having, in combination, a computer apparatus providing end-to-end reverse auction services over a communication system or network amongst a plurality of automated engines (SAEJ) and engaged in soliciting and receiving from the SAEJ engines their automatic real-time bidding price quotations for such instruments and without manual intervention;

• inputs to some of the SAEJ engines engaged in the reverse auction of selected aspects of financial risk control and other parameters of the auction participants, including information that enables the engines to compute in real time a price for the debt-based derivative or other instruments containing a default risk evaluation of each of the auction participants and of any primary or secondary insurance companies protecting default of the instruments
• and
• wherein the reference entity pricing is decoupled from the entity issuing the debt-based derivative instrument.

A system and apparatus for providing a fully automated computer facility for the buying and selling of debt-based derivatives, such as credit default swaps, issued by a plurality of reference entities, that eliminate prior art opaqueness and lack of adequate risk management, having, in combination, an end-to-end reverse auction computer platform amongst a plurality of automated engines (SAEJ) over a communication network or system that takes into account many aspects of risk control and includes the soliciting from SAEJ engines of their automatic real-time bidding price quotations, without manual intervention;

• the SAEJ engines computing in real time a price for the debt-based derivative instrument upon receiving a default risk evaluation of each of the reference entities and of any primary and secondary insurance companies guaranteeing the instruments.

A transparent on-demand, 24×7, real-time iterative reverse auction computer system involving a plurality of automated engines (SAEJ) connected over a network or communication apparatus that take into account many aspects of participant risk control, including the soliciting from SAEJ engines of reference entity automatic real-time bidding price quotations for debt-based derivative instruments, and without manual intervention;

• computing a true price for the debt-based derivatives incorporating consideration of reference entity default risks and any primary and secondary insurance default list;
• and
• wherein the reference entity pricing is decoupled from the entity issuing the debt.