System and Method for Making Positions Held by a Trader Fungible
AssigneeChicago Mercantile Exchange Inc.
InventorJoseph E. Hawrysz
Life of this patent
Estimating the term…
Abstract
Positions held by a trader are made fungible by selecting a first position in a first futures contract that is deliverable and selecting a second position in a second futures contract, wherein the first and second futures contracts are traded in a first and second market, respectively. Offsetting the first and the second positions eliminates a delivery obligation of the trader.
Claims20
A computer implemented method for making contract positions in a first and second contract traded in different markets offsetable, the contract positions having not expired, being associated with a delivery requirement, and comprising a first long position in a first contract, a first short position in a second contract, a second short position in the first contract, and a second long position in the second contract, the method comprising:
- identifying a request from a trader for the first long position of the first contract and the first short position of the second contract, wherein the first long position and the first short position cannot be offset because they are traded in different markets;
- and
- offsetting the first long position against the second short position and the first short position against the second long position, wherein delivery obligations associated with the first long position and second short position of the first contract, and the second long position and the first short position of the second contract, are eliminated by the offsetting.
A computer program product for making contract positions in a first and second contract traded in a first and second markets offsetable, the contract positions having not expired, being associated with a delivery requirement, and comprising a first long position in a first contract, a first short position in a second contract, a second short position in the first contract, and a second long position in the second contract, the computer program product embodied on a computer-readable medium and comprising code that, when executed, causes the computer to perform the following:
- identify a request from a trader for the first long position of the first contract and the first short position of the second contract, wherein the first long position and the first short position cannot be offset because they are traded in different markets;
- and
- offset the first long position against the second short position and the first short position against the second long position, wherein the offset eliminates the delivery obligations associated with the first long position and second short position of the first contract, and the second long position and the first short position of the second contract.
A system for making contract positions in a first and second contract traded in a first and second markets offsetable, the contract positions having not expired, being associated with a delivery requirement, and comprising a first long position in a first contract, a first short position in a second contract, a second short position in the first contract, and a second long position in the second contract, the system comprising:
- at least one memory operable to store data representing the first long position, the first short position, the second long position, and the second short position;
- and
- a processor operable to cause the system to:
- identify a request from a trader for the first long position of the first contract and the first short position of the second contract;
- and
- offset the first long position against the second short position and the first short position against the second long position, wherein the offset eliminates the delivery obligations associated with the first long position and second short position of the first contract, and the second long position and the first short position of the second contract.
Dependencies are inferred from the claim text.