Standardization and management of over-the-counter financial instruments

A non-transitory computer readable medium, comprising instructions executable to:

• receive transaction information on a pre-defined derivative over a computer network, the transaction information including an indication of a transaction between first and second parties and a transaction cost;
• communicate confirmation of the transaction between the first and second parties;
• fix, at a predetermined time subsequent to the transaction, the pre-defined derivative, the fix including selecting a fixing price, the fixing price being a price at which the pre-defined derivative has a net present value of zero;
• and
• mark trade positions of the first and second parties to the pre-defined derivative according to the fixing price, the marking including paying or receiving a difference between the transaction cost and the fixing price.

A system, comprising:

• exchange communication circuitry configured to:
• receive transaction information on a pre-defined interest rate swap over a computer network, the transaction information including an indication of first and second parties to the swap, agreed upon notional amount, and a first interest rate;
• and
• communicate confirmation of execution of the swap between the first and second parties;
• and
• exchange payment circuitry communicatively coupled to the exchange communication circuitry and configured to:
• fix the swap at a predetermined time subsequent to the execution of the swap, the fix including selecting a second interest rate, the second interest rate being an interest rate at which the swap has a net present value of zero;
• and
• mark trade positions of the first and second parties according to the fix, the marking including paying or receiving a difference between the first interest rate and the second interest rate.

A method, comprising:

• receiving, at a transceiver of a derivatives exchange server, transaction information on a pre-defined derivative over a computer network, the transaction information including an indication of a transaction between first and second parties and a transaction cost;
• communicating, by the transceiver, confirmation of the transaction between the first and second parties;
• fixing the pre-defined derivative by payment circuitry of the derivatives exchange server at a predetermined time of a set of predetermined times subsequent to the transaction, the fixing including selecting a fixing price and the fixing price being a price at which the pre-defined derivative has a net present value of zero;
• and
• marking, by the payment circuitry, trade positions of the first and second parties to the pre-defined derivative according to the fixing price, the marking including paying or receiving a difference between the transaction cost and the fixing price.