Standardization and management of over-the-counter financial instruments
AssigneeChicago Mercantile Exchange Inc.
InventorsStephane Rio, Sven Miserey
Life of this patent
Estimating the term…
Abstract
A method of managing financial products is disclosed. The method includes receiving transaction parameters associated with a financial transaction, determining a standardized financial product, wherein the standardized financial transaction reflects the transaction parameters associated with the financial position, calculating a net present value position between the financial position and the standardized financial product, and clearing the net present value position through a clearing party.
Claims15
A method of managing financial products, the method comprising:
- receiving, using at least one processor, transaction parameters associated with an open financial position, wherein the open financial position is a negotiated interest rate swap between counterparties;
- identifying, using the at least one processor, a standardized financial product, where the standardized financial product reflects the transaction parameters associated with the negotiated interest rate swap;
- and
- converting, using the at least one processor, the negotiated interest rate swap associated with the received transaction parameters to the identified standardized financial product;
- wherein converting further comprises:
- determining, using the at least one processor, a net present value position between the negotiated interest rate swap and the identified standardized financial product;
- and
- clearing, using the at least one processor, the net present value position between the negotiated interest rate swap and the identified standardized financial product.
A method of managing financial products, the method comprising:
- defining using at least one processor, one or more transaction parameters associated with a negotiated interest rate swap;
- identifying, using the at least one processor, an exchange traded financial product, wherein the exchange traded financial product reflects the defined one or more transaction parameters associated with the negotiated interest rate swap;
- converting, using the at least one processor, the negotiated interest rate swap associated with the defined one or more transaction parameters to the identified exchange traded financial product;
- wherein converting further comprises:
- calculating, using the at least one processor, a net present value position between the negotiated interest rate swap and the exchange traded financial product;
- and
- clearing, using the at least one processor, the negotiated interest rate swap accord to net present value position through a central clearing party.
A method of managing financial products, the method comprising:
- defining, using at least one processor, at least one transaction parameter on a first date, wherein the at least one transaction parameter is associated with a negotiated interest rate swap;
- identifying, using the at least one processor, a standardized exchange traded financial product, wherein the standardized exchange traded financial product begins on a second date, and where the standardized exchange traded financial product reflects the at least one transaction parameters associated with the negotiated interest rate swap;
- converting, using the at least one processor, the negotiated interest rate swap associated with the defined at least one transaction parameter to the identified standardized exchange traded financial product;
- wherein converting further comprises:
- calculating, using the at least one processor, a net present value position between the negotiated interest rate swap on the first date and the standardized exchange traded financial product on the second date;
- and
- clearing, using the at least one processor, the net present value position through a clearing party.
Dependencies are inferred from the claim text.