Techniques for reducing delta values of credit risk positions in online trading of credit derivatives

An electronic trading system of credit derivatives, the system comprising:

• a processor;
• at least one storage device coupled to the processor;
• a user interface coupled to the processor via one or more communication networks;
• wherein the processor is configured to communicate with the at least one storage device and the user interface to execute instructions to perform the following tasks:
• receiving, in the online trading system of credit derivatives, a plurality of credit risk positions submitted by a plurality of trader clients, each credit risk position having a delta value and a maturity date, wherein each trader client's submission is unknown to other trader clients;
• identifying, from the plurality of trader clients, at least two trader clients who hold offsetting credit risk positions on at least two maturity dates;
• determining delta offset values to be applied to delta values of the credit risk positions held by the at least two trader clients and having the at least two maturity dates, such that an overall delta of each of the at least two trader clients' credit risk positions remains substantially unchanged after the application of the delta offset values;
• calculating, based on the determined delta offset, values, notional amounts of credit derivative trades needed to realize the delta offset values;
• and
• executing the credit derivative trades among the at least two trader clients.