Patent ID: 9747641
Date: 2017-08-29
CPC Classifications: G06Q

Claim:
1. A computer-implemented futures back-office method of creating, centrally clearing, and settling a financial future through an electronic trading platform and an electronic central clearinghouse to effectuate payments between parties to a trade to address at least one of two effects that result from the difference between variation margin on a cleared financial future and collateral posted in an uncleared financial future, the first effect being a systematic advantage of being short the financial future when there is a correlation between the value of the financial future and interest rates, referred to as a convexity bias, and the second effect being a distortion in the financial future when an underlying asset value of the financial future changes, referred to as a net present value (NPV) effect, comprising: receiving at memory of the electronic trading platform an identity of a first party, an identity of a first non-biased financial future, and a buy/sell request; receiving at memory of the electronic trading platform an identity of a second party, an identity of a second non-biased financial future, and a sell/buy request; by a processor in communication with memory of the electronic trading platform, electronically automatically determining if the first non-biased financial future matches the second non-biased financial future; if the first non-biased financial future matches the second non-biased financial future, by a processor in communication with memory of the electronic trading platform electronically automatically determining if the buy/sell request matches the sell/buy request; if the buy/sell request matches the sell/buy request, by a processor in communication with memory of the electronic trading platform, electronically automatically determining what a final settlement value of the non-biased financial future would be upon its stated expiration in accordance with; where, the net accumulated value of cash flows is determined in accordance with: automatically electronically storing the final settlement value of the non-biased financial future upon its stated expiration in memory of the electronic central clearinghouse; and by a processor in communication with memory of the electronic central clearinghouse, centrally clearing and settling the non-biased financial future by automatically electronically associating the centrally cleared and settled non-biased financial future with a trading account associated with the first party and automatically electronically associating the centrally cleared and settled non-biased financial future with a trading account associated with the second party; whereby the final settlement value of the non-biased financial future upon its expiration offsets co-movement of variation margin and investment return on the variation margin to address at least one of the convexity bias and the net present value (NPV) effect.