Patent ID: 7558757
Filing Date: 2009-07-07
Classification: B63B,B63H,G06Q

Abstract:
1. A computer implemented method to manage cash flow for a transaction, the method comprising the steps of: controlling by a computer system comprising a digital computer processor to process input data into output data, the processor in communication with an input device to receive the input data and to an output device to output the output data, said processor programmed to manage a financial derivative transaction, specified by lives of individuals and by time periods, of actual cash flow for expected cash flow, said cash flows arising from at least one event of death, disability, and survivorship wherein said managing includes: receiving, as some of said input data, specification of said lives and specification of said time periods, said specifications corresponding to said financial derivative transaction; receiving, as some of said input data, respective descriptions of risks, statistical assumptions for said risks, and financial assumptions for said risks, said risks and said assumptions being associated with said lives for each of the time periods corresponding to said financial derivative transaction; calculating, from the descriptions and the assumptions, expected cash flows corresponding to said risks for the time periods corresponding to said financial derivative transaction; receiving, as some of said in put data, actual cash flows information from occurrence of events corresponding to said risks associated with said lives in said time periods of said financial derivative transaction; accounting for a first party to the transaction owing expected cash flows to a second party according to the financial derivative transaction; accounting for the second party owing the actual cash flows to the first party according to the financial derivative transaction; and computing said output data, from said accountings, said output data corresponding to a net settlement, for each of said time periods, between the parties in the financial derivative transaction, defined by the lives and by the time periods, of the actual cash flow and the expected cash flow.