Patent ID: 7925581
Filing Date: 2011-04-12
Classification: G06Q

Abstract:
1. A method for dynamically allocating control rights with regard to at least one respective history and at least one possible future path in order to offset risks and to optimize net gain or net loss associated with an inventory of at least one of assets and liabilities used to secure an extension of credit, the method comprising: providing one or more processor readable media; providing one or more processors operatively coupled to the one or more processor readable media; storing on the one or more processor readable media at least one database that includes: providing, by the one or more processors, at least one respective agreement related to the extension of credit to be executed by each of a plurality of counterparties; receiving by the one or more processors, from each of the counterparties an executed respective agreement representing that the counterparties have become contractually bound; receiving, by the one or more processors, from at least some of the counterparties respective commitments of at least one respective control right to respective inventory for securing the extension of credit, the at least one respective control right representing one or more rights that each of the at least some of the counterparties have to control the respective inventory; determining, by the one or more processors, an expected present value of at least one of the at least one respective control right associated with the respective inventory at the time of the respective commitment, based on at least the respective inventory's at least one history and at least one possible future path; aggregating, by the one or more processors, the value of the respective control rights to the respective inventory into an inventory pool; charging calculating, by the one or more processors, a respective margin amount to for each of the at least some of the counterparties, wherein the respective margin amount is proportional to the respective value of each of the at least some counterparties' pro rata inventory control rights contribution and a function derived from one or more of state-dependent and path-dependent dynamics governing the value of that contribution over time, and further wherein the respective margin amount is subject to change over time; receiving, from each of the at least some of the counterparties, the respective margin amount; securing, by the one or more processors, the extension of credit with the inventory pool; receiving, by the one or more processors, a notification that at least two of the plurality of counterparties exchange respective paths representing that one of the at least two of the counterparties assumes another counterparty's at least one of: simulating, by the one or more processors, states and paths for the at least two parties; accounting, by the one or more processors, for evolving contractual rights and duties among each of the at least some of the counterparties based on at least the simulated states and paths; and allocating, by the one or more processors, the control rights to at least some of the inventory in the inventory pool after at least one respective agreement term is not met by at least one of the counterparties.