Patent ID: 8429058
Filing Date: 2013-04-23
Classification: G06Q

Abstract:
1. A credit risk mitigation system for swap transactions between counterparties, comprising: pairs of the counterparties, interested in forming a swap with each other: a system counterparty, which forms paired swaps with pairs of counterparties interested in forming a swap; the system counterparty making paired, balanced offsetting swaps with the individual members of a pair of counterparties interested in forming a swap and simultaneously creating a swaption with each of the pair of counterparties, the system counterparty including: a data storage means retaining all of the swaps the system counterparty enters into with each other counterparty; communication means coupled to the system counterparty allowing the system counterparty to communicate with potential pairs of counterparties interested in forming the swap to receive potential swap contract information and to communicate paired swap information to accepted pairs of counterparties and collateral requirements with each accepted swap between the system counterparty and the other counterparty to such swap; termination means coupled to the system counterparty determining if a counterparty to an accepted swap is in default and if in default selecting an appropriate response.