Patent ID: 7660762

Claim:
A method of trading long and short inventory positions in securities for a plurality of participants, comprising: allowing each of the participants to enter information via a graphical user interface defining restrictions on trading long and short positions in securities of the participant and information defining substitution parameters for adjusting the long and short positions of the participant; allowing each of the participants to upload position file data on net long and net short positions of the participant; allowing each of the participants to upload trades file data on repo and reverse repo security transactions of the participant for adjusting the long and short positions of the participant; adjusting, by software executed by computer hardware, the long and short positions of each participant based on the substitution parameters and the trades file data of the participant and outputting a position file with first round adjustments for the participant; adjusting, by software executed by computer hardware, each participant's long and short positions with first round adjustments based on the security restrictions of the participant and outputting a position file with second round adjustments; and utilizing, by software executed by computer hardware, each participant's position file with second round adjustments, identifying, by software executed by computer hardware, short covering and long funding matches for the participant, generating, by software executed by computer hardware, corresponding repo and reverse trades for the participant, and outputting, by software executed by computer hardware, an executed trades file of the participant's trades by a matching engine.