Patent ID: 8606688

Claim:
A system for exchanging OTC (Over the Counter) derivatives related data comprising: a plurality of data input/output and processing stations and an optional central station connected to a network interconnecting the plurality of the data input/output and processing stations and the optional central station, wherein the data input/output and processing stations are for transmitting and receiving, over the network, trade information for existing OTC derivative transactions carried out by parties participating in OTC derivatives related contracts with other parties, wherein the optional central station is for receiving the trade information over the network from the data input/output and processing stations, wherein the existing OTC derivative transactions include linked OTC derivative transactions for which the trade information is available for both of the parties to the respective existing OTC derivative transaction, wherein the trade information transmitted via the data input/output and processing stations comprises parameters including risk characteristics, the risk characteristics indicated as an existing current at least one Greek between each pair of parties participating in the OTC derivatives related contracts, of the linked OTC derivative transactions, wherein at least one of the data input/output and processing stations or the optional central station includes a processor, wherein the processor is for generating at least one transaction proposal including a package of a plurality of existing linked OTC derivative transactions and at least one newly created transaction between each pair of parties included in the at least one transaction proposal, wherein the at least one transaction proposal includes at least three involved parties and is for reducing the existing current at least one Greek between each pair of the parties of the at least three involved parties, and wherein the at least three involved parties or counterparties of the at least three involved parties can set a target value for at least one Greek of the at least one transaction proposal such that an existing exposure to the at least one Greek between a pair of parties of the at least three involved parties and the counterparties can be reduced, whereafter the processor is, based on the set target value for the at least one Greek of the at least one transaction proposal, to calculate a best transaction proposal as the at least one transaction proposal in which the least one newly created transaction between the each pair of parties is added to the plurality of linked OTC derivative transactions in order to reduce net exposure on at least one of the Greeks thereof.