Patent ID: 7613652

Claim:
A computer method for adjusting portfolios of fixed income instruments of multiple parties comprising: storing in memory of at least one computer digital data representing portfolio holdings of multiple parties; storing in the memory of at least one computer digital data representing constraints that define trading requirements of the parties; converting, using at least one computer, the digital data representing the portfolios of multiple parties and the digital data representing the constraints of the multiple parties to optimization digital data adapted for processing by an optimization engine; and optimizing using at least one computer the optimization digital data so as to generate a set of trades among the parties that rebalance the parties' portfolios in accordance with parties' constraints such that the portfolios are substantially optimized with respect to a predetermined objective, wherein for each trade selected from the set of trades, a first party selected from the multiple parties relinquishes a first group of one or more fixed-income instruments from the first party's portfolio and receives a second group of one or more fixed-income instruments from a portfolio of one of the other parties, and wherein the first group of fixed-income instruments and the second group of fixed-income instruments have equivalent yields.