Patent ID: 7917424

Claim:
A system for electronically trading at least one hedged instrument, the system comprising a computer configured to: receive by the computer via a network from a provider an offer to sell the hedged instrument, wherein a value of the hedged instrument is based at least on: (i) a first position on a first bond, wherein the first position comprises a long position on the first bond, and (ii) a second position on a second bond, wherein the second position comprises a short position on the second bond, wherein the first bond and the second bond are issued by a same corporation, and wherein a maturity date of the first bond is different from a maturity date of the second bond; receive by the computer via the network from a participant a request to purchase the hedged instrument; and execute by the computer a sale of the hedged instrument from the provider to the participant, wherein the sale is executed without the participant undertaking the first position on the first bond or the second position on the second bond.