Patent ID: 7702563

Claim:
A computer implemented method for negotiating contracts between a plurality of participants, comprising: creating a structured contract from a plurality of different deal elements by a first participant of the plurality of participants by a client application running on a computer system, wherein the client application provides a user interface to the computer system for the first participant; calculating a position risk of the first participant by a risk-based permissioning system of the computer system, wherein the position risk is a real-time position risk algorithm, the real-time position risk algorithm comprising real-time value at risk of a portfolio of structured contracts of the first participant and a credit rating of the first participant, wherein the credit rating is a credit score obtained from a remote system; calculating a real-time collateral valuation of the first participant by a collateral system, the collateral valuation taking into account the current positions of the portfolio of structured contracts of the first participant; comparing the calculated real-time position risk of the first participant with the calculated real-time collateral valuation of the first participant by a transaction permission system of the computer system; blocking the structured contract by the transaction permission system, if the real-time position risk of the first participant is greater than the real-time calculated collateral valuation of the first participant; and forming the structured contract by the transaction system of the computer system, if the real-time position risk of the first participant is less than the collateral of the first participant.