Patent ID: 8566216

Claim:
A computer-implemented trading risk exposure management method implementing a trading risk exposure management system including at least a processing unit and a memory, the method for centrally managing trading exposures within an industry, the method comprising: receiving a client request from a requesting client at the trading risk exposure management system for additional counterparty trading risk exposure capacity above a predetermined client counterparty trading risk exposure limit with respect to a particular counterparty; determining whether the requesting client needs additional risk exposure capacity, the determining accomplished using an exposure calculation engine implemented by the processing unit of the trading risk exposure management system; selecting a third party with available counterparty trading risk exposure capacity with respect to the particular counterparty, the selection accomplished using a trading risk exposure calculation engine implemented by the processing unit of the trading risk exposure management system; the trading risk exposure calculation engine analyzing the trading portfolio of the third party, including the third party's counterparty trading risk exposure limit for the particular counterparty so as to determine if the third party has counterparty trading risk exposure available to the requesting client; determining a distribution of at least a portion of the available counterparty trading risk exposure capacity of the third party with respect to the particular counterparty between the requesting client and selected third party; and transferring at least a portion of the available counterparty trading risk exposure capacity of the third party with respect to the particular counterparty to the requesting client in order to provide the requesting client with the additional counterparty trading risk exposure capacity above the predetermined client counterparty trading risk exposure limit with respect to the particular counterparty.