Patent ID: 7587355

Claim:
A credit derivative trading system for processing credit derivative transactions, comprising: a database configured to store credit derivative information for certain reference entities; memory configured to store execution instructions; and a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the processor to receive a defined position of a credit derivative from a trader client, the defined position indicating at least a name of a reference entity, an expected termination, and a bid or offer price for the credit derivative; display the defined position of the credit derivative to a plurality of other trader clients to request positions; provide a collection of trade histories of trades of credit derivatives engaged in by the trader client to at least one of the plurality of other trader clients; receive one or more positions for the credit derivative from a respective one or more of the plurality of other trader clients; determine, if a received position is a bid for the credit derivative, whether the received bid is improved relative to all other bids stored in the database for the credit derivative and; determine, if a received position is an offer price for the credit derivative, whether the offer price is improved relative to all other offer prices stored in the database for the credit derivative; and update information displayed to the plurality of other trader clients when the received bid is improved relative to all other bids for the credit derivative stored in the database or when the received offer price is improved relative to all other offer prices for the credit derivative stored in the database to respectively indicate that the received bid is improved relative to all other bids or that the received offer price is improved relative to all other offer prices.