Patent ID: 8781952

Claim:
A computer implemented method relating to one through n parties, comprising: receiving, via a computer system, data regarding a credit limit provided by each of the one through n parties to each of the other one through n parties, wherein n is a minimum number of parties, wherein n=4, and wherein each credit limit is associated with a bilateral agreement between respective parties; aggregating, with the computer system, the credit limit provided to each of the one through n parties by each of the other of the one through n parties to generate an initial aggregate credit limit for each party, wherein the initial aggregate credit limit for each party is a sum of the credit limits provided to each party by at least two other of the one through n parties; receiving, via the computer system, first data regarding requested use of credit by a first of the one through n parties and second data identifying total positions between the one through n parties, wherein the requested use of credit by the first of the one through n parties is associated with a first requested trade, wherein the first requested trade is a long or a short trade of a first derivative between the first of the one through n parties and another party of the one through n parties; calculating, with the computer system, a value of remaining available credit by subtracting a value of the requested use of credit by the first of the one through n parties from the initial aggregate credit limit for the first of the one through n parties; calculating, with the computer system, a first net derivative position for the first of the one through n parties to the at least two other of the one through n parties, wherein the first net derivative position for the first of the one through n parties is a total size of long positions for the first of the one through n parties minus an absolute value of a total size of short positions for the first of the one through n parties; approving the first requested trade, with the computer system, based, at least in part on: i) the value of the calculated remaining available credit associated with the first of the one through n parties is greater than or equal to zero and ii) a first allocation wherein the first allocation is an allocation of derivative positions of the one through n parties, after the first requested trade goes through, that maintains or minimizes the first net derivative position for the first of the one through n parties; settling the approved first requested trade: and reallocating, with the computer system, the derivatives positions based on the first allocation.