Patent ID: 7627520

Claim:
A computer implemented method for calculating optimal rates in a multi-source price engine in over the counter (OTC) markets, the method being executed by a computer system, the method comprising: accepting, at the computer system, rates provided by a plurality of market makers; inputting, at the computer system, the rates as base rates, wherein each base rate includes a base bid rate and a base offer rate; calculating, by the computer system, a best bid/offer rate from the base rates by selecting a highest bid rate from the base bid rate inputted for each of the base rates at an instant and selecting a lowest offer rate from the base offer rate inputted for each of the base rates at an instant; calculating a best bid/offer spread as a difference between the lowest offer rate and the highest bid rate; retrieving from a database, by the computer system, a target spread; calculating, by the computer system, a target best bid/offer rate by applying the target spread to the best bid/offer rate, wherein a difference between a target best offer rate and a target best bid rate is equal to the target spread, wherein the step of calculating by the computer system, the target best bid/offer rate includes: comparing, by the computer system, the target spread with the best bid/offer spread; when the best bid/offer spread is less than the target spread, creating, by the computer system, the target best bid/offer rate by automatically adjusting the best bid/offer rate so that the difference is equal to the target spread; and generating, by the computer system, output rates based on the target best bid/offer rate so that each output rate is equal to the target best bid/offer rate or has an output spread greater than the target spread.