Facilitation of accrual based payments between counterparties by a central counterparty

US10552929B2 · kind B2 · utility

Assignee

• Chicago Mercantile Exchange Inc. · US

Inventors

• Richard Co · Chicago, US
• Timothy Francis McCourt · Chicago, US
• Thomas Patrick Rafferty · Chicago, US
• John Kerpel · Chicago, US
• David Boberski · Westport, US
• Edward Gogol · Skokie, US
• John Wiley · New York, US
• Steve Youngren · Elgin, US
• John Labuszewski · Westmont, US

Key dates

• Filing date: Sep 15, 2016
• Grant date: Feb 4, 2020
• Expiry date: Apr 7, 2037

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/04
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A system for moving money between accounts of traders by a central counterparty to facilitate a plurality of payments, i.e. the movement of funds, there between is disclosed which provides a flexible mechanism which supports simpler accounting, new types of derivatives contracts as well new types fees. The disclosed futures contract, referred to as a “payor” contract, comprises a “no-uncertainty” futures contract, i.e. the initial value and settlement value parameters are defined, that leverages the mechanisms of the clearing system to, for example, accommodate related payments. Accordingly, a 1-to-many relationship between contracts and prices is provided whereby each price component may be assigned its own payor contract. The function of the payor contract may be to guarantee the movement of money from related positions. In one embodiment, payor contracts are dynamically created whenever a payment is needed.