System for processing withholding payments

US11704734B2 · 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

Key dates

• Filing date: May 18, 2021
• Grant date: Jul 18, 2023
• Expiry date: Jan 1, 2042

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/06
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

Systems and methods are provided for efficiently processing withholding payments for constructive dividends. A party that receives constructive dividend payments also has a corresponding short position in a withholding financial instrument. A clearing house computer system adjusts the value of a withholding financial instrument in response to receipt of constructive dividend payments. The clearing house computer system determines a variation margin amount for the short party and processes a variation margin payment from the short party to a withholding account through the variation margin settlement system.