Collateralized lending using a central counterparty
US8768820B2 · kind B2 · utility
Assignee
Inventors
Key dates
| Filing date | Dec 29, 2008 |
| Grant date | Jul 1, 2014 |
| Priority date | — |
| Expiry date | Aug 18, 2030 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q40/04
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
A collateralized lending system and method using a central counterparty is disclosed. Lenders place orders to enter into long contracts with a central counterparty obligating them to lend an asset, or portion thereof. Borrowers place orders to enter into short contracts with the central counterparty obligating them to borrow an asset or a substantial equivalent thereof. The net effect acts like a lending transaction between the lender and the borrower. The central counterparty anonymously matches counter-orders from one or more borrowers and one or more lenders. Upon expiration of the loan, the central counterparty/clearing entity facilitates redemption of the loan. Thereby, the risk of loss due to borrower default is absorbed by the central counterparty encouraging lending activity by prospective lenders resulting in increased credit availability.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.