US 11,688,009 B2
Minimization of the consumption of data processing resources in an electronic transaction processing system via deferral of physical delivery
Florian Huchedé, Chicago, IL (US); and Xinrui Wang, Chicago, IL (US)
Assigned to Chicago Mercantile Exchange Inc., Chicago, IL (US)
Filed by Chicago Mercantile Exchange Inc., Chicago, IL (US)
Filed on Jan. 13, 2022, as Appl. No. 17/574,871.
Application 17/574,871 is a continuation of application No. 16/783,713, filed on Feb. 6, 2020, granted, now 11,257,157.
Prior Publication US 2022/0138852 A1, May 5, 2022
This patent is subject to a terminal disclaimer.
Int. Cl. G06Q 40/04 (2012.01); G06Q 40/06 (2012.01)
CPC G06Q 40/04 (2013.01) [G06Q 40/06 (2013.01)] 24 Claims
OG exemplary drawing
 
1. A computer implemented method comprising:
determining, by a processor, that a data record, stored in a database coupled with the processor, stores data indicative of a bilateral contract specifying an expiration which requires, subsequent to the expiration, a physical delivery, effected via transmission of an electronic transaction to a clearing system separate from the processor, of a first quantity of an asset on a particular date by a first participant to a second participant in exchange for a first payment, the processor further determining that the bilateral contract has expired, the expired bilateral contract being characterized at expiration by a difference between an actual value of the first quantity of the asset and the first payment; and
prior to transmission of the electronic transaction to the external clearing system:
identifying, automatically by the processor upon the determination of expiration, a futures contract currently traded on an electronic trading system coupled with the processor which calls for delivery at a future date of a second quantity of the asset in exchange for a second payment, the second quantity being less than the first quantity;
determining, by the processor, a whole number of the identified futures contracts, each for the second quantity, which approximates the first quantity;
assigning, by the processor, an adjusted price to the futures contract which conforms with a minimum price increment, which, when multiplied by the determined whole number multiplied by the second quantity, results in a value of the determined whole number of the identified futures contracts which approximates the difference between the actual value of the first quantity of the asset and the first payment, and calculating a difference therebetween;
generating, by the processor, a first position in each of the determined whole number of the identified futures contracts for the first participant at the assigned adjusted price and a second position opposite to the first position for the second participant, the first and second positions being independently disposable such that the second participant is enabled to obtain the physical delivery of the asset independent of the first participant;
storing, by the processor, the first position in a first data record associated with the first participant and the second positions in a second data record associated with the second participant, the first and second data records being stored in a portfolio database of the electronic trading system;
one of crediting and/or debiting, by the processor, an account of the first and/or second participant in the amount of the calculated difference; and
extinguishing, by the processor, the requirement of the bilateral contract for physical delivery of the first quantity of the asset by the first participant to the second participant and the requirement for the first payment, the electronic transaction therefore not being transmitted to the external clearing system.