CPC G06Q 40/06 (2013.01) [G06Q 40/04 (2013.01); G05B 2219/35211 (2013.01)] | 21 Claims |
1. A computer implemented method comprising:
identifying, by the computer system in a data structure coupled therewith which stores data indicative of a portfolio of positions in at least a first subset of a plurality of outright-traded products, a set of positions in a second subset of products counter to one or more of the positions of the portfolio which would offset those one or more positions of the portfolio, the second subset being selected from the plurality of outright-traded products and/or a plurality of spread-traded products each formed by a combination of two or more of the plurality of outright-traded products, wherein each of the positions in the second subset is associated with an estimated effect on a cost to obtain that position;
determining, by the computer system, a subset of the set of positions which offsets the most positions in the portfolio while having a lowest cumulative cost to obtain those positions, the determining including reducing a number of combinations of the positions in the second subset to evaluate by:
determining, by the computer system, a set of estimated allocations of the positions of the portfolio in each of the plurality of outright-traded products among each of the positions in the second subset; and
determining, iteratively by the computer system using the set of estimated allocations and the effect on the cost to obtain the position associated with each position of the second subset therein, the estimated allocation of the set of estimated allocations that is characterized by a lowest cumulative effect on the cost to obtain those positions of the second subset therein; and
outputting, by the computer system, data indicating at least a portion of a performance bond based on the determined lowest cumulative effect on the cost to obtain those positions of the second subset therein.
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