US 12,131,381 B2
Transaction processor for clearing interest rate swaps with improved efficiency
Panagiotis Xythalis, Scotch Plains, NJ (US); Jay Zhu, Livingston, NJ (US); Fateen Sharaby, Hoboken, NJ (US); Dhiraj Bawadhankar, Aurora, IL (US); and Molang Dong, Chicago, IL (US)
Assigned to Chicago Mercantile Exchange Inc., Chicago, IL (US)
Filed by Chicago Mercantile Exchange Inc., Chicago, IL (US)
Filed on Sep. 13, 2023, as Appl. No. 18/367,682.
Application 18/367,682 is a continuation of application No. 17/734,650, filed on May 2, 2022, granted, now 11,790,447.
Application 17/734,650 is a continuation of application No. 16/924,730, filed on Jul. 9, 2020, granted, now 11,373,238, issued on Jun. 28, 2022.
Application 16/924,730 is a continuation of application No. 16/160,360, filed on Oct. 15, 2018, granted, now 10,748,212, issued on Aug. 18, 2020.
Application 16/160,360 is a continuation of application No. 14/877,658, filed on Oct. 7, 2015, granted, now 10,140,659, issued on Nov. 27, 2018.
Claims priority of provisional application 62/079,690, filed on Nov. 14, 2014.
Prior Publication US 2024/0046354 A1, Feb. 8, 2024
This patent is subject to a terminal disclaimer.
Int. Cl. G06Q 40/04 (2012.01); G06Q 20/38 (2012.01); G06Q 40/02 (2023.01)
CPC G06Q 40/04 (2013.01) [G06Q 20/381 (2013.01); G06Q 40/02 (2013.01)] 23 Claims
OG exemplary drawing
 
1. A computer implemented method comprising:
receiving, by a processor of an electronic transaction processing system, data indicative of an electronic financial transaction between first and second participants comprising:
a first obligation of the first participant to, over a period of time, exchange each of a first series of periodic payments in a first currency based on a first rate to the second participant for one of a second series of periodic payments from the second participant in the first currency based on a second rate different from the first rate; and
a second obligation of the second participant to, over the period of time, exchange each of the second series of periodic payments for one of the first series of periodic payments, wherein each of the payments of the first and second series of periodic payments is funded prior thereto in a second currency related to the first currency via a conversion rate;
converting, by the processor upon receipt of the data:
the first obligation into a first electronic transaction comprising a third obligation of the first participant to make each of the first series of periodic payments to the electronic transaction processing system and receive each of the second series of periodic payments from the electronic transaction processing system; and
the second obligation into a second electronic transaction comprising a fourth obligation of the second participant to make each of the second series of periodic payments to the electronic transaction processing system and receive each of the first series of periodic payments from the electronic transaction processing system, wherein, subsequent to the converting, performance of each of the first and second electronic transactions is independent of performance of the other of the first and second electronic transactions;
computing, by the processor, a value, denominated in the first currency, of the financial transaction as a function of those of the first and second series of periodic payments that have yet to be made being funded in the second currency, and further computing, by the processor, a difference in a margin amount based on a difference between the computed value and a previously computed value of the financial transaction, the computed difference being denominated in the first currency; and
one of crediting to, or collecting from, by the processor, one or both of the first and second participants, the computed difference; and
wherein the crediting or collecting of the computed difference reduces at least one of the first or second series of periodic payments that have yet to be made, and further wherein a payment that is reduced to zero is eliminated.