US 12,469,078 B2
System for processing withholding payments
Richard Co, Chicago, IL (US); Timothy Francis McCourt, New York, NY (US); Thomas Patrick Rafferty, Chicago, IL (US); and John Balaam Alexander Kerpel, Chicago, IL (US)
Assigned to Chicago Mercantile Exchange Inc., Chicago, IL (US)
Filed by Chicago Mercantile Exchange Inc., Chicago, IL (US)
Filed on May 31, 2023, as Appl. No. 18/203,812.
Application 18/203,812 is a continuation of application No. 17/323,576, filed on May 18, 2021, granted, now 11,704,734.
Application 17/323,576 is a continuation of application No. 15/786,260, filed on Oct. 17, 2017, granted, now 11,042,933, issued on Jun. 22, 2021.
Prior Publication US 2023/0306512 A1, Sep. 28, 2023
This patent is subject to a terminal disclaimer.
Int. Cl. G06Q 40/00 (2023.01); G06Q 20/02 (2012.01); G06Q 40/04 (2012.01); G06Q 40/06 (2012.01)
CPC G06Q 40/04 (2013.01) [G06Q 20/023 (2013.01); G06Q 40/06 (2013.01)] 19 Claims
OG exemplary drawing
 
1. A computer system comprising:
a processor coupled via a network with a market data component configured to collect and transmit a market data feed; and
a non-transitory memory coupled with the processor and having stored therein computer-executable instructions that, when executed by the processor, cause the processor to:
analyze the market data feed to determine receipt of a constructive dividend payment for a derivative financial instrument;
create a withholding financial instrument corresponding to the derivative financial instrument and having a short party thereto which is also a long party to the derivative financial instrument and wherein the long party to the withholding financial instrument is an account for holding a variation margin amount;
adjust a value of the withholding financial instrument by the amount of the received constructive dividend payment, the adjusted value being equal to an accumulation of the amounts of all constructive dividend payments thus far received for the derivative financial instrument;
determine the variation margin amount for the short party to the withholding financial instrument; and
credit the determined variation margin amount to the long party to the withholding financial instrument, the long and short parties not being identified to each other by the processor,
wherein the credit by the processor of the variation margin to the long party to the withholding financial instrument eliminates a requirement for the short party to directly pay the accumulation of the amounts of all constructive dividend payments to the long party and thereby limits a consumption of bandwidth of data collected and transmitted by the market data component.