CPC G06Q 40/04 (2013.01) [G06Q 20/023 (2013.01); G06Q 40/06 (2013.01)] | 17 Claims |
1. A computer system comprising:
a processor and a non-transitory memory coupled therewith and having stored therein computer-executable instructions that, when executed by the processor, cause the processor to:
determine that a constructive dividend payment has been received for a derivative financial instrument by analyzing market data received via a network from an exchange computer system, the derivative financial instrument being associated with a withholding financial instrument generated based on the derivative financial instrument and having a short party thereto which is also a long party to the derivative financial instrument and wherein a long party to the withholding financial instrument is an account for holding a variation margin amount;
cause, in response to the receipt of the constructive dividend payment, a settlement component coupled with the processor to adjust a value of the withholding financial instrument by the amount of the received 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; and
responsive to the adjustment of the value of the withholding financial instrument, automatically cause a clearing house component to determine the variation margin amount for the short party to the withholding financial instrument in response to the constructive dividend payments 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 clearing house component; and
wherein the credit 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 constructive dividend amounts to the long party and thereby limits the consumption of bandwidth; and
wherein the processor is coupled via the network with a market data component configured to collect and transmit a market data feed.
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