| US 7,590,588 B2 | ||
| Paired basis swap risk and credit mitigation system and collateral minimization system | ||
| J. Scott Perry, New York, N.Y. (US); Wallace C. Turbeville, New York, N.Y. (US); and Paul Hamilton, New York, N.Y. (US) | ||
| Assigned to VMAC, LLC, New York, N.Y. (US) | ||
| Filed on Jan. 23, 2004, as Appl. No. 10/764,126. | ||
| Claims priority of provisional application 60/442084, filed on Jan. 23, 2003. | ||
| Claims priority of provisional application 60/449771, filed on Feb. 25, 2003. | ||
| Claims priority of provisional application 60/450849, filed on Feb. 28, 2003. | ||
| Prior Publication US 2005/0044034 A1, Feb. 24, 2005 | ||
| Int. Cl. G06Q 40/00 (2006.01) | ||
| U.S. Cl. 705—37 | 69 Claims |
| 1. A credit risk mitigation system for swap transactions between counterparties, comprising
pairs of the counterparties, interested in forming a swap to hedge a forward contract with each other:
a system counterparty, which forms paired basis swaps with pairs of counterparties interested in forming a swap; the system
counterparty making paired, balanced offsetting swaps with the individual members of a pair of counterparties interested in
forming a swap and simultaneously creating a swaption with each of the pair of counterparties, the system counterparty including;
a data storage means retaining all of the swaps the system counterparty enters into with each other counterparty;
communication means coupled to the system counterparty allowing the system counterparty to communicate with potential pairs
of counterparties interested in forming the swap to receive potential swap contract information and to communicate paired
basis swap information to accepted pairs of counterparties and collateral requirements with each accepted swap between the
system counterparty and the other counterparty to such swap;
termination means coupled to the system counterparty determining if a counterparty to an accepted swap is in default and if
in default selecting an appropriate response.
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