Systems and Methods for an Online Credit Derivative Trading System

Abstract

A credit derivative trading system comprises a credit derivative authority configured to receive defined positions for credit derivatives and update a plurality of trade clients in real-time whenever there is movement in the market for a particular credit derivative.

1 . A credit derivative authority, comprising:
 a database configured to store credit derivative information for certain reference entities;   memory configured to store execution instructions; and   a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the processor to
 receive a position having a volume from a trader client, 
 receive an acceptance of the position from one of a plurality of other trader clients, 
 send an option to a trading party to increase the volume associated with the position, wherein the trading party is either the trader client or the other trader client that accepted the position, 
 receive a first increased volume selection, 
 offer the increase volume to a trading counterparty, wherein the trading counterparty is either the trader client or the other trader client that accepted the position, and 
 when agreement on the increased volume is made, finalize a transaction for the increased volume. 
   
   
   
       2 . The credit derivative authority of  claim 1 , wherein the instructions are configured to cause the processor to repeat sending an option to increase the volume to the trading party, receiving an increased volume from the trading party, and offering the increased volume to the trading counterparty until no increased volume selection is received from the trading party. 
   
   
       3 . The credit derivative authority of  claim 1 , wherein the instructions are configured to cause the processor to repeat sending an option to increase the volume to the trading party, receiving an increased volume from the trading party, and offering the increased volume to the trading counterparty until the trading counterparty declines the offer to increase the volume. 
   
   
       4 . The credit derivative authority of  claim 1 , wherein the trading party can elect, in response to the option to increase the volume, one of a plurality of fixed volumes or no increase. 
   
   
       5 . The credit derivative authority of  claim 1 , wherein the trading party can elect, in response to the option to increase the volume, one of a plurality of fixed volume increases or no increase. 
   
   
       6 . The credit derivative authority of  claim 1 , wherein the instructions are further configured to cause the processor to wait a predetermined period of time to receive an increased volume selection from the trading party, and if the period of time expires before receiving the increased volume selection, finalize a transaction for the volume. 
   
   
       7 . The credit derivative authority of  claim 1 , wherein the volume associated with the position is a standard or default volume. 
   
   
       8 . The credit derivative authority of  claim 1 , wherein the instructions are further configured to cause the processor to receive an acceptance of the increased volume from the counterparty and to then finalize the transaction for the increased volume. 
   
   
       9 . The credit derivative authority of  claim 1 , wherein the instructions are further configured to cause the processor to receive a rejection of the increased volume from the counterparty and to then finalize the transaction for the Withdrawn volume. 
   
   
       10 . A credit derivative authority, comprising:
 a database configured to store credit derivative information for certain reference entities;   memory configured to store execution instructions; and   a processor coupled with the database and the memory, the processor configured to execute the instructions, the instructions configured to cause the processor to
 receive a position having a volume from a trader client, 
 receive an acceptance of the position from one of a plurality of other trader clients, 
 send a first option to the trader client to increase the volume, 
 send a second option to the one of the plurality of other trader clients to increase the volume, 
 receive a first increased volume selection having a first increased volume from the trader client, 
 receive a second increased volume selection having a second increased volume from the one of the plurality of trader clients, 
 if the first increased volume and the second increased volume are the same, finalize a transaction for the increased volume. 
   
   
   
       11 . The credit derivative authority of  claim 10 , wherein the first option comprises a plurality of fixed volumes and a no increase selection. 
   
   
       12 . The credit derivative authority of  claim 10 , wherein the first option comprises a plurality of fixed volume increases and a no increase selection. 
   
   
       13 . The credit derivative authority of  claim 10 , wherein the second option comprises a plurality of fixed volumes and a no increase selection. 
   
   
       14 . The credit derivative authority of  claim 10 , wherein the second option comprises a plurality of fixed volume increases and a no increase selection. 
   
   
       15 . The credit derivative authority of  claim 10 , wherein the instructions are further configured to cause the processor to wait a predetermined period of time to receive a first increased volume selection, and if the period of time expires before receiving a first increased volume selection, finalize a transaction for the volume. 
   
   
       16 . The credit derivative authority of  claim 10 , wherein the instructions are further configured to cause the processor to wait a predetermined period of time to receive a second increased volume selection, and if the period of time expires before receiving a second increased volume selection, finalize a transaction for the volume. 
   
   
       17 . The credit derivative authority of  claim 10 , wherein the instructions are further configured to cause the processor to finalize a transaction for a volume which is the lesser of the first increased volume and the second increased volume if the first increased volume and second increased volume are unequal. 
   
   
       18 . A method for online trading of credit derivatives, comprising:
 receiving a position having a volume from a trader client;   receiving an acceptance of the position from one of a plurality of other trader clients;   sending a first option to a trading party, wherein the trading party is either the trader client or the one of the plurality or other trader clients;   receiving a first increased volume selection having a first increased volume;   offering the first increase volume to a trading counterparty, wherein the trading counterparty is either the trader client or the one of the plurality of other clients which was not sent the option; and   when agreement on the increased volume is made, finalizing a transaction for the increased volume.   
   
   
       19 . The method claim of  18 , further comprising repeating the sending a first option, the receiving a first increased volume, the offering the first increased volume to a trading counterparty until no increased volume selection is received from the trading party and while agreement between the trading party and the trading counterparty is maintained. 
   
   
       20 . The method claim of  18 , wherein the first option comprises a plurality of fixed volumes and a no increase selection. 
   
   
       21 . The method claim of  18 , wherein the first option comprises a plurality of fixed volume increases and a no increase selection. 
   
   
       22 . The method claim of  18 , further comprising
 sending a second option to the trading counterparty;   receiving a second increased volume selection having a second increased volume, and   offering the second increased volume to the trading party.   
   
   
       23 . The method claim of  22 , further comprising repeat the sending a second option, the receiving a second increased volume, the offering the second increased volume to a trading counterparty until no increased volume selection is received from the trading counterparty and while agreement between the trading party and the trading counterparty is maintained. 
   
   
       24 . The method claim of  22 , wherein the second option comprises a plurality of fixed volumes and a no increase selection. 
   
   
       25 . The method claim of  22 , wherein the second option comprises a plurality of fixed volume increases and a no increase selection. 
   
   
       26 . A method for online trading of credit derivatives, comprising:
 receiving a position having a volume from a trader client;   receiving an acceptance of the position from one of a plurality of other trader clients;   receiving an acceptance of the position from one of a plurality of other trader clients,   sending a first option to the trader client to increase the volume,   sending a second option to the one of the plurality of other trader clients to increase the volume,   receiving a first increased volume selection having a first increased volume from the trader client,   receiving a second increased volume selection having a second increased volume from the one of the plurality of trader clients,   if the first increased volume and the second increased volume are the same, finalizing a transaction for the increased volume.   
   
   
       27 . The method of  claim 26 , wherein the first option comprises a plurality of fixed volumes and a no increase selection. 
   
   
       28 . The method of  claim 26 , wherein the first option comprises a plurality of fixed volume increases and a no increase selection. 
   
   
       29 . The method of  claim 26 , wherein the second option comprises a plurality of fixed volumes and a no increase selection. 
   
   
       30 . The method of  claim 26 , wherein the second option comprises a plurality of fixed volume increases and a no increase selection. 
   
   
       31 . The method of  claim 26 , further comprising waiting a predetermined period of time to receive a first increased volume selection, and if the period of time expires before receiving a first increased volume selection, finalize a transaction for the volume. 
   
   
       32 . The method of  claim 26 , further comprising waiting a predetermined period of time to receive a second increased volume selection, and if the period of time expires before receiving a second increased volume selection, finalize a transaction for the volume. 
   
   
       33 . The method of  claim 26 , further comprising finalizing a transaction for a volume which is the lesser of the first increased volume and the second increased volume if the first increased volume and second increased volume are unequal. 
   
   
       34 - 45 . (canceled)