Standardization and management of over-the-counter financial instruments

Abstract

A method of managing financial products is disclosed. The method includes receiving transaction parameters associated with a financial transaction, determining a standardized financial product, wherein the standardized financial transaction reflects the transaction parameters associated with the financial position, calculating a net present value position between the financial position and the standardized financial product, and clearing the net present value position through a clearing party.

1 .- 19 . (canceled) 
     
     
         20 . A method comprising:
 receiving, using at least one processor, transaction parameters associated with an open negotiated swap between at least two counterparties;   identifying, using the at least one processor, a standardized financial product that reflects the transaction parameters associated with the open negotiated swap;   converting, using the at least one processor, the open negotiated swap associated with the received transaction parameters to the identified standardized financial product; and   clearing, using the at least one processor, a position between the open negotiated swap and the identified standardized financial product.   
     
     
         21 . The method of claim  1 , further comprising:
 calculating the position between the open negotiated swap and the identified standardized financial product according to a net present value based on a start date of the open negotiated swap and a standardized rate.   
     
     
         22 . The method of claim  1 , wherein the open negotiated swap is a negotiated interested rate swap. 
     
     
         23 . The method of claim  1 , wherein the open negotiated swap is a negotiated total rate of return swap. 
     
     
         24 . The method of claim  1 , wherein the transaction parameters include an interest rate and a notional amount. 
     
     
         25 . The method of claim  5 , wherein the transaction parameters include a start date and a maturity. 
     
     
         26 . The method of claim  1 , further comprising:
 recording a mark to market position associated with the open negotiated swap.   
     
     
         27 . The method of claim  1  further comprising:
 rolling the open negotiated swap into an open financial position associated with a second standardized financial product as a function of a maturity of the open negotiated swap. 
 
     
     
         28 . The method of  claim 27  further comprising:
 calculating a rate associated with the second standardized financial product. 
 
     
     
         29 . A non-transitory computer readable medium comprising logic configured to cause a processor to:
 receive transaction parameters associated with a negotiated swap between at least two counterparties;   identify a standardized financial product that reflects the transaction parameters associated with the negotiated swap;   convert the negotiated swap associated with the transaction parameters to the standardized financial product; and   clear a position between the negotiated swap and the standardized financial product.   
     
     
         30 . The non-transitory computer readable medium of  claim 29 , the logic further configured to cause a processor to:
 calculate the position between the negotiated swap and the standardized financial product according to a net present value based on a start date of the negotiated swap and a standardized rate.   
     
     
         31 . The non-transitory computer readable medium of  claim 29 , the logic further configured to cause a processor to:
 record a mark to market position associated with the negotiated swap.   
     
     
         32 . The non-transitory computer readable medium of  claim 29 , the logic further configured to cause a processor to:
 roll the negotiated swap into an open financial position associated with a second standardized financial product as a function of a maturity of the negotiated swap.   
     
     
         33 . The non-transitory computer readable medium of  claim 32 , the logic further configured to cause a processor to:
 calculate a rate associated with the second standardized financial product.   
     
     
         34 . The non-transitory computer readable medium of  claim 29 , wherein the negotiated swap is associated with a first date and the standardized financial product is associated with a second date, the logic further configured to cause a processor to:
 calculate a net present value position between the negotiated swap on the first date and the standardized financial product on the second date.   
     
     
         35 . A method of managing financial products, the method comprising:
 receiving transaction parameters associated with a first over-the-counter financial transaction;   determining a second over-the-counter financial transaction, wherein the second over-the-counter financial transaction reflects the transaction parameters associated with a financial position of first transaction; and   calculating a net present value position between the financial position and the second over-the-counter financial transaction.   
     
     
         36 . The method of  claim 35 , wherein the calculating the net present value position is according to a start date of the first over-the-counter financial transaction and a standardized rate. 
     
     
         37 . The method of  claim 35 , further comprising:
 clearing the net present value position between the first over-the-counter financial transaction and the second over-the-counter financial transaction.   
     
     
         38 . The method of  claim 35 , further comprising:
 converting the first over-the-counter financial transaction to the second over-the-counter financial transaction.   
     
     
         39 . The method of  claim 35 , further comprising:
 rolling the financial position of first transaction into the second over-the-counter financial transaction as a function of a maturity of the first over-the-counter financial transaction.