Computer-implemented system and method for clearing a derivative trade involving multiple trading exchanges

Abstract

A derivative trade order at a home marketplace is routed to an away market place having a better price for a counter position to the order where it is executed. The executed order triggers creation of a “balance derivative trade” at the home marketplace to balance at a home clearing house the away trade. The home clearing house uses the balance derivative trade to create derivative positions of the balance derivative trade and informs a balancing clearing entity which manages the balance derivative trade obligations. The balance derivative trade order account permits netting and reduced margin benefits for the trading participant. A dual derivative exercise operation allows balance derivative positions to be performed in one day to reduce overnight risk for the clearing entity.

1 .- 20 . (canceled) 
     
     
         21 . A method comprising:
 using a processing system, which includes at least one hardware processor, to perform a computer-implemented method comprising:
 receiving an electronic data message that includes an instruction for a first order for a derivative instrument; 
 perform a routing determination that determines which electronic exchange computing system, from among at least a first electronic exchange computing system and a second electronic exchange computing system, that the electronic data message is to be routed, the first electronic exchange computer system being different from the second electronic exchange computing system, the first electronic exchange computing system being associated with a first clearing house computing system, which is correspondingly affiliated with a balancing clearing entity computing system; 
 on the basis of the performed routing determination, routing the electronic data message to the second electronic exchange computing system, where the first order of the electronic data message is matched against a second order, wherein the match between the first order and the second order is cleared via a second clearing house computing system that is associated with the second electronic exchange computing system and different from the first clearing house computing system; 
 automatically generating a new electronic data message that includes a newly generated balance trade for the derivative instrument, the newly generated balance trade to correspond to the match between the first order and the second order on the second electronic exchange computing system, the new electronic data message including data that indicates the newly generated balance trade is between a first trading participant and a balancing clearing entity that is associated with the balancing clearing entity computing system; and 
 sending the new electronic data message to cause the newly generated balance trade to be cleared via the first clearing house computing system. 
   
     
     
         22 . The method of  claim 21 , wherein the newly generated balance trade mirrors obligations of the matched between the first order to the second order. 
     
     
         23 . The method of  claim 21 , wherein the computer-implemented method further comprises receiving a confirmation for the match between the first order and the second order. 
     
     
         24 . The method of  claim 23 , wherein the new electronic data message that includes the newly generated balance trade is automatically generated in response to reception of the confirmation. 
     
     
         25 . The method of  claim 21 , wherein the computer-implemented method is executed on a data processing node that includes the balancing clearing entity computing system. 
     
     
         26 . The method of  claim 21 , wherein the computer-implemented method is executed on an order router that is in electronic communication with the first electronic exchange computing system. 
     
     
         27 . The method of  claim 21 , wherein the newly generated balance trade is sent to the first clearing house computing system by using the first electronic exchange computer system. 
     
     
         28 . The method of  claim 21 , wherein the newly generated balance trade is passed directly to the first clearing house computing system. 
     
     
         29 . The method of  claim 21 , wherein the computer-implemented method further comprises:
 responsive to reception of the electronic data message, determining that the second order is listed on the second electronic exchange computing system and has a price that is better than a third order that is listed on the first electronic exchange computing system,   wherein routing of the electronic data message is based on determination that the second order listed on the second electronic exchange computing system has a better price than the third counter order listed on the first electronic exchange computing system.   
     
     
         30 . A computer system comprising:
 a transceiver configured to receive an electronic order, which is associated with a first trading participant, for a derivative instrument   memory configured to store computer implemented-instructions;   one or more hardware data processors, which are coupled to the memory, configured to:
 determine which electronic exchange computing system, from among at least a first electronic exchange computing system and a second electronic exchange computing system, that the electronic order is to be routed, wherein the first electronic exchange computing system is associated with a first clearing house computing system and the second electronic exchange computing system is associated with a second clearing house computing system; 
 as a result of determining that the electronic order is to be routed to the second electronic exchange computing system, route the electronic order to the second electronic exchange computing system to be matched against another electronic order by the second electronic exchange computing system, wherein the match between the electronic order and the another electronic order is cleared via a second clearing house computing system that is associated with the second electronic exchange computing system; 
 generate an electronic data message that includes data for a balance trade for the derivative instrument, the balance trade that is between the first trading participant and a balancing clearing entity, wherein the data in the electronic data message is separate from the electronic order that is routed to the second electronic exchange computing system and is separate from the data for the match between the electronic order and the another electronic order; and 
 update at least one electronic record to indicate that the balance trade has been executed with respect to the first clearing house computing system. 
   
     
     
         31 . The computer system of  claim 30 , wherein the one or more hardware data processors are further configured to:
 receive a confirmation message that indicates an order match between the electronic order and the another electronic order; and   in response to reception of the confirmation message, generate the electronic data message that includes data for a balance trade for the derivative instrument.   
     
     
         32 . The computer system of  claim 31 , wherein the electronic data message is sent to the first electronic exchange computing system, which then communicates with the first clearing house computing system to clear the balance trade. 
     
     
         33 . The computer system of  claim 31 , wherein the electronic data message bypasses the first electronic exchange computing system and the balance trade is cleared by the first clearing house computing system based on the electronic data message. 
     
     
         34 . The computer system of  claim 30 , wherein the computer system is an order router that is electronically coupled to the first electronic exchange computing system or first clearing house computing system. 
     
     
         35 . The computer system of  claim 30 , wherein the balance trade mirrors obligations of the match between the electronic order and the another order that is matched by the second electronic exchange computing system. 
     
     
         36 . The computer system of  claim 30 , further comprising:
 an order router that comprises at least one of the one or more hardware data processors, wherein routing of the electronic order to the second electronic exchange computing system is performed by the order router;   the first electronic exchange computing system that comprises at least one of the one or more hardware data processors;   the first clearing house computing system that comprises at least one of the one or more hardware data processors; and   a balance clearing computing system that comprises at least one of the one or more hardware data processors.   
     
     
         37 . The computer system of  claim 36 , wherein the at least one of the one or more hardware data processors of the first electronic exchange computing system is configured to:
 receive the electronic data message that includes data for a balance trade for the derivative instrument;   based on the electronic data message, create trade match data between the first trading participant and the balancing clearing entity; and   send the trade match data to the first clearing house computing system.   
     
     
         38 . The computer system of  claim 37 , wherein the at least one of the one or more hardware data processors of the first clearing house computing system is configured to:
 receive the trade match data from the first electronic exchange computing system;   generate balance position data for a balance position for the first trading participant and a counter balance position for the balancing clearing entity; and   send the balance position to the balance clearing computing system.   
     
     
         39 . The computer system of  claim 36 , wherein the balance trade for the derivative instrument is created by at least one of the one or more hardware data processors of the balance clearing computing system. 
     
     
         40 . A system comprising:
 an order router that includes at least one hardware processor and a transceiver, the order router configured to:
 receive at least a first electronic order for a derivative instrument, 
 determine which electronic exchange computing system, among at least a first electronic exchange computing system and a second electronic exchange computing system, that the first electronic order is to be routed to, 
 based on determination that the first electronic order is to be routed to the second electronic exchange computing system, route the first electronic order to the second electronic exchange computing system, the routed first electronic order to be matched with a counter electronic order that is pending with the second electronic exchange computing system, where a match between the first electronic order and the counter electronic order is subsequently cleared via a second clearing house computing system that is different from a first clearing house computing system, and 
 in response to a received conformation, generate a new electronic data message that includes a newly generated balance trade for the derivative instrument that corresponds to the match between the first electronic order and the counter electronic order, the newly generated balance trade being between a first trading participant that is associated with the first electronic order and a balancing clearing entity that is associated with a balancing clearing entity computing system; 
   the first electronic exchange computing system, which is coupled to the order router by an electronic communications link, the first electronic exchange computing system including the at least one hardware processor configured to:
 match pending electronic orders stored in a memory, and 
 create a trade match based on the newly generated balance trade and send the created trade match to the first clearing house computing system; and 
   the first clearing house computing system, which includes at least one hardware processor and configured to execute an electronic clearing process based on the trade match to thereby clear of the newly generated balance trade.