Nasdaq Technology Ab

Omx Technology Ab

Magnus Josefsson

Mattias Kronwall

Cecilia Ståhl

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.

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

A clearing system holds positions that are affected by trades executed during trading cycles. The positions are updated by those trades in clearing cycles. A first trade is executed and includes first trade information regarding how the trade should affect a position, e.g., bought or sold, open or close, number of contracts, etc.). The first trade can be received by the clearing system at a time when a first clearing cycle for the first trade and a second clearing cycle for a subsequent second trade are both open. A trade which belongs to the first clearing cycle updates a first variable for a position for that first clearing cycle using the first trade information. Second trade information for the second trade belonging to the second clearing cycle which is also open updates the second variable for the position for that second clearing cycle.

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Täby, Sweden

Magnus Josefsson