Goldman Sachs &co. LLC

Mark Higgins

Sharon Greener

Effie Konstantine Anagnostopoulos

Paul Young

Dan Rothman

John Godfrey

Mel Gunewardena

Daniel Rothman

Robert S Mancini

John Henry Godfrey

Arun M Gunewardena

A method and system for hedging a correlation risk associated with a basket option that includes a plurality of securities that includes the step of selecting at least two of the plurality of securities and, in the next step, forming a best-of option for the at least two of the plurality of securities. Finally, the best-of option is combined with the basket option to hedge the correlation risk associated with the basket option.

Basket option hedging method

The present invention contemplates a risk management system for facilitating an e-commerce transaction wherein the participants to the transaction engage in commerce using different currencies. An automated sales risk management system facilitates a transaction by providing a price of a transaction which incorporates aggregated costs related to the transaction into a price made available to the participants. A currency risk management system can receive an amount relating to a deliverable involved in a transaction and determines an aggregated cost of the transaction. Aggregated cost can include a cost of credit, a cost for exchange of currency, a cost of insurance, processing fees, or other associated costs. Insurance can be monitored and a determination can be made regarding whether a participant has adequate insurance to cover a proposed transaction. The present invention also provides for risk associated with online transactions to be categorized and transferred.

Automated online sales risk management

A computerized method and system buying and selling in a marketplace denominated in multiple currencies. A best bid or best offer can be determined according to pecuniary advantage based upon a selected currency. An amount required to become a best bid or best offer within a set of defined currencies is also included. Some embodiments include a network of computers permitting access to a multi-currency marketplace. Prices in the multi-currency marketplace can be ranked according to a particular currency selected by a market participant.

Multi-currency marketplace

A computer-implemented method for providing risk management for online transactions. An exchange price for a foreign currency relative to a base currency is entered into a host computer. The host computer will also receive data descriptive of one or more transactions involving the foreign currency that occurred within a predetermined time period. The data will include a transaction amount. Currency is exchanged according to the entered price and the transaction amounts contained in the data. A risk exposure for the predetermined time period can be calculated based upon an aggregate amount of currency involved in transactions during the predetermined time period. The risk exposure can be based upon market data relating to the price of the foreign currency. The present invention can be implemented to capture each transaction amount that relates to a sale occurring on an e-commerce site. Currency is automatically exchanged at the price entered for the local currency. Transactions can include an online sales transaction consummated over a computerized communications network, a retail transaction between a business and a retail customer, a business to business transaction, an online auction transaction or any other quantifiable transaction.

Online sales risk management system

The present invention provides a method and system to implement risk management of foreign exchange of currency related to an online transaction. According to the present invention an exchange price and a tolerance parameter can be determined for a foreign currency as the foreign currency relates to a base currency. A computer system can receive a spot price relating to a market price for exchange of a foreign currency and compare the spot price with the tolerance parameter. The system can modify the exchange price if spot price exceeds the tolerance parameter. In addition, the system can receive information including the base currency amount involved in an online transaction and transmit the base currency amount and the foreign currency amount, wherein the foreign currency amount is derived according to the exchange price. If desired, a first tolerance parameter and a second tolerance parameter can be utilized, wherein a rise in the spot price is compared to the first tolerance parameter and a fall in the spot price is compared to the second tolerance parameter. In addition, the magnitude of the first tolerance parameter does not need to be equal to the magnitude of the second tolerance parameter. A rise in the spot price can be compared to the tolerance parameter such that the exchange price is modified if the spot price is higher than the tolerance parameter. Similarly, only a fall of the spot price can be compared to the tolerance parameter such that the exchange price is modified if the spot price is lower than the tolerance parameter. Additionally, a spot price can be determined and compared to the tolerance level at predetermined periods of time. An original tolerance level can be modified to create a new tolerance level, if the spot price exceeds the original tolerance level.

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New York, NY, United States of America

Mark Higgins