Chicago Mercantile Exchange Inc.

Tae Seok C Yoo

Dmitriy Glinberg

Edward M Gogol

Ari L Studnitzer

Paul Andrew Bauerschmidt

Stephen M Goldman

Paul I Lichter

Jeffrey Robert Mitchell

The disclosed systems and methods relate to allowing trading of over the counter ('OTC') foreign exchange ('FX') contracts on a centralized matching and clearing mechanism, such as that of the Chicago Mercantile Exchange's (&#x201c;CME&#x201d;'s) futures exchange system (the &#x201c;Exchange&#x201d;). The disclosed systems and methods allow for anonymous transactions, centralized clearing, efficient settlement and the provision of risk management/credit screening mechanisms to lower risk, reduce transaction costs and improve the liquidity in the FX market place. In particular, the disclosed embodiments increase speed of execution facilitating growing demand for algorithmic trading, increased price transparency, lower cost of trading, customer to customer trading, and automated asset allocations, recurring trades as well as clearing and settlement efficiencies.

System and method for centralized clearing of over the counter foreign exchange instruments

A hybrid cross-margining system is disclosed. The disclosed provides for both joint accounts, maintained by multiple exchanges, as well as non-joint accounts, whereby the system recognizes both intra-account offsets within the joint account and inter-exchange offsets between the joint account and accounts maintained by another exchange to minimize the margin requirement of the associated market participant with respect to the positions reflected in these accounts.

Hybrid cross-margining

Growing community of inventors

Bartlett, IL, United States of America

Tae Seok C Yoo