AUTOMATIC COLLATERAL EXCHANGE FOR REHYPOTHECATED COLLATERAL

摘要

A system for managing rehypothecated collateral allocations in financial transactions includes processors coupled to memory configured to store deal attributes. The processors may execute a collateral allocation module that is operable to receive a request to release a collateral allocation, identify the collateral allocation in one or more deals at a first level, and identify a rehypothecated portion of the collateral allocation in deals at subsequent levels. Where an entirety of the collateral allocation is identified at each subsequent level, the collateral allocation module may credit the one or more deals at each subsequent level with net free equity equal to an amount of cash to be exchanged at a prior level of the subsequent levels. When a total of the net free equity credit is equal to an amount of cash to be exchanged at the first level, the collateral allocation module may release the collateral allocation.

主权项

1. A system for managing rehypothecated collateral allocations in one or more financial transactions, the system comprising:
one or more processors coupled to one or more memory elements configured to store deal attributes; the one or more processors operable to execute at least one collateral allocation module, the at least one collateral allocation module when executed operable to:
receive a request to release a collateral allocation;identify the collateral allocation in one or more deals at a first level;identify a rehypothecated portion of the collateral allocation in one or more deals at one or more subsequent levels;where an entirety of the collateral allocation is identified at each subsequent level, credit the one or more deals at each subsequent level with net free equity (NFE) equal to an amount of cash to be exchanged at a prior level of the one or more subsequent levels; andwhen a total of the net free equity credit is equal to an amount of cash to be exchanged at the first level, release the collateral allocation.