LIMITING COUNTER-PARTY RISK IN MULTIPLE PARTY TRANSACTIONS

摘要

A computerized entity, system and method for limiting or eliminating counterparty risk for settlement in financial transactions are described. A central counterparty novates trades between counterparties and interposes itself as the entity with whom each counterparty will settle. The central counterparty may require additional credit or collateral from one or more counterparties to ensure that the central counterparty does not assume an unaddressed risk.