Method and system for tracking derivatives positions and monitoring credit limits

1 . An automated method for monitoring a set of existing derivatives transactions executed between counterparts, comprising the steps of:

receiving a first signal indicative of a trade request from a customer concerning an existing derivatives transaction between the customer and a first dealer;

receiving a second signal indicative of an offer to execute a new derivatives transaction from the one or more dealers that corresponds to the existing derivatives transaction;

receiving a third signal indicative of an acceptance of the offer; and

storing a record of the new derivatives transaction upon receiving the third signal.

2 . The method of claim 1 further comprising the step of:

communicating information indicative of the trade request from the customer to one or more dealers, upon receipt of the first signal.

3 . The method of claim 2 , wherein one of the one or more dealers is the first dealer.

4 . The method of claim 2 , wherein one of the one or more dealers is a dealer other than the first dealer.

5 . The method of claim 1 further comprising the step of:

communicating information indicative of an offer to execute the new derivatives transaction to the customer, upon receipt of the second signal.

6 . The method of claim 1 further comprising the step of:

communicating information indicative of the acceptance of the new derivatives transaction upon receipt of the third signal.

7 . The method of claim 1 , wherein the new derivatives transaction creates a tear-up.

8 . The method of claim 1 , wherein the new derivatives transaction is with a second dealer and creates an assignment upon acceptance by the first dealer.

9 . The method of claim 1 , further comprising the step of:

storing at least one of the first, second, and third signals in a database run on a computer environment.

10 . The method of claim 1 , further comprising the step of:

sending a fourth signal indicative that the existing derivatives transaction has been unwound.

11 . The method of claim 1 , wherein the existing derivatives transaction that was executed with an original dealer is being assigned based on the acceptance of the offer to execute the new derivatives transaction received from a new dealer, and further comprising the step of:

notifying the original dealer of the execution of the new derivatives transaction with the new dealer.

12 . The method of claim 11 , further comprising the steps of:

receiving from the original dealer an acceptance of the assignment of the existing derivatives transaction; and

updating the record of the existing derivatives transaction to indicate assignment of the existing derivatives transaction.

13 . The method of claim 11 , further comprising the steps of:

receiving from the original dealer a rejection of the assignment of the existing derivatives transaction; and

wherein both the new derivatives transaction and the original derivatives transaction are stored.

14 . The method of claim 1 , wherein the existing derivatives transaction that was executed with an original dealer is being torn-up based on the acceptance of the offer to execute the new derivatives transaction received from the original dealer, and further comprising the step of:

updating the record of the existing derivatives transaction to indicate the tearing-up of the existing derivatives transaction.

15 . A system for monitoring derivatives transactions, comprising:

a trading engine capable of communication with a plurality of counterpart computers and enabling the execution of the derivatives transactions;

a trade history database communicatively connected to the trading engine and capable of communication with the plurality of counterpart computers, the trade history database configured to store a set of records of at least a portion of the derivatives transactions executed on the trading engine; and

wherein the trading engine is configured to enable an unwinding of the derivatives transactions, initiate a record of the unwinding to be stored in the trade history database, and send a notification of the unwinding of the derivatives transaction.

16 . The system of claim 15 , wherein the unwinding of the derivatives transaction is a tear-up.

17 . The system of claim 15 , wherein the unwinding of the derivatives transaction is an assignment.

18 . The system of claim 15 , wherein the trade history database is also configured to store a record of at least a portion of a derivatives transaction executed on a second trading engine.

19 . The system of claim 15 , the trade history database is also configured to store a record of derivatives transactions executed over the telephone.

20 . The system of claim 15 , wherein the trading engine comprises one or more computers operative with programming and adapted to communicate with the plurality of counterpart computers via a network.

21 . The system of claim 20 , wherein the one or more computers are servers.

22 . The system of claim 15 , wherein at least one of the counterpart computers is a personal digital assistant.

23 . The system of claim 15 , wherein the trade history database resides on a data storage device.

24 . The system of claim 23 , wherein the data storage device is a hard disk drive system.

25 . The system of claim 15 , wherein the trading engine and counterpart computers communicate through the exchange of data messages.

26 . The system of claim 25 , wherein the data messages use an extensible markup language format.

27 . The system of claim 15 , wherein the counterpart computers are configured to provide a set of graphical user interfaces that enable control of a plurality of trading-related functions.

28 . The system of claim 27 , wherein information entered into the counterpart computers through the set of graphical user interfaces is transmitted to the trading engine for processing.

29 . The system of claim 27 , wherein the graphical user interfaces include a position-tracking interface comprising at least a set of derivatives positions for one of the counterparts.

30 . The system of claim 29 , wherein the position tracking interface includes a field for a description of a derivatives position from the set of derivatives positions.

31 . The system of claim 27 , wherein the graphical user interfaces include a trade ticket interface for use in unwinding the derivatives transaction.

32 . A computer implemented method for monitoring a derivatives transaction executed by a first party and a counterpart, the method comprising:

storing a record for the derivatives transaction;

receiving a request to unwind the derivatives transaction from the first party to the derivatives transaction;

receiving price information from at least one of a plurality of additional counterparts;

automatically transmitting the price information to the first party;

receiving an acceptance of the price information;

unwinding the derivatives transaction; and

notifying the counterpart that the derivatives transaction has been unwound.

33 . The method of claim 32 further comprising the step of transmitting a set of trade details for the derivatives transaction that has been unwound to an electronic confirmation interface.

34 . A system for monitoring derivatives transactions executed between counterparts, comprising:

a first receiving means for receiving a first signal indicative of a request to unwind a derivatives transaction;

a second receiving means for receiving a second signal indicative of an offer for unwinding the derivatives transaction;

a third receiving means for receiving a third signal indicative of an acceptance of the offer; and

a means for unwinding the derivatives transaction upon receipt of the third signal.

35 . The system of claim 34 , wherein the second signal is indicative of a tear-up.

36 . The system of claim 34 , wherein the second signal is indicative of an assignment.

37 . The system of claim 34 , further comprising:

a storing means for storing one or more of the signals in a database run on a computer environment.

38 . The system of claim 34 , further comprising a fourth receiving means:

for sending a fourth signal indicating that the derivatives transaction has been unwound.

39 . A system for tracking derivatives transactions executed between counterparts, comprising one or more servers configured to:

initiate a request on a trading engine to unwind a selected derivatives transaction;

select one or more counterparts to which the request will be transmitted;

populate a position tracking interface with information about the selected derivatives transaction;

receive price information from each of the responding counterparties that were submitted via a plurality of counterpart computers;

make a selection to execute the unwind transaction;

store a record of the unwind transaction in a trade history database;

update the trading engine to reflect the executed unwind transaction; and

populate a confirmation template on the trading engine system.

40 . The system of claim 39 , wherein the unwind transaction is a tear-up.

41 . The system of claim 39 , wherein the unwind transaction is an assignment.

42 . An automated method for monitoring a set of derivatives transactions executed between counterparts, comprising the steps of:

receiving a first signal indicative of a trade request concerning an existing derivatives transaction from the set of derivatives transactions;

receiving a second signal indicative of an offer to execute a new derivatives transaction;

receiving a third signal indicative of an acceptance of the offer; and

executing the new derivatives transaction upon receipt of the third signal.