JP2003233759A - Method and device regarding conclusion and processing of crisis management contract - Google Patents

Abstract

<P>PROBLEM TO BE SOLVED: To provide a method and a device for handling crisis management regarding a future phenomenon. <P>SOLUTION: A sponsor 12 designates a product regarding a phenomenon where a result within a certain range can occur in the future. An order concerned party 13 presents a contract regarding a predetermined phenomenon and a corresponding result range. The contract specifies rights given to the order concerned party and a counter value given to a counterpart concerned party 14 on a future date with respect to each result. Independently of the contract, the counterpart concerned party inputs data regarding a perspective of a probability of each result within a predetermined range occurring in the future. A processor 20 evaluates each contract by calculating a counter value to the counterpart concerned party from registered data, and it concludes a contract by comparing the presented counter value and the calculated counter value. A concluded contract can be traded until expiration. The processor processes an exchange of rights between concerned parties with a concluded contract at expiration of the contract. <P>COPYRIGHT: (C)2003,JPO

Description

Detailed Description of the Invention

[0001]

BACKGROUND OF THE INVENTION 1. Field of the Invention The present invention relates to a method applied to financial and crisis management, and an apparatus including a computer and a data processing device. In particular, the present invention relates to crisis management regarding a specified, unknown future situation (event, event).

[0002]

2. Description of the Related Art Individuals and companies are constantly in danger due to future situations beyond their control. The consequences of such future events can have a positive or negative effect on the well-being of individuals and businesses themselves. Individuals and businesses are generally reluctant to discover the potential for adverse consequences, regardless of their perception of the likelihood (probability) of such an event. Individuals and businesses are interested in thinking that if bad consequences are discovered, the'asset 'they currently own may be significantly less affected by future consequences.

Crisis can take many forms in terms of the breadth and variety of future events that can cause adverse consequences. Crisis can be classified as “economic” by way of example. Phenomena that compose an economic crisis include prices, currency exchange rates, interest rates, property values, stock prices, inflation rates, corporate performance, and market event-based indexes.

Another crisis is associated with "technical" phenomena. Technical phenomena include such things as power plant failures, aircraft engine accidents, and orbital damage or failure of telecommunications satellites. The consequences of each of the above phenomena have a negative impact on the user and / or the supplier.

Other forms of crisis, such as weather-based (ie, rainfall or sunshine), or other natural phenomena (ie, earthquakes, or collisions of icebergs with ships at sea) can be easily represented. Can not.

[0006] For example, there is a less obvious crisis in the sense that future consequences are unknown in connection with the release of air pollutants and the dumping of unprocessed toxic waste. However, there is some advice that future results may be inconvenient based on current information.

[0007] The risk management ability will become more important than ever, and the crisis management ability will become more important in the future, because of today's more and more wide range of future phenomena beyond the control of individuals or businesses. there is a possibility. Furthermore, for a given future phenomenon, the feasible range of possible future events is expanded, and the uncertainty regarding the probability of occurrence increases, that is, instability increases.

Moreover, individuals may be more willing to avoid crises during times of recession when there is considerably less disposable property available to trade to protect themselves from adverse future events. ..

In the prior art, individuals and companies faced with "technical" crises are responsible for quality assurance work, collateral, and increased research and development activities (related intellectual property rights such as patents, utility models and registered designs). Mechanisms such as recruitment, acquisition of modernized plants and equipment, improved inventory, occupational health and safety and employer / employee relations lawsuits are taking steps towards future outcomes.

For example, assume that a manufacturer of an integrated circuit has a large number of customers who desire to purchase the integrated circuit to be manufactured. A large number of purchase requests may cause delays in shipping due to limited manufacturing capacity, so it is necessary to facilitate production planning for orders already received. Manufacturers typically provide buyers with assurance regarding measurable integrated circuit performance criteria. If the batch does not meet the specified criteria, the manufacturer is contractually required to replace the batch. That is, the purchaser is not interested in obtaining financial compensation for a poor quality integrated circuit because he needs the components for his product. In the above example, the "compensation" given by the warranty is the preferential production planning of alternative batches of poor quality integrated circuits, the replacement of other planned production steps if possible, or other purchasers. It means postponing shipment.

The contractual arrangements described above are individual in nature and are concluded only between the manufacturer and the individual purchaser.
Moreover, such an arrangement exposes the manufacturer to complaints from other customers whose orders have been delayed due to replanning. The manufacturer does not have a convenient mechanism available to take measures against such complaints, and perhaps, in lieu of the unavailability of his own manufacturing equipment, the right to manufacture with another manufacturer. I will prepare it.

When faced with such an "economic" crisis, individuals and companies are directly exposed by indirect means such as self-insurance and by means such as futures contracts, forward contracts and swaps. Take measures against bad results.

The available economic crisis management mechanisms described above have drawbacks or limitations. In particular, the above mechanisms at best only provide an indirect way to handle crisis management requests. The available mechanisms are fairly expensive and the phenomena they handle are limited and do not meet the demands of entities seeking to combat the widespread future crises. The infrastructure and payment costs involved in switching between commodity and stock markets are often very high for entities, large or small. Therefore, it can be seen that the business entity has an inevitable responsibility that is rarely under its control.

With regard to “uncertain” forms of crisis, for example, one example of such a form of crisis management in the prior art is 1993.
'Pollution rig for the atmospheric release of sulfur dioxide sold by the US Environmental Protection Agency (EPA) in March 2016.
hts) ”. According to this example, a "permit" permitting release into the atmosphere was sold by auction. As of 1995, all companies or organizations that release sulfur dioxide in the United States without sufficient permission to cover the total release are accused. That is, polluters must either purchase more permits or modify or replace plants and equipment to reduce emissions. The EPA regulates the total amount of permits that can be obtained. Permits already issued are high-value tradable “property” among sulfur dioxide emitters, that is, already high-value transactors, even before the time when additional permits cannot be sought. It is a possible "property".

Management techniques for uncertain and uncertain forms of crisis are in their infancy. Existing formats provoke the demand for devices and methods that can achieve efficient management.

Specific examples of patents relating to methods and apparatus for handling various forms of conventional crisis management include: Applicant's Merrill Lynch Pierce Fener & Smith Company (M
errill Lynch Pierce Fenner and Smith Incorporated)
`` Automated Securities Trading
Patent Document 1 relating to "ing Apparatus" is included (corresponding to Patent Document 2 and further Patent Documents 3 and 4).
is connected with). Another example is Lazarus Frela
d Freres and Co.), "Methods and Apparatus for Restructuring Deb
Patent Document 5 regarding "T Obligations)" and Citibank N. et al. A. `` Automated investigation device (An Automated
'6) relating to "Investment System" and "Methods and equipment for future debt at uncertain cost" which was transferred to Colleage Savings Bank.
Apparatus for Funding Future Liability of Uncerta
Patent Document 7, "Patent Document 8", and Patent Document 9 regarding "In Cost)" are included.

[0017]

[Patent Document 1] British Patent No. 2180380

[Patent Document 2] US Pat. No. 4,674,004

[Patent Document 3] US Pat. No. 4,346,442

[Patent Document 4] US Pat. No. 4,376,978

[Patent Document 5] US Pat. No. 4,739,478

[Patent Document 6] US Pat. No. 4,751,640

[Patent Document 7] US Pat. No. 4,752,877

[Patent Document 8] US Pat. No. 4,722,055

[Patent Document 9] US Pat. No. 4,839,804

SUMMARY OF THE INVENTION The present invention seeks to overcome the shortcomings of conventional risk management mechanisms in view of the increasing importance of risk management for certain unforeseen future situations.

In this sense, the present invention deals with matters having economic value as individuals, businesses and society as a whole. Methods and apparatus for providing risk management include, for example, a form of compensation in the event of a bad future outcome being minimized and a bad future outcome, as well as a risk management that was not supported or available in the prior art. It offers both forms and is valuable in the area of economic activity.

[0019]

SUMMARY OF THE INVENTION The present invention provides a party (relationship) by placing an order for a compensation claim contract with a counter party (counterparty) who has not yet been identified on the condition that a specific future situation occurs. Method and apparatus to enable crisis management in connection with a particular unforeseen future situation by eliminating the person's exposure to a particular risk. The parties apply the order to the "device" in order to evaluate and compete with the most suitable counterparty, so that the contracts concluded are properly processed by the expiry date.

Thus, the present invention allows interested parties to manage potential crises of known but unforeseen future events. Such future events may be related to measurable phenomena that can verify the outcome and are not significantly affected by other parties who are interested in the outcome.

The ability to price and compete crisis avoidance contracts arises essentially due to the nature of the crisis itself. There are many people who each have different views on the certainty (probability, likelihood) of the outcome of a future situation. That is, where each person is required to individually assess the range of results for a specified future day, there is almost always variability in the assessment. Therefore, to conclude a contract, it is possible to compete these expectations among the parties. Potential opponents of the contract signed (candidates for potential opponents) can use future outcomes from different perspectives to their benefit, for gain, or in the form of risk management. As such, there is an incentive to take up the opportunity.

It is important that the assessment of future consequences of the situation be made separately from other parties that may be the counterparties to the contract. Therefore, the nature of pricing and competition is quite different from traditional negotiations or bidding as between parties.

According to the invention, the parties are better able to manage the crisis, because they can take more explicit account of uncontrolled, possible future events that have been found to be bad consequences for them. Will be able to do it. The parties have the ability to use existing assets to lessen the face of certain crises and have access to widely available mechanisms that can explicitly trade existing assets to increase their certainty about the future. Ah In addition, the parties have the discretion to determine the extent to which the transaction is made, to actually perform such transaction and to manage this transaction in a simple and low cost manner.

Further, the present invention provides an automated infrastructure for access by interested parties without any restrictions regarding nationality or residence status. This will allow interested parties to participate directly in the interests without the need for intermediaries.

Therefore, according to one aspect of the present invention, there is disclosed a data processing device which enables a number of parties to conclude a crisis management contract. This device is contract data that identifies future maturity dates, the rights due to maturity for a range of outcomes, and consideration for competing stakeholders, where the ordering stakeholder is at least At least one stakeholder input means capable of entering contract data representative of at least one subscribed contract for one predetermined phenomenon; and each of the results within the predetermined range of results for the at least one predetermined phenomenon. With regard to the point of view, at least one counter-stakeholder input means capable of inputting registration data by at least one counter-stakeholder, and the above-mentioned counter-stakeholder input means connected to the above-mentioned stakeholders input means. Connected to the data storage means for storing the contract data and the registration data, and connected to the data storage means, the contract data and the registration Comprising a data processing means for evaluates contract from over data competition, the. In the data processing means, the evaluation selects registration data corresponding to the maturity date for each predetermined phenomenon, calculates the counter consideration obtained from the right, and the competition calculates the counter consideration and the counter consideration. Compare and conclude the proposed contract with at least one competing stakeholder.

According to a second aspect of the present invention, a method is disclosed which allows a number of parties to conclude a crisis management contract, which method comprises (a) inputting at least one ordering stakeholder. Contract data identifying, through means, future maturity dates, rights attributable to maturity for a range of outcomes, and consideration for stakeholder counterparties, having a range of future outcomes. Entering into the data processing device contract data representing at least one subscribed contract in at least one predetermined phenomenon; and (b) via said at least one counter-stakeholder input means. Inputting the counterparty registration data into the data processing device with respect to each viewpoint of each result within a predetermined range of future results of the above phenomenon, and (c) connecting with each interested party means. , And storing the contract data and the registered data in the data storage means connected with each counterparty stakeholder input means said data processing apparatus,
(D) evaluating and competing for at least one of the contracts submitted by the data processing means of the data processing device connected to the data storage means. , (I) selecting registration data corresponding to the maturity date of a predetermined phenomenon for each contract applied, and (ii) calculating the counter-consideration obtained from the above rights, (iii) ) Comparing the consideration and the counter-consideration, and (iv) establishing a contract based on the comparison.

In the preferred embodiment, the ordering stakeholder and the counterparty stakeholder may be considered to be the contract buyer and the contract seller, respectively. The right of each outcome may be in the form of "money" payments (both positive and negative) on the maturity date of the contract made, or in some cases, in the form of goods, services, promises, credit or guarantees. Other forms of compensation may also be used. The consideration specified by the buyer or calculated by the seller may be a reward or payment in essence,
Alternatively, other “non-monetary” property or liability, typically transferable upon the conclusion of the contract and, in some cases, up to the maturity date, or in a grace period beyond the maturity date. Good.

During the period between the conclusion of a contract and its maturity, various buyers, sellers and other contractual interested parties will review all contracts in which they are a party and through evaluation and competition procedures. Alternatively, variations in valuation and competition procedures may require the contract to be traded with other parties. These parties, when their view of the future consequences of the phenomenon that is the purpose of the contract changes significantly,
Alternatively, there is a tendency to try to trade with other parties as described above, as a means to minimize the expected losses when an unforeseen trend occurs in the actual day results of the phenomenon. In addition to trading existing contracts, additional contracts may be applied to "suspend" or avoid the crisis. Stakeholders create a portfolio of closed contracts and subscription contracts that are constantly traded for good standing, as long as they can always be reviewed in time.

Furthermore, the subscription contract can be based on the differences between the phenomena and it is possible to manage the perceived crisis between the phenomena. Thus, the basic contract phenomenon can be tailored to meet the most specific needs of buyers and sellers, thus providing significant flexibility.

In most cases, the maturity date is predetermined by the stakeholder "product sponsor", otherwise the stakeholder cannot be the buyer or seller of the contract he sponsors. . Even so, it is envisaged that the maturity date will be bound at a specific time from the time the contract is concluded. Such restraints are appropriate when the maturity date is reached in the near future. In this case, if this is not done, the application contract remains unfulfilled after the initial application and until the expiry date.

The other stakeholders have administrative roles such as management, guarantee of the capabilities of the buyer and seller, crackdown and supervision. In this way, the number and types of buyers and sellers that can be considered in evaluating and competing for subscription contracts can be controlled.

Further, the present invention provides for handling contracts at maturity,
In particular, an apparatus and method for handling the transfer of rights are realized.

Therefore, according to a further aspect of the present invention, there is disclosed a method of exchanging a debt between a party having a credit record and a debit record for exchanging a predetermined debt together with an exchange institution, said method comprising: , A step (a) of creating a temporary credit record and a temporary debit record on the side of each party in the data recording device, which should be held by the supervisory body of the data processing device separately from the exchange institution, and Step (b) of obtaining the first day's deduction for the credit record and the temporary debit record and storing it in the data storage device, and for each transaction that results in an exchange liability, the temporary credit record or Clearing the temporary debit record and allowing only transactions in which the value of the temporary credit record does not become less than the value of the temporary debit record at any time (c), at the end of the day Exchanges depending on the liquidation of the transaction Instruct one of the exchanges to transfer the post-trade credit or debit account, which is an irrevocable, time-invariant liability incurred by And (d).

[0034]

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS A number of embodiments of the present invention will be described below with reference to the accompanying drawings. There are a number of "tables" that assist in the described embodiment. These appendices are part of the detailed description of the invention herein. The separate table is as follows. Appendix A shows the meaning of unusual terms. Appendix B is a detailed description of the contract device and its stakeholders. Appendix C is a detailed description of each of the nine processors of the contract device. Appendix D provides a detailed description of the nature of the crisis management contract. Appendix E is a table and graph relating to Example I. Charts E2-E9 correspond to Table 1-Table 8 in order.
Appendix F is a table and graph relating to Example II. Chart F2
F10 corresponds to Tables 9 to 17 in order. Appendix G is an example
3 is a table and a graph related to III. Charts G2-G14
Correspond to Tables 18 to 30 in order. Appendix H is a list of main variables and data files used in process 2 of the contract device.

Detailed Description of the Best Mode for Carrying Out the Invention 1. In the following, we first explain the relationship of various users (stakeholders) of the "device (or system)", and then the hardware data processing platform, and the stakeholders interact with each other and with the device. Peripheral input used to
The output device will be described. Next, the range of “applications” that a device can provide in relation to various stakeholders and the interrelationships of the device components will be described. Further, details regarding software methodologies for implementing the applications provided by the device are provided, as well as numerous examples of concluding and managing risk management contracts. In the detailed description, numerous unusual expressions and terms are used. For convenience, explanations of the above terms are listed in Appendix A.

2. System Configuration FIG. 1 shows a block diagram of a general-purpose "device (or system)" for implementing the present invention. Each of the various stakeholders or parties in system 10 have access to centralized processing unit 20. Processing unit 20
Can be configured with at least one data processing device, and all data processing devices are interconnected,
Each data processing device provides one or more of various stakeholders with access to the software of the application provided by system 10. Access to at least one data processing device is controlled by a general-purpose form of communication coordination and security processing unit 25.

Further, FIG. 1 illustrates a number of stakeholder types, each stakeholder type including a number of individual stakeholders. The basic types of interested parties are: ) 14, a guarantor 15 of a counterparty, a crackdown 16, a price / right transfer (“settlement”) party 17, and various parties 18. Detailed functions of each of the above stakeholders will be described in detail later. The number of stakeholder types represented in FIG. 1 is a typical maximum number provided by system 10.

An example of a computer device for system 10 is shown in FIG. At the heart of the device hardware is a collection of data processing units. In the above embodiment, the processing unit 20 comprises three interconnected data processors 93, 97, 104, such as Sun 670 MP manufactured by Sun Microsystems, USA. Each processing unit 93, 97, 104 executes operating system software, such as Sun Microsystems OS 4.1.2, and application software. The application software, in part, is described in the form of flowcharts sequentially described in Figures 8-16 and 18-40, or creates a data file as summarized in Appendix H. The configuration of the processor shown in FIG. 1 handles the transactions of thousands of stakeholders, the input and output data generated by said stakeholders, the evaluation, establishment and subsequent processing functions of crisis management contracts. It represents a large device designed for this purpose.

Each processing unit 93, 97, 104 stores at least a large amount of data in order to store all data received from interested parties and other data relating to all other software operations that create or extract stored information. Capacity storage device 9
5, 100 and 110 are operatively connected. Suitable mass storage devices include, for example, mass storage devices commercially available from Sun Microsystems, Inc.

A number of communication controllers 80, 84, 87 forming the communication coordination and safety processing unit 25 are coupled to the processing unit 20. The controller affects communication between the processing units 93, 97, 104 and a number of external hardware devices used by the stakeholders to communicate data or instructions with the processing units. The communication controller is Encore ANN
EX II, IBM AS / 400 server, or C
There are controllers such as ISCO Systems AGS +.

A wide range of communication hardware products are supported, and these communication hardware devices are collectively referred to as stakeholder input / output devices 70. One of the numerous communication devices 70 is a personal computer 51 and an attached printer 52, which are communicatively connected to a communication controller 80 via a modem 50. Furthermore,
There is an external host device 53, such as a mini or mainframe computer, which is communicatively connected to the communication controller 80 via a modem 54. Alternatively, communication may be set up using a tone dial telephone 56 that provides command or data entry using the tone dial feature itself. Alternatively, the voice connection via the operator 75 may be realized by the conventional telephone 58. Both the illustrated external devices are connected to the communication controller 84. Further, it is possible to perform data transfer using the facsimile machine 65. In this example, the communication controller 8
It is shown connected to 7.

In all cases, the user of the input device may, for example, have a Racal RG 500 watchword generator 66, 67, 68, 69 (personal) and a Racal integrated in the mainframe computer 53.
It is required to create a device access password and use an encryption device such as the RG 1000 type. The corresponding decoding device for this device is the communication controller 8
0, 84, 87.

Further, the general-purpose processing unit 20 is, for example,
Many "portable" devices such as printers and disk drives
An information recording device is included which allows various types of information to be printed or written to a removable storage medium.
This is especially because it is kept as a hardcopy record,
Alternatively, it is appropriate when it is necessary to materialize the confirmation document of the established crisis contract in order to send it to at least one of the interested parties who are the parties to each of the established contracts.

The general-purpose system 10 shown in FIG. 1 provides a number of variations in the "architecture" that can be realized by the combination of hardware and software of the device as well as the number and type of stakeholders. .. In that sense, it should be considered that the configuration shown in FIG. 2 only broadly represents one form of the hardware configuration required to implement the present invention.

The "substantial" level of system 10 is I
Called NVENTCO. An INVENTCO is a collection of one or more devices that are potentially interrelated, as shown in FIG. Each INVENTCO device (INVENT
CO device # 1. ． ． The INVENTCO device #N) enables a wide range of contractual debt settlements and transactions, including crisis management contracts. The hardware configuration shown in FIG. 2 should be understood as an implementation of a single INVENTCO device and also represents multiple INVENTCO devices, the processing unit 20 being common to the whole and not shown. Only one of the illustrated multiple communication coordination and safety devices 25 is supported, along with associated external communication devices 70.

INVENTCO enables the conclusion and trading of crisis management contracts, but is responsible for processing the contracts until the maturity and, in some cases, after the maturity.

Although there are numerous INVENTCO devices, these devices are essentially interdependent or self-supporting. In the case of the interdependent type, INVENTCO (10) plays a role of a transaction between the devices.

INVENTCO and all of its components may be domiciled in legally or geographically distinct countries or states. Due to the supranational nature of INVENTCO, stakeholders are required to manage their risk regardless of their legal whereabouts or other similar conditions that often meet certain criteria regarding credit value, etc. that are characteristic of conventional risk management mechanisms. The mechanism will be available. In fact, the legal whereabouts, location, ownership, and interest-stakeholders of INVENTCO or any subsystem are constantly changing.

Further, each INVENTCO shown in FIG.
The equipment consists of components of the infrastructure called I-INVENTCO and a market depository (depositor).
y) component M-INVENTCO.
The I-INVNETCO is related to communication called AXCO and coordination of other safety considerations, and is provided with a network called VIRPRO and a general-purpose management device.
M-INVENTCO is located within INVENTCO, which has been licensed under the consent of VIROPRO, and I-INVENTCO
It is a storage place for product market (application) software that is distributed using CO.

At least one local or wide area telecommunications network is VIRPRO and M-INVENTC.
Connect O to AXSCO and to each other. Thus, both VIRPRO and M-INVENTCO are A
Efficiently placed around XSCO.

The AXSCO therefore consists of a number of uniquely addressed communication controllers connected together in a number of possible ways. In one embodiment, A
The XCO is represented by a communication coordination and safety processor 25, as shown in FIG. The hardware of components such as the three controllers 80, 84, 87 shown in FIG. 2 typically serve three types of operational applications. The first application is
Data received from other parts of INVENTCO and IN
It relates to the time stamp of data also sent to someone outside of VENTCO. The second application is IN
Protecting one's identity and / or location within VENTCO from others. The third application is
Received data, INVENTCO and INVE
Responsible for overall control of the routing of data to be transmitted to persons outside the NTCO.

Referring to FIG. 4, the M-INVENTCO
Within there are various sets of device sponsorship phenomena or "markets", one of which is called the Contract Application Program (CONTRACT Application Program). Each contract application program within the "market" set of contract application programs is essentially associated with a particular form of risk management phenomenon. The purpose of each contract application program is dual. The primary purpose is the relationship of interest to the participating product ordering parties, as well as other parties within INVENTCO registered as having a legitimate interest in the nature, size and composition of the sale / exchange / transfer described above. Risk management contract (and derivative of the transaction) with the counterparty (other party) who has a relationship that can be permitted by the person
To buy / sell / exchange / transfer. The second purpose is to consistently and properly manage all the established / confirmed contracts until the maturity date.

Each contract application program is responsible for performing the above tasks in accordance with the particular rules implemented by the contract as defined by the applicable stakeholders.

Keeping in mind that in most cases not all possible types of stakeholders are included, the role played by a large number of stakeholders for a contract application program is simply: On the street. (A) The applicant is the person responsible for all the functions of the contract application program, and that responsibility is recognized by VIRPRO. (B) Product Sponsors are those who encourage and control the rules of sale and control of the following limited “Products” selected by the applicant for inclusion in the Contract Application Program. (C) An ordering party (buyer) is a person who seeks to obtain a product of the contract application program from a potential counter party (seller). (D) The counterparty or counterparty (seller) is the person who is potentially preparing to satisfy the demand for the contract application program product of the ordering party (buyer). (E) The guarantor is a person who guarantees the seller's ability to settle and pay the debt as a result of the execution of the contract application program. (F) The crackdowner is the overseer of the run-time capabilities of all other interested parties included in the contract application program, especially the guarantor. (G) The consideration / rights transfer (“settlement”) operator maintains an “account” to transfer the required consideration / rights to all other contract application program stakeholders. It is the person concerned. (H) Various other parties are those who have other clear interests in the functioning of the contract application program.

In all device embodiments, each type of stakeholder includes a large number of parties. A detailed discussion of the nature of contract application programs and the types of stakeholders for contract application programs is provided in Appendix B.

As shown in FIG. 5, one contract application program consists of a cluster of 9 (more or less) specific processes. Some clusters (a) handle file management and update tasks that support all other processes (called process 1) (b) accept and process "primary" crisis avoidance contract transactions Process (referred to as process 2) (c) Process for accepting and processing "secondary" crisis avoidance contract transaction (referred to as process 3) (d) Accepting and processing for "derivative primary" crisis avoidance contract transaction Process (referred to as process 4) (e) Process for accepting and processing "derivative secondary" crisis avoidance contract transaction (referred to as process 5) (f) All four types of crisis avoidance contract transaction and processors 7 to 9 Process for handling "clerical" management of transactions handled by (called process 6) (g) Inter-stakeholder price, rights and other "payments"
Process for dealing with transactions under contract application programs not related to debt transfer (referred to as process 7) (h) Experts to assist relevant stakeholders to determine the best way to connect to the defined components of INVENTCO A process that handles stakeholder access to contract application programs (and other authorized INVENTCOs) to the system (referred to as process 8) (i) Contract application programs to the scope of "value added services" utilizing INVENTCO ( And other authorized INVENTCO stakeholder access processes (referred to as process 9). A detailed description of these nine contract application program processes is provided in Appendix C.

The process collectively accesses a number of data files and a number of records within the files. Appendix H describes the variables and data files used by the processor 2 and the key components of the contract application program.

The following description reveals the essential interactions between the hardware platform and the application computer software running on it.

The first example of the life cycle of a crisis management contract will be described below. A more detailed description of the nature of the crisis management contract is set out in Appendix D.

3. Crisis Management Contract Life Cycle: Example
The first example of a crisis management contract represents a contract for managing a crisis related to a microprocessor failure.
Briefly, in the above example, a defective microprocessor (specifically a 64-bit microprocessor) used in a military standard installation by the system of the present invention.
One party, such as a supplier of military standard equipment, who seeks to avoid the negative consequences of the use of opportunities based on the likelihood of future failures of the microprocessors it produces. It has been shown that it will be possible to enter into a contract with another party, such as the manufacturer of the above mentioned microprocessor.

A specific application is a specific incidental to the “Exclusive Product Warranty (XPW)” (or
It is an application to grant contingent rights. That is, the above warranty gives priority to a certain amount of substitutes and additional microprocessors that are immediately available from another defined high quality guaranteed production line available to suppliers under consideration of financial debt payments. Give the owner specific access rights (obtainability rights).
XPW's entitlement is a percentage index of the percentage of 64-bit microprocessors shipped by the manufacturer in a specified lead period that were determined to be faulty to a certain degree on the contract expiration date. It is incidental to the value. In the case of this example, the above-mentioned determined degree is a microprocessor having no failure as judged by the normal end of the self-test.

In the case of the above example, the interested parties of the key concerned are: the applicant himself (Demdata Inc), a number of product sponsors (eg a party such as Demdata itself), There are primary product ordering parties (for example, parties such as Denisons), the only potential counter party (Demdata), and the application regulator (Ministry of Defense).

FIG. 6 is a timeline showing the stages of the contract from the first stage application identification to the final stage contract settlement.
Is shown in. Appendix E contains eight detailed charts (Tables 1-8) to aid in FIG. This appendix should be read along with the description below. Chart E2
To E9 correspond to Tables 1 to 8.

Looking at the first step of the temporal procedure (application identification) in conjunction with Chart E2, Demdata Inc. found that 92.02.10.17.00.00 (ie February 10, 1992 5 pm) to handle defect liability management. It can be seen that the contract application program (application identification number (ID) 100) has been set in (when). Application identification number 1
00 is a range of products (applicable product identification number is 1200
-1250) is supported.

Looking at the second stage (product specification) of the temporal procedure together with the chart E3, the dem data are simultaneously (92.02.10.1).
7.00.00) was the product sponsor for product 1210. This product is related to a market named the Factory Quality Index and a secondary market named the 64-bit Microprocessor Failure Tolerance Index.
The maturity date for product 1210 is 95.02.10.17.00.00.00. The product
The consideration for specific contracts, including 1210, is in the form of money (commercial bank deposits denominated in Australian dollars). Rights are in the form of an Exclusive Product Warranty (XPW). Exclusive product warranty
It gives contract ordering parties the right to preferentially access future production capacities of the production line of 64-bit microprocessors with guaranteed high quality. Product 1210 has 2
Specify a range of 0% to 100% in increments of 2% for next market results.

Looking at the third stage of the temporal procedure (potential opponent product price identification), it can be seen that demdata acts as the only potential opponent of the upcoming primary product order dealing with product 1210. . The point in time procedure (93.07.01.1
4.00.00.00), that is, after a specific 17 months of product 1210,
Demdata has identified parameters that evaluate potentially upcoming product orders.

Looking at the fourth stage (first order specification) of the temporal procedure together with the chart E4, Denisons, who is the ordering party, found that at the time point (93.07.01.14.25.30.00) (from the dem data of the providing party). ) Request a contract for product 1210. Exhibit E4 shows the specific "payment" parameters established by Denisons for the contract sought at this time, with the highest permissible contract consideration (bill) amount of 32,000 (commercial bank denominated in Australian dollars). )It is included.

Looking at the fifth step of the temporal procedure (order-specific evaluation) in conjunction with chart E5, the dem data is (93.07.01.1
It can be seen that Denison's order was rated at 93.07.01.14.26.40.00 (using the set of valuation parameters specified at 4.00.00.00). Demdata's evaluation parameters indicate that Denison's appropriate limited environmental identification number is 14. As shown, this identification number is 1.10.
% Commission rate, 9.90% discount rate, a specific set of component product prices, and a set of occurrence probabilities (results) assessed over a specific range of practicable values.

The contract bid price is automatically calculated using the application software as follows. The specified desired contingent right amount of the party ordering, ie,
The "registered data" (which covers the range of product product value that can be implemented) is multiplied by the product price of the identified component of the potential opponent (each opponent differs from the potential ordering party). This value will rarely be 1 as we strive to "race" in the way), and a corresponding number of implied contingent rights will be obtained. When these numbers are added together, (34.110) is reached, where parentheses mean negative values. This number is (95.02.10.17.00.0
Represents the expected payment amount of future opponent rights, such as a specified maturity date (0). 9.90% per year
This day's value for this figure, calculated using the specified discount rate of, reaches 29,220. This amount plus a desired flattening fee of 1.10% of potential opponents yields a contract bid price of 29,540 (in consideration / rights units of commercial bank products denominated in Australian dollars). To be In this example, the ordering party Denisons does not want to treat the consideration or entitlement in units other than the formally specified units of the product, so the exchange rate does not apply. Demdata parameters calculate that the consideration bid price of 29,540 (in units of Australian dollar-denominated commercial banks) yields a basic margin on 3,180 contracts.

The amount of the above-mentioned margin is calculated by the following method. The amount of desired contingent rights identified by the ordering party (including the range of product product value that can be implemented) is identified and assessed by potential counterparties to obtain a corresponding number of net contingent value valuations. It is multiplied by the generated occurrence probability. When added all at once, it reaches (30.770). This amount is (95.02.
Represents the contractual expected loss of rights of future opponents (at a specified maturity date such as 10.17.00.00). This day's value for this figure, calculated using the specified discount rate of 9.90% per year, amounts to 26,360. Therefore (for example, disregarding the amount of consideration of 29,540 until the contract expires in some way with Demdata and the margin that would benefit from using various transaction fees), Demdata could contract this with Denisons. The margin that can be expected to be entered is less than the indiscriminate price of its calculated present value 29,540 by the expected contractual loss of its calculated present value of 26,360 (or 3). ，
180).

The last two columns of the table in Chart E5 are used to check that this contract does not violate the self-imposed portfolio valuation or repayment limits if Demdata subscribes. This concept is explained in detail in Example III.

Looking at the sixth stage of the time sequence (order fulfillment), the contract bid price of Demdata 29,540 is less than Denison's specified maximum consideration price of 32,000, so 93.07.01.14.29.10.00. The order is completed.

Seventh stage of the temporal procedure (order / contract confirmation)
Is the amount of consideration funds that Denisons needs depending on the device 29,
93.07. 12 minutes after it was determined that it was possible to pay (and therefore pay) 540 immediately for Demdata.
It turns out that it will take place at 01.14.38.50.00.

Looking at the eighth step (contract evaluation) of the temporal procedure in conjunction with the chart E6, the contract evaluation report to Denisons is within one hour after the contract confirmation, that is, 93.07.01.16.00.0.
You can see that it was issued on 0.00. 64BMF at this point
The T Index's future market value of product value was found to be 38 (standard deviation of 4), which means that this contract has an expected future value of 29,330 XPW (standard deviation of 6,2).
13) is meant to have.

In diagram E7, an equivalent report to Dem Data Inc. of the payment of Dem Data Inc.'s expected future rights is:
It turns out to be identical to Denison's future expected rights receipt (ignoring future fee payments that would result in a net gain on the payment / receipt above). The market valuation of the future product value is a defined combination of the assessed probability of occurrence of a contract opponent with the device and a number obtained from the set of all similar contracts recently established / confirmed by the device. Determined by applying a number.

The ninth step (contract evaluation) of the temporal procedure is 6
One month later, ie, relating to the contract valuation report issued for Denisons on 94.11.15.10.00.00.00 (see Exhibit E8). As you can see from the chart, 64B at this point
Market assessment of future product value of the MFT index is 5
It was found to be 8 (standard deviation is 5), which means that this contract has a future expected value of 42,160 XPW (standard deviation is 6,209). Therefore, the expected future value of Denisons has been since the date / time of the previous assessment.
It has increased by 12,830 XPW.

The tenth stage of the timeline, Contract Maturity, refers to the practical determination of product value at the time of contract maturity 95.02.10.17.00.00.00. As can be seen from Chart E9, the product value of such 64MBFT index is
Specified by Demdata (as a product sponsor) to be 74, which means the Demdata side's corresponding debt to the Denisons side's contract value is 100,660 XPW. A quantity of 74 is virtually a failure (preferably by the application regulator, the Department of Defense) in a 64-bit microprocessor shipped by DemData for a specified period of time prior to a specified contract expiration date. Represents the percentage determined to be.

The eleventh step of the timeline is (if neglecting possible fee payments by one or both parties) to 100,66 to Denisons by Demdata.
It is related to the official transfer of 0XPW.

4. Crisis Management Contract Life Cycle: Example
II The second example represents a crisis management contract related to the use of telecommunications business capabilities. In summary, this example includes one party (telecommunication) that seeks to avoid the adverse consequences of under- and over-assigning its calling capacity between specified points (eg, New York and Boston). Trader)
Will likewise be able to enter into a contract with another party (eg another telecommunications carrier with call capability between the same two cities) preparing to take action on the consequences of its emergence. The method is shown.

Specific application is 1200-every day on the line between New York and Boston within the confirmed future period.
It is an application for granting the contingent right (indefinite right, conditional right) specified to the transmission time unit (mainly called TTU) in the 1800 time zone,
Based on the allocation by the ordering party to the counterparty of the calculated countervalue of the principal TTU on the New York-Boston line within the ordering party within another defined future period. May not be interchangeable with TTUs on lines in other cities). The TTU's right is to record the difference between the use of the counterparty's network by the ordering party and the use of the ordering party's network by the counter party during the identified earlier period ending on the contract maturity date. It is incidental to the value at the contract maturity date of.

In the case of the above example, the interested parties of the relevant keys are the applicant himself (Newcom Inc) and a number of product sponsors (eg, one of the parties concerned is Newcom). The company itself) and a number of parties involved in ordering primary products (one of the parties involved is Basstel C
o.)) and two potential opponents (Tasn
et) and Aarcom), and application enforcement officer (ITT)
Is.

The time sequence showing the steps in the contract from the first step of application identification to the final step of contract settlement is shown in FIG. Appendix F contains nine detailed explanatory charts F2-F10 that assist in FIG. Charts F2-F10
Corresponds to Table 9 to Table 17. This appendix should be read in conjunction with the explanation below.

Looking at the first stage (application specification) of the temporal procedure together with the chart F2, Newcom Co., Ltd. is responsible for handling the hardware performance management, 93.11.01.17.00.00 (ie 19).
It can be seen that the contract application program (application identification number 001) was set on November 1, 1993 at 5:00 pm. Application identification number 001 is a range of products (applicable product identification number 2001
-2020) is supported.

Looking at the second stage of the temporal procedure (Product Identification) in conjunction with Chart F3, it can be seen that Newcom is also a product sponsor of Product 2001 at the same time (93.11.01.17.00.00). This product relates to a market called telecommunications business capabilities and a secondary market called the main TTU. The consideration for a particular contract, including product 2001, is in the form of "ordering party TTU." The rights are in the form of "counterparty TTUs" and the contract ordering parties are told "120 (on the fixed future period) daily on the New York-Boston line.
The right of "transmission time unit in the time zone of 0-1800" is granted. The feasible value of the main TTU indicates the ratio of the parties involved in the contract to use each network, respectively -1.0 and +
Normalized in the range of 1.0.

Looking at the third stage of the temporal procedure (identifying the potential competitor's product price), there are two separate potential competitors of the upcoming primary product order dealing with product 2001. You can find the vendors Tasnet and Arcom. At this point in the timeline (94.06.01.14.00.00.00) seven months after the identification of product 2001, both Tasnet and Arcom have now identified parameters that would potentially evaluate the order of the next product. To do.

Looking at the fourth stage (first order specification) of the temporal procedure together with the chart F4, the ordering party Bastell
At the time (94.06.01.14.25.30.00) products from the applicant company 20
You can see that you are asking for 01 contract. Chart F4 shows the specific parameters (rights) set for the contract that Bastel is seeking at this time, including the maximum allowable contract consideration of 58,000 (its own TTU unit).

Looking at the fifth stage of the temporal procedure (order-specific evaluation) in conjunction with Chart F5, Tasnet (using the set of evaluation parameters specified in 94.06.01.14.00.00.00) reads 94.06.01.14. It turns out that .26.40.00 evaluates a Bastel order. Tasnet evaluation parameters are
It shows that the appropriately limited environmental identification number of Bastell is 8. As shown in the chart, this identification number is
It means a commission rate of 1.00%, a discount rate of 9.90% per year, a particular set of component product prices, and a particular set of assessed probabilities of occurrence. By the same processing as described in Example I, 55,1 (in units of TTU of Bastel)
80 contract bid prices were obtained, and the calculation of this Tasnet parameter was done contractually (in units of BTU's TTU).
Creates a basic margin of 10,760.

By looking at the fifth step of the temporal procedure in conjunction with Chart F6, Arcom further (94.06.01.14.00.0
Use the set of evaluation parameters identified by 0.00)
It turns out to evaluate Bastell's orders. Urcom's rating parameter means that the appropriate limited environmental identification number for Bastell is 9. As can be seen from the chart, this identification number is then assigned to a commission rate of 0.90%, a discount rate of 8.50% per year, a set of prices for specific component products, and a specific assessed probability of occurrence. Means a set of. This yields a contract bid price of 55,390 (in Bastell TTU units), calculated by Arkom's parameters (in Bastell TTU units).
A basic margin of 9,430 occurs.

By looking at the sixth step (order fulfillment) of the temporal procedure, the Tasnet pricing values 55, 180 are:
55,1 lower than Arcom's bid of 55,390
80 is Bastel's specified maximum consideration price of 58,000
Less than. This causes the formal closing of Bastel's order by Tasnet at 94.06.01.14.29.10.00.

Seventh stage of time procedure (order / contract confirmation)
The equipment is Bastel's necessary consideration 55,180TT
94.0 about 10 seconds after it is determined that U can be (and will be) immediately allocated to Tasnet
It turns out that it will take place at 6.01.14.38.50.00.

By looking at the 8th stage (contract evaluation) of the temporal procedure together with the chart F7, about 2 hours after confirmation of the contract, that is, the evaluation of the contract of the Bastel company issued at 94.06.01.16.00.00.00. You can know the report. The logarithm of the difference between the use of Tasnet's Tasnet network and Tasnet's Bastel network for future products (during the specified previous period ending the contract maturity date), as shown in the chart. The market valuation of the value of is (0.1
50) (standard deviation is 0.023), and this evaluation is
The above contract is the expected future value 54,236 Tasnet TT
It has a U (standard deviation is 9,207).
Chart F8 shows that Tasnet's equivalent (when ignoring future fee payments, which is a net benefit to the payment / receipt above) required future payments is the same as Bastel's expected future payments. Report is shown.

The ninth step (contract evaluation) of the temporal procedure is 5
One month later, ie, relating to the contract valuation report issued for Bastel on 94.11.22.10.00.00.00 (see Figure F9). As can be seen from the chart, the logarithmic value of the difference between the use of the Bastel Tasnet network (during the identified previous period ending the contract maturity date) and the use of Tasnet's Bastell network for future products Market valuation is (0.400) at this point (standard deviation 0.01
0), and this evaluation shows that the above contract has an expected future value of 3
50,181 Tusnet TTU (standard deviation is 74,20
0) is meant. Therefore, the expected future value of Bastell has been 295, since the date / time of the previous assessment.
It has increased by 945 TTU.

The tenth step (contract maturity) of the temporal procedure is
Regarding the practical determination of product value at contract maturity 96.11.01.17.00.00.00. As you can see from Chart F10,
The product value of this TTU is (as a product sponsor)
Identified by Newcom to remain unchanged (0.400) from the date / time of the previous valuation, which translates into a Bastel side contract value and a corresponding Tasnet side debt of 3
68,340 means Tasnet TTU.
This amount is greater than the previous assessment numbers as the actual assessment numbers are essentially free of standard deviation factors.

The eleventh step of the timeline is (when ignoring possible fee payments by one or both parties) Tusnet's 368,34 to Bastel.
It is related to the official transfer of 0TTU.

5. Primary Product Order Processing Before discussing the third and most detailed example, consider the "core" product (broker) order, valuation and fill processing.
Note that expressions such as (PORD NEW) represent file names.

The flow charts of FIGS. 8 to 16 show the processing flow chart of the primary product order fulfillment apparatus presented to the contract application program by the order-related stakeholder. Assuming that the amount does not independently generate a revenue stream) E
Based on the V-CE counter-price method, continuous order fulfillment processing, the date of consideration / rights value immediately after the date / time designated by the product sponsor, and the establishment rule that performs the following three things: ing. The above three matters are the first
For each ordering party's order, a counter-relationship that presents the lowest bid price for the order, provided that the ordering party is ready to pay and is less than or equal to the highest price specified. Authorize the person. Secondly, the expected loss constraint of the portfolio is established based on "equal maturity product", "same maturity product", and "all products".
Third, the partial fulfillment of product orders is applied to the above-mentioned establishment rule based on pre-tax, and the conditional order establishment rule is not applied.

Referring to FIG. 8, the device is block 61.
Starting from 0, proceed to block 625 to determine which set of orders should be processed, authorize the order, establish the order with the counterparty if possible, and confirm the order. To do. Blocks 1010 to 107 of FIG.
As described in item No. 0, the device will receive newly submitted orders (PORD NEW) and all previously submitted orders (POR NEW) defined as waiting orders (POR NEW).
D QUEUE). Parameters and algorithms are provided to give the device the ability to define when new or waiting orders should be processed.
For example, the simplest algorithm is
ORD NEW) and waiting for the first order (PORD QU
EUE) to alternate one order at a time. In another example, queued orders are loaded only when there is a change in the counterparty's parameters. Test 102
Zero checks the decision made at block 1010.

For new orders, the device will block 103.
Go to 0. The next recorded new order details are loaded from the primary order new master file (block 1
040). In the order data field, the order related party identification name (BID) and the order related person's own introduction (BREF)
And the product identification name (PI
D) and the "payment" function type of the right (PAYFUN
C) and the parameter of the "payment" function of the right (PAYP
ARAM) and a "transaction type" identifier (DTID),
Anonymous and manual transaction identifiers (OANON and OMANU
AL), the order hold deadline (RET LIM), and the maximum consideration (MAXCONSI) that the ordering parties are prepared to pay.
D) and the number of accounts that should be "paid" for consideration (ACC CO
NSID) and the number of accounts (ACC ENTITL) for which the "payment" amount of rights should be paid. This set of information is used to authorize the order at the next stage of the device.
This is done at block 1050.

Order Authorization Block 1 in blocks 1100 to 1162 of FIG.
050 has been deployed. Starting at block 1100, the order is assigned a unique identifier, which is set in the order data field OID. Additional information is requested by the device before matching other orders. In block 1110, the product details (order data field PID) are the master file.
Loaded from UCT (block 1120). The above information includes the product maturity date (PMAT), product consideration / rights unit (PC / ED), product currency unit (PCUR), domestic currency unit (PNCUR), product limit and parameter (P
MIN, PMAX and PSTEP). In the test 1130, the product identification name (P
Check if there is a conflict with the master file parameter indicated by ID). Orders that do not pass this test are rejected at block 1140 and the details of the above order are Master File Primary Order Reject PORD REJ
It is stored in (block 1150). The ordering party is then notified of this (block 1160). The process returns to the beginning of the flowchart (block 1010),
Prepare to load your next order. When the order is approved, processing continues at block 640.

If a queued order is loaded (block 1060), the order field is queued file 1
It is set using the items stored in the next order queue (block 1070). This data is a combination of the new order data (as described in block 1030) and the data loaded or set when the order was first matched (block 1110). Processing of authorized orders continues with the order fulfillment process of block 640.

Order Filling Blocks 640 are described by blocks 1200-1616 of FIGS. 11-15. The order has a hold time limit stored in the order variable RET LIM. Test 1200 checks if the order hold deadline has expired. If the deadline has expired, the order is rejected at block 1210 and the order details are copied to the primary order rejection file (PORD REJ). The ordering party is then notified of the rejection at block 1230 and processing returns to the main loop via connection "A". If the order is still valid, the order fulfillment process proceeds. The purpose here is to find a suitable opponent (or multiple opponents) to "evaluate" the "rights function" of the ordering party, within the limits set by the ordering party. The fill process described begins at block 1240 and for each ordering party's order, the minimum "order" according to a price below the specified maximum "price" that the ordering party is ready to pay. It is the process of trying to identify the counterparty who offers the "price quote."

Blocks 1300 to 1370 of FIG. 12 provide a description of block 1240. The first step is to at least limit the group of counterparties who are ready to trade with the ordering party. This is described as obtaining a short list of available counterparties. Initially, the short list of counterparties is cleared (block 1300). Then the order data field BID
The Order Parties Distinguished Name and PID (Product Distinguished Name) list the order agreement list (PDEAL) for all counter parties that are ready to consider trading the identified product with the Orders Participant.
LIST) used to look up the master file (block 1320). In addition, all stakeholders that have the MANUAL or ANON flag set are loaded. S for each selected opponent
The ID is set to the corresponding identifier. Test 1330
Initiates a loop that allows all available opponents to be treated next. The data flow proceeds to test 1365 for all currently selected opponents (SID set to distinguished name). The order data field OANON is set by the ordering party and some stakeholders manually confirm (MANUAL (SID)).
If needed, current potential stakeholders are not added to the short list. An ordering party sets OMANUAL, and another stakeholder is anonymous (ANON (SI
The same applies when D)) is required. In any case,
Data flow returns to test 1330. Otherwise, flow continues at block 1335. At this time,
The device defines an applicable "limited environment" for the order. To determine this, the currently loaded order data field and the parameters set in the primary selection and limited environment (PSEL DC) master file (block 1336) are used. At block 1340, consideration parameters / exchange rates (if applicable), commission rates, and valuation parameters including discount rates are selected from the PSEL PRICE master file (block 1350). Since a "Limited Environment" identifier (set to DCID) is used, all potential counterparties identified based on any of the order data fields of each order have a separate set of evaluation parameters. May have. Test 1360 checks if all required parameters are known. The counterparty does not have a complete set of evaluation parameters for the current order specification, even if they are ready to trade with the ordering party. Such opponents are not included in the short list of opponents and the process is tested 133.
Return of 0. At block 1370, the counterparty sets the price details into variables: PRICEFUNC (SID), CR (SI
D), DR (SID), C-C / EDXCHANGE (S
ID), C-CXCHANG (SID), C-NCXC
HANG (SID), E-C / EDEXCHANG (S
ID), E-CXCHANG (SID), E-NCXC
HANG (SID), MANUAL (SID) and AN
By including in ON (SID), it is added to the short list of opponents. Processing then returns to test 1330 where the next selected potential opponent is dealt with. Once all selected potential opponents have been dealt with,
Program flow returns to block 1250. This will give you a short list of potential opponents.

Blocks 1400 through 1 of FIGS. 13 and 14
500 illustrates block 1250 in more detail, with each potential counterparty having an asking price calculated based on individual valuation parameters for the currently loaded order. At block 1400, a loop is initiated that allows each potential opponent in the short list of potential opponents to be traded next. The SID is set to the identifier of the currently selected counter party. Test 141
0 checks if there are any counterparties left for processing. At block 1420, the pricing of potential counterparties is calculated. Blocks 1490 through 1
This calculation is described in more detail at 550. At block 1490, the variable INDEX is assigned the initial value of the product value range (PMIN). In addition, the "price" is initialized to zero. Test 1500 begins a loop and all index points in the product range are moved. Block 1520 calculates the evaluation value returned by the evaluation function PRICEFUNC of the potential opponent, such as that stored in (PRICEFUNC (SID)) at the current index point, and stores that value in P1. Block 1530 determines the payment amount requested by the ordering party at the current index point and sets this value to P2.
To store. At block 1540, the total price for the current index point is calculated by multiplying P1 by P2. This value is added to the running total stored in PRICE (SID). At block 1550, the index counter (INDEX) determines the product step size (P
STEP) minutes and the flow returns to test 1500. When the end of the product range (PMAX) is reached, the flow proceeds to block 1510 and the calculated pricing is the following formula: PRICE (SID) = PRICE (SID) * EC / EDXCHANG (SID) * E-CXCHANG.
Changed by (SID) * E-NCXCHANG (SID).

Returning to block 1430, PRICE
The pricing stored in (SID) is in applicable product consideration / rights units, currency units, and national currency units.
The following steps (blocks 1430-1470) determine and apply the applicable discount rate to the calculated pricing (current and future value terms), thereby pricing at the current value terms. To get This is done as follows. That is, block 1430 determines the number of product maturity days. Block 1440 initializes a loop counter and a discount rate divisor. For each day (or an appropriate portion thereof) between the current date / time and the date / time of product maturity,
The divisor is changed according to the formula: DIV = DIV * (1 + ((DR (SID) / 100) / 365)).

At block 1470, the pricing is adjusted according to the formula: PRICE (SID) = PRICE (SID) / DIV. After the pricing is known in the current value terms, the limited fee of potential opponents is added to the price (block 1480). CR
If (SID) represents the percent commission rate, then the formula: PEICE (SID) = PRICE (SID) + ((CR (SID) / 100) * PRICE (SID)).

When the test 1410 has been evaluated for all potential counterparties, program flow continues at block 1255.

The test at block 1255 checks if the order is a "quote only" order. If it is a quote order, the flow continues at block 1256,
At least one counterparty bid price is selected. At block 1230, the ordering party is notified of the collected rating information. If the order is not a quote order (ie,
If it is a real product order), an attempt is made to identify the current order's requirements and the matching counterparties from a short list of potential counterparties. This is done at block 1260. Blocks 1560 to 1616 of FIG.
This process is described in detail in.

From test 1560 a check is made to see if the short list of potential opponents is not empty. If the short list is empty, then no match is possible and flow continues to block 1612. At this time, to indicate that there is no counterparty selected from the short list of potential counterparties before proceeding to block 1614, where the entire order (since there is no filled portion) is queued S
“0” is assigned to the ID. If the list is not empty, program flow proceeds to block 1570 and the lowest-priced counterparty is selected from the short list of counterparties. This determination is based on the consideration / rights type required by the ordering party, the currency, and the bid price (PRICE (SID)) of each potential counterparty converted to the "payment" unit of consideration for the local currency. (That is, PRICE (SID) = PRICE (SID) * CC / EDXCHANG (SID) * C-
CXCHANG (SID) * C-NCXCHANG (SID)). The identifier of the counterparty is stored in the SID and its price offer is stored in BPRICE. At block 1580, the following expression is checked: BPRICE> MAXCONSID.

If the selected price is higher than the maximum consideration payment (MAXCONSID) limit specified by the ordering party, it is not considered possible to establish a current potential counterparty. This is true for any opponents remaining in the short list of opponents. The above portion of the entitlement process returns (block 1612) without selecting a potential opponent in the short list for enactment. Otherwise, the current price is accepted and the process proceeds to establish with the current selected counterparty.

The next step (block 1590) is read from the primary selection limit (PSEL LIMIT) master file (block 1600) and ALL1 (SID).
, ALL2 (SID), ELL1 (SID), E
LL2 (SID), ELL3 (SID), and ELL4
(SID), ELL5 (SID), and EVL1 (SI
D), MC (SID), absolute loss of applicable contracts, products and portfolios to be stored in MCC (SID), expected loss, expected value limit and maximum repayment limit. I need everything. In addition, the current accumulated absolute and expected losses are read out and CAL2 (SID)
, CEL2 (SID), CEL3 (SID), C
It is stored in EL4 (SID) and CEL5 (SID). ELFUNC (SID) and EVFUNC (SID)
The value of is also set for use in calculating the expected loss and expected value of the current order. Block 1602
Calculates the price of the rights function of the order using the expected loss of the counterparty product and the expected value parameters ELFUNC (SID) and EVFUNC (SID). Expected loss of order is stored in EL (SID) and expected value of order is EV
It is stored in (SID). Absolute loss function is block 16
02 and is stored in AL (SID). Proceeding to block 1604, a portion of the orders that do not violate the counterparty restrictions are calculated. This check is test 1606
Done in. If no part of the order is filled, process flow proceeds to block 1608. Potential opponents are excluded from the short list of opponents.

If some of the orders are satisfied with the current counterparty, processing proceeds to block 1610. Where S
The ID is set to the identification name of the counterparty who is established. The unfilled portion (if any) is stored as a new order in the primary order waiting master file (block 1616). The flow returns to test 1261 in FIG. If yes, the program flow is block 650.
Return to. The fulfilled order is confirmed by performing a number of additional steps, as shown in blocks 1620-1641 of FIG. If not, processing of the current order proceeds and returns to the beginning via connection point “A”. The device is ready to load the next available order.

Confirmation of Closed Orders A number of additional acts are required to place a closed order into a contract. First, in test 1620, a manual authorization check is performed. If manual authorization is required, program flow proceeds to block 1621 where the authorization request is sent to the relevant third party. Then block 1623
In, we test if there is a rejection response. If at least one rejection is received, program flow proceeds to block 1627 and the order is rejected. If there is no rejection, flow proceeds to block 1624. Block 1624 is the shadow payment account (PAYACC SHADO
W) Perform payment of consideration by creating a transaction in the file (block 1625). However, if the specified account does not exist, or at least it is shown that the required consideration is not available, the consideration cannot be paid. Test 1626 checks if the "pay for consideration" was successful. If the "payment" fails, the closed order is rejected (block 1627) and the details are stored in the rejected order matrix file primary order reject (block 1628). The ordering party is notified of this at block 1640.

If the payment is successful, program flow proceeds to block 1630 and the counterparty's current accumulated absolute and expected loss figures are updated (master file primary selection limit-block 1631). Block 16
At 32, the order data field OPRICE is set to the price PRICE (SID) given by the opponent, and SPRICE is set to the opponent's identifier SID. At block 1634, the placed order is confirmed and guaranteed by all the details recorded in the Master File Primary Order Confirmation (PORD CONF) (block 1636). The next step, block 1638, reports the details of the newly created contingent agreement to all interested parties. The program flow then returns to the beginning via connection point "A". The device is ready to begin processing the next order submitted by the identified ordering party.

6. Crisis Management Contract Life Cycle: Example
III The third example of a crisis management contract represents a contract to manage a crisis related to potential future movements in the value of a specified index of the stock price (called the PTSE 75 index). In summary, the above example shows that the device is a PTSE
75 Significant declines in future values of the index (especially
1 against the index's provisional ordinary (January 1993) value
PT one person (such as an institutional fund manager) trying to avoid the negative consequences of the June 994 fall)
It shows how to make it possible to contract with another as yet unknown party, such as another fund manager, who seeks to avoid the negative consequences of a corresponding corresponding rise in the value of the SE 75 index.

A particular offer is a contingent identified for the future disbursement of compensatory Australian dollars based on the payment to the as yet unknown counterparty of the calculated prepaid consideration monetary amount by the ordering party. Entitlement to the parties involved in the contract. Future monetary rights are incidental to the value of the individually defined PTSE 75 index at the contract maturity date.

In the case of the above example, the interested parties of the relevant keys are: the applicant himself (BLC) and a large number of products.
Sponsors (eg, relevant parties such as BLC itself), numerous product ordering parties (eg, Abbotts & Taylor, Shearers & Associates), and a large number of potential Opponents (eg Abrahamsons and Carpenters Inc.)
, The counterparty guarantor (CNZ Bank) and the application enforcement party (Pacific Central Bank).

FIG. 1 shows the time-based procedure representing the stages of the contract form from the first stage (application specification) to the final stage (contract settlement).
7 is shown. Appendix G assists FIG. 17 13
Included are detailed illustration charts G2-G14. Charts G2 to G14 correspond to Tables 18 to 30. This appendix should be read in conjunction with the discussion below.

Looking at the first step (application identification) of the timeline in conjunction with Chart G2, BLC is 91.06.03.17.00.00 (ie June 3, 1991 5:00 pm) to handle economic crisis management. ) To contract application program (application identification number 00
You can see that you have set 1). Application identification number 001 supports a range of products (applicable product identification number 10020-11400).

Looking at the second stage (product specification) of the temporal procedure together with the chart G3, BLC showed that the simultaneous (91.06.03.1
7.00.00) is also the product sponsor for product 10061. This product is associated with a market called the Stock Price Index and a secondary market called the PTSE 75.
Product 10061 has a maturity date of 94.06.03.17.00.00. Product 10
The consideration for the particular contract associated with 061 is in the form of money (Australian dollar denominated commercial bank deposits). Further, the entitlement is in the form of an Australian dollar denominated commercial bank deposit and can be paid (if necessary) shortly after the specified maturity date / hour of the product.

Looking at the third stage of the temporal procedure (potential counterproduct evaluation evaluation), two entities acting as potential counter parties to the next primary product order trading product 10061, Abraham. You can find Sons and Carpenters. After a specific 19 months of product 10061, at this point in the temporal procedure (93.01.01.17.00.00.00), both Abraham Sands and Carpenters have parameters with which to potentially order the next product. Specify at this time.

Looking at the fourth step (first order specification) of the temporal procedure together with the chart G4, Abbots and Taylor, who is the ordering party, was able to find that point (93.01.01.17.37.06.00).
Applying for product 10061 is seeking a contract from a party.
Chart G4 shows the specific parameters (rights) that Abbots & Taylor has set for the contracts sought at this time, including the maximum permissible contracts of 54,000 (AUD $ commercial bank units). The consideration is included.

To describe the fifth through seventh stages of the following temporal procedure in more detail, the block numbers selected from FIGS. 8 through 16 are referenced as follows: "[]".

Looking at the fifth step of the temporal procedure (Order Specific Evaluation) in conjunction with Chart G5, the evaluation parameters specified by Abrahamsons set to 93.01.01.17.37.06.00 are 93.01.01.17.38.02. It turns out that 00 is used to evaluate Abbott and Taylor orders. The Abrahamsons evaluation parameter indicates that Abbott and Taylor's appropriate qualified environment identification number is 26 [1240]. As can be seen from the chart, this identification number is then assigned a commission rate of 1.25% and an annual rate of 10.
It means a discount rate of 00%, a particular set of component product prices, and a particular set of assessed occurrence probabilities. In a process similar to that shown in Example
A contract bid price of 20 (AUD commercial bank units) is obtained, and the calculation of Abrahamsons parameters yields a contractual margin of 4,580 (AUD commercial bank units) [1250].

Looking again at the fifth step of the temporal procedure in conjunction with Chart G6, the evaluation parameters set at 93.01.01.17.37.06.00 and specified by Carpenters are 93.01.0.
It can be seen in 1.17.38.02.00 that it was further used to evaluate Abbott and Taylor's orders. The Carpenters evaluation parameter indicates that the appropriate Abbots and Taylor Limited Environmental Identification Number is 17 [1240]. As you can see from the chart, this identification number is next with a commission rate of 1.30% and an annual rate of 9.80%.
, A discount rate, a set of specific component product prices, and a set of specific assessed occurrence probabilities. This allows
A contract bid price of 53,050 (AUD commercial bank units) is obtained, and the calculation of the Carpenters parameters yields a contract base margin of 5,610 (AUD commercial bank units) [12].
50].

A further look at the fifth step of the temporal procedure, in conjunction with Chart G7, is for determining the admissibility of ordered contracts based on the combined attributes of absolute loss, expected loss, expected value, and highest portfolio. It can be seen that Abrahamsons's rating-related parameters (set to 93.01.01.17.37.06.00) are satisfied by the order of Abbott and Taylor [1604]. According to Abrahamsons' view, the price consideration of Abrahamsons is lower than the price quoted by Carpenters, and Abbott and Taylor are able to identify the order ... (Chart G
An Abbott and Taylor order is eligible for inclusion in the Abrahamsons product / contract portfolio only if it is below the maximum consideration designated and payable under 4).

Finally, looking at the fifth step of the temporal procedure, this time together with Chart G8, the acceptability of contracts ordered based on absolute loss, expected loss, expected value, and highest portfolio composite attribute It can be seen that the parameters related to the Carpenters valuation (set to 93.01.01.17.37.06.00) to determine the are further satisfied by the Abbots & Taylor order. Next, from the perspective of the Carpenters, the price of the consideration price of the Carpenters is lower than the price of the Abrahamsons price, and the price is paid by Abbott and Taylor in order identification (Chart G4). An Abbott and Taylor order is eligible for inclusion in Carpenters' product / contract portfolio only if it is below the maximum consideration prepared.

Looking at the sixth stage of the temporal procedure (order fulfillment), the Abrahamsons 51,920 pricing is:
Carpenters' price below 53,050, 5
The amount of 1,920 is lower than the maximum consideration price of 54,000 specified by Abbott and Taylor. Therefore,
The Abbots and Taylor order is formally completed by Abrahamsons on 93.01.01.17.38.07.00.

Stage 7 of the temporal procedure (order / contract confirmation)
5 seconds later, 93.01.01.17., After the device determined that Abbott and Taylor could (and did) pay the required 51,920 amount of consideration to Abrahamsons immediately. Performed at 38.11.00 [650].

Referring to Stage 8 of the Temporal Procedure (Contract Evaluation) in conjunction with Chart G9, approximately 6 hours after the contract, ie,
Abbott and issued on 93.01.01.23.00.00.00
You can see the contract evaluation report for Taylor. At this point, the PTSE 75 Index's future market value for product value was found to be 1970 (standard deviation of 333), which implies that the above contract is 53,000 (standard deviation of Australian dollar-denominated commercial bank units). Is 2
It can be seen that it has a future expected value of 1,160). From Chart G10, we can see a similar report to Abrahamsons in which the expected payment of future rights required is consistent with Abbott and Taylor's expected receipt of future rights (future future net income on payment / receipt above). Fee payments were ignored).

No. 9 of the temporal procedure detailed in Chart 11
The stage (secondary order identification) is performed approximately 6 months after the above contract evaluation event, that is, at 93.06.06.08.00.00.00. At this time, Abbott and Taylor were 93.01-1.01. ・ 17.3
The status of the contract established / confirmed in 8.11.00 (when the order identification number 915651800 is assigned by the device) is 57,0.
They want to sell at a price better than 00. Shearer & Associates, for its position (in Australian dollar denominated commercial bank deposit units) 60,00
Ready to pay 0. In all other respects, the contract attributes remain unchanged. According to Chart G12,
In the 10th stage of the timeline, the contract is a sharer
It can be seen that the product is being offered for sale at a price of 58,300, which is slightly lower than the maximum purchase price of 60,000 specified by And Associates. This amount is the current best estimate of the future expected value of the contract, with a future expected standard deviation of 10,610 calculated by the instrument using other recent transaction data. Shearer & Associates has officially taken over Abbott &Taylor's position as a stakeholder in the contract.

The eleventh stage (contract evaluation) of the temporal procedure is
Regarding the contract evaluation report issued to Shearer and Associates at 94.01.01.17.00.00.00 after 7 hours (see Chart G13). PTSE at this point
Market index of future product value of 75 index is 180
It is found to be 0 (standard deviation is 283), which shows that the above contract has a future expected value of 162,360 (standard deviation is 35,160) in units of Australian dollar-denominated commercial banks. This indicates that future expected values for Shearer and Associates have increased by 104,060 since the previous evaluation day / hour. The above market assessment of future product value is determined by the device applying a defined composition of the assessed probability of occurrence of contract opponents extracted from the set of all contracts recently established / confirmed by the device. To be judged.

The twelfth step (contract maturity) of the temporal procedure is
Relevant to the actual determination of product value at maturity 94.06.03.17.00..00.00. As can be seen from Chart G14, the PTS
The product value of the E-index was identified by BLC (as a product sponsor) in 1820, and the contract value of 187,200 (in Australian dollar denominated commercial bank deposit units) for Sharer and Associates and the corresponding liability to Abraham Sons. Means The number 1820 represents the actual value of the PTSE stock price index at 94.06.03.17.00.00.00 obtained from a source that BLC can independently match, which is the source of the PTSE stock index product trade. It was disclosed when the sponsorship right of was first expressed.

The fifteenth step of the timeline was to Abrahamsons to Shearer and Associates (in Australian dollar denominated commercial bank savings units) 187,
Related to 200 formal payments (ignoring possible payment of fees by one or both parties).

7. Consideration / Rights Payment Process Description Contract Application Program Consideration / Rights (and related transactions) The purpose of payment / receipt processing is, among other things, to benefit the consideration / rights transfer (or exchange) party at the maturity of the contract, INVENTCO.
To reflect the payment / receipt rights and obligations that arise within
Lending and borrowing to the accounts of NVENTCO stakeholders. In the above process, payment / receipt is performed in two steps. First, based on the actual time, the relevant stakeholder's (data file shadow payment account (PAYACC S
INVENTC with relevant shadow records in HADOW))
Maintain accounts by borrowing / loaning outside of O.
The existing potential payment mechanism is then used to periodically execute the corresponding payment instruction for the payer.
Details of the above mechanism will be described below.

All stakeholders of INVENTCO are
Maintain (at a minimum) two dedicated (net credit debit only) accounts with (at least) one selected VIRPRO certified C / E transferor. The purpose of the dedicated account is INV
This is to ensure that only ENTCO-initiated borrowing and lending is to the account. Thus, the balance of the account record in each shadow payroll file is always C
/ E Must match the true time balance of the actual account maintained by the transferor, which is usually unknown.

The purpose of establishing two accounts is to ensure that only loans are made through one account and only loans are made through the other account. The purpose of a "only net credit debit account" is to ensure that the debt for a debt-only account never exceeds the account's outstanding balance plus the debt accumulated in the dedicated debt account.

C / E movers typically (but need not) have the following six types of public / private record-registries, credit card companies (of typical types): Retail transactions only), commercial banks, central banks, tax authorities, and any / all of the six types of non-bank clearing and depository.

The assets transferred by the above persons may be in any form. However, in the most typical case, a deposit is appropriate for the entity. Public / Private Records-In the case of a registry, it is the deposit of rights (including shares of financial or physical assets, interests in betting, etc.). credit/
In the case of a debit card company, it is a regular card company deposit (in local currency or surrogate currency (eg, SDR) units). In the case of a commercial bank, it is a regular bank deposit (in local or surrogate currency (eg, SDR) units). In the case of a central bank, it is a currency clearing account (or equivalent) deposit. In the case of tax authorities, it is the tax account deposit. In the case of non-bank type bill exchange and depository, it is deposit of property tools, precious metals, etc. The potential counterparty to the contract application program actually provides the loan to the product ordering party (INCENTC.
It may be a C / E transferee as well as an ordering party guarantor (outside O). Moreover, some accounts may have potential counterparties (and product ordering parties) involved in the application requiring the periodic payment of collateral from an independent stakeholder to act as an additional safety device. ) Included in the trust account.

Each day, or sooner after the more frequent transaction processing and associated settlement functions are completed, each C / E transferor shall have a "contribution balance" in the INVENTCO account of all debits and credits he maintains. Electronically notify applicable contract application programs (at this stage, the debit account balance must be zero and the credit account balance must be zero or greater). If the INVENTCO stakeholder has an overdraft or loan with the C / E transferee, the value of the loan is reflected in the non-zero deduction of the credit account at this time.

Upon receipt of the above notification, the applicable contract application program updates / updates the stakeholder's shadow deductions.
Check. Thus, at this point in time, all credit and debit shadow account balances need to be the same as the actual debit and credit account balances.

INVENTCO stakeholder accredited borrowing and lending to INVENTCO stakeholder shadow accounts is based on real-time sequential borrowing and debiting accounts, and lending and lending, throughout the day. Made on account (where "day" may be different for each C / E mover due to the combination of different payer time-region locations regarding the applicable contract application program; Person's account processing cycle may be different).
At any point in time, the Contract Application Program guarantees that the cumulative borrowing balance of each stakeholder debit account does not exceed the "loan balance" plus the cumulative lending balance of the stakeholder credit account. Thus, for each INVENTCO stakeholder, the combination of each stakeholder's debit and credit accounts is, at any given time, two practical, "true", pure, stakeholders maintained outside INVENTCO. Represents the current value of the private account.

Borrowing and lending to the accounts of stakeholders of INVENTCO is made in accordance with strict rules and conditions, and lending and borrowing differ. Lending on the credit accounts of all INVENTCO stakeholders can be made with C / E transferees nominated by other INVENTCO stakeholders for whatever reason. Of course, INVENTCO's stakeholders are unaware of the account details of other interested parties, so the above lending may be made automatically or in accordance with the information and rules known to the applicable contract application program. In some cases, this is done semi-automatically by INVENTCO's stakeholders requesting from VIRPRO the credit account number of the interested parties wishing to transfer the property. This account number is only valid for the nominated period and is typically to the INVENTCO file containing this number rather than the actual account number of the specific stakeholder with the nominated consideration / transferor. Is just a reference mark.

Borrowing, on the other hand, is a stakeholder of INVENTCO with a C / E transferee nominated by the stakeholder himself and other interested parties whose rights are explicitly guaranteed by each stakeholder. Debit account only, the stakeholder needs the other stakeholder to carry out the rights in accordance with the rules and conditions specified for him.

When an INVENTCO stakeholder asks to initiate / certify a loan for an account nominated to him, this is specified by the consideration / transferor (reflected in the VIRPRO specific INVENTCO communication process). Confirmed) and safeguards will be performed only by the interested parties. The types of processing specified by all interest participating C / E transferors include:
Includes (at least) the following types: First, IN
A private file of the Pin number of the account corresponding to each VENTCO stakeholder and a number of possible owner passwords associated with one of the customers handling the appropriate device, as well as initiating the response process. The consideration / transferor who provides the secret "black box" to VIRPRO is
Verify that the remote message received from the customer and processed by the "black box" is genuine.
Second, the consideration / rights transferer is a programmable smart card (or equivalent device) for INVENTCO customers.
To allow each customer to be clearly confident of their identity with an account maintained at INVENTCO remotely via telephone or directly on the computer line, which allows the maximum transaction amount, possible transaction types. , The ability to authorize a loan for that account within a range of predetermined parameters related to factors such as the usage pattern of the account. Third, INVENTCO will provide non-real-time processing when stakeholders grant access to account records, or by utilizing unique time-stamped reference numbers generated accordingly. , C / E provides a mechanism for direct confidential stakeholder communication with the transferee's shadow debit account and a formal update of said account.

Stakeholders of INVENTCO
When ENTCO's other stakeholder authorized to begin borrowing for an account nominated according to some form of continuing authority, it was nominated by a certification-guaranteed stakeholder. It is possible to perform the verification and security procedures specified by the C / E transferee (and reflected in the INVENTCO communication process specified by VIRPRO) satisfactorily and only by the authorized stakeholders themselves. In addition, all the profit participation C
/ E The types of processing specified by the transferor include (at least) the following types: First, C
/ E The transferor is entitled to each of the INVENTCO stakeholder debit accounts and any other INVE certified to borrow (within defined parameters) against the above accounts.
An account Pin corresponding to each of the NTCO stakeholders
Supply the secret file of numbers to VIRPRO. Second
To a VIRP with a similarly secret "black box" that initiates the request-response process for the password of multiple possible owners associated with one of the customers processing the appropriate device.
The C / E mover providing to the RO confirms that the remote message received from the authorized person and processed by the "black box" is authentic. Third, C /
The E-transferee shall receive INVE for distribution to the above-mentioned authorized person.
Provide NTCO's customers with programmable smart cards (or equivalent devices) to remotely ascertain explicitly their identity with each customer's shadow payment account account via telephone or direct computer line. , This provides the ability to authorize a debit for that account (within a range of predetermined parameters related to factors such as maximum transaction amount, possible transaction types, account usage patterns, etc.). Fourth
In addition, INVENTCO provides a mechanism for communicating with a direct secret, authenticated stakeholder C / E transferee's implicit debit account.

At the end of the day (or part of the day) specified by each C / E transferee, the applicable contract application program transfers (at least) two objects to said transferee: First, the request The Contract Application Program, if any, has or communicates with the C / E Transferee's appropriate clearing authority (for each applicable consideration / rights unit, related payment / receipt currency and local currency type). A series of numbers representing the entries in a bill clearing (or equivalent) account. The above numbers are
Represents the balance net borrowing or lending figures corresponding to all aggregates of INVENTCO's customer trading entities up to that date. Second, a detailed file of all customer transactions made that day (corresponding to the above net numbers, if requested). Upon receipt of the above transaction and aggregate figures, the C / E transferor will be able to borrow / lend each transaction to the appropriate real customer account and calculate a new “Hinke” account balance. (The "Hinkeno" balance above must exactly match the end-of-day balance communicated with the customer transaction file by the applicable contract application program). Next, the above-mentioned "hike balance" becomes the "contribution balance" of the C / E mover's account on the next day. The notification processing of the contract application program is repeated.

When applicable, at the end of each day of the "clearing house" (eg, National Central Bank) of a cluster of C / E movers, etc., the Contract Application Program shall associate the net clearing settlement entity. Move to the clearing house. The above entity is
Functions to balance the entry of individual customer accounts transferred individually to each associated C / E transferor.

8. Industrial Applicability The present invention has industrial applicability in the use of electronic computers and data communications. The above apparatus and method enable crisis management to be realized in an automated manner by computer programming. The forms of events related to crisis management equipment and methodologies are of value in the area of economic activity as they involve physical and technological phenomena.

9. Various Aspects of the Present Invention The following aspects can be considered with respect to the above description.

(Item 1) A data processing device including a computer for concluding a crisis management contract with a maturity date in the future between a number of parties concerned, the contract data inputted by the ordering party and the other party. Data storing means for holding the registration data input by the related party side is provided, linked to the data storing means, and data representing at least one application contract relating to at least one predetermined phenomenon on the order related party side, At least one contract data is input, which is data specifying the right given to the ordering party and the consideration given to the counterparty at the time of maturity for the range of possible future results associated with the phenomenon. One ordering party inputting means and at least one other partying party linked to the data storage means, and the ordering party inputting the contract data. Regardless of the probability of each result within the range of possible future results for one or more of the predetermined phenomena, at least one other party-related person input means to which registration data is input and a data storage means Linked,
The contract is priced by calculating the other party's reward from the probability and the right based on the contract data and the registration data, and the contract is competed by comparing the consideration and the other party's reward, and the application contract The data processing device is provided with data processing means for establishing at least one of the parties concerned.

(Item 2) A phenomenon and a range of results related to this phenomenon are input, connected to a data storage means, and this phenomenon is regarded as one of the predetermined phenomena, and a result related to this phenomenon. 2. The data processing device according to claim 1, further comprising at least one other order-related party input means for storing in the data storage means the range of (1) as a range of possible future results for this phenomenon.

(Item 3) Another order-related party input means is configured such that a predetermined maturity is associated with the range of the predetermined phenomenon and the result that can occur in the future, and the contract data and the registration data are Item 3. The data processing device according to Item 2, which is contract data and registration data for a predetermined maturity.

(Item 4) The registration data for each result represents the probability that the result will occur at the time of maturity, and the other party's reward will be multiplied by the probability corresponding to the right and added for the entire range of the result, Item 4. The data processing device according to Item 2 or 3, which is calculated by adjusting to obtain the value of.

(Item 5) The other order-related person input means is
Item 5. The data processing apparatus according to item 4, which is configured to receive update data regarding the result of each phenomenon on the day and send the update data to a data storage unit for recording.

(Item 6) An output means is further provided, and when the contract expires, the data processing means obtains the updated day results of each phenomenon from the data storage means, and grants the right given to the result. Item 6. The data processing apparatus according to Item 5, which judges and sends the right to the output means for exchanging the right between the parties concerned with the order being contested.

(Item 7) The output means is linked to a remote place where the account of the ordering party is using data communication means,
7. The data processing device according to item 6, wherein the data processing means causes a right transaction with an account of each ordering party.

(Item 8) The other order-related party input means is
In the registration data of the other party, the application contract is priced, and the qualification data for qualifying the registration data that can be used to complete the application contract is received, and the qualification data is held in the data storage means. Item 4. The data processing device according to item 4.

(Item 9) The qualification data is input to the other ordering party input means by the guarantor side of the ordering party side and the party side including the financial or organizational policing party side. Item 8. The data processing device according to item 8.

(Item 10) The data processing device according to item 4, wherein the data processing means is configured to compete the application contract only on the basis of the other party's reward which is equal to or less than the consideration.

(Item 11) The data processing according to item 10, wherein the data processing means is configured to establish an application contract with one other party reward selected from among the other party rewards less than the consideration. apparatus.

(Item 12) A credit record and a debit record for exchanging rights are held for each party by an exchange organization, and the data storage means is a temporary credit record and a temporary debit record for each party. The data processing means obtains a temporary credit record and a deduction record at the beginning of the day relating to the temporary debit record, and for each transaction that causes an exchange liability, a corresponding temporary credit record or temporary debit record. Are arranged in the order in which the transactions occur, and are only configured to allow only those transactions in which the value of the temporary credit record does not become less than the value of the temporary debit record at any time, the data processing means further comprising: ,
In accordance with the permitted liquidation of the transaction, transfer the post-transaction credit or debit, which is an irrevocable and time-invariant debt owed to the above-mentioned exchange, to the debit record and credit record of the respective parties. Item 5. The data processing device according to Item 4, which is configured to instruct the exchange organization.

(Item 13) The data processing device according to item 1, wherein when the application contract is established, the data processing means sends the established contract to the data storage means for recording.

(Item 14) The data processing device according to item 13, further comprising output means for generating a confirmation document for the parties concerned with respect to the contract that has been concluded.

(Item 15) The data processing apparatus according to item 1, further comprising a second partner related person input means capable of inputting registration data on the side of the second partner related person.

(Item 16) A plurality of main data processing devices interconnected by at least one data communication link to execute an operating system and application software, and at least one data storage device accessed by each main data processing device, A plurality of data input / output channels for connecting to a plurality of parties provided with data processing means, wherein the data input / output channels are
Crisis phenomena, the range of possible consequences for a phenomenon, and the data processing means provided on the ordering party side, adjusting the input of data specifying the maturity, can occur for one of the predetermined phenomena. Regarding the application contract that specifies the right given at maturity of each result within the range of the result and the amount payable to the seller, the contract data input by the ordering party is supplied to the data storage device, and the other party The data processing means provided on the related party side, with respect to the probability of occurrence of each result within the range of possible results for at least one predetermined phenomenon, irrespective of the contract data input on the ordering party side, The registration data input on the side of the other party is supplied to the data storage device, and the main data processing device receives at least one application contract from the seller's registration data for each application contract. By selecting registration data for the elephant, calculating the other party's reward according to the specified right for each result within the range of possible outcomes for the phenomenon, and comparing the calculated other party's reward with the consideration Price the
A system for concluding a crisis management contract between multiple parties in which contracts are competed and an application contract is concluded with at least one other party.

(Item 17) Output means are provided for the data processing means on the side of the parties concerned, and when the contract is established, the confirmation certificate is output in the form of data or document to the respective output means for the parties concerned on the side of the contract. Item 16. The system according to Item 16.

(Item 18) A method for concluding a risk management contract with a maturity date in the future between multiple parties by means of a data processing device, wherein at least one order-related party input means on the order-related party side (A) supplying contract data to the data processing device, the contract data representing at least one application contract relating to at least one predetermined phenomenon associated with the range of possible future results, which is input using the step (a). One or more of the predetermined phenomenon regardless of the rights given to the ordering party at the time of maturity and the contractual data of the ordering party specifying the consideration given to the counterparty for the range of possible outcomes With respect to the probability of each result within the range of possible results in the future, the partner-related party input using at least one partner-related party input means on the partner-related party side Step (b) of supplying the registration data of the contract data and the registration data to the data processing device, and holding the contract data and the registration data by the data storage device of the data processing device connected to the order related person input means and the partner related person input means. Step (c), and a step (d) in which the data processing means of the data processing device establishes a price for at least one application contract based on the contract data and the registration data held in the data storage means (d). ) And the step (d) of establishing a price for the application contract and establishing the price, the step (I) of calculating the probability and the other party's reward obtained from the right for each application contract, and the consideration. Comparing the other party's reward (I
I) and the step (III) of establishing a contract based on the result of comparing the consideration and the other party's reward.

(Item 19) Before the step (a) of supplying the contract data to the data processing device, data of a predetermined phenomenon and a range of related results to the data processing device from at least one other ordering party input means. Item 19. The method according to Item 18, further comprising the step of supplying (aa).

(Item 20) In the step (aa) of supplying the data of the range of the predetermined phenomenon and the related result, the data including the predetermined maturity for each of the range of the predetermined phenomenon and the related result is supplied. The method described.

(Item 21) The registration data for each result expresses the probability of the result occurring at maturity, and in the step (I) of calculating the reward on the other side, the product of the probability corresponding to the elemental right of each result is calculated. Item 20. Compute the opponent's reward by calculating and summing the products over the range of the result and adjusting the sum to obtain at least the value of the day to obtain the opponent's reward, Item 20 the method of.

(Item 22) After the step (d) of pricing and establishing the application contract, the other party related party who can be used to price the application contract by the other order party input means described above. 22. The method according to Item 21, further comprising a step (h) of inputting entitlement data attached to the data.

(Item 23) The method according to item 21, wherein the step (III) of establishing the contract is executed in consideration of only the reward on the other side of the consideration.

(Item 24) The method according to item 23, wherein in the step (III) of establishing the contract, the contract is established with one partner's reward selected from the rewards less than or equal to the consideration.

(Item 25) After the step (d) of establishing and applying the price to the application contract, the step of supplying the data representing the result of each phenomenon on the day to the data processing device by the other ordering party input means. Item 19. The method according to Item 18, further comprising (e).

(Item 26) After the step (e) of supplying the data representing the result of each day of the above-mentioned phenomenon to the data processing device, the step (f) of calculating the right to the updated result of the day at the time of maturity, 26. The method according to Item 25, further comprising a step (g) of exchanging the right between the parties involved in the competition.

(Item 27) After the step (d) of establishing and applying a price to the applied contract and before the maturity, one related party of the contract that has been established and another related party who exchanged the consideration for the consideration. When an application for debt underwriting is made to one of the parties, and the other party to the contract that has been concluded has received approval to underwrite the debt and exchange the consideration, the other party is to Item 20. The method according to Item 18 or 19, further comprising step (m), which becomes a stakeholder side regarding the contract that has been concluded instead of the side.

(Item 28) The credit record and the debit record for exchanging the right with respect to the respective parties are held by the exchanging organization, and after the step (d) of pricing and establishing the application contract, the data processing device is (I) creating a temporary credit record and a temporary debit record for each party to be held by the data processing device separately from the exchange institution, and the data processing device provides a temporary credit record from the exchange institution. And a step (j) of obtaining a deduction account at the beginning of the day for the provisional debit record, and the data processing device, for each transaction incurring an exchange liability, the provisional credit record or provisional debit record in chronological order. And (k) permitting only transactions in which the value of the temporary credit record does not become smaller than the value of the temporary debit record at any time, the data processing device at the end of the day Of allowed transactions In accordance with the liquidation, the exchange institution should transfer the post-transaction credit or debit account, which is an irrevocable and time-invariant debt owed to the exchange, to the above-mentioned credit record and debit record of the respective parties. 19. The method of claim 18, comprising the step (l) of directing to one of

(Item 29) The instruction issued at the end of the day represents the net credit and debit accounts of all parties on the day for all transactions on the day.
The method described.

(Item 30) Item 18 further comprising a step (n) of supplying and storing the contract established by the data processing device to the data storage means, after the step (d) of pricing the application contract and establishing it. The method described.

(Item 31) After the step (n) of supplying and storing the established contract to the data storage means, a step (o) of creating a confirmation document for each party side for each of the established contracts is further performed. 31. The method according to Item 30, which has.

(Item 32) A method for constructing a computer system for concluding a crisis management contract that will expire on a future date between a number of parties concerned, comprising at least one ordering party data input means and at least one ordering party data input means. Interconnecting one other party data input means with the data storage means, interconnecting the data storage means with the data processing means, and interconnecting the data processing means with the output means. In the data processing means, each phenomenon includes a range of possible future results, and the contract data includes the future maturity, the right given to each result within the range of possible results, and the related party. If the consideration that can be paid to the side is included, the input data on the side of the ordering party, which is contract data expressing at least one application contract that specifies a predetermined phenomenon, is input. Regardless of the ordering party input data received and accepted, the registration data of the other party concerned is accepted for the probability of each result within the range of possible future results for one or more phenomena, and the predetermined phenomenon is received. Each contract is priced by selecting registration data corresponding to the maturity, calculating the other party's remuneration from the rights and probabilities contained in the registration data, and paying for the application contract to compete with at least one other party. The method further comprising executing a program for establishing a contract by comparing the other party's reward with the other party, and outputting confirmation data or a document for each contract that has been established.

(Item 33) A method for exchanging a debt between parties concerned, wherein a credit record and a debit record for exchanging a predetermined debt in a data processing device are held by a party concerned. (A) creating a temporary credit record and a temporary debit record on the side of each party on the data recording device, which should be held separately by the supervisory institution of the data processing device, and a temporary credit record from each exchange. And (b) obtaining the first day's deduction account for provisional debit records and storing it in a data storage device, and for each transaction that results in an exchange liability, a provisional credit record or provisional debit in chronological order. Clearing the records and allowing only transactions in which the value of the tentative credit record is not less than the value of the tentative debit record at any time (c), and at the end of the day Depending on the liquidation, the above exchange To one of the exchanges to transfer the post-transaction credit or debit account, which is an irrevocable, time-invariant debt owed to the exchange, to the credit and debit records of the respective parties. The step (d) of instructing,
A method having.

34. The method of claim 33, wherein the instructions issued at the end of the day represent the net credit and debit accounts throughout the day for each party for all transactions of the day.

(Item 35) A data processing system for concluding a crisis management contract among a number of parties concerned, which is data expressing at least one application contract for at least one predetermined phenomenon on the order party side. There is at least one ordering party input means to which contract data is input, which is data designating the right given to the ordering party side at the time of maturity with respect to the range of possible future results associated with the phenomenon. And at least one other party,
Regardless of the ordering party input with the contract data, at least one partner-related party input means for inputting registration data for one or more of the predetermined phenomena, and the ordering party input Means and the partner related person input means, and a data storage means for holding the contract data and the registration data, and a data storage means linked to the data storage means, and based on the contract data and the registration data, a phenomenon of the contract data The contract is priced by calculating the other party's reward obtained from the registration data related to, and the application contract is made with at least one of the other party's parties by comparing the other party's rewards. A data processing means for establishing
A data processing system having.

(Item 36) A data processing system for concluding a crisis management contract between potential multiple parties, wherein the ordering party expresses at least one application contract relating to at least one predetermined phenomenon. At least one ordering party input to which contract data is input, which is data that specifies the right given to the ordering party at maturity for the range of possible future results associated with the phenomenon. Means and at least one other party to whom the registration data is input for one or more of the predetermined phenomena, regardless of the ordering party who inputs the contract data. Related person input means,
Based on the contract data and the registration data, a data storage unit that is linked to the order-related party input unit and the partner-related party input unit, and holds the contract data and the registration data, and the data storage unit. , A data processing means for pricing the contract by calculating the other party's reward obtained from the registration data related to the phenomenon of the contract data.

(Item 37) A data processing system for concluding a crisis management contract between a number of parties concerned, which is data representing at least one application contract for at least one predetermined phenomenon on the order party side. And at least one ordering party input means to which contract data is input, which is data designating the right given to the ordering party side at the time of maturity for the range of possible future results associated with the phenomenon. , At least one other party to whom the registration data is input for one or more of the predetermined phenomena, regardless of the ordering party who inputs the contract data. Input means, data storage means linked to the order related person input means and the partner related person input means, and holding the contract data and the registration data, and data storage means Is priced to the contract by calculating, based on the contract data and the registration data, the other party's reward obtained from the registration data related to the phenomenon of the contract data, for each range of the result, Data processing means for establishing an application contract with at least one of the partner parties by comparing the other party's rewards for each result within the range over the entire range. , A data processing system having.

(Item 38) A data processing system for concluding a crisis management contract between a number of parties concerned, which is data representing at least one application contract for at least one predetermined phenomenon on the order party side. And at least one ordering party input means to which contract data is input, which is data designating a right given to the ordering party at maturity for a range of possible future results associated with the phenomenon, At least one partner-related party inputting registration data for at least one of the predetermined phenomena regardless of the ordering party-side who inputs the contract data by at least one partner-related party Means, a data storage means linked to the order-related party input means and the partner-related party input means, and holding the contract data and the registration data, and a data storage means. Contract by dividing the right into an integral number of components based on the contract data and the registration data, and calculating, for each component, the other party's reward obtained from the registration data related to the phenomenon of contract data Data processing means for establishing an application contract with at least one of the partner parties by pricing each component and comparing the other party's rewards for each component. .

(Item 39) A data processing system for concluding a crisis management contract between a number of parties concerned, which is data expressing at least one application contract for at least one predetermined phenomenon on the order party side. Yes, at least one ordering party input means to which contract data is input, which is data specifying the right given to the ordering party side at maturity for the range of possible future results associated with the phenomenon, At least one partner-related party inputting registration data for at least one of the predetermined phenomena regardless of the ordering party-side who inputs the contract data by at least one partner-related party Means, data storage means linked to the order-related party input means and the partner-related party input means, and holding the contract data and the registration data, and a data storage means. By evaluating the contract by calculating the counterparty reward obtained from the registered data linked to the contract data and the registration data and related to the phenomenon of the contract data, and by comparing the counterparty reward. It is established by establishing an application contract with at least one of the other parties concerned and calculating the other party's reward obtained from at least part of the registration data related to the phenomenon of the agreement. And a data processing means for periodically re-evaluating the order data of the contract.

(Item 40) A data processing means (20), a data storage means (95, 100; 110), a data input means (51), and a data output means (51, 52) are provided, and a large number of persons concerned are involved. A computer device capable of participating in a contract for a future event including a quantifiable result to be obtained, the data storage means comprising:
An event definition interface (E2, E3; F2;) that allows the data input means (51) to be used to enter event data into the storage means which defines future events with a large number of possible quantifiable results. F3; G2, G3)
And storing the means for defining the future event, the future event being user-definable, thereby allowing the user to place the computing device in a state of processing data related to the future event selected by the user. The data storage means can be set by the first party to a potential contract to use the data input means (51) to create a plurality of possible quantifications of the event defined by the event data. Enabling selection of first data defining a defined result and a first input data including a plurality of first quantities associated with each quantified result defined by the first data First user input interface (E4; F4;
G4) and the data storage means is quantified by the second party to the potential contract using the data input means (51) to define a plurality of possible quantifications by the event data. Enabling selection of a second data defining a result and a second input data including a plurality of second quantities defined by the second data and associated with each possible quantified result The second user input interface (E5; F5; G5) is stored, and the evaluation amount of the possibility of occurrence of the result corresponding to each of the second quantities is the second
Of the second quantity, the evaluation quantity is associated with each of the second quantities, and the data storage means generates the output data related to the potential contract and the first quantity and Means for processing said second quantity (93; 97; 10)
A computer device storing 4).

(Item 41) A communication device, which allows a first party and a second party to participate in a contract relating to a large number of possible quantifiable future events, comprising a data processing means ( 20), data storage means (95; 100;
110), a first terminal (51) including a data input means (51) and a data output means (51, 52) is provided,
Said data storage means is a first party to a potential contract defining a plurality of possible quantified outcomes of an event using said data input means (51), and A first user input interface (E4; F4; G4) enabling selection of first input data including a plurality of first quantities associated with each quantified result defined by the first data. Data processing means (20) and data storage means (95; 100; 11)
0), data input means (51) and data output means (5)
A second terminal (51) including a data storage means is provided by the second party to the potential contract and the first input data is stored by the second party using the data input means. Second data defining a plurality of possible quantified outcomes of the event involved, and a plurality of second associated with each of the possible quantified outcomes defined by the second data. A second user input interface (E5; F) allowing selection of second input data including quantity
5; G5) is stored, and the evaluation amount of the possibility that a result corresponding to each of the second quantities may occur can be determined by the second party, and the evaluation amount of each of the second quantities can be determined. Processing the first quantity and the second quantity to obtain a numerical value from the first quantity and the second quantity that are related, and depending on the obtained numerical value, a potential contract A communication device, further comprising means (20) for generating a command that produces related output data.

(Item 42) The data storage means uses the data input means to store data that defines a future event having a large number of possible quantifiable results.
Storing means for defining an event definition interface (E2, E3; F2; F3; G2, G3) allowing input to said storage means, said first user input interface being stored in said data storage means Adapted to select the first data defining a plurality of possible outcomes from the data defining a future event having a large number of possible quantifiable outcomes, the second user input interface A term adapted to select the second data defining a plurality of possible outcomes from data defining a future event having a number of possible quantifiable outcomes stored in the data storage means. 41. The communication device according to item 41.

(Item 43) The second user input interface operates so as to enable multiple selection of the second input data, and means (20) for processing the first quantity and the second quantity. ) Processing a second quantity of the plurality of selected second input data with the first quantity to derive a numerical value from the plurality of selected second input data, 43. The computer device according to claim 40, or the communication device according to claim 41 or 42, which is adapted to generate output data according to the derived numerical value.

(Item 44) The means for processing the first quantity and the second quantity may be configured to select the second selected plurality based on the comparison of the numerical values derived from the second input data. Item 44. The computer device or the communication device according to Item 43, which is adapted to select one second input data from the input data.

(Item 45) The computer device according to item 44, wherein the second user input interface further includes identification information generating means for generating identification data for identifying a person who has selected the second input data. Communication device.

(Item 46) The means for processing the first quantity and the second quantity identify the numerical value derived by the means for processing and the party who has selected the second input data. 46. The computer device or the communication device according to Item 45, which operates to generate output data based on the identification data.

(Item 47) The first user input interface is adapted to allow entry of participant constraint data, and means (2) for processing the first quantity and the second quantity.
0) compares the participant constraint data with the identification data,
The second associated with the identification data based on the result of the comparison.
47. A computer device or communication device according to clause 45 or 46, adapted to determine whether to process a plurality of second quantities of the input data of.

(Item 48) The means (20) for processing the first quantity and the second quantity may include a first quantity associated with a possible quantified result by the first data, Multiplying a second quantity associated with the same possible quantified result by the second data, the first quantity
40. Any one of terms 40 to 47 adapted to derive a numerical value by obtaining the sum of products obtained by multiplication for each possible quantified result defined by the data in The computer device or the communication device described in the above.

(Item 49) The first user input interface further has means for inputting related party identification data related to the first related party, and the second user input interface includes a discount rate and a fee. Means (2) for processing the first quantity and the second quantity, further comprising means for inputting a rate.
0) is adapted to derive the numerical value from the first quantity and the second quantity according to the discount rate and the commission rate associated with the party identification data related to the first input data. The computer device or the communication device according to any one of items 40 to 48.

(Item 50) The first user input interface operates to input numerical constraint data,
Means for processing the first quantity and the second quantity (209)
Is adapted to generate output data based on a result of comparing the numerical constraint data with the numerical value derived by processing the first quantity and the second quantity. 50. The computer device or communication device according to any one of claims 49 to 49.

(Item 51) The means (20) for processing the first quantity and the second quantity relates the numerical value processed according to the discount rate and the commission rate to the potential contract. Item 49, adapted to control the data output means (51, 52) for display as price information.
The computer device or the communication device described in the above.

(Item 52) The first user input interface operates so as to input numerical constraint data,
Means (20) for processing the first quantity and the second quantity
Is adapted to generate output data based on a result of comparing the numerical constraint data with the numerical value derived by processing the first quantity and the second quantity, and Means for processing the quantity and the second quantity (20)
Is the data output so as to output the numerical value processed by the discount rate and the commission rate depending on the relative value of the numerical constraint data and the processed first quantity and the second quantity. Item 4 adapted for controlling the means (51)
9. The computer device or the communication device according to item 9 (item 50 depending on item 49).

(Item 53) The data storage means (95, 1)
00, 110) is adapted to hold account data for each party, and means (20) for processing the first quantity and the second quantity are configured from the first data and the second data. 53. The computer device or the communication device according to any one of items 40 to 52, wherein the accounting data is updated according to the derived numerical value.

(Item 54) The first user input interface and the second user input interface have respective confirmation means, and the means (20) for processing the first quantity and the second quantity is The computer device or the communication device according to Item 53, which is adapted to update the account data according to the derived numerical value only when receiving a confirmation input from the confirmation means.

(Item 55) Means (2) for processing the first quantity and the second quantity, further comprising means for inputting a result of an event in which a large number of quantifiable results may occur.
0) The computer device or the communication device of paragraph 53 or 54, wherein 0) is adapted to update the billing data according to a first quantity associated with the result.

[Appendix A] Key glossary A. Alpha (X) The value of the situation specified by the ordering party is the contract right payment (profit) inflection point of the Xth future product situation value inflection point Application Promoter (Applicant) Apply for trading Defined products under defined contract application programs, including: stakeholder categories and stakeholder terms and conditions; stakeholder accumulation and stakeholder dispute resolution nature. Persons authorized by VIRPRO to identify and manage rules and regulations Automatic / manual deal and no deal flags Notified Contract Application Program by each stakeholder,
An indicator that specifies how interested parties wish to transact with other interested parties AXSCO Communication coordination and safety equipment linked to all interested parties and component applications B. Base Pricing probabilities Set by seller for unit rights payments on the contract at consideration / rights specified in the contract, future currency and possibly future index values in local currency units Price Beta (X) (Beta (X)) Desired unit of contract interest (payment), expressed in local currency of contract interest (payment) corresponding to the inflection point of the Xth event value Bilateral Payments Netting indicator Identified desired interest income (payment) amount of the involved parties Participant'fluctuating 'net of payment / receipt fees between all pairs of participating stakeholders Bilateral Payments Netting indicator Bilateral Payments Netting indicator The net total payment / receipt at the end of each day between the participating INVENTCO stakeholder pairs. That index Commission rate (commission rate) ordering party of seeking more than the "no income" bid price of the order potential minimum required percent profit difference, which is required by the counterparty Consideration / Entitlement Transfer Entity (consideration /
Transferee of rights VIRP, who can meet the limited minimum level of financial strength, lending qualifications, and integrity and can maintain the consideration / rights account for interested parties and transfer the above assets according to the instructions.
RO and authorized person for applicant CONTRACT APP stakeholder types Expected stakeholder types are applicant himself, product sponsor, product ordering party, and opponent party. , Counter party guarantors, crackers, consideration / transferors, and a variety of other parties. Contract and Product “absolute loss” limit A potential counter prepared to maintain a contract / product independent of a particular level of likelihood assessment that may result in loss. Contract and Product “expected loss” limit specified by the parties Contract and Product “expected loss” limit of the likelihood of all levels of potential loss to the counterparty. Maximum Expected Loss Value Limits Specified by Potential Opponents Prepared to Maintain Contracts / Products Based on Assessment Contract Authorisation A process to check whether it contains appropriate data and whether it has been accurately confirmed and certified by the ordering party Contract Collateralisation indicator (contract collateral indicator) Whether and when it is required to transfer assets / monetary (collateral) to an independent trust fund on a regular basis in order to guarantee that the obligation to pay the incumbent rights can be settled. Descriptor set by the applicant himself specifying what is the basis Contract Confirmation Relevant consideration by either automatic or manual authorization / required product consideration of the ordering party by the rights transferor and A process that guarantees a positive agreement of all affected stakeholders to the purchaser of the purchase, including approving the ability to pay fees Contract Matching Ordering Party / Potential Counterparty See establishment process Contractual Obligation a. One person (or group) has agreed on the amount of product,
Liability for providing products, services or information to another person (or group) in exchange for services or information b. The entity of the network, the general-purpose management device, to allow the restriction of activities imposed by other persons who are designated as conditions for participating in at least one component device and who have been given other authority based on an agreed relationship V
IRPRO and mutual binding liability Contract portfolio Netting Bilateral or multilateral debt rights to pay future payments between ordering parties and counterparties “offset” or “as net income” The term used to describe the "get" process Currency and National Currency exchange rates Converting contract consideration / rights currency and local currency requirements into product consideration / rights currency and local currency units The rate used to Deal flag An indicator or "flag" that is communicated to the contract application program that indicates that you are a stakeholder who is satisfied with the unconditional agreement with the other party who has the flag set. Defined Circumstances Environment) Providing products provided by ordering parties-possible combinations of categories of ordering information Defined Probability Distributions At least probability distribution-type indicators specified by ordering parties and expected distributions. Value, standard deviation of distribution, and set of evaluation probability parameters including probability distribution adjustment value or function Desired Currency Denomination of Contract Entitlem
ent (desired currency unit of contract right) Desired Currency Denomination of Consideration Pay
ment (desired currency unit for consideration payment) A term indicating the currency of consideration that the ordering party wishes to pay as the necessary consideration for the contract requested.
Entitlement (Desired National currency Denomination of Consider) A term indicating the local currency of the potential payment of rights that the ordering party wishes to receive from the contract requested by the ordering party.
ation Payment A term indicating the local currency of consideration that the ordering party wishes to pay as the necessary consideration for the contract requested by the ordering party. Discount rate A potential future party's expected future right. The rate used to determine the current value of E. Entitlememt A payment expected by a presenting party at a maturity as specified for each outcome within the outcome. Payments may be both positive and negative values over the range of results and may be money or non-monetary forms of goods, services, promises, credit or guarantees. EV-CE evaluation (EV-CE evaluation) "Certainty of expected value equivalent to evaluation" means that it is obtained by calculation of present expected value or future contract value1.
Price detection mechanism for the next contract Expected Value The profit / payment amount of all possible contract rights and the order-related party / opposition relationship of the probability of occurrence of future situations that contractually causes the payment amount of the above rights. EV, which means the sum of products of assessors
-CE evaluation function Expected value limits on a Counterparty's aggregat
e product portfolio (limit of expected value on total product portfolio of counterparty) “Equivalent maturity date”; potential at any time specified for “maturity date of same month” and “all possible maturity dates” The maximum value of the total expected loss of the counterparty's total product portfolio that can be accounted for by the product expected loss limit and the expected loss on individual contracts / products (and , In some cases minimum)
Including ratio. G. Gamma (X) The alpha (1), beta (1) and alpha (2), beta that the ordering party corresponds to so that gamma represents all possible mathematically definable forms. The desired function form I.I. I-INVENTCO INVENTCO FOUNDATION COMPONENT INVENTCO At least one (possibly interrelated), which is a combination of telecommunications, computing and other forms of infrastructure and a number of market and support services arranged by the infrastructure. Device set M. M-INVENTCO VIRPRO certified “market” application software repository Manual deal flag A stakeholder informs the contract application program that the stakeholder has another interest in the flagged party. Indicator or "flag" that indicates that the person wishes to manually authenticate the agreements involved Multilateral Payments Netting indicator Benefits Participants and third party management identified / Net profit from individual end-of-day total payments / receipts between liquidators Multilateral Obligations Netting indicator Benefits Participants and third party management identified / cleared Future payments / receipts among the individual net profits from individual “fluctuating” net present values Negative Contract Payoffs Contract type where the contract ordering party has the incidental interests of the potential counterparty of the contract (ie, the reverse of the regular contract) No Deal flag Interest An indicator or "flag" O.I. that the interested party is notified to the contract application program and indicates that the interested party has no intention of making an agreement with another interested party of the flagged party. Ordering party Contingent Claims Function Identification of product payment or mathematical function for calculating order party's product payment request P. Portfolio Product “expected loss” limit Potential opponents to maintain a product portfolio based on an assessment of all levels of likelihood that a counterparty may lose. Limiting the value specified by the potential opponent of the maximum expected loss prepared by Product Ordering Party interested in contract application program products and can obtain contract application program products, VIRPRO Applicant authorized person Product Establishment date / time Product applicant date / time at which the applicant initially provides a limited product for trading. Product future event value “density” indicator Future Situation Value "Indicator of Density") The minimum and maximum future situation product definition values specified for the product by the applicant / product sponsor. A product event value “width” indicator that identifies the number of intermediate points between the values of future events as provided by the product as set by the applicant / product sponsor. A measure that identifies the range (minimum-maximum) of a product future event value A term used to describe the actual value of a limited product at maturity date / hour Product Maturity date / time (Product maturity date / hour) Date and time when the applicant is required to determine the value of the actual situation in order to make payment related to the contractual rights that have been concluded Product Price Quote requests The process is stopped and results are communicated to the ordering party when the desired pricing or range of pricing is obtained. One type of product purchase order: Product Purchase Orders Product purchase orders with three types of automatic orders, manual orders, and "hidden" orders for the establishment of active counter parties Product Purchase Order withdrawals A request issued by an ordering party to stop the processing of an unidentified product purchase order. Product potential Counterparty Approved by VIRPRO and the applicant, of financial strength, lending qualifications and integrity. Those who apply for a contract application program limited to the product order stakeholder and above the limited minimum level. Product Sponsor A product approved by VIRPRO and the applicant himself / herself and including a continuous judgment of product value over time. Person responsible for defining parameters in detail. Regulator A person who is VIRPRO certified and has at least one contract application program local, state, national or international jurisdiction. Set of Pricing Probabilities Potential countermeasures, identified by the value of "limited environment" and applied to all feasible future product events defined by the applicant for the product. Range of probabilities that a party applies to the ordering party's order class Stakeholder At least one participant registered in the INVENTCO component part V. Value Dates Each day / hour at which the contract price and rights established were agreed to be contracted by the relevant ordering party / opponent party VIRPRO INVENTCO's network and general manager component X. “X” A term that indicates the number of contract payment (profit) inflection points (including extreme points) that the ordering party requires within the allowable range of the value of future product situations [Appendix B] CONTRACT APPS (Contract application program) ) Overview Contract application program is INVENTCO device (M-
INVENTCO's "market" software may (but need not) be in the repository
A term that refers to some form of application software. The purpose of each contract application program is twofold, and firstly, INVENTCO as having a legitimate interest in the interests of participating parties and related parties and the nature, size and composition of the above trade / exchange / transfer. Conducting the sale / exchange / transfer of crisis avoidance contracts (and derivatives of those contracts) between opponents authorized by others registered within. Second
First, all managed / confirmed contracts are properly managed until the maturity date including final settlement.

Each contract application program performs the above tasks according to the specific rules defined and implemented by the contract application stakeholder. The contract application program effectively resides on AXSCO and in M-INVENTCO.

Stakeholder Types Contract application programs may include the following eight (and sometimes less) general types of “unique” (other IN
Retains stakeholders (distinguished from those of VENTCO). The above eight types include the applicant, the product sponsor, the product ordering party, the potential product counter party, the counter party guarantor, the crackdowner, the consideration / transferor, and others. And various parties involved in.

Explaining the above stakeholders in some detail below, the applicant himself is the person who is entirely responsible for the functioning of the Contract Application Program (which responsibility is guaranteed by VIRPRO). The Product Sponsor is the person who promotes and governs the rules of trading and then manages the limited contingent claims that contract the product selected by the applicant for inclusion in the Contract Application Program. A product ordering party is a person who seeks to obtain a product of the contract application program from a potential product countering party (the product ordering party may be a product countering party). Potential product stakeholders are
A person who potentially prepares the product needs of the contract application program of the product ordering party (the potential product relationship opponent may be the product ordering party). The counterparty guarantor is
It is a person who guarantees the ability of a product relationship opponent to settle any / all of the potential contract transfer obligations to the product ordering party, and the product relationship opponent has the contract application program “established”.
As a result, the person becomes a counterpart of the person who ordered the product. The crackdowner oversees the ongoing conduct of all other interested parties involved in the contract application program, especially the counterparty guarantor. Consideration / transferor is the consideration required by all other contract application stakeholders.
A person who maintains an "account" to transfer rights to and from all other parties. The various parties are all others with a limited interest in the functionality of the contract application program.

[0209] For various parties, the applicant or the product sponsor obtains the net profit of diversified debts and payments with the independent person who is undertaken to formally determine the "value" of the product at the maturity date. Trustee / settler organization, independent (not law enforcement) taxation and other administrative authorities, and electronic "gateway" providers (outside INVENTCO)
And the organization of the host device (for contract application programs on INVENTCO devices linked to a common host device). There is no limit to the number of unique stakeholders a contract application program can accommodate in each of the above general types.

The product type contract application program is the "product type" of the crisis avoidance contract.
Give any combination of the values of many attributes. Among the numerous attributes above are the basic nature / purpose of the product, the date of establishment / maturity of the product, the unit type of consideration / rights, currency (if applicable) and local currency (if applicable). Included are consideration / rights identifiers associated with the product, "width" and "density" identifiers of the possible future value of the product, and descriptors for various other products.

[0211] The "basic property / purpose of product" attribute may incorporate an identifier including a temporary right payment scale identifier, a market identifier, a secondary market identifier, and a market type identifier.
The "provisional rights payment scale identifier" specifies a scale number for the temporary payment of required rights of the ordering party. Market identifiers determine whether a product is associated with “actual” or “probable” phenomena, the number of such phenomena (if applicable), and the category of applicable phenomena (eg, industrial, scientific). And financial market connections).
The secondary market identifier gives a more specific descriptor for the product. The market type identifier can be (eg, “predetermined contract maturity date / hour”, “at a specific time before contract maturity date / hour”).
And / or any future value of the future period applicable (eg, an indicator of some relevant value of the phenomenon (spot value, mean, etc.), or some value of the phenomenon) It is not limited as long as it is something like a “rate of change” indicator) and identifies the type of relevant future situation.

[0212] The "product establishment / maturity date and time" attribute is the date / hour when the applicant himself / herself first applied to buy or sell the product, and the date / time when the predetermined product expires (that is, the transfer of contract rights is carried out). Specify the date / hour at which the product sponsor will be required to determine the value of the actual situation so that it can be done.

The “Price / Rights Unit Type, Currency (if applicable) and Domestic Currency (if applicable) Product-Related Price / Rights Identifier” attribute has the following types:
The type of consideration / rights (which may include interests and rights, physical assets, and all possible types of “money”) and, in the case of “monetary” consideration / rights type, the consideration / rights currency (this Currency types include public / private record depository deposits, commercial credit card company deposits, commercial bank deposits, central bank deposits, tax authority deposits, non-bank clearing house deposits and depositary deposits, etc. There is)
In the case of a "money" consideration / rights type, a consideration / rights local currency identifier (which may be in any national currency or in the form of a synthetic currency) is identified.

The "width" and "density" identifiers of possible future value of the product attributes are the minimum and maximum values of the acceptable range of future future value provided by the product, respectively. Identify the number of midpoints between the given minimum and maximum future events provided by the product.

[0215] The "descriptors of various other products" attribute specifies the product for which the applicant of the problem has approved the degree of access by the interested party and the form of the trading service by the applicant of the problem. Approved products (This product attribute is the contract portfolio net profit, contract collateral, consideration loan amount, possibility of designation of negative contract rights of ordering parties,
Derivative market identifying the accessibility of the product to the range of "stakeholder services" feasible with respect to such things as the effectiveness of buying or selling the product) by the applicant in question,
It is like a product with a specified degree of "transparency" for clearing and settlement.

[Transaction Type] Primary, Secondary, Derivative 1
Next, the scope of derivative secondary crisis avoidance contract transactions is accommodated by the contract application program.

"First order" (and derivative first order (eg,
Options)) Crisis Avoidance Contract Transaction Types (mainly handled by Processes 2 and 4 set forth in Appendix C) are ordered by Ordering Parties seeking Ordering Participant's "establishment" And optional orders)
And ordering party price quote (and option price quote) requests and ordering party existing product order cancellations (and option cancellations on product orders). An automatic order is an order in which (the ordering party is an order that is ready to be automatically fulfilled, even if the interested parties of other contract application programs have previously specified the conditions of "fulfilling". An ordering party is automatically ordered when there is no stakeholder in the contract application program (which is an order subject only to the constraints specified in the party's order) and a contract application program that requires manual authorization of transactions. Orders that are ready to be fulfilled, even if the stakeholders of other contract application programs have already specified the conditions for "fulfillment", only the constraints specified in the orders of the ordering parties By doing so, it is possible to potentially qualify ordering parties). Manual orders are ordered (the ordering party requires manual approval before the order is finally approved, i.e. the contract is "confirmed" after the "confirmation" of the counterparty has taken place. Before
Stakeholders of other contract application programs "win"
There is no stakeholder in the regular manual order (only subject to the restrictions set by the ordering party's order) and the contract application program (manually authorizing the transaction), even if the conditions of In some cases, the ordering party may require manual approval before the order is finally approved, i.e.
The contract is "confirmed" after the opponent's "establishment" has been implemented.
Even if the stakeholder of the other contract application program specifies the condition of "establishment" in advance, it is only subject to the restrictions specified in the order of the ordering party, and by doing so, Potentially authorized ordering parties) Anonymous manual orders.

"Secondary" (and derivative secondary (eg
Options)) Crisis Avoidance Contract Transaction Types (covered primarily by Processes 3 and 5 set out in Appendix B) range to the specified “Crisis Counter-Relationship” stakeholder status within existing contracts. The product order (and option order) of the acquiring party who is about to “acquire” consists of an automatic order and a manual order.

An automatic order is an order in which (the acquisition party is an order that is ready to be automatically fulfilled, and the interested parties of other contract application programs have already specified the condition of "fulfillment". Also for normal automatic orders (which are subject only to the constraints set forth by the acquiring party's order) and for the acquisition relationship when there is no stakeholder in the contract application program (which manually authorizes the transaction). Is an order that is ready to be automatically fulfilled and has all the "winning" pre-specified by other contract application program stakeholders.
In addition to the above conditions, it is possible to qualify the acquiring party only by being subject to the restrictions set in the order of the acquiring party, and by doing so, an anonymous automatic order.

A manual order is (the acquisition party requires that the order be manually approved before it is finally approved, that is, the contract “sell” is “confirmed” after “confirmation” is executed. "
Before being executed, a normal manual order is subject only to the restrictions specified in the order of the acquiring party, even if the interested parties of other contract application programs have previously specified the conditions of "establishment"); In the absence of a Contract Application Program stakeholder seeking manual authorization of the transaction, the acquiring party shall:
It requires manual approval before the order is finally approved, ie after the "fill" has been executed and before the contract "sell" is "confirmed", even if other contract application programs Even if the stakeholder has specified the condition of “establishment” in advance, it is possible to certify the acquisition party potentially by being restricted only by the order specified by the acquisition party. It consists of anonymous manual orders.

The primary product evaluation process type contract application program is "expected value / usability certainty (E
V / U-CE) "or other mathematically definable valuation method, the potential counterparty will automatically" order all limited (primary and derivative primary) product orders. To allow you to "bid".

In the case of the “Expected Value-Certainty Equivalent (EV-CE)” evaluation method, each potential opponent is an index of limited attributes with a product order that is none other than yet known. , Basic commission rate, basic discount rate, basic consideration / rights unit (if applicable), currency and local currency conversion rate pairs, basic unit product price, (provided by the specified ordering party) The desired adjustment to the determinants of the preceding base bid price that depended on the particular order (s).

[0223] The above-mentioned yet-not-known limited attribute index of product order (referred to as limited environment) is a relation between a large number of required contingent claims attributes and ordering parties. Products that the ordering party is interested in whether they are interested in being a credit approved by the party, whether the ordering party is interested in participating in the possible net benefits of the application program and collateral, Reflects a combination of a number of features of an order (independent of the ordering party concerned), including the maximum (and possibly the minimum) consideration to pay for. The base commission rate specifies the minimum percent profit margin required by the counterparty beyond the zero profit or loss consideration bid price of the product order.

The above basic discount rate defines the present value of the expected future situation of the counterparty related to the contract (the net profit of the consideration of the ordering party, and this consideration for the future income stream). Expected to occur). If applicable, the above basic consideration / right unit, currency and local currency conversion rate sets the contract requirement of the ordering party to the basic consideration of the product /
Converting to rights units, currencies and local currencies, the contracting process will be able to compare the pricing of counterparties to product orders.

The product price of the above basic unit is the price set by the potential counter party to the payment of the unit right of the contract at each of the possible future values, and the officially specified consideration of the contract. / Types of rights and, where applicable, units of currency type and national currency type. (The prices in the units above are the numbers entered directly for each possible future product event (the sum of those numbers). May or may not reach 1), or may be specified as a parameter of a defined mathematical function). The desired adjustments to the preceding base bid price determinants, which depend on the particular ordering party to submit a particular order, include adjustments to fee rates, discount rates, currency exchange rates, and domestic Includes currency exchange rate adjustments.

[Expected availability reliability equivalence (EU-CE)]
In the case of the valuation method, each potential opponent has EV-CE as well as “usability benchmark” figures for all consideration and entitlement “paid amount” that may be assumed to be associated with the product / contract. Identify all of the above parameters that apply to the evaluation method.

The primary product fulfillment process type contract application program can similarly provide any of a number of possible (primary and derivative primary) order fulfillment processes, where: The process may be a multi-process including serial processing and parallel processing.

The sequential order fulfillment process is characterized by the "sequential determination" and "establishment" rules that it realizes. The "sequential" rule includes "last in, first out (LIFO)".
There are many types, such as "first in first out (FIFO)" and priced priorities. The formation rule may be of any of a number of types, for example, a particular formation process may be
For each product ordering party, look for a counterparty (or multiple counterparties) that offers a product price below the highest price the ordering party is prepared to pay (where the contract price determined is: Either the minimum price offered by the potential counterparty, or the midpoint between the "highest price" identified by the ordering party and the minimum price offered by the potential counterparty, etc.), Alternatively, for each potential product counterparty, look for an ordering party who is prepared to pay the highest price above which the counterparty is ready to trade (where the determined contract value is Either the "highest consideration" price of the ordering party or the midpoint between the lowest price the counterparty is ready to receive and the "highest consideration" price of the ordering party). .

The parallel order fulfillment process is a process for obtaining an optimal solution of a certain type according to a predetermined purpose. The above-mentioned purpose is, for example, "order relationship-maximize the number of satisfied counterparties" or "between actual and desired order-related parties and the value of the established attribute of counter-related parties (according to the likelihood of importance). Minimize the value of the function that identifies the sum of the differences (which may be weighted). "

Furthermore, both the sequential and parallel establishment processing can provide provisional contract establishment rules; and a pre-tax and post-tax price optimization mechanism.

Application type contract application programs are "in-house" application programs or "public" application programs, "single potential opponents".
Application programs or "many potential opponents" application programs, application programs that differ in the degree and form of stakeholder monitoring of other applications by "law enforcement", product potential opponents by "counterparty guarantor" Includes application programs that differ in the degree and form of stakeholder monitoring.

The contract application program has a deadline of "immediate"
Supports the "payment" value deferred until a specified time in the future (exactly means the time the contract was confirmed is confirmed) or expressed in seconds, minutes, hours or days . Similarly, contract application programs are due “immediately”
(This means exactly when the applicable applicant has duly notified the interested parties of other contract application programs of the outcome of the expiring contract), or the "result" of the expiring contract.
Supports the value of the right "payment" postponed until a fixed time after being known.

The contract application program allows the contract to be modified and cleared after it is created. Contracts: Amended via direct negotiation of a specific contract by the relevant "crisis counter party" or the acquisition / sale of a "derivative" secondary crisis avoidance contract transaction (see Appendix C, Process 5) It is possible to Similarly, a contract is a sale of a contract (I
(NVENTCO internal or external), and the contracting between the first ordering party and the counter party can be settled after creation. In addition, the contracts may be ordered by interested party / counterparties (INVENTCO
It is possible to settle efficiently by taking a mirror image of the contract (inside or outside).

Post-Order Process Types The contract application program has various general types of “post-order processes” for the general types of “trade” above.
It is responsible for the management function, in which all stakeholders of the contract application program connect with each other and with those authorized by VIRPRO outside of any applicable contract application program or INVENTCO as a whole. The ability to maintain a formal registration of contractual liability, between contract application stakeholder and between contract application stakeholder and each applicable contract application program VI.
Based on the function to perform independent evaluation of consideration and rights and obligations with the person authorized by RPRO and the above-mentioned evaluation of consideration and rights and obligations related to the transaction of the contract application program, between interested parties of the contract application program , And the ability to determine and enforce the transfer of “collateral” consideration / rights between the interested parties of the Contract Application Program and those authorized by VIRPRO outside each applicable Contract Application Program; Accumulated "price / liability" between contract application stakeholder and between contract application stakeholder and VIRPRO authorized person outside each applicable contract application program. The function to determine and acquire the bilateral net profit of the contract application program between the interested parties of the contract application program and each applicable contract application program with the interested party of the contract application program. Who VIRPRO who are outside of the ram has authorized (of nominated stakeholders "clearing house"
, And the ability to determine and obtain the accumulated diversified net income of “value / liability obligations” as necessary, and the processing, accounting, reporting, and , The function to manage the task of "payment" rights, and all contract application applications (and other INVENTC
O) Stakeholders and VIRs outside INVENTCO
Ability to define device usage and access fees paid between those authorized by the PRO, between contract application program stakeholders, and outside of each applicable contract application program with the contract application program stakeholders. VIRPRO
Between the parties who have obtained permission from the contract application program, the function of deciding and performing the transfer of the consideration / rights “obtained as bilateral net profit”, as necessary, and the interests of the contract application program "Obtained as diversified net income" between the person and the VIRPRO authorized person outside the applicable contract application program, including the "clearing house" entity of the nominated stakeholder. It includes the ability to determine and enforce consideration / transfer of rights as needed, as well as the ability to create and distribute customized information for interested parties of the contract application (and other INVENTCO).

Complementary Process Types Contract application programs are responsible for a number of other types of support processes, including consideration, entitlement, and consideration, regardless of the transfer initiated by the contract application program transaction by the stakeholder. Allowing other "payment" obligations to be transferred between each other (see description of Process 7 in Appendix C), contract application programs (and other I
Contract Application Program (and other INVENTCs) to assist stakeholders in NVENTCO in determining the best way to interface with multiple aspects of INVENTCO.
O) providing stakeholder shared access to specific devices (see process C description in Appendix C), and contract application programs (and other INVEN).
Providing access to a range of "value-added services" facilitated by INVENTCO (see the description of Process 9 in Appendix C).

Order fulfillment constraint type During trading, a contract application program is defined by all interested parties to a particular contract application program, especially any other interested party that it wants or does not want to trade,
And identify the conditions under which one wishes to manually authorize certain aspects of a stakeholder transaction of any other contract application program that controls some form of authority.

When designating another stakeholder that he / she wants to trade or does not want to trade, the stakeholder of the contract application program has various freedoms of choice. The applicant himself specifies the acceptable product sponsors, products, ordering parties, and potential counterparties by type within the application. Similarly, the product sponsor specifies the acceptable applicant, product, ordering party, potential counter party, and counter party guarantor individually by type within the application.

[0238] Product Counter Parties and Order Parties (collective)
Specifies by type the ordering parties / potential opponents that one desires or does not wish to trade, specifies the degree of preparedness to be included in the contract profit and the collateral arrangement provided by the applicant. I want to specify the applicant, the product sponsor, the product, and the consideration / rights transferee who want or do not want to trade individually by type, prefer to trade, and want to trade exclusively Specify the ordering party / potential counter party that you want, specify the degree of transparency of the transaction you need, and specify whether you want to manually allow the order to close before confirming.

The potential opponent is an ordering party who is ready to apply for a loan, or the class of an ordering party (and what the conditions are), and the "ordering party guarantor" lends the loan. Those who are ready to apply and the terms of their loan can be specified. Similarly, the product ordering party (only) may specify (by type) the counterparty guarantor that he / she wants or does not want to trade, and he / she may You can specify the counterparties you want to trade with exclusively or preferentially, and you can specify potential "order relationship guarantors" that you want or do not want to trade (outside INVENTCO).

The counter party guarantor may designate the potential counter party having the authority to buy and sell, the applicant himself / herself who is ready to indirectly establish a relationship, the product sponsor, and other order parties. it can. Similarly, the crackdown officer can specify the counter party guarantor authorized to buy and sell, the ordering party, the applicant himself, the product sponsor, and the product.
Finally, consideration / rights transferees should have the latest rules regarding ordering parties, counter parties, applicants themselves, product sponsors and counter party guarantors who are or are not prepared to trade. Can be monitored and maintained.

Order Participant Requirement During the trading, the contract application program, the information of the above "product type" and "interaction with other interested parties", and a large number of attributes of the specific order that the customer is seeking, Whether it is a credit approved by the counterparty to the contract consideration, or whether it is interested in utilizing the possible net profits and collateral of the application program, and preparedness to pay for the specified products. Primary Product Order for Contract Application Program when registering an order for your selected product to specify the highest (and, in some cases, lowest) consideration "price" and various other needs. Requires stakeholders of interested parties. Here, the size of the various other needs mentioned above includes the name / title that one wishes to be identified by the other stakeholders of the contract application program, the time when his order is presented, and the order The time interval after which an order must be held before it is automatically canceled, whether it is willing to accept a partial order, and the market transparency that it wants to be exposed to. The degree of sex and whether you want to have the option to trade the contract you have entered into in the certified INVENTCO secondary market (Appendix C
Process 5), whether you would like to manually consider / authorize the potential counterparty's quote for the order, and the potential counterparty's quote is manually considered / authorized. If necessary, after the potential details of the potential counterparty are given to the ordering party,
It includes the maximum amount of time an ordering party would like to have a quote taken into consideration and the consideration / interest transferee's associated account they would like to "pay" / receive.

The numerous attributes of the particular primary order desired by the ordering party may or may not be desired to directly enter the "adjustment" of the desired contingent invoicing order right, one-dimensional or multi-dimensional. Whether you want to mathematically specify a function of any of the dimensions that is a function of the right that reflects the desired product order (indicating a contingent contract right conditional on at least two phenomena), and the contract Consideration / right "payment" / "receipt" you want to "value / right unit", "currency"
Includes (where applicable), and "local currency" (where applicable). If the ordering party wants to mathematically specify the desired primary product order as a one-dimensional rights function, the entered condition "X" is such that the ordering party looks for within the tolerance of the value of future product events. Shows the number of “inflection points” (including extreme points of the value range) of the contract right, and the inputted condition “alpha (X)” is the contract of the value of the Xth future product situation. The entered condition “beta (X)” indicating the value of the situation specified by the ordering party corresponding to the inflection point of the right is
Indicates the desired right amount specified by the ordering party (the desired "price / right form", "currency" and "local currency" right unit) corresponding to the inflection point of the value of the Xth situation; The condition "gamma (X-1)" is [alpha (1), beta (1)] and [alpha (2), beta (2)], [alpha (2), beta (2)] and [alpha]. (3), beta (3)], etc. (where applicable) represents the desired form of the function specified by the ordering party between each of the correspondences, where gamma is mathematically defined. Represents all possible forms that are possible.

Potential Counterparty Participants During trading, the contract application program further defines various parameters that form the basis for the automatic evaluation of orders, so that the contract application program can use the primary product "potential". It requires a “stakeholder” stakeholder. The above parameters include
The parameters that the stakeholder of the above-mentioned primary product "potential counter-relationship" wants to establish "a bid for consideration" based on the determined product order, and the stakeholder of the above-mentioned primary product "potential counter-relationship". Specified product order related feasible individual contracts and product restrictions that need to be met when becoming a counterparty to the order of the related party, and Included are the feasible expected product portfolio constraints that must be met if a stakeholder becomes a counterparty to a defined product ordering party's order.

In defining the parameters for which a "bid for consideration" is desired to be established for a product order defined under the "EV-CE" valuation scheme above, each potential opponent, in particular, has all potential. Appropriate "limited environment" index from the product order, basic "fee rate", and basic "discount rate"
And (if applicable) a set of basic "consideration / entitlement units", "currencies" and "local currencies" exchange rates, and (according to specific product orders) a specified value for a "limited" indicator It is required to specify the desired adjustments to the base "unit product price", the basic commission rate, the discount rate, the exchange rate, and the unit product price on the product order.

Individual contracts and product restrictions that potential counter parties may require to be met if they become counter parties to defined product order parties are subject to absolute loss limit restrictions (this The constraint is a single number constraint and /
Or as a function constraint) and the Expected Loss Limit constraint (this constraint is incurred by the contractor / product in consideration of the likelihood assessment that any feasible future product value will occur. And the maximum proportion of total expected total loss of potential counterparty contracts / products that can be explained by the expected loss of the defined individual contract / product. Including the above constraints. Similarly, expected product portfolio constraints that a potential counterparty may need to meet if it becomes a counterparty to a defined product ordering party are subject to the expected loss of individual contracts / products. The maximum expected total loss of the potential counterparty's product portfolio that can be explained (and,
In some cases minimum).

Communication Contract Application Program Stakeholders communicate with applicable contract application programs via AXSCO. Individual "stakeholder-AXSCO" communication is carried out in the following ways: voice communication with AXSCO-coupled "live operator" or "record communication" equipment, direct touch telephone with AXSCO. (touch-teleophone) communication,
Or AX (dedicated or via dialing line)
Any / all methods of computer-to-computer communication with the SCO may be used. In any of the above three forms of communication, interested parties of the contract application program must utilize the identified computer hardware and / or software mechanism when communicating with AXSCO (cited in Appendix H). "Payment" permission including "black box" equipment).

Component Processes When exposed as telecommunications / telecommunications / computer software on computer hardware, individual contract application programs utilize multiple data files and consist of clusters of processes in at least one processing unit. (Details are given in Appendix C). 9
The data files associated with the particular process (and more or less) are within the contract application program, and the nine processes are all other process supporting file management and update tasks. Process (called process 1), process of receiving and processing "primary" crisis management contract transaction (called process 2), and process of receiving and processing "secondary" risk management contract transaction (Called process 3) and "derivative-
A process that handles the receipt and processing of primary "crisis management contract transactions (called process 4), a process that handles the receipt and processing of" derivative-secondary "crisis management contract transactions (called process 5), and all of the above. A process (referred to as process 6) that handles the “clerical” management of four types of crisis management contract transactions, along with consideration, entitlement, and other “payment” between stakeholders.
The process of handling non-debt transfer related transactions (called process 7) and the contract application program (and other INVENTCO) stakeholders are INVENTCO
A process (called process 8) that handles access to the expert system that helps the above stakeholders to determine the best way to interface with multiple facets of
Contract application programs (and other INVEN) for a range of "value added services" facilitated by NVENTCO
TCO) process for handling stakeholder access (referred to as process 9). The above processes may work in parallel.

[Appendix C] Description of Contract Application Program Process Process 1 Process 1 handles file management and update tasks that support all other processes (FIG. 18). Figure 1
8 products (PRODUCT), product transactions (PRODUCT TRANS), agreement list (DE)
AL LIST) and agreement list transactions (DEAL LI)
ST TRANS) files are primary, secondary, derivative 1
Next, it is applied to derivative secondary contract orders individually or collectively. Sell Price (SEL PRICE), Sell Price Transaction (SEL PRICE TRANS), Sell Limit (SE)
L LIMIT) and sale limit transactions (SEL LIMI)
The TTRANS) file applies only to primary and derivative primary contract orders. Trading Price (TRADE PRIC
E), trading price transaction (TRADE PRICE TRA)
NS), TRADE LIMIT and TRADE LIMIT TRANS files apply only to secondary and derivative secondary contract orders.

The file management and update tasks handled by process 1 process general data file information received from the contract application stakeholder and are associated with other INVENTCO stakeholders, particularly VIRP.
Process general-purpose data files and other order processing information received from RO and AXSCO, process trading support information received directly from the stakeholders of the contract application program, primary and derivative of potential counterparties. Process first order product order “value bid” parameters and order fulfillment constraints,
It handles the secondary and derivative secondary order fulfillment constraints of the current contract presenting parties and handles various information from those outside INVENTCO.

Current and future stakeholders are required to provide their applicable contract application programs with specified identifiers and other information, and to maintain the integrity of this information on a continuous basis. The information for each stakeholder includes the applicable name, address, contract number and reference, the desired device access medium, consideration / transferor account details, and, if applicable, the interests of another INVENTCO. It includes the required timeline of fees and charges that may be paid by the parties. This information is held in the management file (ADMIN) of the data file, and the updated information is received by the management transaction file (ADMIN TRANS).

VIRPRO provides the applicable contract application programs with various types of general purpose data file information, which includes (respectively) identification data relating to the applicant of the contract application program and the authorized data. Includes details of the type of device access medium and consideration / rights units available for each application. Further, this information is maintained in the management data file and updated information is received via the management transaction file.

VIRPRO also provides applicable contract application programs with various types of general purpose data file information, including information between various parts of INVENTCO and between various parts of INVENTCO and INVEN.
It includes information about all data sent to and received from anyone outside the TCO, as well as various types of statistical information, including data traffic volume, data file storage location information, and so on. This information is continuously collected by AXSCO and kept in a HISTORY data file.

The trading support information received directly from the interested parties of the contract application program is made up of stakeholder relationship information of a general nature and specific information from each stakeholder (see Appendix B for details). Explained).

The stakeholder relationship information of general nature is:
It is composed of "transaction communication parameter" and "automatic / manual agreement and no agreement flag". Trade communication parameters are parameters set by all (registered) contract application stakeholders that demarcate, for security, all their communications within INVENTCO that they want to fall within. . Automatic / manual agreement and no agreement flags are all (registered) as needed.
Set by stakeholders in the contract application program,
It is a "flag" that indicates one's own requirements regarding relationships with other contract application program stakeholders. This information is maintained in the agreement list data file and the updated information is received by the agreement list transaction file.

The particular information from an individual stakeholder will vary according to the category of stakeholder involved.

[0256] The applicant himself / herself particularly knows the information of the product data file (the updated transaction is received from the product transaction file) and the future information of the management data file (the updated transaction is received from the management transaction file). I will provide a. The information in the product data file includes details of the particular product applicant's offer for sale / exchange / transfer. Information in the management data file includes the price valuation and formation process underlying the application, the "value date" of the consideration / rights underlying the application, and the categories of other interested parties allowed to participate in the application. , Restrictions on the participation of other interested parties; specific rules of engagement of guarantors by potential opponents, contract application program's consideration loan ',' collateral 'and'net profit' applied by interested parties. The effectiveness of utilizing the property, in other words the conditions and constraints (embodied in various post-order management rules), and
Includes consideration / transferee details of the application and related safety information regarding account balances.

The product sponsor provides complete details of the product it offers, and the product ordering parties and potential counter parties either want to trade with each other (collectively) or exclusively. Indicate the parties you want to relate to. Potential opponents provide (exclusively) a number of specific information that includes the applicant himself / herself selected to function, the product sponsor, and the specifics of the opponent guarantor's rules, Data recording the loan limits, if any, that have been applied to the ordering party, as well as the general and above lending limits (applicable to the individual ordering party and / or a limited class of ordering parties). It includes specific conditions and constraints, parameters that potential opponents use when they want to determine the "price" of consideration for an order. The counterparty guarantor will provide details of any potential counterparties who agree on the warranty and the nature of the warranty.
The crackdowners are those who have an interest in the application and are related to each other (for example, which counterparty guarantor is in charge of which counterparty, and which potential counterparty provides which product). Etc.), the specific regulations identified for the scheme, and details of the parameters that define the tax treatment of transactions associated with all types of orders. The consideration / rights transferor provides services for "opening" ongoing account balances and account debit updates. All of the above information is kept in the management data file and the updated information is received using the management transaction file.

Potential Counterparty Parties When dealing with the primary product order "value bid" parameters and order fulfillment constraints, the potential product order counterparty wants to establish a "value bid", especially on a limited product order. Define the various parameters to be used in the case, and define the parameters to use if the potential opponent wants to make adjustments to the "base price" pricing of the product order by the particular ordering party involved (this information Is held in the sale price data file, and updated information is received by the sale price transaction file), potential individual contracts and potential competitors to counter the orders of the product order parties determined. If you become a party,
If a potential counterparty becomes a counterparty to a given product ordering party's order by defining the product constraints that are required to be satisfied, the expected value of the product portfolio that may be required to be satisfied. Establishing constraints (the last two categories of information above are retained in the sale limit and acquisition limit data files and updated information can be received using the sale limit transaction file) (see Appendix B for more details) That).

When dealing with the secondary order completion constraint of the current contract application person concerned, the application person concerned, in particular, the order identification number of the contract in which the concerned person wants to sell his / her status as an interested party of the contract, For each contract, it is required to identify the price valuation and other parameters that need to be met before the “sale” of the contractual position takes place. This information is held in the buy and sell price data file and the updated information is received using the buy and sell price transaction file.

When dealing with the “value bid” parameter of a potential counter party's derivative primary order and the order fulfillment constraint, the potential product order counter party has essentially the same information as above regarding the primary product order. It is necessary to provide information.
However, in addition, information directly applicable to the relevant type of derivative primary transaction (eg, the option to establish a primary product order at a later date) is required.

When dealing with the derivation of secondary derivative order fulfillment constraints of current contract application parties, it is necessary for the application parties to provide essentially the same information as above regarding secondary product orders. However, in addition, information directly applicable to the relevant type of derivative secondary transaction (eg 1
The option to sell the status of the next product order is required).

When dealing with various information from someone outside INVENTCO, this information can be of any type of information and may potentially be used by any part of INVENTCO. This information is
Held in a management data file along with updated information received via the management transaction file.

Process 2 Process 2 handles the receipt and processing of multiple types of "primary" crisis management contract transactions (this term is defined in Appendix D) (detailed in Appendix B). . The various sub-processes of Process 2 handle product order processing, price quote requests, and receipt and processing of all possible forms of transactions, including cancellation of current product orders.

The primary "product order" consists of the central "primary" crisis management contract transaction type (FIG. 19 is a schematic flow chart, and in the description, the flow chart and details of this transaction type processing are shown. Is described).

The primary product order includes the following key items of information:
That is, ordering party identification information, contract application program application and product identification information, "other stakeholder series" information,
Incorporates the desired product-specific format of the ordering party (directly entered as a rights relationship or mathematical function), the parameters of the above function when a one-dimensional mathematical function is used to specify the order (the parameters of the above function are Condition “X” and condition “Alpha (X)” and condition “Beta (X)” and condition “Gamma (X)”, contract facet and rights “par value type”, “currency (if applicable)” and "Local currency (if applicable)", whether the ordering party is interested in lending for an undecided contract consideration guaranteed by a potential counter party, whether the ordering party is likely to have the application program Whether they are interested in using net income and debt, the range of consideration "price" that the ordering party is willing to pay for a given product, the size of the needs of various other ordering parties, and Related There is a possibility of including spending a "payment" to / receive consideration / entitlement transfer entity of the account). Upon receipt, all of the above information will be transferred to the new PORDER NE (PORD NE
W) written to a file and then processed from there.

The processing of the primary product order includes sub-processes-order approval, order fulfillment, and confirmation of the fulfilled order. For the most typical type of order, called a "normal automatic" primary product order, the sub-process works as follows.

The primary product order authorization sub-process verifies that all orders contain the appropriate data for the requested product, that each ordering party is correctly identified and qualified ( This sub-process mainly utilizes the primary product (PPRODUCT) data file).

The primary product order fulfillment sub-process places the counter-party concerned who may be best in the transaction of the order-related party according to the "rule of completion" embodied in the application program specified by the applicant. . The sub-process performs such an arrangement utilizing three component sub-processes: a short list of potential opponents, an "assessment" calculation of each potential opponent, and an opponent selection.

The "Short List of Potential Counterparties" subprocess component intends to provide the product requested by the ordering party when it receives the consideration it considers appropriate from the ordering party (potential). Establish a list of potential opponents (if any), (this sub-process is primarily a primary agreement list (PDEAL)
LIST) data file).

The evaluation computation sub-process component of each potential counter-stakeholder computes a “bid” that each is ready to execute on the product order of the product ordering party (or a portion thereof) and computes the potential counter-attack. To add a party to a short list of potential opponents, use the above-listed valuation parameters pre-specified by each listed in the short list of potential opponents (this sub-process is primarily a primary sale). Price (PSEL PRICE) data file).

The "Counterparticipant selection" sub-process component is specified by the applicant himself / herself embodied in the application program in consideration of all the formation constraints specified in advance by the stakeholders of all applicable application programs. In accordance with the "Formulation Rules", the above "short list of potential opponents"
Extract the counterparty who may be the best for the ordering party from. The above selections have been made and the price pricing is within the tolerance limits specified by the ordering parties,
A closed order is considered to exist if there is no request for manual authorization intervention by the relevant stakeholders (this sub-process is primarily a primary sale limit (PSEL LIMI).
T) Based on file).

The Confirm Closed Orders sub-process automatically and practically guarantees the positive arrangements of all affected parties to the contract, which is required by the product ordering party. Includes confirmation of the ability to pay immediately (and possibly other applicable charges) (or guaranteed counterparty lending or ordering party guarantor lending). The automatic approval of the contract is made by electronically transferring the assets recorded in the applicable consideration / rights transferor account of the ordering party to the applicable counterparty (the consideration / rights “payment” process). Please refer to Appendix H for the explanation. Then, the establishment constraint of the counterparty held in the primary sale limit file is automatically updated.

At the end of the above processing stage, the unsuccessful order transaction is waited for in the first order (POR) in order to try the next operation.
D QUEUE) Order transactions written, completed and confirmed in the file are accepted by the interested parties of the contract application program (this process is mainly based on the management data file) and for the next “office work” processing. Written in the primary order confirmation (PORD CONF) file, interested parties of the contract application are notified of the rejected order (this process is primarily based on the administrative data file) and a record of it is available at Written to the Primary Order Reject (PORD REJ) file for processing. A copy of all processing output is written to the history file.

Process 3 Process 3 deals with the receipt and processing of "secondary" crisis management contract transactions (this term is defined in Appendix D). "1
Similar to the "next" risk management contract, the "secondary" risk management contract is of multiple types (described in detail in Appendix B) and the various sub-processes of Process 3 are product order processing and product price marking. And the receipt and processing of all possible types of such transactions, including current product order cancellations.

A "secondary product order" consists of a central "secondary" crisis management contract transaction type (FIG. 20 is a schematic flow chart of the processing of this transaction type).

The key items of the information incorporated in the “secondary” product order are the potential acquisition party identification information, the preset order identification number required for the primary contract, and the potential acquisition party Whether the interested parties are interested in lending guaranteed to the contract acquisition amount pending, whether the interested parties are interested in utilizing the potential net gains and obligations of the application program, acquisition Range of acquisition “price” that the parties are prepared to pay for the contract specified, the size of the needs of other potential acquisition parties, and the consideration / transfer of rights that they would like to spend / receive the payment. May include the person's account. Upon receipt, the above information is written to a secondary order new (SORD NEW) file and then processed from there.

The three sub-processes-order authorization, order fulfillment, and confirmation of the fulfilled order are included in the secondary product order processing. For the most typical type of order, called a "normal automatic" secondary product order, the above sub-process works as follows.

The Secondary Product Order Authorization sub-process verifies that all orders contain the appropriate data for the product sought, that each potential acquisition participant has been correctly identified and qualified. (This sub-process primarily uses secondary product (SPPRODUCT) data files).

The secondary product order fulfillment sub-process places a record of the required contract and, based on the contents of the record, "takes the specified stakeholder status in the contract to potential interested parties". Whether a “sale” is possible, and in particular the acquisition “price” range in which the potential acquirer is ready to “pay” for the specified current stakeholder position, depends on the applicable contract stakeholder. It is determined whether or not it is equal to or larger than the number of the “allowable sale price” designated in advance. It is considered that if the contract "sale" was found to be feasible and none of the interested parties required intervention by manual authorization, "winning" was obtained.

The confirmation sub-process of the secondary product completed order is
It automatically and practically guarantees the positive arrangements of all interested parties affected by the contractual status “sale”, which requires the parties to the contract to obtain the “sale price” consideration (and Includes confirmation of the ability to pay immediately (or in some cases other applicable fees) the current stakeholder loan or the guarantor loan of the acquiring party is guaranteed. The automatic "sale" authorization is made by electronically transferring the assets recorded in the applicable consideration / transferor's account of the acquiree to the current contract stakeholder.

At the end of the above processing stage, the unsuccessful order transaction is waited for in the secondary order (SOR) for the next trial of success.
D QUEUE) Order transactions written, completed and confirmed in the file are acknowledged to the interested parties of the contract application program (this process is mainly based on the management data file) and the required records are: "Office"
Secondary order confirmation (SORD CO
NF) file, the rejected order transaction is notified to the interested parties of the contract application program (this process is mainly based on the management data file), and the required records are for further “office work” processing. Written to secondary order reject (SORD REJ) file. A copy of all processing output is written to the history file.

Process 4 Process 4 deals with the receipt and processing of "derivative primary" crisis management contract transactions (this term is defined in Appendix D).
Similar to "primary" risk management contracts, "derivative primary" risk management contracts are of multiple types (detailed in Appendix B). It handles the various sub-processes of Process 4, product order processing, product price marking, and receipt and processing of all possible forms of transactions, including cancellation of current product orders.

“Product option order” is “derivative 1
Next ”is an example of a crisis management contract transaction type (FIG. 21 is a schematic flow chart of the processing of this transaction type).

“Derivative primary” product option orders are
The key items of the following information (details are shown in Appendix B) are: ordering party identification information, contract application program application and product identification information, "other stakeholder series" information, (right relationship or Entered directly as a mathematical function)
The parameters of the above function when the one-dimensional mathematical function is used to specify the desired product specific format of the ordering party and the order are incorporated (the parameters of the above function are the condition "X" and the condition "alpha (X)". Condition “Beta (X)” and Condition “Gamma (X-1)”, Consideration for Contract and Right “Face Type”, “Currency (if applicable)” and “Domestic Currency (if applicable)”, Whether the ordering party is interested in lending for outstanding contract option value guaranteed by potential counterparties, whether the ordering party is to utilize the potential net gains and liabilities of the application program Whether there is a range of consideration “price” that the ordering party is willing to pay for a given product option, as well as the size of the needs of various other ordering parties and the associated “payment”. There is a possibility of including the consideration / entitlement transfer entity of the account to receive). Upon receipt, all of the above information is written to the Derivative Primary Order New (DPORD NEW) file and then processed from there.

Processing of derivative primary product orders includes sub-processes-order authorization, order fulfillment, and confirmation of fulfilled orders. For the most-typically considered type of order, called a "normal automatic" derivative primary product option order (see Appendix 5 for details), the above sub-process works as follows.

The primary product option order authorization sub-process verifies that all orders contain the appropriate data for the required product option and that each ordering party is correctly identified and qualified. (This sub-process primarily utilizes Derivative Primary Product (DPPRODUCT) data files).

[0287] The primary product option order fulfillment sub-process locates the counter-stakeholder who may be the best deal for the order-stakeholder in accordance with the "satisfaction rule" embodied in the application program specified by the applicant. To do. The sub-process described above arranges such an arrangement into three component sub-processes: a short list of potential option opponents,
Perform by utilizing an "assessment" calculation of each potential option counterparty and selection of option counterparties.

The "Short List of Potential Option Counterparties" sub-process component intends to provide the product requested by the ordering party when it receives the option consideration it deems appropriate (from the ordering party). Establish a list of potential option counterparties (if any). (This sub-process is primarily a derivative primary agreement list (DPDEAL).
LIST) data file).

The Individual Potential Opponent Opponent Stakeholder Valuation Calculation sub-process component calculates a "bid" each ready to execute on a product option order of a product option ordering party (or part thereof). , Using the evaluation parameters previously specified by each listed in the short list of potential option opponents to add the potential option opponent to the short list of potential option opponents ( This sub-process is mainly a derivative primary sale price (DPSEL
PRICE) based on data files).

[0290] The "option counter party selection" sub-process component is specified by the applicant himself / herself embodied in the application program in consideration of all the formation constraints specified in advance by the stakeholders of all applicable application programs. According to the "establishment rule", the counterparty who is likely to be best in the transaction of the ordering party is extracted from the "short list of potential option counterparty". If the above selections have been made, price pricing is within the tolerance limits specified by the ordering parties, and there is no request for manual authorization intervention by the relevant interested parties, then there is considered to be a closed order ( This sub-process is primarily based on the Derivative First Sell Limit (DPSEL LIMIT) file).

The Closed Order Confirmation sub-process automatically and practically guarantees the positive arrangements of all affected stakeholders for the option contract, which guarantee was required by the product option ordering party. Includes confirmation of the ability to pay option product consideration (and, in some cases, other applicable fees) immediately (or guaranteed counterparty loan or ordering party guarantor loan). The automatic approval of the contract is made by electronically transferring the assets recorded in the applicable consideration / transferor account of the ordering party to the applicable counterparty (a description of this process is provided in Appendix H). checking). Next, the establishment constraint of the option counter party concerned held in the derivative primary sale limit file is automatically updated.

At the end of the above processing steps, unsatisfied order trades are written to the Derivative Primary Order Queue (DPORD QUEUE) file for the next successful attempt, and the successful and confirmed option order trades are Recognized by the stakeholders of the contract application program (this process is primarily based on the control data file), the derivative primary master criteria file and the derivative primary order confirmation (DPORD) for the next "office work" transaction. CONF) file, the interested parties of the contract application are notified of the rejected order (this process is primarily based on the administrative data file), and its records are derivative for the next “office work” process. First Order Rejection (DPORD RE
J) Written to file. A copy of all processing output is written to the history file.

When / when the option holder wants to implement the option on a pre-established contract, the option holder retrieves the contract record from the derivative primary master and makes any additional consideration payments required. Implement the option by notifying the Contract Application Program which will write a new record in the primary order confirmation file for the next administration. As mentioned above, the appropriate history and other files are updated during this process.

Process 5 Process 5 deals with the receipt and processing of "derivative secondary" crisis management contract transactions (this term is defined in Appendix D).
Similar to "secondary" risk management contracts, "derivative secondary" risk management contracts are of multiple types (detailed in Appendix B).
And the various sub-processes of Process 5 handle the receipt and processing of all possible types of such transactions including product order processing, product price marking, and current product order cancellation.

"Product option order" is "derivative 2
Next "is an example of a Crisis Management Contract transaction type (FIG. 22 is a schematic flow chart of the processing of this transaction type).

[0296] The key item of the information incorporated in the "derivative secondary" product option order is the potential acquisition party identification information, the preset order identification number required for the primary contract (the option is this Whether the potential acquirer is interested in a loan guaranteed by the applicant to the undecided contract acquisition amount, whether the acquirer is likely to be the application program Whether it is interested in taking advantage of certain net profits and other features, the range of acquisition “prices” that the acquiree is willing to pay for the contract options specified, and the needs of other potential acquirers. Also, spend the "payment" /
It may include the consideration / transferor account you want to receive. The above information is written to the Derivative Secondary Order New (DSORD NEW) file upon receipt and then processed from there.

The sub-processes involved in processing derivative secondary product option orders are essentially secondary product orders (process 3) and derivative primary product option orders (process 4).
Is a combination of the above processes described in. At the end of the fill process, the filled orders are written to the derivative secondary master criteria file and the derivative secondary order confirmation file for the next paperwork.

When / when the option holder wishes to implement the option in a pre-established contract, the option holder retrieves the contract record from the derivative secondary master file and performs any additional consideration payments required. Implement the option by notifying the contract application program to write a new record in the secondary order confirmation file for the next paperwork. As mentioned above, the appropriate history and other files are updated during this process.

Process 6 Process 6 is a "confirmed / confirmed" primary, secondary, derivative primary, and derivative secondary crisis management contract transaction and the "office work" of the transaction handled by processes 7-9. Handle management. This process consists of a number of sub-processes that collectively access a number of data files: primary crisis management contract paperwork, secondary crisis management contract paperwork, derivative 1
Incorporates paperwork for next crisis management contract, paperwork for derivative secondary crisis management contract, transaction processing for "Process 7", transaction processing for "Process 8", and transaction processing for "Process 9" ( FIG. 23).

Confirmation / Confirmation Regarding the primary crisis management contract, a number of sub-processes, a sub-process for receiving the "actual product value of the contract that has expired" on the previous operation day, "One-day contribution payment account (PAYACC) ) Management subprocess, contract maturity management subprocess, confirmed contract processing subprocess, information creation and distribution subprocess, information extraction from primary order subprocess, contract evaluation subprocess, contract collateral payment subprocess, equipment access And a number of bills including the Usage Fee Determination and Payment Subprocess, the Bilateral Net Income Debt Subprocess, the Multilateral Debt Net Income Subprocess, the Bilateral Net Income Payment Subprocess, the Multilateral Dividend Net Income Subprocess, and the "One-Day Pay Account Management" Subprocess Subprocess is involved.

The reception of the details of the "actual product situation value of the expired contract" on the previous operation day (previous operation day) will be described. This sub-process is illustrated by the flow chart in FIG. 24, from the product sponsor outside the relevant INVENTCO, "Actual Product Value of Expired Contract".
Subject to applicable contract application programs.
The maturity product value file of the main data file is updated with this information. The auxiliary data files, management, history and information files are similarly updated with applicable information.

Next, the payment account management of "one day sink" will be described. This sub-process is illustrated in the flow chart of Figure 25, where the participating consideration / transferor (INVE
Outside of NTCO) to "real account" of consideration / rights
Receive a contribution balance of (see process 7 for details). Yin Payment Account (PAYACC SHADOW)
And the final PAYACC FINAL data file is updated with the above information. management,
The history and informational auxiliary data files are similarly updated with applicable information.

Contract maturity management will be described. This sub-process is illustrated in the flow chart of Figure 26 and is applicable to applicable contract application program stakeholders and other applicable I
It relates to applicable application programs that determine and carry out primary and related rights transfers among NVENTCO's stakeholders, where the transfers are primarily reflected in the entry of the implicit payment account data file. The contract application program is
INTREG, product value at maturity (MAT PROD VA
LUES), collateral (COLLAT), loan management (CRE)
DIT MGMT), Bilateral debt net profit (BILAT OB)
LIG NET) and multilateral debt net income (MULTIL)
The above transfer is determined and executed by using the product / contract information held in the data file of AT OBLIG NET). The above data files are auxiliary data files, management, history, taxation / deduction (TAX / SU
B), as well as the shadow payments and information files, are properly updated in the above process.

The confirmed contract processing will be described. This sub-process, whose flow chart is shown in FIG. 27, operates continuously during each operating day. Details of the new closed / verified contract are read from the primary order confirmation file and are time stamped, one record related to the contract order party and the other record related to the contract counterparty. INTREG as two records to do
Written to file. The information, management and history auxiliary data files are updated appropriately during this process.

Creation and distribution of information will be described. This sub-process is shown in the flow chart of FIG.
Operates continuously based on the information data file (after the defined operation date). As mentioned above, the information file is the associated AXS that was originally written to the history file.
It is constantly updated as contract application programs and other INVENTCO situations occur, including CO message information. All relevant INVENTCO stakeholders have access to a pre-authorized part of the information.

Information extraction from the primary order will be described. This sub-process is executed after the end of the defined operating day, the flow chart of which is shown in FIG. In essence, the above sub-process involves a single task of processing a historical data file to obtain information related to the information data file. One of the most important items obtained from the history file is confidential information about all of the potential bidder's consideration bid parameters of the previous day, especially a data item called "Assessed Occurrence Probability". This information provides the "market" information for the next contract valuation subprocess.

[0307] The contract evaluation will be described. This sub-process, flow charted in FIG. 30, is primarily based on the "market" information previously written to the information file. The relevant information from this file is INTR
It will be "applied" to all outstanding contracts held in the EG file, which will result in an updated "future product value (FPV)", "expected value" and "sale" value for all contracts. Information is obtained, plus a reassessment of the "expected value" and "sale" value of all future rights. The reevaluation figures are kept in the INTREG file with the applicable information also written in the information and history files.

Contract collateral payment will be described. This sub-process, which is flow charted in FIG. 31, is mainly based on the data file INTREG. Following the contract valuation process, this collateral processing is related to File I.
Reading NTREG, the calculated part of the present value of the expected future consideration is (among other things) the pre-computed "present value" of the expected future rights associated with each of the contracts.
Debit or credit the applicable collateral trustee, and similarly applicable product ordering party and / or counterparty's implicit payment account files.

[0309] In general, if the "current value" pre-computed immediately before the expected future right related to each of the contracts indicates a negative contract value, and this negative value indicates the value of the previous contract evaluation. If greater than the number, the trust account of the applicable party is credited with the difference in funds and the account of the person's own consideration / transferor is debited accordingly. If the above negative value does not exceed the value of the previous contract valuation, the trust account of the applicable party is debited with the difference in funds, and the person's own consideration / rights transfer account is correspondingly credited. It will be filled in. On the other hand, if the pre-computed "current value" of the expected future rights associated with each of the contracts indicates a positive contract value, the required collateral payment adjustment is in the trust account of the applicable party. The only adjustment is that all funds (if any) are transferred to the person's own consideration / transferor's account. In any of the above cases, records of all affected persons are written to the collateral data file and some of this information is written to the history data file and the information data file.

The unit and payment of device access and usage fee will be described. This sub-process, flow charted in FIG. 32, handles the determination and payment of device access and usage fees (as distinct from contract maturity rate payments). This function is based primarily on data file management and history. Fee payment parameters are stored in the data file management. The above parameters apply to new records for the day already written to the history file. The debits and credits of the charges thus defined are written in the shadow payments file together with the summary information written in the information and history files.

Bilateral debt net income will be described. This process, which is flow charted in FIG. 33, is continuously adjusted based on the required current consideration, entitlement and other payments / receipts occurring (interesting application programs and INVENTCO interests). Efficiently maintain an up-to-date matrix of expected future rights (and other) debt present values between participating order participants and counterparties (as well as those involved). If necessary, the function updates the matrix in two steps. First, it is updated with the latest contract revaluation figures stored in the INTREG file. Second, it is updated with the daily sink / payment amount stored in the shadow payroll file. Consideration / Transfer between the transferee and the applicable person is allowed any / all of the adjusted bilateral present value numbers (according to the parameters specified by the applicant to do so) It is decided based on whether the limit is exceeded. The above is written in the Yin Payables file, the data file BILAT OBLIG NET and INTRE
G, history, and information are subsequently updated.

The multilateral debt net income will be described. FIG. 34
This process, which is flow charted in Figure 3, allows a particular “clearing / trustee” person to be effectively intervened among all bilateral opponents, whereby a net-earned debt may It is essentially the same as the Bilateral Net Profit function, except that it is only between / trustees and each participant.

The net profit for bilateral duties will be described. This process, shown in Figure 34, is separate from the Bilateral and Multilateral Debt Profit sub-process described above. The Bilateral Contribution Net Profit subprocess works by creating a bilaterally profitable payment / receipt matrix based on the records stored in the implicit payment account data file. Only one number of net paid / received payments is re-written in the shadow pay account file and the data file Bilateral Net Payments (B
ILAT PYMTS NET), management, history,
The information is then updated.

The diversified net profit will be described. Similar to Bilateral Net Payments, this subprocess, which is flow charted in FIG. 36, is separate from the Bilateral and Multilateral Debt Net Processes described above. This diversified net payments sub-process is based on records stored in the shadow payments account data file for bilaterally netted payments / receipts with the applicable “bill exchange / trustee”. It works by creating a matrix. Only one number of net paid / received payments (with the “Bill Exchange / Trustee”) will be re-written into the implicit pay account file, and the data file Multilateral Net Pay (MULTILAT PYMTS).
NET), management, history, and information are then updated.

[One day lost] Payment account (PAYACC)
Management will be explained. This sub-process, flow charted in FIG. 37, comprises a three-step process. First
The process is for the preparation of a transfer / "rights" transfer transaction between consideration / rights. The second process is to write the final contents of the implicit payment account data file to the final payment account (PAYACC
FINAL) Move to a data file. The third process is the applicable consideration / transferor (INVENTC
(Outside O) electronic transfer of the contents of the final payment account file. The management, history and information auxiliary data files are then updated.

Process 7 Process 7 is a debt transfer between applicable INVENTCO stakeholders that is independent of the contract application, ie, an "asset" registered by INVENTCO, typically (the contract application INTREG Deal with established / verified contracts (recorded as records) and consideration / transfer of ownership of the consideration / transferor's assets (recorded as payment account records). Both of the above items are valuable to their owners. This process allows the owner of the item to transfer or lend a portion of its property to others at his will by initiating a suitable transaction, such as a NCAROT transaction. This process accesses only a relatively small number of data files (see Figure 3
8). When an NCAROT transaction is received, the main data files, the implicit pay account file and the INTREG file, are updated appropriately. Next, the history file, the management file, and the information file, which are auxiliary data files, are updated.

Process 8 Process 8 (flow chart shown in FIG. 39)
Deals with shared access to specific devices of Contract Application Programs (and other INVENTCO) stakeholders to help determine the best way to interface with at least one aspect of INVENTCO. For those interested in contract application programs who are most likely to utilize this process, a group of such expert equipment is referred to as "decision support equipment." The purpose of the device is
To guide the user's stakeholders on how they should react / handle the continuously changing environment within their contract application program. Different clusters of equipment apply to different contract application program stakeholders. The device comprises a hierarchical structure of potentially any number of value added components.

An example of the above-mentioned apparatus useful for the primary product ordering party is an ordering party's previously specified but unfulfilled order to be canceled and a potentially new product. It is a device that helps you decide which order to present in an order. This device seeks to identify the best composition of open orders (and therefore the current open orders to be canceled and the new orders to be submitted) based on two things: "utility optimization". optimization) "mechanism. First, this device (collectively referred to as the "buyer's purpose portfolio") is the "real business exposure" of each product of the ordering party and the portfolio of contracts of "confirmed" but unconfirmed ordering parties. , Between the actual and desired weighted sums of a series of attributes associated with a single or multiple products across submitted but not filled orders and potential as yet unsubmitted orders There is an objective function that seeks to minimize the difference.
"Expected value" of the target portfolio, "Standard deviation" of the target portfolio, "Increase cash flow" attribute of the target portfolio, "Maximum absolute loss" attribute of the target portfolio; "Expected loss" attribute of the target portfolio, Objective implied minimum profit on investment
And the "implicit expected return on investment" of the target portfolio. Second, there is a set of constraints that specify, among other things, the required "minimum value" of each objective function attribute and the required minimum product share of the entire product portfolio of the ordering party. The mathematical form of "optimization" may be any of a number of other forms.

An optimization mechanism similar to the one described above is
The potential opponent can be assisted in defining the valuation parameters that the potential opponent applies to the incoming product order.

Efficiently, a device of the above type may be rented (even if rented by a licensee of VIRPRO independent of INVENTCO and / or INVENT
It is retained as a software "library" within the applicable contract application program (whether acquired by a VIRPRO authorized party, whether or not an OC stakeholder). Stakeholder requests for contract application programs (and other INVENTCO) to use the software in the above libraries are SS
Received via A Transaction File record. The above request will result in the appropriate records being accessed and used in the file SSA for use via electronic links to AXSCO and INVENTCO authorized by the applicable party. Appropriate records of SSA file record usage are written to the history data file, the management data file, and the information data file.

Process 9 Process 9 (Flowchart in FIG. 40)
Is a contract application program (and other INVENTC
O) Handles shared access to a range of value-added services provided by stakeholder INVENTCO. The services include accounting, coordination and information services, numerous types of financial services, and data processing and telecommunications services. Efficiently, the software related to the above services may be rented (even if rented by a VIRPRO licensee independent of INVENTCO, and / or
Or as a software "library" within the applicable contract application, whether acquired by a VIRPRO authorized party, whether or not an INVENTCO stakeholder. Stakeholder requests for contract application programs (and other INVENTCOs) to utilize the software in the library are received via VAS transaction file records. Accessed by the above request, AXSCO
And an appropriate record is obtained in the VAS transaction file utilized for use via the electronic link with INVENTCO authorized by the applicable party. Appropriate records of VAS file record usage are written to the history data file, the management data file and the information data file.

[Appendix D] Crisis Management Contract A crisis management contract does not have to be, but INV
A term used to refer to one type of contractual debt that can be traded / exchanged / transferred using an ENTCO device and then processed and settled. Crisis management contracts consist of a “primary” crisis management contract and “2
Next ”crisis management contract and“ derivative primary ”crisis management contract
Consists of a "derivative secondary" crisis management contract.

A "primary" crisis management contract is essentially "simple" and may be "composite"("simple").
A contract is a derivative of a "composite" contract).

A "simple" primary crisis management contract is a tradable or non-tradable contract in which a debt is transferred to a certain person in order to set the right to another person at a predetermined time in the future depending on the value of a predetermined phenomenon. And the person is guaranteed (or accepts the promise to be paid by others).

The "composite" primary crisis management contract transfers the debt to one or both of the two parties in order to set the right to pay / receive each other at a predetermined time in the future depending on the value of the predetermined phenomenon. A tradable or non-tradable contract in which one party is (usually) guaranteed by the other party (or accepts a promise by the other party). A “composite” contract may be either “basic” or “advanced” in nature, and a “composite basic” contract is a third trustee of an ordering party and / or an order counter-party involved during the term of the contract. Or, it is a contract that does not include "collateral payment" to the liquidator, and "combined advanced" contract is a "collateral for the third trustee or liquidator of the ordering party and / or the order counter party that was established during the contract period. It is a contract that includes “payment”.

A "secondary" crisis management contract is an earlier "primary" crisis management contract that has been offered for sale (individually or as a portfolio) by a "crisis-fighting" stakeholder to the existing contract. is there.

A "derivative primary" crisis management contract is an option contract, a futures contract, a futures contract, a futures market commitment, a swap, or a similar financial basis based on a specified and yet to be established primary risk management contract. Is a means of.

A "derivative secondary" risk management contract is an option contract, futures contract, futures contract, futures market commitment, swap, or similar financial instrument based on a preexisting primary risk management contract. . This “derivative secondary” crisis management contract (which may have been traded since it was first established) is a secondary crisis management contract that has been identified and not yet established, and an identified and established 2 Including means based on the deliberate third sale / exchange / transfer of the following crisis management contracts.

[Appendix E] Sample "Time Step" for product order / contract Example I: Microprocessor

[0330]

[Table 1]

[0331]

[Table 2]

[0332]

[Table 3]

[0333]

[Table 4]

[0334]

[Table 5]

[0335]

[Table 6]

[0336]

[Table 7]

[0337]

[Table 8] [Appendix F] Sample Example of "Time Procedure" for Ordering / Contracting Products II: In case of telecommunication capability

[0338]

[Table 9]

[0339]

[Table 10]

[0340]

[Table 11]

[0341]

[Table 12]

[0342]

[Table 13]

[0343]

[Table 14]

[0344]

[Table 15]

[0345]

[Table 16]

[0346]

[Table 17] [Appendix G] Sample Example of "Time Procedure" for Ordering / Contracting Products III: Stock Price Index

[0347]

[Table 18]

[0348]

[Table 19]

[0349]

[Table 20]

[0350]

[Table 21]

[0351]

[Table 22]

[0352]

[Table 23]

[0353]

[Table 24]

[0354]

[Table 25]

[0355]

[Table 26]

[0356]

[Table 27]

[0357]

[Table 28]

[0358]

[Table 29]

[0359]

[Table 30] [Appendix H] Variables and data files for process 2 This appendix lists file names and descriptions of the files.

Order data field OID: Unique identifier assigned by the contract application program to all new orders submitted BID: Order related party identifier BREF: Order related party self-inquiry destination PID for the order ..Order field that specifies required products PMAT ... Product maturity date PC / ED ... Product consideration / right unit PCUR ... Product currency unit PNCUR ... Product domestic currency unit PPARAM ... Product Specific parameters (eg minimum value (PMI
N), maximum value (PMAX), step size (PSTEP)) MAXCONSID ・ ・ ・ Maximum consideration paid by the ordering party to the contract PAYFUNC ・ ・ ・ Payment function type PAYPARAM associated with at least one index variable ・ ・ ・ related to PAYFUNC Parameter ACC CONSID ・ ・ ・ The account of the ordering party for which the consideration is paid.
The silent account is rights / consideration, currency, and local currency. ACC ENTITL ・ ・ ・ The account of the ordering party to whom the contract right is paid. The silent account is rights / consideration, currency, and local currency. RET LIM ・ ・ ・ Limit of the order hold period that sets the expiration time of an unfilled order OPRICE ・ ・ ・ Calculated and selected price for this order (this value is the winning price) SPRICE ・ ・ ・ Order relationship The identifier of the counterparty established with the party PAY TRAN ... Payment transaction number DCID ... Limited environment identifier OANON ... When you want to avoid the manual authorization request from other stakeholders. Anonymous flag that is set OMANUAL ... Manual authorization request flag. If set,
Ordering parties require manual approval before a completed order is fully confirmed. DTID ... an array of a short list of agreement type identifiers that encode various flag combinations such as collateral, bilateral and multilateral net income requirements PRICEFUNC (SID) ... evaluation function: function type and association Parameter ELFUNC (SID) ・ ・ ・ Expected loss determination function: Function type and related parameters EVFUNC (SID) ・ ・ ・ Expected value determination function: Function type and related parameters CR (SID) ・ ・ ・ Used in current limited environment Fee rate DR (SID) ・ ・ ・ Discount rate used in the current limited environment PRICE (SID) ・ ・ ・ Price calculated by each counterparty EL (SID) ・ ・ ・ Current order by each counterparty Calculated expected loss AL (SID) ・ ・ ・ Calculated absolute loss of current order by each counterparty EV (SID) ・ ・ ・ Determined expected value MCC (SID) of current order by each counterparty Total portfolio that contract can have (as expected loss) Maximum composition MC (SID) ・ ・ ・ The maximum composition that a product can have (as expected loss) ELL1 (SID) ・ ・ ・ Order expected loss limit ELL2 (SID) ・ ・ ・ Competitive relationship Expected loss limit ELL3 (SID) of the product set by the person ... Expected loss limit ELL4 (SID) of the product of the equivalent maturity date set by the counterparty of the same month set by the counterparty Expected loss limit of product ELL5 (SID) ・ ・ ・ Expected loss limit of all products set by counterparty CEL2 (SID) ・ ・ ・ Current cumulative expected loss of product CEL3 (SID) ・ ・ ・ Equivalent maturity date Current cumulative expected loss CEL4 (SID) of products of the same month Current cumulative expected loss CEL5 (SID) of products of the same maturity month ... Current cumulative expected loss ALL1 (SID) of all product orders ... absolute for each contract Loss limit function ALL2 (SID) ・ ・ ・ Absolute loss limit function set of product CAL2 (SID) ・ ・ ・ Accumulated current absolute limit of product Function EVL1 (SID) ・ ・ ・ Expected value limit on each order CC / EDXCHANG (SID) ・ ・ ・ Converting consideration unit of ACC CONSID (and MAXCONSID) of ordering party to product consideration unit Rights unit exchange rate C-CXCHANG (SID) ・ ・ ・ ACC CONSID (and MA of ordering party)
Converting the currency of XCONSID into the currency of the unit of the product Counterparty currency exchange rate C-NCXCHANG (SID) ・ ・ ・ ACC CONSID (and M of the ordering party)
AXCONSID) 's domestic currency is converted into the product's unit of national currency Counter party currency exchange rate EC / EDXCHANG (SID) ・ ・ ・ Counter party's ACC ENTITL consideration unit is converted to product consideration unit Related party consideration / Right unit exchange rate E-CXCHANG (SID) ・ ・ ・ Counter related party's ACC ENTITL currency is converted into product unit currency Counter party related party currency exchange rate E-NCXCHANG (SID) ・ ・・ Counter related party's ACC ENTITL's domestic currency is converted into the unit currency of the related party Counter party currency exchange rate Various variables BPRICE ・ ・ ・ Best price SID selected from the array of PRICE (SID) ・・ Identifier of counter party currently selected or under consideration INDEX ・ ・ ・ Index counter required for calculation of order price P1 ・ ・ ・ Value calculated by evaluation function at index point P2 ・ ・ ・ Calculated by payment function at index point Value master file file・ ・ Description / Contents PORD NEW ・ ・ ・ Details of all new orders submitted by ordering parties (first order new) BID ・ ・ ・ Ordering party identifier BREF ・ ・ ・ Self-inquiry of ordering party to order Destination PID ・ ・ ・ Order field that specifies the requested product MAXCONSID ・ ・ ・ Highest consideration paid by the ordering party to the contract PAYFUNC ・ ・ ・ Payment function type PAYPARAM associated with at least one index variable ・ ・ ・ Parameter ACC related to PAYFUNC CONSID ・ ・ ・ Account of ordering party for which consideration is paid ACC C / ED ・ ・ ・ Price / rights account of ordering party ACC CUR ・ ・ ・ Currency account of ordering party ACC NCUR ・ ・ ・ Country of ordering party Currency account ACC ENTITL: Account of the ordering party to whom the contract right is paid. RET LIM ・ ・ ・ Sets the expiration timing for orders that have not been fulfilled Order limit period OANON ・ ・ ・ When you want to avoid manual approval requests from other stakeholders Anonymous flag OMANUAL ・ ・-Manual authorization request flag. If set,
Ordering parties require manual approval before a completed order is fully confirmed. DTID-Agreement type identifier that encodes a combination of various flags such as collateral, bilateral and multilateral profit requirements PORD QUEUE-Holds the details of an order that has already been licensed and has been attempted to close The master file to do. Some fields are added to ORD NEW (new order) (waiting for first order). OID ・ ・ ・ Unique identifier assigned by P-CONTRACT for all new orders submitted PMAT ・ ・ ・ Product maturity date C / ED ・ ・ ・ Product consideration / right unit PCUR ・ ・ ・ Product currency unit PNCUR・ ・ ・ Product's national currency unit PPARAM ・ ・ ・ Product specific parameters (eg minimum (PMI
N), maximum value (PMAX), step size (PSTEP)) DCID ... identifier of limited environment PORD REJ ... all rejected orders remaining in the file. As for the field, another field is added to ORD QUEUE (waiting for order). ERRCODE-Error code that indicates why the order was rejected OPRICE-The price calculated and selected for the order. This value becomes the established price. SPRICE ・ ・ ・ Identifier of counter party established with ordering party PAY TRAN ・ ・ ・ Payment transaction number PPRODUCT ・ ・ ・ This master file holds information (definition details) about each product known to the device. .
(Primary product) PID: Product identifier PMAT: Product maturity date PC / ED: Product consideration / right unit PCUR: Product currency unit PNCUR: Product domestic currency unit PPARAM ...・ Product specific parameters (eg minimum value (PMI
N), maximum value (PMAX), step size (PSTEP)) PDEAL LIST ... This file holds a list of tuples of the ordering party / product / counterparty of agreements that are allowed to occur. Therefore, by specifying the ordering party (BID) and product (PID), a list of ordering party / product combinations and counterparties ready to enter into an agreement is obtained. BID ・ ・ ・ Ordering party identifier PID ・ ・ ・ Product identifier SID ・ ・ ・ Counter party identifier ANON ・ ・ ・ Identifier of all interested parties requesting anonymous confirmation MANUAL ・ ・ ・ Requesting manual approval Stakeholder Identifier PSEL DC ... This file allows a counterparty to define an identifier for a set of potential order parameters. (Primary sale limited environment) DCID ・ ・ ・ Limited environment identifier BID ・ ・ ・ Order related party identifier PAYFUNC ・ ・ ・ Payment function type PAYPARAM attached to at least one index variable ・ ・ ・ Parameter ACC related to PAYFUNC CONSID ・ ・ ・ Account of the party concerned who pays the consideration ACC ENTITL ・ ・ ・ Account of the party concerned who pays the contract right DTID ・ ・ ・ Agreement type identifier PC / ED ・ ・ ・ Item consideration / right unit PCUR ・・ ・ Currency unit of the product PNCUR ・ ・ ・ Local currency unit of the product PSEL PRICE ・ ・ ・ File containing evaluation parameters of all the opponents including the commission rate, discount rate and exchange rate.
(Primary sale price) SID ・ ・ ・ Counter party identifier PID ・ ・ ・ Product identifier DCID ・ ・ ・ Limited environment identifier PRICEFUNC ・ ・ ・ Evaluation function: Function type and related parameters CR ・ ・ ・ Current product current Commission rate DR used for ordering parties DR ・ ・ ・ Discount rate used for current ordering parties for current products CC / EDXCHANG ・ ・ ・ ACC CONSID (and MAXC of ordering parties
ONSID) to convert the consideration unit to the consideration unit of the product Counterparty price / right unit exchange rate C-CXCHANG ・ ・ ・ ACC CONSID (and MAXCONS of the ordering party)
Counter party currency exchange rate C-NCXCHANG that converts the currency of ID) into the currency of the unit of the product ... ACC CONSID (and MAXCON of the party concerned)
Counter party's currency exchange rate EC / EDXCHANG that converts the domestic currency of (SID) into the domestic currency made into the unit of the product ・ ・ ・ Counter party's consideration that converts the consideration unit of ACC ENTITL of the ordering party into the product consideration unit / Right unit exchange rate E-CXCHANG ・ ・ ・ Counter party's ACC ENTITL's currency is converted into the unitized currency of the counterpart party Currency exchange rate E-NCXCHANG ・ ・ ・ Ordering party's ACC ENTITL domestic Counterparty currency exchange rate PSEL LIMIT to convert currency into unit currency of local currency ... all counterparty portfolio limits and the current accumulated of the various mathematical forms permitted by the device. Holds exposure. (Primary sale limit) SID ・ ・ ・ Counter party identifier PID ・ ・ ・ Product identifier DATE ・ ・ ・ Product maturity date MCC ・ ・ ・ Of the total portfolio that any contract can hold (as expected loss) Highest composition MC ・ ・ ・ Highest composition in the total portfolio that the product can have (expected loss) ELL1 ・ ・ ・ Order expected loss limit ELL2 ・ ・ ・ Expected loss limit ELL3 of the product set by the counterparty ..Expected loss limit ELL4 of products of equivalent maturity date set by counter party ... Expected loss limit ELL5 of products of same month maturity set by counter party ... All products set by counter party Expected loss limit of order CEL2 ・ ・ ・ Current cumulative expected loss of product CEL3 ・ ・ ・ Current cumulative expected loss of product of equivalent maturity date CEL4 ・ ・ ・ Current cumulative expected loss of product that expires in the same month CEL5 ・ ・ ・ All products Current cumulative expected loss of order ALL1 ・ ・ ・ Absolute loss limit function for each contract ALL2 ・ ・ ・ Absolute loss limit function set for product CAL2 ・ ・ ・ Current cumulative absolute limit function for product EVL1 ・ ・ ・ Expected value limit on each order PAYACC ・ ・ ・All registered stakeholder payment accounts (including deductions and previous shadow transactions) are stored in this master file. (Payment account) ID ・ ・ ・ Stakeholder identifier NO ・ ・ ・ Account (account) number ACC C / ED ・ ・ ・ Ordering party consideration / rights account ACC CUR ・ ・ ・ Ordering party currency account ACC NCUR ・ ・ ・ Local currency account of ordering party BALANCE ・ ・ ・ Available funds GID ・ ・ ・ Stakeholder identifier that guarantees the account

[Brief description of drawings]

FIG. 1 is a block diagram of a general purpose “device” implementing the present invention.

2 is a block diagram representing a hardware platform supporting the apparatus of FIG.

FIG. 3 is a diagram showing INVENTCO and its main components.

FIG. 4 Market share of INVENTCO equipment (M
-INVENTCO) is a block diagram of a subset of parts.

FIG. 5 is a block diagram of the components of the processing of a “market” type subset (referred to as a contract device) that may belong within M-INVENTCO.

FIG. 6 is a timeline that applies to Example I.

FIG. 7 is a timeline that applies to Example II.

FIG. 8 is a flowchart of contract evaluation and establishment processing.

FIG. 9 is a flowchart of contract evaluation and establishment processing.

FIG. 10 is a flowchart of contract evaluation and establishment processing.

FIG. 11 is a flowchart of contract evaluation and establishment processing.

FIG. 12 is a flowchart of contract evaluation and establishment processing.

FIG. 13 is a flowchart of contract evaluation and establishment processing.

FIG. 14 is a flowchart of contract evaluation and establishment processing.

FIG. 15 is a flowchart of contract evaluation and establishment processing.

FIG. 16 is a flowchart of contract evaluation and establishment processing.

FIG. 17 is a timeline that applies to Example III.

FIG. 18 is a flowchart of components of processing of the contract device.

FIG. 19 is a flowchart of components of processing of the contract device.

FIG. 20 is a flowchart of components of processing of the contract device.

FIG. 21 is a flowchart of components of processing of a contract device.

FIG. 22 is a flowchart of components of processing of the contract device.

FIG. 23 is a flowchart of components of processing of the contract device.

FIG. 24 is a flowchart of components of processing of the contract device.

FIG. 25 is a flowchart of components of processing of the contract device.

FIG. 26 is a flowchart of components of processing of the contract device.

FIG. 27 is a flowchart of components of processing of the contract device.

FIG. 28 is a flowchart of components of processing of the contract device.

FIG. 29 is a flowchart of components of processing of the contract device.

FIG. 30 is a flowchart of components of processing of a contract device.

FIG. 31 is a flowchart of components of processing of the contract device.

FIG. 32 is a flowchart of components of processing of the contract device.

FIG. 33 is a flowchart of components of processing of a contract device.

FIG. 34 is a flowchart of components of processing of a contract device.

FIG. 35 is a flowchart of components of processing of the contract device.

FIG. 36 is a flowchart of components of processing of the contract device.

FIG. 37 is a flowchart of components of processing of the contract device.

FIG. 38 is a flowchart of components of processing of a contract device.

FIG. 39 is a flowchart of components of processing of the contract device.

FIG. 40 is a flowchart of components of processing of the contract device.

[Explanation of symbols]

10 system 11 Applicant 12 product sponsors 13 Persons involved in ordering products (buyer) 14 Potential product counter party (seller) 15 Guarantee of opponents 16 crackers 17 Price / Right Transfer Parties 18 Various parties

   ─────────────────────────────────────────────────── ─── Continued front page    (72) Inventor Shepard, Ian Kennis             Victoria, Australia 3142,             Toorak, Grindborn Ave             New No. 2

Claims (10)

[Claims] 1. A data processing device including a computer for concluding a crisis management contract with a maturity date in the future between a number of parties concerned, wherein the contract data inputted by the ordering party and the other party concerned. Data storage means for holding registration data input by the side is provided, and is data linked to the data storage means and expressing at least one application contract related to at least one predetermined phenomenon on the ordering party side. At least one order for which contract data is input, which is data that specifies the rights given to the ordering party and the consideration given to the other party at maturity for the range of possible future results associated with Related party input means and data storage means are linked, and at least one other related party is irrelevant to the order related party who inputs the contract data. And linking to at least one other party input means for inputting registration data and a data storage means for the probability of each result within the range of possible future results for one or more of the predetermined phenomena. Based on the contract data and the registration data, price the contract by calculating the other party's reward from the probability and the right, and compete the contract by comparing the consideration and the other party's reward, A data processing device provided with data processing means for establishing an application contract with at least one of the parties concerned. 2. A plurality of main data processing devices interconnected by at least one data communication link for executing an operating system and application software, at least one data storage device accessed by each main data processing device, and data processing. And a plurality of data input / output channels for connecting to a plurality of parties provided with means, the data input / output channels including a crisis phenomenon, a range of possible consequences for the phenomenon, and a maturity period. The means for coordinating the input of the specified data and the data processing means provided on the part of the ordering party have the right given at maturity of each outcome within the range of possible outcomes for one of the predetermined phenomena and the seller. Supply contract data entered by the ordering party to the data storage device for the application contract that specifies the amount payable to , The data processing means provided on the other party's side has nothing to do with the contract data entered on the ordering party's side regarding the probability of occurrence of each result within the range of possible results for at least one predetermined phenomenon. In addition, the registration data input on the side of the other party is supplied to the data storage device, and the main data processing device responds to at least one application contract based on the registration data of the seller for each application contract. By selecting registration data for, calculating the other party's reward according to the specified right for each result within the range of possible outcomes for the phenomenon, and comparing the calculated other party's reward with the consideration, Pricing, competing contracts, and closing application contracts with at least one other party
A system that concludes a crisis management contract between multiple parties. 3. A method for concluding a risk management contract with a maturity date in the future between a number of parties by a data processing device, wherein at least one ordering party input means is used by the ordering party. (A) supplying contract data to the data processing device, the contract data representing at least one application contract relating to at least one predetermined phenomenon associated with a range of possible future results. For one or more of the predetermined phenomena, regardless of the rights given to the ordering party at the time of maturity and the contract data on the ordering party's side that specifies the consideration given to the counterparty party for the range of results obtained With regard to the probability of each result within the range of possible results in the future, the registration data of the partner-related party input using at least one partner-related party input means on the partner-related party side. (B) supplying the data to the data processing device, and holding the contract data and the registration data by the data storage device of the data processing device connected to the order related person input means and the partner related person input means. (C) and a step (d) in which the data processing means of the data processing device sets a price for at least one application contract based on the contract data and the registration data held in the data storage means, and (d). And the step (d) of pricing and establishing the application contract includes the step (I) of calculating the probability and the other party's reward obtained from the right for each application contract, the consideration and the other party. A method comprising: (II) comparing side rewards; and (III) establishing a contract based on the result of comparing the consideration and the other party reward. 4. A method for constructing a computer system for concluding a crisis management contract that will expire on a future date between multiple parties, comprising at least one ordering party data inputting means and at least one counterparty. Interconnecting the participant data input means with the data storage means, interconnecting the data storage means with the data processing means, interconnecting the data processing means with the output means,
In the data processing means, each phenomenon includes a range of possible future results, and the contract data includes a future maturity and a right given to each result within the range of possible results. If the consideration that can be paid to the other party is included, the input data of the ordering party that is the contract data that expresses at least one application contract that specifies a predetermined phenomenon is accepted, and the received order is received. Regardless of the person input data, the registration data of the other party concerned is accepted regarding the probability of each result within the range of possible future results for one or more phenomena, and registration corresponding to the maturity for each predetermined phenomenon The price is paid to the contract by selecting the data and calculating the other party's reward from the rights and probabilities contained in the registration data, and the consideration to compete the application contract with at least one other party The method further comprises the step of executing a program for establishing a contract by comparing the other party's reward with the other party, and outputting confirmation data or a document for each contract that has been established. 5. A method for exchanging a debt between parties concerned, wherein a credit record and a debit record for exchanging a predetermined debt in a data processing device are held by an exchange organization, wherein the exchange organization is The step (a) of preparing a temporary credit record and a temporary debit record of each party side to be separately held by the supervisory organization of the data processing device in the data recording device, and the temporary credit record and the temporary credit record from each exchange (B) Obtaining a deduction record at the beginning of the day for the debit record and storing it in a data storage device, and for each transaction that results in an exchange liability, a temporary credit record or a temporary debit record in chronological order. Clearing and permitting only transactions in which the value of the temporary credit record is not less than the value of the temporary debit record at any time (c), and at the end of the day, to clear the authorized transaction. Depending on the exchange Instructing one of the exchanges to transfer the post-trade credit or debit account, which is an irrevocable, time-invariant liability, to the credit and debit records of the respective parties And (d). 6. A data processing system for concluding a crisis management contract between a number of parties concerned, wherein the ordering party side expresses at least one application contract relating to at least one predetermined phenomenon. ,
At least one ordering party input means to which contract data is input, which is data designating a right given to the ordering party side at the time of maturity for a range of possible future results associated with the phenomenon; At least one partner related party inputting registration data for one or more of the predetermined phenomena regardless of the ordering party side to which the contract data has been input by one partner related party Means, data storage means linked to the order-related party input means and the partner-related party input means, and holding the contract data and the registration data, and the contract data and the registration data Based on, the contract is priced by calculating the other party's reward obtained from the registration data related to the phenomenon of the contract data, and the other party's reward is compared. A data processing system having a data processing unit to establish at least one counterpart party side and the application contract in the mating party side, the Te. 7. A data processing system for concluding a risk management contract between potential multiple parties, wherein the ordering party expresses at least one application contract regarding at least one predetermined phenomenon. And at least one ordering party input means to which contract data is input, which is data designating the right given to the ordering party at maturity for the range of possible future results associated with the phenomenon. , At least one other party to whom registration data is input for one or more of the predetermined phenomena, regardless of the ordering party to input the contract data. An input means, a data storage means linked to the order related person input means and the partner related person input means, for holding the contract data and the registration data, and the data storage means. Data processing means linked to the contract data and pricing the contract by calculating, based on the contract data and the registration data, the other party's reward obtained from the registration data related to the phenomenon of the contract data. system. 8. A data processing system for concluding a crisis management contract between multiple parties, wherein the ordering party has at least one application contract regarding at least one predetermined phenomenon. At least one ordering party input means to which contract data is input, which is data designating a right given to the ordering party side at the time of maturity for a range of possible future results associated with the phenomenon; At least one partner related person input means for inputting registration data for one or more of the predetermined phenomena regardless of the ordering party side for inputting the contract data on the side of one partner And a data storage means for holding the contract data and the registration data linked to the order-related party input means and the partner-related party input means, and a link to the data storage means. Is, based on the contract data and the registration data, the other party compensation obtained from the registration data related to the phenomenon of contract data, for each range of the result,
By pricing the contract by calculating and comparing the other party's reward for each result within the range over the entire range, with at least one of the other party parties Data processing means for establishing an application contract,
A data processing system having. 9. A data processing system for concluding a crisis management contract between a number of parties concerned, wherein the ordering party expresses at least one application contract relating to at least one predetermined phenomenon, At least one ordering party inputting means to which contract data is inputted, which is data specifying a right given to the ordering party at maturity for a range of possible future results associated with the phenomenon, and at least one And at least one partner-related person input means for inputting registration data for one or more of the predetermined phenomena, regardless of the ordering party side for inputting the contract data. , A data storage means linked to the order related person input means and the partner related person input means, and holding the contract data and the registration data, and linked to the data storage means Based on the contract data and the registration data, the right is divided into an integer number of components, and the contract is contracted by calculating the compensation on the other side obtained from the registration data related to the phenomenon of the contract data for each component. By establishing a price and comparing the other party's reward for each component, an application contract is established with at least one of the other party's parties.
A data processing system comprising: a data processing means. 10. A data processing system for concluding a crisis management contract between a number of parties concerned, which is data representing at least one application contract relating to at least one predetermined phenomenon on the order party side, At least one ordering party inputting means to which contract data is inputted, which is data designating the right given to the ordering party side at maturity for the range of possible future results associated with the phenomenon, and at least one And at least one partner-related person input means for inputting registration data for one or more of the predetermined phenomena, regardless of the ordering party side for inputting the contract data. , A data storage unit that is linked to the order-related party input unit and the other-party related party input unit and holds the contract data and the registration data, and a link to the data storage unit. The contract is evaluated by calculating the other party's reward obtained from the registered data related to the phenomenon of the contract data based on the contract data and the registered data, and the other party is compared by comparing the other party's reward. Established by establishing an application contract with at least one of the other parties in the stakeholder side, and calculating the other party's reward obtained from at least a part of the registration data related to the phenomenon of the contract. A data processing means for periodically re-evaluating contract order data.