Abstract: A method and system for electronically trading financial instruments is disclosed. In one embodiment of the disclosed invention, traders generate requests for proposals (“RFPs”) on financial instruments. The RFPs are broadcast to traders whose tradeable structures include the RFP structure. During a response phase, traders may respond to the RFP. These responses are preferably broadcast to all traders who have responded, as well as the requestor. Preferably, only the requestor may trade on the responses during the response phase. Once the response phase expires, the system preferably enters an action phase during which all responders to the RFP and the requestor may trade on the responses. Once the action phase expires, the responses are migrated to the general market.

Abstract: A method and system for tracking and enforcing mutual put, i.e. early termination, requirements for contracts between a first financial institution and a second financial institution for underlying financial instruments is disclosed. The mutual puts comprise an option to unwind the underlying financial instrument at a future time. One embodiment of the system includes storing a plurality of sets of mutual put requirements for a plurality of trading parties, each set of mutual put requirements established by a first party for trades with a counterparty; receiving a trade indication identifying a pair of trading parties; retrieving the mutual put requirements for each of the counterparties; and calculating a set of mutual put parameters for the trade based on the stored bilateral mutual put requirements. The system may further verify that the trade entered into between the parties meets the calculated set of mutual put parameters.

Abstract: A method for tracking credit limits between a first financial institution and a second financial institution is disclosed. Each financial instrument may have one or more tenors. An initial credit limit is assigned to a credited financial institution for each tenor of each financial instrument to be traded. A relationship is assigned to each credit limits on a first plurality of tenors wherein credit extended on one of said tenors reduces the available credit on said other tenors, said credit being reduced in proportion to said preassigned proportions. When the system receives a signal associated with trades between counterparties, the system updates the credit limits between the counterparties in accordance with preassigned proportions.