TP ICAP Group has been granted a patent for a computer system designed for central counterparty limit management. The system facilitates the processing of planned orders for over-the-counter derivatives, ensuring that they comply with counterparty risk limits before execution at designated venues. GlobalData’s report on TP ICAP Group gives a 360-degree view of the company including its patenting strategy. Buy the report here.
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According to GlobalData’s company profile on TP ICAP Group, was a key innovation area identified from patents. TP ICAP Group's grant share as of July 2024 was 61%. Grant share is based on the ratio of number of grants to total number of patents.
Central counterparty limit management for over-the-counter derivatives
The patent US12045883B2 describes a hub computer device designed to facilitate the trading of over-the-counter derivatives by managing counterparty risk. The device operates by receiving planned order information from various asset manager computer devices through a computer network. This information includes details about the derivatives to be traded and the execution venue. The hub device also collects data on the total available counterparty risk for each asset manager from credit computer devices, which is stored in memory. It assigns a counterparty risk limit to the planned order, ensuring that this limit is accounted for against the total available risk before transmitting it to the designated execution venue. Following this, the hub communicates back to the asset manager, confirming that the risk limit has been assigned.
Additionally, the patent outlines that the connections between the hub, asset managers, credit devices, and execution venues are pre-established, enhancing operational efficiency. The hub can store risk data in cache memory and update it periodically, with daily updates specified for the total available counterparty risk. The system is designed to ensure that sufficient counterparty risk is available before proceeding with order assignments. The execution venues may include swap execution facilities, and the credit devices are typically operated by futures commission merchants. This structured approach aims to streamline the trading process while effectively managing counterparty risk across multiple execution accounts and venues.
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GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.
