Conversion and liquidation of defaulted positions

摘要

A method of liquidating defaulted positions associated with centrally clearedfinancial product is disclosed. The method includes identifying a defaultedposition associated with a centrally cleared financial product, calculatinga value differential between the defaulted position and a standard position,offering the value differential and the standard position to a party such thatthe value differential and the standard position represent a converted position,and settling the converted position upon acceptance of the offer by the party.