SYSTEM AND METHOD FOR CREATING AND FACILITATING THE TRADING OF A FOREIGN EXCHANGE DEFERRED SPOT PRODUCT

摘要

A computer implemented method and system for creating and facilitating the trading of a financial product. An order is requested by a first party for a first financial product from a second party, wherein the order is entered into an electronic computer trading system. An agreement is created by the second party with a third party to convert the first financial product into a second financial product. The first financial product is converted into the second financial product which is then cleared. The cleared second financial product is delivered to the second party and listed the on an exchange where it is traded. The first financial product may be a spot foreign exchange order that is converted, via an exchange of futures swaps, to the second financial product such as a foreign exchange deferred spot product. The financial product includes an interest rate pay/collect feature by way of Swap Points, which are expressed in terms of fractional parts of minimum price increments as a positive or negative number. A positive Swap Point reflects a credit for the Short Futures Position and a debit for the Long Futures position, and a negative Swap Point reflects a debit for the Short Futures Position and a credit for the Long Futures Position.