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.