A switch engine module enables advantageous management of a risk
portfolio. The switch engine receives interest rate risk portfolios from
a plurality of traders, and for each prospective trader, provides
available switches based on positions in other counterparty portfolios
that offset the viewing traders' positions. The offsetting positions are
encoded with credit preference information in order to identify eligible
trades based on both counterparties credit preferences. The credit
preferences of the participating traders can be taken in consideration in
making switches.