The swap transactions rely on the financial robustness of the players. There is no advantage to winning a paper profit on a transaction if the other party is unable or unwilling to pay up. Consequently, it makes sense to adjust the terms offered depending on the financial strength and managerial integrity of a potential swap partner. It also makes sense to start with small transactions if the swap partner has no history in the market. Later, larger transactions may be permitted if the small ones are completed without a problem.

In the demonstration, each player makes a series of rules specific to the opposite parties.

1. 1.List any players that you won't deal with. This is the “blacklist”.
   

2. 2.Limit the dollar value of the swap for a particular player.
   

3. 3.Put maximum interval on the swap for a particular player. Interval in months.
   

4. 4.Put handicap on a deal with a particular player. The handicap multiplies the general expected profit factor for that player. The nominal value is 1.0
   

One consideration is that the blacklist (item 1) is pretty dramatic. If a player is blacklisted, they find out about it because they can see that there are no exchanges with the party that maintains the blacklist. There is a more subtle way to discourage swap transactions with a particular player. A player can use item 2 to limit swaps to trivially small amounts or use item 4 to demand an excessive profit. Either one of these steps allows the swap negotiations to go forward but makes it unlikely that an agreement is reached.

Here are the adjustment that Player A makes for other parties in the demonstration: 

Bidding Factors Determined by Experience with Players

Terms for player B

    swap value limit =    2000000

    swap interval limit =   24

    no handicap

Terms for player C

     Blacklisted!

Terms for player D

    swap value limit =     500000

    swap interval limit =    6

    handicap =     0.5000

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