System and method for the interactive trading of derivatives

• US 20030028476A1
• Filed: 08/02/2002
• Published: 02/06/2003
• Est. Priority Date: 08/02/2001
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Lee, David M., Berkley, John, Jenkins, Jack, Laub, Ethan, Pacheco, Robert, Cramer, Cheryl
• Granted Patent: US 8,239,313 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system of trading derivatives of various items includes an electronic marketplace configured to accept requests to purchase derivatives and requests to sell derivatives. The marketplace is configured to match requests to purchase with requests to sell when certain criteria are similar to within predetermined limits. Available derivatives include futures contracts, put options, and call options. The derivatives allow one to purchase rights in an item prior to the actual delivery of the item. In addition, the derivatives may be traded to other parties. The use of such derivatives also enables entities to negotiate the prices for various goods and services that were previously not readily negotiable in the past.

Claims

1. A computer-implemented method of trading an item comprising:

creating a derivative representing said item;

making said derivative available for trading on a virtual marketplace;

accepting requests to purchase derivatives on the virtual marketplace; and

matching said derivative with a request to purchase a derivative that is similar to within a predetermined criteria.

2. The method of claim 1 wherein said derivative comprises a futures contract.

3. The method of claim 1 wherein said derivative comprises a put option.

4. The method of claim 1 wherein said derivative comprises a call option.

5. The method of claim 1 further comprising:

clearing said order using a clearinghouse.

6. The method of claim 1 wherein said item can be representative of a good or an offer to perform a service.

7. A computer-implemented method of trading goods and services comprising:

making a request on a virtual marketplace for a particular good or service;

providing data regarding said request to one or more vendors;

accepting responses from one or more vendors;

matching said request with an optimum response; and

creating a derivative representing the provision of said goods or services.

8. The method of claim 7 wherein:

said derivative is selected from the group consisting of put options, call options, and future contracts.

9. A system for the trading of derivatives comprising:

an exchange configured to receive requests to purchase derivatives and to receive offers to sell derivatives, said exchange further configured to match requests to purchase derivatives with offers to sell derivatives;

a clearinghouse configured to process monetary accounts; and

a system configured to store information regarding said requests and said offers and further configured to communicate with various entities regarding said requests and said offers.

10. The system of claim 9 wherein,

said exchange and said system are operated by a single computer system.