Guaranteed physical delivery futures contract and method and system of consolidating same
First Claim
1. A method comprising:
- guaranteeing physical delivery for future positions of market participants having open first-nearby time positions of a particular size; and
making additions to or subtractions from open first-nearby time positions of market participants that are less than the particular size.
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Accused Products
Abstract
A guaranteed physical delivery futures contract and method and system for consolidating same are disclosed. The method includes guaranteeing physical delivery for future positions of market participants having open first-nearby time positions of a particular size, making additions to or subtractions from open first-nearby time positions of market participants that are less than the particular size and offsetting the additions to and subtractions from market participants'"'"' open first-nearby time positions with opposite positions in a second-nearby time. The system includes one or more servers and communications links, the communications links for receiving position data, including open positions, and the servers are configured to make additions to or subtractions from open first-nearby time positions less than a certain size and adjust market participant second-nearby time positions based on the additions to or subtractions from open first-nearby time positions. In certain embodiments, the underlying commodity is crude oil and the particular size is the size of a cargo shipment, about 600,000 barrels.
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Citations
18 Claims
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1. A method comprising:
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guaranteeing physical delivery for future positions of market participants having open first-nearby time positions of a particular size; and
making additions to or subtractions from open first-nearby time positions of market participants that are less than the particular size. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A method of guaranteeing physical delivery for market participants having cargo-size positions, the method comprising:
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identifying open first-nearby time positions, the open first-nearby time positions including;
a first number of open cargo-size long positions;
a second number of open cargo-size short positions;
less than cargo-size long positions; and
less than cargo-size short positions;
matching any open cargo-size long positions with any open cargo-size short positions;
if the first number equals the second number, then bringing remaining open first-nearby time positions to zero;
if the first number is less than the second number, then matching unmatched cargo-size short positions with less than cargo-size long positions of long participants, increasing the less than cargo-size long positions to cargo-size long positions and adjusting a second-nearby time position of the long participants; and
if the first number is greater than the second number, then matching unmatched cargo-size long positions with less than cargo-size short positions of short participants, increasing the less than cargo-size short positions to cargo-size short positions and adjusting a second-nearby time position of the short participants, thereby guaranteeing physical delivery to participants having cargo-size first-nearby time positions.
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13. A computer system for automatically consolidating futures contract position of to guarantee physical delivery of a commodity, the system comprising:
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one or more communications links receiving market participant position information, the position information including identification of open first-nearby time long positions and open first-nearby time short positions;
one or more processors configured to;
match open first-nearby time long positions first-nearby time short positions received from the communication links;
make additions to or subtractions from open first-nearby time positions less than a certain size; and
adjust market participant second-nearby time positions based on the additions to or subtractions from open first-nearby time positions. - View Dependent Claims (14)
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15. A method of receiving guaranteed physical delivery of a cargo-size position in a futures contract, the method comprising:
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establishing an open first-nearby time future position;
being matched to an opposite open first-nearby time future position of a market participant; and
entering into a physical market contract based on the futures contract with the market participant, the physical market contract resulting in physical delivery. - View Dependent Claims (16, 17, 18)
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Specification