On-demand defined securitization methods and systems

• US 20050038726A1
• Filed: 08/04/2004
• Published: 02/17/2005
• Est. Priority Date: 08/12/2003
• Status: Abandoned Application

• Current Assignee: ETW LLC, Virtu Financial Capital Markets LLC (Virtu Financial, Inc.)
• Original Assignee: Virtu Financial Capital Markets LLC (Virtu Financial, Inc.)
• Inventors: Salomon, David Bela, Viola, Vincent
• Application Number:
  US10/911,308
• Publication Number:
  US 20050038726A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Methods for creating and providing securities for investors and other market-interested parties involve creating investment entities with associated assets and corresponding securities, such as shares in the investment entities, in a time effective manner and in response to an investor'"'"'s demand. The assets of the investment entity may be formed as an exchange traded fund (“ETF”) and may include shares of stock, bonds, options, convertibles, currencies, warrants, futures, commodities, real estate, other hard or soft assets and/or other items of value. An investment entity may be formed in any suitable legal structure, such as, but not limited to, a corporation, organization, business trusts, partnerships or the like, that is capable of holding the assets of the investment entity. An investment entity may hold one or more portfolios of common stocks, bonds, or other assets. In some example embodiments of the present invention, the (or at least one) portfolio in the investment entity'"'"'s assets may be designed to track one or more indices by investing in at least a representative, e.g., proportional, sample of securities that are included in the particular indices to be tracked.

Claims

1. A method for on-demand securitization, comprising:

receiving information regarding a proposed investment entity to be created, including information regarding an asset set to be included in a portfolio of the proposed investment entity;

defining parameters, guidelines or limitations regarding asset sets that may be included in portfolios of investment entities, wherein the parameters, guidelines or limitations are based on requirements for obtaining regulatory approval;

determining that the asset set to be included in a portfolio of the proposed investment entity meets the defined parameters, guidelines or limitations;

obtaining regulatory approval to create a customized security for the proposed investment entity backed by the asset set in the portfolio; and

forming an investment entity for holding the asset set.

2. A method as recited in claim 1, wherein obtaining regulatory approval comprises obtaining pre-approval to create a customized security for an investment entity backed by an asset set that meets the defined parameters, guidelines or limitations, in advance of receiving information regarding a proposed investment entity to be created.

3. A method as recited in claim 1, wherein obtaining regulatory approval comprises obtaining a shelf approval, fast track or other expedited approval processing from the Securities and Exchange Commission to create a customized security.

4. A method as recited in claim 1, wherein receiving information comprises providing network site for access by investors and receiving information over the network from an investor during a communication session with the investor accessing the network site.

5. A method as recited in claim 4, wherein the network site comprises an Internet website.

6. A method as recited in claim 1, wherein receiving information comprises providing an Internet website for access by investors, the website including at least one location for an investor to enter information regarding a proposed investment entity.

7. A method as recited in claim 6, wherein the at least one location of the website comprises input fields marked with indicia indicating the type of information to be entered into the input fields.

8. A method as recited in claim 1, wherein forming an investment entity comprises forming a trust for holding the asset set.

9. A method as recited in claim 8, wherein forming a trust comprises partially completng trust documents for a proposed investment entity in advance of receiving information regarding a proposed investment entity to be created, and completing the trust documents with received information.

10. A method as recited in claim 9, wherein receiving information comprises providing a network site for access by investors, the network site including at least one location for an investor to enter information regarding a proposed investment entity.

11. A method as recited in claim 10, wherein the network site comprises an Internet website.

12. A method as recited in claim 1, wherein determining that the asset set meets pre-defined parameters, guidelines or limitations comprises configuring a computer to compare the asset set information with information associated with the pre-defined parameters, guidelines or limitations.

13. A method as recited in claim 1, wherein the asset set comprises an ETF.

14. A method as recited in claim 1, wherein information regarding the proposed investment entity further includes at least one of information regarding the size of creation and/or redemption units, a total quantity of shares to be created, an identity of a trustee to manage the investment entity and timing requirements for the securitization.

15. A method for on-demand securitization, comprising:

receiving information from a third party regarding a proposed investment entity to be created, including information regarding an asset set to be included in a portfolio of the proposed investment entity;

determining that the asset set to be included in a portfolio of the proposed investment entity meets pre-defined parameters, guidelines or limitations;

forming an investment entity for holding the asset set;

causing securities in the investment entity to be listed on an exchange.

16. A method as recited in claim 15, wherein the parameters, guidelines or limitations are based on requirements for obtaining regulatory approval and wherein the method further comprises obtaining regulatory approval to create a customized security for the proposed investment entity.

17. A method as recited in claim 15, wherein receiving information comprises providing a network site for access by investors and receiving information over the network site from an investor during a communication session with the investor accessing the network site.

18. A method as recited in claim 17, wherein the network site comprises an Internet website.

19. A method as recited in claim 15, wherein receiving information comprises providing a network site for access by investors, the network site including at least one location for an investor to enter information regarding a proposed investment entity.

20. A method as recited in claim 19, wherein the network site comprises an Internet website.

21. A method as recited in claim 19, wherein the at least one location of the network site comprises input fields marked with indicia indicating the type of information to be entered into the input fields.

22. A method as recited in claim 15, wherein forming an investment entity comprises forming a trust for holding the asset set.

23. A method as recited in claim 15, wherein information regarding the proposed investment entity further includes at least one of information regarding the size of creation and/or redemption units, a total quantity of shares to be created, an identity of a trustee to manage the investment entity, and timing requirements for the securitization.