System and method for providing futures contracts in a financial market environment

• US 20050086152A1
• Filed: 10/20/2003
• Published: 04/21/2005
• Est. Priority Date: 10/20/2003
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: eSpeed Incorporated (BGC Group, Inc.)
• Inventors: Sweeting, Michael
• Granted Patent: US 7,908,193 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method for offering an asset in a financial environment is provided that includes receiving a request to perform a selected one of a purchasing and a selling operation for a futures contract. The futures contract includes a first asset class having a first value associated therewith and a second asset class having a second value associated therewith. A price for the futures contract is determined at least partially by the first and second values.

Claims

1. A futures contract, comprising:

a first asset class having a first value associated therewith; and

a second asset class having a second value associated therewith, wherein a price for the futures contract is at least partially determined by the first and second values.

2. The futures contract of claim 1, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

3. The futures contract of claim 1, further comprising:

a third asset class having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price of the futures contract.

4. The futures contract of claim 1, wherein the futures contract includes a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine the price for the futures contract.

5. The futures contract of claim 1, wherein the first asset class is associated with bonds.

6. The futures contract of claim 1, wherein a percentage of an investment vehicle correlating to the futures contract that is attributable to one of a plurality of asset classes is inversely proportional to a number of the asset classes.

7. A futures trading system, comprising:

a futures module operable to receive a request to perform a selected one of a buying and a selling operation associated with a futures contract, the futures contract operable to be purchased or sold in a financial market environment, wherein the futures contract includes;

a first asset class having a first value associated therewith; and

a second asset class having a second value associated therewith, wherein a price for the futures contract is determined at least partially by the first and second values.

8. The futures trading system of claim 7, wherein the futures module comprises a processor that is operable to receive the request and to process the request in order to match one or more contract terms provided in the request with an availability associated with the futures contract.

9. The futures trading system of claim 7, wherein the futures module further comprises a memory element operable to store a transaction associated with a purchase or a sale of the futures contract.

10. The futures trading system of claim 7, wherein the futures module is operable to confirm a sale or a purchase of the futures contract and to provide a confirmation notification to a selected one of the buyer and the seller of the futures contract.

11. The futures trading system of claim 7, wherein the futures contract further comprises a third asset class having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price.

12. The futures trading system of claim 7, wherein the futures module is operable to communicate with a price reporting/dissemination element that is operable to provide financial data to a selected one of the buyer and the seller.

13. The futures trading system of claim 7, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

14. The futures trading system of claim 7, wherein the futures contract includes a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine the price for the futures contract.

15. A method for transacting an asset in a financial environment, comprising:

receiving a request to perform a selected one of a purchasing and a selling operation for a futures contract, wherein the futures contract includes a first asset class having a first value associated therewith and a second asset class having a second value associated therewith, and wherein a price for the futures contract is determined at least partially by the first and second values.

16. The method of claim 15, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

17. The method of claim 15, further comprising:

providing a third asset class in the futures contract, the third asset class having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price.

18. The method of claim 15, further comprising:

allocating that the first, second, and third asset classes each make up a third of the futures contract.

19. The method of claim 15, further comprising:

delivering the futures contract to a purchaser thereof.

20. The method of claim 15, further comprising:

implementing a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine the price for the futures contract.

21. A futures contract prepared by a process comprising the steps of:

receiving a request to perform a selected one of a purchasing and a selling operation for the futures contract, wherein the futures contract includes a first asset class having a first value associated therewith and a second asset class having a second value associated therewith, and wherein a price for the futures contract is determined at least partially by the first and second values.

22. The process of claim 21, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

23. The process of claim 21, further comprising:

providing a third asset class in the futures contract, the third asset class having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price.

24. The process of claim 21, further comprising:

assigning ownership of the futures contract to a purchaser thereof.

25. A system for offering an asset in a financial environment, comprising:

means for receiving a request to perform a selected one of a purchasing and a selling operation for a futures contract, wherein the futures contract includes a first asset class having a first value associated therewith and a second asset class having a second value associated therewith, and wherein a price for the futures contract is determined at least partially by the first and second values; and

means for assigning possession of the futures contract to an entity associated with performing the selected one of the purchasing and selling operations.

26. The system of claim 25, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

27. The system of claim 25, further comprising:

means for providing a third asset class in the futures contract, the third asset class having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price.

28. The system of claim 25, further comprising:

means for determining the price using the first and second values.

29. The system contract of claim 25, further comprising:

means for implementing a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine the price for the futures contract.

30. A futures contract, comprising:

an asset class that includes a first asset subclass having a first value associated therewith, wherein the asset class further includes a second asset subclass having a second value associated therewith, wherein a price for the futures contract is at least partially determined by the first and second values.

31. The futures contract of claim 30, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

32. The futures contract of claim 30, further comprising:

a third asset subclass having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price of the futures contract.

33. The futures contract of claim 30, wherein the first and second subclasses reflect a selected one of a grading characteristic and a standard associated with the asset class.

34. The futures contract of claim 30, wherein the futures contract includes a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine the price for the futures contract.

35. The futures contract of claim 30, wherein a percentage of an investment vehicle correlating to the futures contract that is attributable to one of a plurality of asset subclasses is inversely proportional to a number of the asset subclasses.

36. A futures trading system, comprising:

a futures module operable to receive a request to perform a selected one of a buying and a selling operation associated with a futures contract, the futures contract operable to be purchased or sold in a financial market environment, wherein the futures contract includes;

an asset class that includes a first asset subclass having a first value associated therewith and a second asset subclass having a second value associated therewith, wherein a price for the futures contract is determined at least partially by the first and second values.

37. The futures trading system of claim 36, wherein the futures module comprises a processor that is operable to receive the request and to process the request in order to match one or more contract terms provided in the request with an availability associated with the futures contract.

38. The futures trading system of claim 36, wherein the futures module further comprises a memory element operable to store a transaction associated with a purchase or a sale of the futures contract.

39. The futures trading system of claim 36, wherein the futures module is operable to confirm a sale or a purchase of the futures contract and to provide a confirmation notification to a selected one of the buyer and the seller of the futures contract.

40. The futures trading system of claim 36, wherein the futures contract further comprises a third asset subclass having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price.

41. The futures trading system of claim 36, wherein the futures module is operable to communicate with a price reporting/dissemination element that is operable to provide financial data to a selected one of the buyer and the seller.

42. The futures trading system of claim 36, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

43. The futures trading system of claim 36, wherein the futures contract includes a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine the price for the futures contract.

44. A method for transacting an asset in a financial environment, comprising:

receiving a request to perform a selected one of a purchasing and a selling operation for a futures contract, wherein the futures contract includes an asset class that includes a first asset subclass having a first value associated therewith and a second asset subclass having a second value associated therewith, and wherein a price for the futures contract is determined at least partially by the first and second values.

45. The method of claim 44, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

46. The method of claim 44, further comprising:

providing a third asset subclass in the futures contract, the third asset class having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price.

47. The method of claim 44, further comprising:

allocating that the first, second, and third asset subclasses each make up a third of the futures contract.

48. The method of claim 44, further comprising:

assigning ownership of the futures contract to a purchaser thereof.

49. The method of claim 44, further comprising:

implementing a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine the price for the futures contract.

50. A system for offering an asset in a financial environment, comprising:

means for receiving a request to perform a selected one of a purchasing and a selling operation for a futures contract, wherein the futures contract includes an asset class that includes a first asset subclass having a first value associated therewith and a second asset subclass having a second value associated therewith, and wherein a price for the futures contract is determined at least partially by the first and second values; and

means for assigning possession of the futures contract to an entity associated with performing the selected one of the purchasing and selling operations.

51. The system of claim 50, wherein a change in the first value due to a cheapest to deliver parameter results in a change in the second value.

52. The system of claim 50, further comprising:

means for providing a third asset class in the futures contract, the third asset class having a third value associated therewith, wherein the first, second, and third values are used at least partially to determine the price.

53. The system of claim 50, further comprising:

means for implementing a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine the price for the futures contract.