Computer-implemented method and electronic system for trading
First Claim
Patent Images
1. A computer-implemented method comprising the act of operating a computer to:
- receive from a user indicia of an attribute of an instrument, wherein the instrument attribute may vary over time;
receive from a user indicia defining a time period for use in establishing contract specifications, the time period having an end time;
establish contract specifications to periodically measure the instrument attribute during the time period to generate instrument data;
establish contract specifications to calculate, after the end time, a contract value as a function of a measure of dispersion of the instrument data; and
establish contract specifications to periodically settle gains and losses as a function of market statistics associated with contracts that are based on the instrument attribute and the time period.
0 Assignments
0 Petitions
Accused Products
Abstract
A computer-implemented method to establish contract specifications using designations and/or standardized specifications. The specifications may be for a contract with a payout that is related to the dispersion of instrument data, such as financial instrument data. In one aspect, the method to establish contract specifications may be useful in hedging against volatility fluctuations and for directly trading dispersion-based products. In another aspect, an electronic system facilitates the trading of standardized dispersion-based contracts.
180 Citations
63 Claims
-
1. A computer-implemented method comprising the act of operating a computer to:
-
receive from a user indicia of an attribute of an instrument, wherein the instrument attribute may vary over time;
receive from a user indicia defining a time period for use in establishing contract specifications, the time period having an end time;
establish contract specifications to periodically measure the instrument attribute during the time period to generate instrument data;
establish contract specifications to calculate, after the end time, a contract value as a function of a measure of dispersion of the instrument data; and
establish contract specifications to periodically settle gains and losses as a function of market statistics associated with contracts that are based on the instrument attribute and the time period. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35)
-
-
36. An electronic system comprising:
-
a memory unit;
an input interface to receive data from trading entities;
a processor operatively connectable to the memory unit and input interface and provided with a program which when executed by the processor effectuates control of the memory unit, input interface and operations of the electronic system to (a) allow a first trading entity to input a first set of order data indicative of an order price, a type of contract, and a position, wherein the indicated type of contract is a contract that specifies;
an instrument having an instrument attribute that may vary over time;
a time period having an end time;
a method to periodically measure the instrument attribute to generate instrument data; and
a method to calculate, after the end time, a contract value as a function of a measure of dispersion of the instrument data;
(b) search the memory for a second set of order data that indicates the same type of contract as the first set of order data, a position opposite to the position of the first set of order data, and an order price that is compatible with forming a contract between the first trading entity and a second trading entity, the second set of order data having been provided by the second trading entity;
(c) initiate the formation of a first contract between the first trading entity and an intermediary; and
(d) initiate the formation of a second contract between the second trading entity and the intermediary. - View Dependent Claims (37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49)
-
-
50. A computer-implemented method comprising the act of operating a computer to:
-
form a first electronic order by receiving from a user indicia designating an instrument having an instrument attribute that may vary over time and can be measured to generate instrument data, receiving from the user indicia defining a time period having an end time, receiving from the user indicia of an order price, receiving from the user indicia of a contract type, wherein the indicated contract type includes specifications for a trading entity to one of make and receive a payment after the time period, the payment calculated as a function of a measure of dispersion of the instrument data, and processing the indicia into the first electronic order;
communicate the first electronic order to a computer system programmed to facilitate matching of the first electronic order to a second, complementary order; and
receive confirmation of the first electronic order having been matched to a second, complementary order. - View Dependent Claims (51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63)
-
Specification