System and method for trading a financial instrument indexed to entertainment revenue

• US 20050160020A1
• Filed: 08/09/2004
• Published: 07/21/2005
• Est. Priority Date: 01/16/2004
• Status: Active Grant

• Current Assignee: eSpeed Incorporated (BGC Group, Inc.)
• Original Assignee: eSpeed Incorporated (BGC Group, Inc.)
• Inventors: Lutnick, Howard W., Asher, Joseph M.
• Granted Patent: US 7,698,184 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method for trading a securities bundle indexed to entertainment revenue includes identifying a securities bundle comprising a first and second security. The first security is associated with a first entertainment event and the second security is associated with a second entertainment event. The first security is offered in an after-market for a buying price and a market price is determined for the first security in the after-market.

Claims

1. A method for trading, comprising:

identifying a securities bundle comprising a first and second security, the first security associated with a first entertainment event and the second security associated with a second entertainment event;

offering the first security in an after-market for a buying price; and

determining a market price for the first security in the after-market.

2. The method of claim 1, the after-market comprising a futures exchange and wherein offering the first security in an after-market for the buying price comprises offering a futures contract associated with the first security.

3. The method of claim 1, the after-market comprising a market center.

4. The method claim 1, further comprising:

receiving a bid price for the first security;

receiving an ask price for the first security; and

wherein determining the buying price for the first security comprises determining the market price for the first security based on the bid price and the ask price.

5. The method of claim 1, wherein the securities bundle is associated with a dividend schedule comprising a first dividend date, a second dividend date, and a third dividend date.

6. The method of claim 5, wherein offering the first security in the after-market for the buying price comprises offering the first security in the after-market after the first dividend date.

7. The method of claim 6, the market price comprising a first market price and the method further comprising offering the second security for a second market price in the after-market after the first dividend date.

8. The method of claim 5, further comprising identifying a dividend for the first security after the second dividend date.

9. The method of claim 8, further comprising:

associating a return value with the second dividend date;

identifying a revenue for the first entertainment event, the revenue occurring between the first and second dividend dates; and

calculating the dividend by multiplying the revenue times the return value.

10. The method of claim 9, the return value comprising a first return value, the revenue comprises first revenue, and the method further comprising:

associating a second return value with the third dividend date;

identifying a second revenue for the first entertainment event, the second revenue occurring between the second and third dividend dates; and

calculating a second dividend by multiplying the second revenue times the second return value.

11. The method of claim 10, wherein the second revenue from the first entertainment event is based on at least one of the following:

video sales;

merchandising;

licensing; and

international ticket sales.

12. The method of claim 9, the first event associated with an entertainment company and the revenue comprising net profit of the entertainment company for the first event.

13. The method of claim 9, the first entertainment event comprising a movie and the revenue at least partially based on domestic ticket sales of the movie.

14. The method of claim 9, the first entertainment event comprising a concert and the revenue at least partially based on ticket sales of the concert.

15. The method of claim 14, the second entertainment event comprising a second movie.

16. The method of claim 14, the second entertainment event comprising a music release.

17. The method of claim 1, further comprising offering information associated with the first entertainment event, the information comprising at least one of the following:

current cost of production;

current domestic gross revenue;

current international gross revenue;

merchandising revenue; and

revenue per location of entertainment event.

18. The method of claim 17, the information comprising non-financial data including at least one of the following:

one or more production locations;

entertainment genre;

entertainment industry;

one or more participants involved in the production; and

one or more participants involved in the premier.

19. The method of claim 1, wherein offering the first security comprises unbundling the securities bundle such that the first security and the second security are operable to be transacted separately.

20. A system for trading, comprising:

a memory operable to store information associated with at least one securities bundle comprising a first and second security, the first security associated with a first entertainment event and the second security associated with a second entertainment event; and

a processor coupled to the memory and operable to;

offer the first security in an after-market for a buying price; and

determine a market price for the first security in the after-market.

21. The system of claim 20, wherein offering the first security in an after-market for the buying price comprises offering a futures contract associated with the first security.

22. The system of claim 20, the processor further operable to:

receive a bid price for the first security;

receive an ask price for the first security; and

wherein determining the buying price for the first security comprises determining the market price for the first security based on the bid price and the ask price.

23. The system of claim 20, wherein the securities bundle is associated with a dividend schedule comprising a first dividend date, a second dividend date, and a third dividend date.

24. The system of claim 23, wherein offering the first security in the after-market for the buying price comprises offering the first security in the after-market after the first dividend date.

25. The system of claim 24, the market price comprising a first market price and the processor further operable to offer the second security for a second market price in the after-market after the first dividend date.

26. The system of claim 23, the processor further operable to identify a dividend for the first security after the second dividend date.

27. The system of claim 26, the processor further operable to:

associate a return value with the second dividend date;

identify a revenue for the first entertainment event, the revenue occurring between the first and second dividend dates; and

calculate the dividend by multiplying the revenue times the return value.

28. The system of claim 27, the return value comprising a first return value, the revenue comprises first revenue, and the after-market further operable to:

associate a second return value with the third dividend date;

identify a second revenue for the first entertainment event, the second revenue occurring between the second and third dividend dates; and

calculate a second dividend by multiplying the second revenue times the second return value.

29. The system of claim 28, wherein the second revenue from the first entertainment event is based on at least one of the following:

video sales;

merchandising;

licensing; and

international ticket sales.

30. The system of claim 27, the first event associated with an entertainment company and the revenue comprising net profit of the entertainment company for the first event.

31. The system of claim 27, the first entertainment event comprising a movie and the revenue at least partially based on domestic ticket sales of the movie.

32. The system of claim 27, the first entertainment event comprising a concert and the revenue at least partially based on ticket sales of the concert.

33. The system of claim 32, the second entertainment event comprising a second movie.

34. The system of claim 32, the second entertainment event comprising a musical release.

35. The system of claim 20, the processor further operable to offer information associated with the first entertainment event, the information comprising at least one of the following:

current cost of production;

current domestic gross revenue;

current international gross revenue;

merchandising revenue; and

revenue per location of entertainment event.

36. The system of claim 35, the information comprising non-financial data including at least one of the following:

one or more production locations;

entertainment genre;

entertainment industry;

one or more participants involved in the production; and

one or more participants involved in the premier.

37. The system of claim 20, wherein offering the first security comprises unbundling the securities bundle such that the first security and the second security are operable to be transacted separately.

38. A method for trading, comprising:

transacting a futures contract associated with at least one entertainment event, wherein the future contract comprises a purchase price and a settlement date; and

settling the futures contract based at least in part upon the purchase price and a value associated with the entertainment event at the settlement date.

39. The method of claim 38, wherein an intermediary facilitates the execution of the futures contract between a first party and a second party.

40. The method of claim 38, wherein the entertainment event comprises a movie and the value associated with the entertainment event comprises a revenue at least partially based on ticket sales of the movie.

41. The method of claim 38, wherein the entertainment event comprises a concert and the value associated with the entertainment event comprises a revenue at least partially based on ticket sales of the concert.

42. The method of claim 38, wherein the value of the entertainment event is at least partially based upon ticket sales to the entertainment event.

43. The method of claim 38, wherein the value of the entertainment event is based at least in part upon a quantifiable parameter associated with the entertainment event.

49. The system of claim 43, wherein the value of the entertainment event is based at least in part upon a quantifiable parameter associated with the entertainment event.

44. A system for trading, comprising:

a memory that stores a futures contract associated with at least one entertainment event, wherein the future contract comprises a purchase price and a settlement date; and

a processor coupled to the memory and that settles the futures contract based at least in part upon the purchase price and a value associated with the entertainment event at the settlement date.

45. The system of claim 44, wherein the processor facilitates the execution of the futures contract between a first party and a second party.

46. The system of claim 44, wherein the entertainment event comprises a movie and the value associated with the entertainment event comprises a revenue at least partially based on ticket sales of the movie.

47. The system of claim 44, wherein the entertainment event comprises a concert and the value associated with the entertainment event comprises a revenue at least partially based on ticket sales of the concert.

48. The system of claim 44, wherein the value of the entertainment event is at least partially based upon ticket sales to the entertainment event.