System and method for offering a futures contract indexed to entertainment revenue

• US 20050209954A1
• Filed: 05/20/2005
• Published: 09/22/2005
• Est. Priority Date: 01/16/2004
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: Texas Instruments, Inc.
• Inventors: Lutnick, Howard W., Manning, Gregory P., Asher, Joseph M., Lefkowitz, James J., Hersch, Stuart A.
• Granted Patent: US 7,698,199 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method of trading includes performing a transaction of a futures contract between a buyer and a seller. The futures contract is associated with at least one entertainment event and comprises a purchase price and a settlement date. The method concludes by performing a settlement of the futures contract based at least in part upon the purchase price and a value associated with the entertainment event at the settlement date. The entertainment event is associated with a security and the transaction of the futures contract is performed in conjunction with the issuance of the security to the seller.

Claims

1. A method of trading, comprising:

performing a transaction of a futures contract between a buyer and a seller, wherein;

the futures contract is associated with at least one entertainment event;

the futures contract comprises a purchase price; and

the futures contract further comprises a settlement date; and

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

wherein the entertainment event is associated with a security and the transaction of the futures contract is performed in conjunction with the issuance of the security to the seller.

2. The method of claim 1, wherein the security is posted by the seller as collateral for the futures contract in the transaction.

3. The method of claim 2, wherein the security is associated with a dividend that is based at least in part upon revenues generated by the entertainment event.

4. The method of claim 2, wherein the entertainment event is associated with an entertainment entity that issues the security.

5. The method of claim 1, wherein the seller pays a margin amount prior to the settlement of the futures contract, the margin amount being based at least in part upon the purchase price.

6. The method of claim 5, further comprising:

determining the value associated with the entertainment event at a particular time prior to the settlement date; and

increasing the margin amount to be paid by the seller in response to the determination.

7. The method of claim 1, wherein the futures contract is associated with a first entertainment event and a second entertainment event and the futures contract is settled based further upon a first value associated with the first entertainment event and a second value associated with the second entertainment event.

8. The method of claim 7, wherein:

the first entertainment event is associated with a first security that is posted by the seller as collateral for the futures contract in the transaction; and

the second entertainment event is associated with a second security that is posted by the seller as collateral for the futures contract in the transaction.

9. The method of claim 7, wherein the first and second entertainment events are associated with a security that is posted by the seller as collateral for the futures contract in the transaction.

10. The method of claim 1, wherein performing the transaction comprises selling the futures contract by the seller to the buyer.

11. The method of claim 1, wherein performing the transaction comprises buying the futures contract by the buyer from the seller.

12. The method of claim 1, wherein the settlement date may be extended based at least in part upon the success of the entertainment event.

13. The method of claim 1, wherein the value of the entertainment event is at least partially based upon revenues generated by the entertainment event.

14. The method of claim 1, wherein an intermediary performs the transaction of the futures contract.

15. The method of claim 1, wherein the entertainment event comprises a movie and the value associated with the entertainment event comprises a revenue at least partially based upon tickets sales of the movie.

16. The method of claim 1, wherein the entertainment event is associated with at least one of music, motion pictures, theatrical shows, television shows, book publishing, sports, and concerts.

17. The method of claim 1, wherein the value of the entertainment event is at least partially based upon ticket sales to the entertainment event.

18. The method of claim 1, wherein the value of the entertainment event is at least partially based upon a objectively quantifiable parameter associated with the entertainment event.

19. A system for trading, comprising:

a memory operable to store information associated with a futures contract between a buyer and a seller, wherein;

the futures contract is associated with at least one entertainment event;

the futures contract comprises a purchase price; and

the futures contract further comprises a settlement date; and

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

wherein the entertainment event is associated with a security and a transaction of the futures contract is performed in conjunction with the issuance of the security to the seller.

20. The system of claim 19, wherein the security is posted by the seller as collateral for the futures contract in the transaction.

21. The system of claim 20, wherein the security is associated with a dividend that is based at least in part upon revenues generated by the entertainment event.

22. The system of claim 20, wherein the entertainment event is associated with an entertainment entity that issues the security.

23. The system of claim 19, wherein the futures contract is associated with a first entertainment event and a second entertainment event and the futures contract is settled based further upon a first value associated with the first entertainment event and a second value associated with the second entertainment event.

24. The system of claim 23, wherein:

the first entertainment event is associated with a first security that is posted by the seller as collateral for the futures contract in the transaction; and

the second entertainment event is associated with a second security that is posted by the seller as collateral for the futures contract in the transaction.

25. The system of claim 23, wherein the first and second entertainment events are associated with a security that is posted by the seller as collateral for the futures contract in the transaction.

26. The system of claim 19, wherein the settlement date may be extended based at least in part upon the success of the entertainment event.

27. The system of claim 19, wherein the value of the entertainment event is at least partially based upon revenues generated by the entertainment event.

28. The system of claim 19, wherein the entertainment event comprises a movie and the value associated with the entertainment event comprises a revenue at least partially based upon tickets sales of the movie.

29. The system of claim 19, wherein the entertainment event is associated with at least one of music, motion pictures, theatrical shows, television shows, book publishing, sports, and concerts.

30. A futures contract transacted between a buyer and a seller, comprising:

a first parameter that identifies at least one entertainment event;

a second parameter that comprises a purchase price; and

a third parameter that comprises a settlement date;

wherein the futures contract is settled based at least in part upon the purchase price and a value associated with the entertainment event at the settlement date; and

wherein the entertainment event is associated with a security and the transaction of the futures contract is performed in conjunction with the issuance of the security to the seller.

31. The futures contract of claim 30, wherein the security is posted by the seller as collateral for the futures contract in the transaction.

32. The futures contract of claim 31, wherein the security is associated with a dividend that is based at least in part upon revenues generated by the entertainment event.

33. The futures contract of claim 31, wherein the entertainment event is associated with an entertainment entity that issues the security.

34. The futures contract of claim 30, wherein the futures contract is associated with a first entertainment event and a second entertainment event and the futures contract is settled based further upon a first value associated with the first entertainment event and a second value associated with the second entertainment event.

35. The futures contract of claim 34, wherein:

the first entertainment event is associated with a first security that is posted by the seller as collateral for the futures contract in the transaction; and

the second entertainment event is associated with a second security that is posted by the seller as collateral for the futures contract in the transaction.

36. The futures contract of claim 34, wherein the first and second entertainment events are associated with a security that is posted by the seller as collateral for the futures contract in the transaction.

37. The futures contract of claim 30, wherein the settlement date may be extended based at least in part upon the success of the entertainment event.

38. The futures contract of claim 30, wherein the value of the entertainment event is at least partially based upon revenues generated by the entertainment event.

39. The futures contract of claim 30, wherein the entertainment event comprises a movie and the value associated with the entertainment event comprises a revenue at least partially based upon tickets sales of the movie.

40. The futures contract of claim 30, wherein the entertainment event is associated with at least one of music, motion pictures, theatrical shows, television shows, book publishing, sports, and concerts.