Methods and apparatus for formulation, initial public or private offering, and secondary market trading of risk management contracts

• US 20080040257A1
• Filed: 08/13/2007
• Published: 02/14/2008
• Est. Priority Date: 10/17/2000
• Status: Abandoned Application

• Current Assignee: North American Derivatives Exchange, Inc. (IG Group Holdings PLC)
• Original Assignee: North American Derivatives Exchange, Inc. (IG Group Holdings PLC)
• Inventors: Yee, Kenton, Nafeh, John
• Application Number:
  US11/893,017
• Publication Number:
  US 20080040257A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Key features of these methods, apparatus, and designs include (but are not limited to) innovations and implementations of futures securities; the notion of Type I, Type II, and Type III futures contracts custom tailored to specific clienteles; the notion of tickets and coupons as tradable futures contracts; the notion of bifurcation; the notion of redeemable bundles; and notion of realization of the futures market on the Internet; the apparatus of an Internet-based trading interface and engine; the notion of cookie-cutter futures electronic Internet-based futures markets for each security; the feature of maximal reliance on the Internet; and the business concept of “profitability without the need for high trading volume.”

Claims

1. A method of conducting business comprising the steps of:

establishing a computer-network based coupons trading system electronically accessible by traders;

selling, over said trading system, coupons, each coupon for a prespecified item of value;

accepting for reselling, over said trading system, at least one of said coupons;

settling the at least one of said coupons; and

assessing, a transaction fee for at least one of said steps of selling, accepting for reselling, or settling of said coupons.

2. The method of claim 1, wherein the computer-network based coupons trading system is electronically accessible by the traders via at least the Internet.

3. The method of claim 2, wherein said coupons trading system includes a user interface that allows the traders to access said coupons trading system.

4. The method of claim 3, wherein the user interface is a world-wide-web user interface.

5. The method of claim 3, wherein said user interface allows any of the traders to access said coupons trading system in order to view information about coupons selling on said coupons trading system.

6. The method of claim 3, wherein said user interface allows any network users to access and view said coupons trading system.

7. The method of claim 1, wherein the step of settling the at least one of said coupons is at an expiration thereof.

8. The method of claim 7, wherein the step of settling is through a web-based electronic interface.

9. The method of claim 1, wherein the step of settling the at least one of said coupons is prior to an expiration thereof.

10. The method of claim 9, wherein the step of settling is through a web-based electronic interface.

11. The method of claim 1, wherein the step of settling the at least one of said coupons is on demand in a predesignated maturity period.

12. The method of claim 11, wherein the step of settling is through a web-based electronic interface.

13. The method of claim 1, further comprising the step of:

determining, prior to the step of selling, whether a prespecified item of value for which a coupon is desired is suitable for issuance of coupons thereon.

14. The method of claim 1, wherein said prespecified item of value is provided as a regular recurring occurrence and wherein said method further comprises the step of:

selling over said coupons trading system, a coupon having a time period from a sale thereof to an expiration thereof, which partially overlaps a time period from a sale of another coupon until the expiration of said another coupon.

15. The method of claim 14, wherein for each coupon sold, a corresponding expiration thereof corresponds to a timing of a specific periodic provision of the prespecified item of value associated therewith.

16. The method of claim 15, further comprising the step of:

selling, over said coupons trading system, coupons associated with the specific periodic provision of the prespecified item of value at substantially the same time as an expiration of coupons associated with another periodic provision of the prespecified item of value.

17. The method of claim 1, wherein the step of selling coupons and the step of settling said coupons are accomplished in a credit-risk free manner.

18. The method of claim 1, wherein:

the step of selling coupons comprises selling coupons on margin; and

the step of selling coupons and the step of settling said coupons are accomplished in a credit-risk manner.

19. The method of claim 1, further comprising the step of accepting an indicia of an identity of at least one of the traders.

20. The method of claim 19, wherein the step of selling, accepting for reselling, settling or assessing, over said coupons trading system is only with respect to the at least one of the traders.

21. The method of claim 1, wherein only a predetermined group of traders may access the coupons trading system.

22. The method of claim 21, wherein said predetermined group is selected from a group consisting of predefined and prequalified traders.

23. The method of claim 1, further comprising the step of providing a promoter for mediating any dispute related to said coupons trading system.

24. The method of claim 1, further comprising the step of:

interfacing with a point of sale terminal configured to receive an indicator of an identity of at least one of the traders and to receive a coupon associated with said at least one of the traders to be settled.

30. The method of claim 1, wherein said step of selling is performed by a market authority and further comprising the step of accepting said coupons for settlement upon demand of the market authority prior to a predesignated maturity period thereof.

31. The method of claim 1, further comprising the step of accepting an indicia of an identity of a counterparty.

35. The method of claim 1, wherein the computer-network based coupons trading system is electronically accessible by non-trading observers.

36. The method of claim 1, wherein said step of selling is performed by a promoter.

37. The method of claim 1, further comprising assessing a transaction fee for a reselling of said coupons.

25. A computer-network based coupons trading system, comprising:

computer means;

means for selling, over said trading system, coupons, each coupon for a prespecified item of value;

means for reselling, over said trading system, at least one of said coupons;

means for settling the at least one of said coupons; and

means for assessing a transaction fee, for said selling by said means for selling, said reselling by said means for reselling, or said settling by said means for settling, for any of said coupons.

26. The computer-network based coupons trading system of claim 25, wherein said means for settling includes a

means for interfacing with a point of sale terminal, the point of sale terminal adapted to receive an indicator of trader identity and to receive the at least one of said coupons associated with the trader identity;

and

wherein said means for settling the at least one of said coupons is responsive to a communication from the point of sale terminal received via said means for interfacing.

27. The computer-network based coupon trading system of claim 25, further comprising:

a point of sale terminal communicatingly connected to said means for settling.

28. The computer-based coupons trading system of claim 25, further comprising:

means for allowing a computer-network user to view said coupons trading system.

29. The computer-based coupons trading system of claim 28, wherein

the computer-network user is a member of a predetermined group of computer-network users.

32. A computer-based coupons trading system for the formation, sale, resale and settlement, of coupons, the system comprising:

a communications interface for communicating data;

a processor system for executing processing modules;

a first processing module for receiving data to define at least one coupon desired for a prespecified item of value;

a second processing module, responsive to said first processing module, for defining said at least one coupon based on said received data;

a third processing module for selling said at least one coupon to a trader;

a fourth processing module for reselling said at least one coupon;

a fifth processing module for settling said at least one coupon; and

a sixth processing module for assessing a transaction fee, for said selling by said third processing module, for said reselling by said fourth processing module, or said settling by said fifth processing module.

33. The computer-based coupons trading system of claim 32, further comprising:

a seventh processing module for maintaining account information.

34. The computer-based coupons trading system of claim 33, wherein said seventh processing module is adapted to access said account information.