METHOD OF TRADING IN REAL ESTATE DERIVATIVES
First Claim
1. A method for matching buy and sell orders, comprising the steps of:
- maintaining a daily cash index of real estate values for a local region based on real estate transactional activity and real estate transactions;
creating a trading instrument representative of an interest in real estate in the local region, wherein a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement;
generating a plurality of buy orders relating to the instrument;
generating a plurality of sell orders relating to the instrument; and
matching the buy and sell orders to determine a purchase and sale of the instrument.
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Accused Products
Abstract
A method of computing a real estate derivative index value includes: selecting asking rent data; selecting lease rent data; and combining the selected asking rent data and the selected lease rent data to form the index value. The method may further include further combining the combined data with a value representative of general market conditions; forming a composite index of data from plural markets; or computing the index at the end of a time period as:
Δ FKI or as Δ RP+Δ CPI+Δ FKI.
The method may further include trading based on the index by deriving a trade value from the index value, and executing a trade based on the derived trade value. The method may be carried as instructions on a machine-readable medium and may be carried out using a computer for part or all of the method.
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Citations
61 Claims
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1. A method for matching buy and sell orders, comprising the steps of:
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maintaining a daily cash index of real estate values for a local region based on real estate transactional activity and real estate transactions; creating a trading instrument representative of an interest in real estate in the local region, wherein a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement;
generating a plurality of buy orders relating to the instrument;generating a plurality of sell orders relating to the instrument; and matching the buy and sell orders to determine a purchase and sale of the instrument. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14)
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15. A method for trading futures contracts in real estate, comprising the steps of:
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a. maintaining a daily cash index of real estate values for a local region based upon real estate transactional activity and real estate transactions; b. creating a futures contract representative of an interest in real estate in the local region, the futures contract having a settlement date, wherein a cash settlement of the futures contract is a function of the daily cash index on the settlement date; c. receiving a plurality of buy orders relating to the futures contract; d. receiving a plurality of sell orders relating to the futures contract; e. matching the buy and sell orders to determine a purchase and sale of the futures contract. - View Dependent Claims (16, 20)
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17. A method for providing indices for commercial real estate lease values, comprising:
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a. each day, performing a survey of actual commercial real estate leases executed on said day and commercial real estate lease transactional activity for said day in a local region; b. each day, generating a daily cash index of commercial real estate lease values in the local region based upon the survey; c. each month, aggregating the daily surveys on a monthly basis to generate a monthly cash index; d. generating a volatility value based upon the monthly cash indices over a plurality of years. - View Dependent Claims (18, 19, 21)
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22. A method for providing indices for real estate transaction values, comprising:
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a. each day, performing a survey of actual real estate transactions executed on said day, and real estate transactional activity for said day, in a local region; b. each day, generating a daily cash index of real estate transaction values in the local region based upon the survey. - View Dependent Claims (24, 25, 26, 27, 28, 29, 30, 31)
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23. A method for matching buy and sell orders, comprising the steps of:
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maintaining a daily cash index of real estate values for a local region based on real estate transactional activity; creating a trading instrument representative of an interest in real estate in the local region, wherein a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement; generating a plurality of buy orders relating to the instrument;
generating a plurality of sell orders relating to the instrument; andmatching the buy and sell orders to determine a purchase and sale of the instrument. - View Dependent Claims (41)
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32. A method for providing indices for real estate transaction values, comprising:
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a. based upon historical data, generating monthly cash indices of real estate values in a local region for each month of at least 10 prior years; b. generating a an initial volatility value based upon the monthly cash indices over said at least 10 prior years; c. each day, performing a survey of actual real estate transactions executed on said day, and real estate transactional activity for said day, in the local region; d. each day, generating a daily cash index of real estate transaction values in the local region based upon the survey; e. each month, aggregating the daily surveys on a monthly basis to generate a monthly cash index for said each month; and
f. updating the volatility value based upon each monthly cash index generated in step
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33. A method for providing indices for commercial real estate lease values, comprising:
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a. based upon historical data, generating monthly cash indices of commercial real estate values in a local region for each month of at least 10 prior years; b. generating a an initial volatility value based upon the monthly cash indices over said at least 10 prior years; c. each day, performing a survey of actual commercial real estate leases executed on said day and commercial real estate transactions for said day in the local region; d. each day, generating a daily cash index of commercial real estate lease values in the local region based upon the survey; e. each month, aggregating the daily surveys on a monthly basis to generate a monthly cash index for said each month; and
f. updating the volatility value based upon each monthly cash index generated in step. - View Dependent Claims (34, 35, 36, 37)
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38. A method of operating an exchange, comprising:
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a. at a daily cash market source, i. each day, performing a survey of actual commercial real estate transactions executed on said day and commercial real estate transactional activity for said day in a local region; ii. each day, generating a daily cash index of commercial real estate transaction values in the local region based upon the survey; b. at an exchange, creating a trading instrument representative of an interest in real estate in the local region, wherein a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement; c. at each of a plurality of exchange members, generating a plurality of buy orders and a plurality of sell orders for the trading instrument; and d. at the exchange, i. matching the buy and sell orders to determine a purchase and sale of the instrument, each purchase having a purchase price paid by its corresponding buy order and each sale having a sale price paid to its corresponding sell order; ii. sending a portion of each purchase price to each of a plurality of investors in the exchange.
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39. A method for providing indices for commercial real estate transaction values, comprising:
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a. each day, performing a survey of commercial real estate transactional activity on said day in a local region; b. each day, generating a daily cash index of commercial real estate transaction values in the local region based upon the survey; c. each month, aggregating the daily surveys on a monthly basis to generate a monthly cash index; d. generating a volatility value based upon the monthly cash indices over a plurality of years.
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40. A method of operating an exchange, comprising:
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a. at a daily cash market source, i. each day, performing a survey of actual commercial real estate leases executed on said day, and/or commercial real estate transactional activity for said day, in a local region; ii. each day, generating a daily cash index of commercial real estate lease values in the local region based upon the survey; b. at an exchange, creating a trading instrument representative of an interest in real estate in the local region, wherein a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement; c. at each of a plurality of exchange members, generating a plurality of buy orders and a plurality of sell orders for the trading instrument; and
d. at the exchange, i. matching the buy and sell orders to determine a purchase and sale of the instrument, each purchase having a purchase price paid by its corresponding ii. buy order and each sale having a sale price paid to its corresponding sell order;
iii. sending a portion of each purchase price to each of a plurality of investors in the exchange.
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42. A method for matching buy and sell orders, comprising the steps of:
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maintaining a daily cash index of real estate values for a local region based on real estate transactional activity; creating a trading instrument representative of an interest in real estate in the local region, wherein a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement; generating a plurality of buy orders relating to the instrument;
generating a plurality of sell orders relating to the instrument; andmatching the buy and sell orders to determine a purchase and sale of the instrument
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43. A method for matching buy and sell orders, comprising the steps of:
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maintaining a daily cash index of real estate values for a local region based on real estate statistics; creating a trading instrument representative of an interest in real estate in the local region, wherein a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement; generating a plurality of buy orders relating to the instrument;
generating a plurality of sell orders relating to the instrument; andmatching the buy and sell orders to determine a purchase and sale of the instrument.
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44. A computer-implemented method of trading in real estate derivatives, the method comprising:
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selecting data from at least one of asking rent data and lease rent data; and combining the selected data to form the index value; deriving a trade value from the index value; and executing a trade based on the derived trade value. - View Dependent Claims (45, 46, 47, 48, 49)
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50. A method of computing a real estate derivative index value, the method comprising:
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selecting data from at least one of asking rent data and lease rent data; and combining the selected data to form the index value. - View Dependent Claims (51, 52, 53, 54, 55)
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56. A machine-readable medium carrying instructions for carrying out in a computer:
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selecting data from at least one of asking rent data and lease rent data; and combining the selected data to form an index value. - View Dependent Claims (57, 58, 59, 60, 61)
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Specification