SYSTEM AND METHOD FOR INDEX BASED SETTLEMENT UNDER PRICE PROTECTION CONTRACTS
First Claim
1. A method for providing price protection for commodity purchasing, comprising:
- obtaining data regarding desired price protection from a consumer; and
providing a financial instrument for a commodity to the consumer where the financial instrument has an associated quantity, time period, lock price and locale wherein for a set of purchases occurring in the locale during the time period the consumer has a right to aggregately purchase the quantity of the commodity wherein for each purchase the commodity may be purchased at the lock price if a first index price associated with the commodity at a first time of the purchase is above the lock price or at a retail price of the commodity otherwise.
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Accused Products
Abstract
Systems and methods for the provisioning of price protection contracts which provide price protection against adverse fluctuations in the retail price of a commodity are disclosed. While these price protection contracts may pertain to almost any type of commodity, certain embodiments of the present invention may provide systems and method for allowing a consumer to obtain price protection on the purchase of fuel. Specifically, embodiments of the present invention may provide the ability to obtain a price protection contract for the purchase of fuel where the price protection contract specifies at least one lock price, quantity, locale and time period such that the price protection contract may guarantee the right to aggregately purchase the quantity of fuel in the locale at the lock price during the time period and where purchases under the price protection contract are settled against an index price at the time of the purchase.
102 Citations
24 Claims
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1. A method for providing price protection for commodity purchasing, comprising:
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obtaining data regarding desired price protection from a consumer; and providing a financial instrument for a commodity to the consumer where the financial instrument has an associated quantity, time period, lock price and locale wherein for a set of purchases occurring in the locale during the time period the consumer has a right to aggregately purchase the quantity of the commodity wherein for each purchase the commodity may be purchased at the lock price if a first index price associated with the commodity at a first time of the purchase is above the lock price or at a retail price of the commodity otherwise. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8)
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9. A system for providing price protection for commodity purchasing, comprising:
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one or more computer devices; and a price protection system coupled to the one or more computing devices such that a consumer at a computer device may access the hedge system, the price protection system operable for; obtaining data regarding desired price protection from a consumer; and providing a financial instrument for a commodity to the consumer where the financial instrument has an associated quantity, time period, lock price and locale wherein for a set of purchases occurring in the locale during the time period the consumer has a right to aggregately purchase the quantity of the commodity wherein for each purchase the commodity may be purchased at the lock price if a first index price associated with the commodity at a first time of the purchase is above the lock price or at a retail price of the commodity otherwise. - View Dependent Claims (10, 11, 12, 13, 14, 15, 16)
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17. A computer readable media for providing price protection for commodity purchasing comprising instructions executable for:
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obtaining data regarding desired price protection from a consumer; and providing a financial instrument for a commodity to the consumer where the financial instrument has an associated quantity, time period, lock price and locale wherein for a set of purchases occurring in the locale during the time period the consumer has a right to aggregately purchase the quantity of the commodity wherein for each purchase the commodity may be purchased at the lock price if a first index price associated with the commodity at a first time of the purchase is above the lock price or at a retail price of the commodity otherwise. - View Dependent Claims (18, 19, 20, 21, 22, 23, 24)
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Specification