SYSTEM AND METHOD FOR DETERMINING AN INDEX FOR AN ITEM BASED ON MARKET INFORMATION

• US 20100042531A1
• Filed: 10/23/2009
• Published: 02/18/2010
• Est. Priority Date: 12/13/2001
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Lutnick, Howard W., Heaton, Timothy H.
• Granted Patent: US 8,195,559 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0205 Location or geographical consideration
• CPC Class Codes: G06Q 30/0275 Auctions
• CPC Class Codes: G06Q 30/0611 Request for offers or quotes
• CPC Class Codes: G06Q 30/08 Auctions
• 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
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

Systems and methods for determining an index for an item based on market information are provided. Market information about the item is received and compiled. A standard profile for the item is determined. Index information for the item is determined based on the compiled market information. The index information comprises historical price information and statistical information about the market for the item. The index information is displayed at a user interface and updated based on updated market information. Orders to trade futures and options contracts on the item may be received, communicated, and executed.

Claims

1. A system comprising at least one process and a memory that stores a program that when executed enables the processor to perform a method comprising:

receiving by at least one processor market information for at least one luxury item, in which the at least one luxury item comprises at least one item that is not required for human survival;

after receiving the market information, compiling the market information;

determining a standard profile for the at least one luxury item based on the compiled market information;

determining index information based on the compiled market information, the index information comprising at least one luxury item index, the at least one luxury item index comprising a statistical composite that measures changes in a financial market associated with the at least one luxury item; and

outputting a signal that causes a display device to display at least a portion of the index information at a user interface, the at least a portion of the index information comprising historical price information associated with the at least one luxury item, the display device being in electronic communication with the at least one processor;

receiving updated market information about the at least one luxury item;

updating the index information comprising the at least one luxury item index periodically based on the updated market information, in which the periodically updated privately held company index, in which the periodically updated at least one luxury item index reflects changes in a market for the luxury item;

outputting a signal that causes a display device to display at least a portion of the updated index information at a user interface, the at least a portion of the index information comprising historical price information associated with the at least one luxury item, the display device being in electronic communication with the at least one processor.

2. The system of claim 1, wherein the at least one luxury item comprises at least one diamond.

3. The system of claim 2, wherein the market information comprises price data from at least one industry source.

4. The system of claim 2, wherein the market information comprises at least one price list for diamonds.

5. The system of claim 1, the method comprising classifying the market information to create an index specific to at least one class of luxury items.

6. The system of claim 1, the method comprising classifying the market information to create an index specific to at least one kind of luxury items.

7. The system of claim 1, the method comprising classifying the market information to create an index specific to at least one size of luxury items.

8. The system of claim 1, the method comprising collecting the market information at pre-determined time intervals and updating the index to reflect changes in the market for the luxury item at the pre-determined time intervals.

9. The system of claim 1, the method comprising settling at least one trade for at least one futures contract or at least one option contract on the luxury item index.

10. The method of claim 1, in which the act of determining at least one luxury item index comprises determining an index that is a statistical composite of the market information.

11. A system comprising at least one processor and a memory that stores a program that when executed directs the processor to perform a method comprising:

receiving market information about at least one privately held company;

after receiving the market information, compiling the market information;

determining a standard profile for the at least one privately held company based on the compiled market information;

determining index information based on the compiled market information, the index information comprising at least one privately held company index, the at least one privately held company index comprising a statistical composite that measures changes in a financial market associated with the at least one privately held company;

outputting a signal that causes a display device to display at least a portion of the index information at a user interface, the at least a portion of the index information comprising historical price information associated with the at least one privately held company, the display device being in electronic communication with the at least one processor;

receiving updated market information about the at least one privately held company;

updating the index information comprising the at least one privately held company index periodically based on the updated market information, in which the periodically updated privately held company index reflects changes in the at least one privately held company information;

outputting a signal that causes a display device to display at least a portion of the updated index information at a user interface, the at least a portion of the index information comprising historical price information associated with the at least one privately held company, the display device being in electronic communication with the at least one processor.

12. The system of claim 11, wherein the market information comprises earnings data from at least one source.

13. The system of claim 12, wherein earnings data is derived from Earnings Before Interest Depreciation and Taxes (EBIDTA) data.

14. The system of claim 11, the method comprising classifying the information to create an index specific to at least one class of privately held companies.

15. The system of claim 11, the method comprising classifying the information to create an index specific to at least one kind of privately held companies.

16. The system of claim 11, the method comprising classifying the information to create an index specific to at least one size of privately held companies.

17. The system of claim 11, the method comprising collecting the information at pre-determined time intervals and updating the index to reflect changes at the pre-determined time intervals.

18. The system of claim 11, the method comprising settling at least one trade for at least one futures contract or at least one option contract on the index.

19. The system of claim 1, wherein the at least one luxury item comprises at least one wine.

19-1. A method comprising:

receiving, by a computer system from a first remote device, a first order to trade at least one of a first futures and a first option contract for at least one first luxury item from a first user, wherein the at least one of the first futures and the first option contract specifies that the at least one first luxury item has a plurality of respective first values for each characteristic of a set of characteristics defined by a standard luxury item profile;

receiving, by the computer system from a second remote device, a second order to trade at least one of a second futures and a second option contract for at least one second luxury item from a second user, wherein the at least one of the second futures and the second option contract specifies that the at least one second luxury item has a plurality of respective second values for each characteristic of a set of characteristics defined by the standard luxury item profile, in which the second values are different form the first values;

communicating, from the computer system, the first and second orders to at least one other user of a third remote device;

executing, by the computer system, a trade in at least one of the first futures contract, the first option contract, the second futures contract, and the second option contract; and

delivering at least one of the first luxury item and the second luxury item at least one future date to satisfy the at least one of the first futures contract, first options contract, second futures contract, and second options contract.

20. A system comprising a processor and memory that stores a program that when executed enables the processor to perform a method comprising:

receiving a first order to trade at least one of a first futures and a first option contract for at least one first luxury item from a first user, wherein the at least one of the first futures and the first option contract specifies that the at least one first luxury item has a plurality of respective first values for each characteristic of a set of characteristics defined by a standard luxury item profile;

receiving, by the computer system from a second remote device, a second order to trade at least one of a second futures and a second option contract for at least one second luxury item from a second user, wherein the at least one of the second futures and the second option contract specifies that the at least one second luxury item has a plurality of respective second values for each characteristic of a set of characteristics defined by the standard luxury item profile, in which the second values are different form the first values;

communicating the first and second order to at least one other user; and

executing a trade in at least one of the first futures contract, the first option contract, the second futures contract, and the second option contract.