Dynamic pricing system and method for complex energy securities

• US 20110040666A1
• Filed: 08/17/2009
• Published: 02/17/2011
• Est. Priority Date: 08/17/2009
• Status: Abandoned Application

• Current Assignee: Alan McCord, Brian R. Galvin, Jason Crabtree, Pravin Rajan
• Original Assignee: Alan McCord, Brian R. Galvin, Jason Crabtree, Pravin Rajan
• Inventors: Galvin, Brian R., Rajan, Pravin, McCord, Alan, Crabtree, Jason
• Application Number:
  US12/583,270
• Publication Number:
  US 20110040666A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/06 Energy or water supply
• CPC Class Codes: Y02P 90/90 Financial instruments for climate change mitigation, e.g. environmental taxes, subsidies or financing

Abstract

A dynamic pricing system for complex energy securities, comprising a communications interface executing on a network-connected server and adapted to receive information from a plurality of iNodes, an event database coupled to the communications interface and adapted to receive events from a plurality of iNodes via the communications interface, a pricing server coupled to the communications interface, and a statistics server coupled to the event database and the pricing server, is disclosed. According to the invention, the pricing server, on receiving a request to establish a price for an energy security, requests at least one statistical indicia of risk from the statistics server, the statistical indicia of risk being computed by the statistics server based on a plurality of historical data obtained from the event database, and the pricing server computes a price for the security based at least in part on the statistical indicia of risk.

Claims

1. A dynamic pricing system for complex energy securities, comprising:

a communications interface executing on a network-connected server and adapted to receive information from a plurality of iNodes;

an event database coupled to the communications interface and adapted to receive events from a plurality of iNodes via the communications interface;

a pricing server coupled to the communications interface; and

a statistics server coupled to the event database and the pricing server;

wherein the pricing server, on receiving a request to establish a price for an energy security, requests at least one statistical indicia of risk from the statistics server, the statistical indicia of risk being computed by the statistics server based on a plurality of historical data obtained from the event database; and

wherein the pricing server computes a price for the security based at least in part on the statistical indicia of risk.

2. A method of pricing complex energy securities, comprising the steps of:

(a) receiving a request at a network-connected pricing server to price a complex energy security;

(b) obtaining a statistical indicia of risk from a network-connected statistics server, said indicia being based on a plurality of historical data accessible to the statistics server;

(c) computing a price based at least in part on the statistical indicia; and

(d) making the security available on a digital exchange at the computed price.