METHOD AND SYSTEM FOR CREATING AND TRADING CORPORATE DEBT SECURITY DERIVATIVE INVESTMENT INSTRUMENTS
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Abstract
A method of creating and trading corporate debt security derivative investment instruments on an exchange, as well as a trading facility for trading such derivatives, is disclosed. Corporate debt security derivative investment instruments are created by identifying a credit rating service that includes a plurality of risk categories. Unique monetary values are mapped to risk categories and an entity rated by the credit rating service is identified. A corporate debt security derivative investment instrument is then created whose value is determined at least in part by the monetary value to which the risk category associated with the rated entity is mapped.
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Citations
32 Claims
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1-13. -13. (canceled)
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14. A computerized method for facilitating the trading of corporate debt security derivative instruments, the method comprising the following steps:
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receiving, by a trading exchange computer, one or more orders for corporate debt security derivative instruments, wherein the corporate debt security derivative instruments are settled to a price that corresponds to a credit rating category, which is published by a credit rating service; matching, by the trading exchange computer, a first one of the received orders for corporate debt security derivative instruments to a second one of the received orders for corporate debt security derivative instruments, wherein the second one of the received orders for corporate debt security derivative instruments is a contra order to the first one of the received orders for corporate debt security derivative instruments; and executing, by the exchange computer, a trade that includes the first one of the received orders for corporate debt security derivative instruments and the second one of the received orders for corporate debt security derivative instruments. - View Dependent Claims (15, 16, 17, 18, 19)
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20. A computerized method for facilitating the trading of corporate debt security derivative instruments, the method comprising the following steps:
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receiving, by a trading exchange computer, one or more orders for corporate debt security derivative instruments, wherein the corporate debt security derivative instruments are settled to an index that has a price that corresponds to a credit rating category, which is published by a credit rating service; matching, by the trading exchange computer, a first one of the received orders for corporate debt security derivative instruments to a second one of the received orders for corporate debt security derivative instruments, wherein the second one of the received orders for corporate debt security derivative instruments is a contra order to the first one of the received orders for corporate debt security derivative instruments; and executing, by the exchange computer, a trade that includes the first one of the received orders for corporate debt security derivative instruments and the second one of the received orders for corporate debt security derivative instruments. - View Dependent Claims (21, 22, 23, 24, 25)
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26. A trading system for facilitating the trading of corporate debt security derivative instruments, the trading system comprising:
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an interface configured to receive orders; and a processor in communication with the interface, the processor configured to; receive one or more orders for corporate debt security derivative instruments, wherein the corporate debt security derivative instruments are settled to a price that corresponds to a credit rating category, which is published by a credit rating service; match a first one of the received orders for corporate debt security derivative instruments to a second one of the received orders for corporate debt security derivative instruments, wherein the second one of the received orders for corporate debt security derivative instruments is a contra order to the first one of the received orders for corporate debt security derivative instruments; and execute a trade that includes the first one of the received orders for corporate debt security derivative instruments and the second one of the received orders for corporate debt security derivative instruments. - View Dependent Claims (27, 28, 29, 30, 31)
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32. A trading system for facilitating the trading of corporate debt security derivative instruments, the trading system comprising:
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an interface configured to receive orders; and a processor in communication with the interface, the processor configured to; receive one or more orders for corporate debt security derivative instruments, wherein the corporate debt security derivative instruments are settled to an index that has a price that corresponds to a credit rating category, which is published by a credit rating service; match a first one of the received orders for corporate debt security derivative instruments to a second one of the received orders for corporate debt security derivative instruments, wherein the second one of the received orders for corporate debt security derivative instruments is a contra order to the first one of the received orders for corporate debt security derivative instruments; and execute a trade that includes the first one of the received orders for corporate debt security derivative instruments and the second one of the received orders for corporate debt security derivative instruments.
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Specification