METHOD AND SYSTEM FOR REGULATORY STRUCTURE PRODUCTS

• US 20120290462A1
• Filed: 11/11/2010
• Published: 11/15/2012
• Est. Priority Date: 02/03/2010
• Status: Abandoned Application

• Current Assignee: Brainworks Odyssey Private Limited
• Original Assignee: Brainworks Odyssey Private Limited
• Inventors: Mehta, Rajan
• Application Number:
  US13/514,018
• Publication Number:
  US 20120290462A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Accordingly it is a principle object of the present invention to overcome the disadvantages and limitations of prior art methods and systems and provide a method and system for trading exchange traded products constituted in accordance with the principles of the present invention which will be a regularity structure, wherein Paired/Split mutual fund units may be created out of the same structure which is open ended. It is yet another object of the present invention to achieve zero sum nature for the paired unit and provide simultaneous issuance/redemption of all classes on units/shares for payoff.

Claims

1. A system for creating Paired/Split mutual fund units out of same Mutual Fund scheme/Units Trust scheme which is open ended trading and investment comprising:

Input device link module (IDLM) for synchronizing and linking the input device;

One or more input devices (ID) to input the parameters to set benchmark;

A benchmark module (BMM) for determining a bench mark by processing, analyzing and linking various input parameters received from the input device;

A memory module (MM) for storing and/or actively/passively updating the said total database consisting of various classes of units/shares data on a storage medium;

Arbitration-selection module (ASM) for setting up maturity &

relationship between the various class of units and/or shares with the Benchmark, in order that the resultant paired unit achieves zero-sum nature and provide simultaneous issuance/redemption of all classes of units/shares for pay offs, wherein issuance of units and/or redemption deliver returns linked to various investible and non investible benchmarks without investing them and/or regular distribution of income through increase in the number of units and for setting up defined maturity;

Output device link module (ODLM) for synchronizing and linking the output device;

Central control and synchronization unit (CCSU) for synchronizing and controlling operations of all the modules constituting the system;

One or more output devices (OD) to output the processed data.

2. The system according to claim 1, wherein said input device link module synchronizes and links the system to input device.

3. The system according to claim 1, wherein said input device is a keyboard and/or another computer and/or cell phone and/or personal digital device.

4. The system according to claim 1, wherein said output device link module synchronizes and links the system to output device.

5. The system according to claim 1, wherein said output device is a Display device and/or printer.

6. The system according to claim 1, wherein the Benchmark module is a processor.

7. The system according to claim 1, wherein input data is comprise of various inputs such as Equity Index, Single of multiple equity shares, Any arithmetical relationship between stocks and stocks, indices and indices or stocks and indices, Commodity, basket of commodities, commodity indices, weather indices, credit events, interest rates, currency or basket of currency, real estate indices and/or other variable whose value can be derived in objective and non disputable manner is captured and set through analysis and linking to link it to the units/shares of various class data from the storage device.

8. The system according to claim 1, wherein a data storage device storing and/or actively/passively updating the said total database consisting of various classes of units and/or shares data on the storage medium

9. The system according to claim 6, wherein said storage medium is a hard drive and for floppy disc and for CD ROM disc and for thumb drive.

10. The system according to claim 1, wherein the arbitration-selection module is a processor having arbitration logic implemented for setting up relationship between the various class of units/shares which are linked to Benchmark for achieving zero sum nature and provide simultaneous issuance/redemption of all classes of units/shares for pay offs, wherein issuing units deliver returns linked to various investible and non investible benchmarks without investing them and/or regular distribution of income through increase in number of units.

11. The system according to claim 1, where in the system provide options for setting up defined maturity such as early close out option and rollover option.

12. The system according to claim 1, wherein the arbitration-selection module defines pay off which can be linear payoff, linear leveraged payoff, nonlinear payoff.

13. The system according to claim 1, wherein the arbitration-selection module designs units with pay off, such as periodic dividend/periodic bonus/no dividend option.

14. A method for creating Paired/Split mutual fund units out of same Mutual Fund scheme/Units Trust scheme, collective investment scheme and investment trust scheme/company which is open ended trading and investment comprising steps of:

Synchronizing and linking the input device for receiving inputs;

Receiving the parameter inputs for determining benchmark;

Determining the bench mark by processing, analyzing, and linking various parameter inputs received from input device;

setting up relationship between the various class of units/shares with the benchmark in order that the resultant paired unit achieve zero sum nature and provide simultaneous issuance/redemption of all classes of units/shares for pay offs, wherein issuing units delivers returns linked to various investible and non investible benchmarks without investing them and/or regular distribution of income through increase in number of units and setting up defined maturity with varied option through the arbitration-selection module; and

provide flexibility to trade each class of units as different securities either on exchange or on OTC basis;

Synchronizing and linking the output device to output the processed data output.

15. The method of claim 14, wherein the step of receiving inputs, receives various inputs such as Equity Index, Fixed incentive index, Single or Multi basket final incentive index, Single or multiple equity shares, relationship between stocks and stocks, indices and indices or stocks and indices, Commodity, basket of commodities, commodity indices, weather indices, credit events, interest rates, currency or basket of currency, real estate indices, or any other variable.

16. The method of claim 14, wherein the step of setting up Benchmark, sets the benchmark through processing, analyzing and linking various inputs.

17. The method of claim 14, wherein the step of arbitration and selection, sets relationship between the various classes of units/shares with the Benchmark.

18. The method of claim 14, wherein the step of arbitration and selection, sets relationship between the various class of units/shares with the Benchmark in order that the resultant paired unit achieve zero sum nature and provide simultaneous issuance/redemption of all classes of units/shares for pay offs.

19. The method of claim 14, wherein the step of arbitration and selection, sets relationship between the various class of units/shares with the Benchmark, wherein issuing units delivers returns linked to various investible and non investible benchmarks.

20. The method of claim 14, wherein regular distribution of income is through increase in number of units.

21. The method of claim 14, wherein the defined maturity can be set through with option of early close out and rollover option.

22. The method of claim 14, issues units with exactly opposite payoffs wherein the payoffs are zero sum attribute payoff such that their sum total may be always ‘

2x’ and

the pair may be defined equal or unequal.

23. The method of claim 14 provides linear payoff, linear, leveraged payoff or non linear payoff linked to the Benchmark.

24. The method of claim 14, have flexibility to trade each class of units as different securities either on exchange or on OTC basis.

25. The method of claim 14, have operational capability to measure daily entitlement of distribution.

26. The method of claim 14, optionally designs units with periodic dividend/periodic bonus option on prorate basis.