Over the counter traded product and system for offset and contingent trading of commodity contracts
First Claim
1. A method of offset or contingent trading comprising:
- providing a first financial exchange configured for offering for sale or purchase a first financial derivatives contract;
providing a second financial exchange and offering for purchase or sale a second financial derivatives contract;
consummating, via an electronic trading platform, one of an offsetting and contingent trading transaction for the second financial derivatives contract at a price differential that is based on prevailing market prices as indicated by the first exchange andsaid electronic trading platform automatically registering a trade of the first financial derivatives contract on the first financial exchange immediately upon consummating the trading transaction for the second financial derivatives contract,wherein the first financial exchange is one of a futures exchange and an over-the-counter (OTC) exchange, and wherein the second financial exchange is the other of said futures exchange and said OTC exchange.
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Accused Products
Abstract
A method for facilitating the offset or contingent trading of commodity contracts comprising: providing a futures exchange wherein a futures or option contract based on a first commodity of a commodity type is traded; and automatically registering a trade of the futures or options contract on the futures exchange at a market price for the futures or options contract when an over the counter contract for a second commodity of the commodity type is traded. In certain embodiments, the invention is an over the counter product comprising: a first leg comprising a purchase or sale of a futures contract based on a first commodity; and a second leg comprising a sale or purchase of an over the counter contract based on a second commodity; wherein the first commodity and the second commodity are of the same commodity type and the over the counter traded product trades at a price differential between the two legs; and wherein the purchase or sale of the futures or options contract is automatically registered on a futures exchange when the sale or purchase of the over the counter contract occurs. A system for offset or contingent trading of commodity contracts is also disclosed.
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Citations
20 Claims
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1. A method of offset or contingent trading comprising:
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providing a first financial exchange configured for offering for sale or purchase a first financial derivatives contract; providing a second financial exchange and offering for purchase or sale a second financial derivatives contract; consummating, via an electronic trading platform, one of an offsetting and contingent trading transaction for the second financial derivatives contract at a price differential that is based on prevailing market prices as indicated by the first exchange and said electronic trading platform automatically registering a trade of the first financial derivatives contract on the first financial exchange immediately upon consummating the trading transaction for the second financial derivatives contract, wherein the first financial exchange is one of a futures exchange and an over-the-counter (OTC) exchange, and wherein the second financial exchange is the other of said futures exchange and said OTC exchange. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A system for offset and contingent trading in an electronic trading environment, the system comprising:
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an electronic trading platform; two or more exchanges in communication with the electronic trading platform, the exchanges providing price feeds and reporting trades to the electronic trading platform; and one or more user terminals in communication with the electronic trading platform, the user terminals providing access to the price feeds and trades reported to the electronic trading platform, wherein the electronic trading platform is configured to; consummate one of an offsetting and contingent trading transaction by offering for sale or purchase a first financial derivatives contract on a first of the exchanges; offer for purchase or sale a second financial derivatives contract on a second of the exchanges at a price differential that is based on prevailing market prices as indicated by the first exchange; and automatically register a trade of the first financial derivatives contract on the first exchange upon a trade of the second financial derivatives contract and wherein said first of the exchanges is one of a futures exchange and an OTC exchange, and wherein said second of the exchanges is the other of said futures exchange and said OTC exchange. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 20)
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Specification