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:
- offering for sale or purchase a first financial derivatives contract on a first exchange;
offering for purchase or sale a second financial derivatives contract on a second exchange;
consummating 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
automatically registering via an electronic computing device in communication with said first and second exchanges, a trade for the first financial derivatives contract on the first exchange upon a trade of the second financial derivatives commodity contract.
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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
21 Claims
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1. A method of offset or contingent trading comprising:
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offering for sale or purchase a first financial derivatives contract on a first exchange; offering for purchase or sale a second financial derivatives contract on a second exchange; consummating 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 automatically registering via an electronic computing device in communication with said first and second exchanges, a trade for the first financial derivatives contract on the first exchange upon a trade of the second financial derivatives commodity contract. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A system for offset and contingent trading in an electronic trading environment, the system comprising:
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an electronic computing device; two or more exchanges in communication with the electronic computing device, the exchanges providing price feeds and reporting trades to the electronic computing device; and one or more user terminals in communication with the electronic computing device, the user terminals providing access to the price feeds and trades reported to the electronic computing device, wherein the electronic computing device is configured to automatically transmit a first trade for registration on a first of the exchanges in response to a second trade occurring on a second of the two or more exchanges, and wherein the second trade is consummated at a price differential that is based on prevailing market prices as indicated by the first exchange. - View Dependent Claims (13, 14, 15, 16, 17, 18, 19, 20, 21)
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Specification