System and method for providing futures contracts in a financial market environment

• US 7,908,193 B2
• Filed: 10/20/2003
• Issued: 03/15/2011
• Est. Priority Date: 10/20/2003
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Sweeting, Michael
• Primary Examiner(s): Apple; Kirsten S
• Assistant Examiner(s): Basit; Abdul
• Application Number:
  US10/689,185
• Publication Number:
  US 20050086152A1
• Time in Patent Office: 2,703 Days
• Field of Search: 705/35, 705/37
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method for offering an asset in a financial environment is provided that includes receiving a request to perform a selected one of a purchasing and a selling operation for a futures contract. The futures contract includes a first asset class having a first value associated therewith and a second asset class having a second value associated therewith. A price for the futures contract is determined at least partially by the first and second values.

Claims

1. An apparatus, comprising:

at least one processor; and

a memory element electronically coupled to the at least one processor, the memory element comprising software that when executed by the at least one processor, directs the at least one processor to;

receive a plurality of requests to buy and to sell a futures contract,

wherein a buyer of the futures contract agrees to (i) buy one of a plurality of assets from a first asset class underlying the futures contract and (ii) buy one of a plurality of assets from a second asset class underlying the futures contract at an expiration of the futures contract,

wherein a seller of the futures contract agrees to (i) sell one of a plurality of assets from the first asset class underlying the futures contract and (ii) sell one of a plurality of assets from the second asset underlying the futures contract at the expiration of the futures contract,

wherein the first asset class comprises fixed income bonds,

wherein the second asset class comprises credit default swaps issued on fixed income bonds,

wherein the futures contract specifies;

(i) a quantity of a fixed income bond from the first asset class to be delivered at the expiration of the futures contract, and

a quantity of a credit default swap from the second asset class to be delivered at the expiration of the futures contract, and

wherein the apparatus is operable to receive the plurality of requests via a communications network from respective computing devices;

execute a transaction involving at least one of the plurality of requests to sell the futures contract;

provide to a respective computing device a confirmation of execution of the transaction involving the at least one request to sell the futures contract;

execute a transaction involving at least one of the plurality of requests to buy the futures contract; and

provide to another respective computing device a confirmation of execution of the transaction involving the at least one request to buy the futures contract.

2. The apparatus of claim 1,

wherein the at least one request to sell the futures contract comprises proposed contract terms;

wherein the at least one request to buy the futures contract comprises proposed contract terms; and

wherein the software, when executed by the at least one processor, further directs the at least one processor to;

match one or more of the proposed contract terms of the at least one request to sell with an available futures contract that satisfies the proposed contract terms of the at least request to sell; and

match one or more of the proposed contract terms of the at least one request to buy with an available futures contract that satisfies the proposed contract terms of the at least one request to buy.

3. The apparatus of claim 1,

wherein the software, when executed by the at least one processor, further directs the at least one processor to:

store in another memory element the transaction involving the at least one request to sell; and

store in the another memory element the transaction involving the at least one request to buy.

4. The apparatus of claim 1, wherein the software, when executed by the at least one processor, further directs the at least one processor to:

provide to at least one of the plurality of computing devices financial data on the futures contract.

5. The apparatus of claim 1,

wherein the first asset class has a value associated therewith;

wherein the second asset class has a value associated therewith; and

wherein a change in the value in one of the first asset class or the second asset class due to a cheapest to deliver parameter results in a change in the value of the other asset class.

6. The apparatus of claim 1, wherein the futures contract includes a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine a price for the futures contract.

7. The apparatus of claim 1, wherein the futures contract includes a settlement term indicating that a settlement price of the futures contract be based at least in part on a volume-weighted average price of a plurality of trades associated with the futures contract.

9. The apparatus of claim 1, wherein the first asset class comprises fixed income bonds issued by at least one corporation.

8. An apparatus, comprising:

at least one processor; and

a memory element electronically coupled to the at least one processor, the memory element comprising software that when executed by the at least one processor, directs the at least one processor to;

receive a plurality of request to buy and to sell a futures contract,

wherein a buyer of the futures contract agrees to (i) buy one of a plurality of assets from a first asset class underlying the futures contract and (ii) buy a one of a plurality of assets from a second asset class underlying the futures contract at an expiration of the futures contract;

wherein a seller of the futures contract agrees to (i) sell one of a plurality of assets from the first asset class underlying the futures contract and (ii) sell one of a plurality of assets from the second asset class underlying the futures contract at the expiration of the futures contract,

wherein the first asset class comprises fixed income bonds issued by a first government,

wherein the second asset class comprises fixed income bonds issued by a second government,

wherein the futures contract specifies;

(i) a quantity of a fixed income bond from the first asset class to be delivered at the expiration of the futures contract,and

(ii) a quantity of a fixed income bond from the second asset class to be delivered at the expiration of the futures contract, and

wherein the apparatus is operable to receive the plurality of requests via a communications network from respective computing devices;

execute a transaction involving at least one of the plurality of requests to sell the futures contract;

provide to a respective computing device a confirmation of execution of the transaction involving the at least one request to sell the futures contract;

execute a transaction involving at least one of the plurality of requests to buy the futures contract; and

provide to another respective computing device a confirmation of execution of the transaction involving the at least one request to buy the futures contract.

10. The apparatus of claim 8,

wherein the at least one request to sell the futures contract comprises proposed contract terms;

wherein the at least one request to buy the futures contract comprises proposed contract terms; and

wherein the software, when executed by the at least one processor, further directs the at least one processor to;

match one or more of the proposed contract terms of the at least one request to sell with an available futures contract that satisfies the proposed contract terms of the at least one request to sell; and

match one or more of the proposed contract terms of the at least one request to buy with an available futures contract that satisfies the proposed contract terms of the at least one request to buy.

11. The apparatus of claim 8,

wherein the software, when executed by the at least one processor, further directs the at least one processor to:

store in another memory element the transaction involving the at least one request to sell; and

store in the another memory element the transaction involving the at least one request to buy.

12. The apparatus of claim 8,

wherein the buyer of the futures contract further agrees to buy one of a plurality of assets from a third asset class underlying the futures contract at the expiration of the futures contract;

wherein the seller of the futures contract further agrees to sell one of a plurality of assets from the third asset class underlying the futures contract at the expiration of the futures contract;

wherein the third asset class comprises fixed income bonds issued by a third government; and

wherein the futures contract further specifies a quantity of a fixed income bond from the third asset class to be delivered at the expiration of the futures contract.

13. The apparatus of claim 8, wherein the software, when executed by the at least one processor, further directs the at least one to:

provide to at least one of the plurality of computing devices financial data on the futures contract.

14. The apparatus of claim 8,

wherein the fist asset class has a value associated therewith;

wherein the second asset class has a value associated therewith; and

wherein a change in the value in one of the first asset class or the second asset class due to a cheapest to deliver parameter results in a change in the value of the other asset class.

15. The apparatus of claim 8, wherein the futures contract includes a pricing methodology that is based on basis points per annum, the pricing methodology being used at least partially to determine a price for the futures contract.

16. The apparatus of claim 8, wherein the futures contract includes a settlement term indicating that a settlement price of the futures contract be based at least in part on a volume-weighted average price of a plurality of trades associated with the futures contract.

17. The apparatus of claim 8,

wherein the first asset comprises fixed income bonds issued by a first European government;

and

wherein the second asset class comprises fixed income bonds issued by a second European government, wherein the second European government is the Italian government.

18. The apparatus of claim 8,

wherein the first asset class comprises fixed income bonds issued by one of a European government and the Japanese government;

and

wherein the second asset class comprise fixed income bonds issued by the U.S. government.

19. The apparatus of claim 12,

wherein the first asset class comprises fixed income bonds issued by the U.S. government;

wherein the second asset class comprises fixed income bonds issued by the German government; and

wherein the third asset class comprises fixed income bonds issued by the French government.

20. The apparatus of claim 12,

wherein the first asset class comprises fixed income bonds issued by the Italian government;

wherein the second asset class comprises fixed income bonds issued by the German government; and

wherein the third asset class comprises fixed income bonds issued by the French government.

21. The apparatus of claim 12,

wherein the first asset class comprises fixed income bonds issued by a first European government;

wherein the second asset class comprises fixed income bonds issued by a second European government; and

wherein the third asset class comprises fixed income bonds issued by a third European government.

22. The apparatus of claim 21, wherein the third European government is the Italian government.

23. The apparatus of claim 12,

wherein the first asset class comprises fixed income bonds issued by a European government;

wherein the second asset class comprises fixed income bonds issued by the U.S. government; and

wherein the third asset class comprises fixed income bonds issued by the Japanese government.