Aqua index

• US 8,024,239 B2
• Filed: 08/20/2008
• Issued: 09/20/2011
• Est. Priority Date: 08/21/2007
• Status: Active Grant

• Current Assignee: Aqua Index
• Original Assignee: Aqua Index
• Inventors: Shirazi, Yaacov
• Primary Examiner(s): Gart; Matthew S
• Assistant Examiner(s): Goyea; Olusegun
• Application Number:
  US12/194,551
• Publication Number:
  US 20090055294A1
• Time in Patent Office: 1,126 Days
• Field of Search: 705/30, 705/37, 705/39, 705/36.R, 705/36, 705/35, 250/339.11, 250/339.12
• US Class Current: 705/30
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 90/00 Systems or methods specially adapted for administrative, commercial, financial, managerial or supervisory purposes, not involving significant data processing
• CPC Class Codes: Y02A 20/00 Water conservation; Efficient water supply; Efficient water use
• CPC Class Codes: Y02A 20/20 Controlling water pollution; Waste water treatment

Abstract

A method and system for computing a stable index value of a regulated substance by computing a virtual value of the substance based on the value of a freely marketed product of the substance. Particularly the invention may be applied to develop a stable investment instrument for investing in fresh water.

Claims

1. A method of using an investment instrument for investing in water, comprising:

determining an index value of fresh water by using a computer processor to calculate the index value based on a quantity of said fresh water constituent in at least one product, based on a quantity of said fresh water utilized to produce said at least one product and based on a price of said at least one product;

wherein the index value is computed by mathematically combining the quantity of said fresh water constituent in the at least one product, the quantity of said fresh water utilized to produce said at least one product and the price of said at least one product using one or more mathematical operations,

determining a price of a financial instrument issuable for a particular amount of fresh water by using a computer processor to calculate the price from the index value of the fresh water and the particular amount of the fresh water; and

issuing the financial instrument, the financial instrument identifying on its face the particular amount of fresh water.

2. The method of claim 1, wherein said at least one product is a publicly traded commodity.

3. The method of claim 2, wherein said at least one said product includes at least one agricultural commodity.

4. The method of claim 1, wherein said at least one product includes at least one of an agricultural commodity, a manufactured commodity and a fuel.

5. The method of claim 1 wherein said index value further depends on a quantity of an output from said at least one product and a quantity of a constituent of said at least one product.

6. The method of claim 1, wherein the quantity of said fresh water utilized to produce the at least one product excludes water that is part of the at least one product.

7. The method of claim 1, further comprising using the computer processor to calculate the index value based also on a market weight of the at least one product and wherein the price of said at least one product is the current price of the at least one product and wherein the market weight is the current market weight.

8. The method of claim 7, wherein the current price of the at least one product is updated in real time.

9. The method of claim 1, further comprising using the computer processor to calculate the index value based also on a market weight of the at least one product.

10. The method of claim 1, wherein the financial instrument is at least one of a certificate, a bond, a stock, a future.

11. The method of claim 1, wherein the financial instrument is a certificate.

12. The method of claim 1, further comprising using the fresh water as collateral for the amount of fresh water on the face of the financial instrument.

13. The method of claim 12, further comprising determining a market value of the collateral based on the index value of the fresh water.

14. The method of claim 1, further comprising issuing the financial instruments such that the particular amount of fresh water identified on the face of the financial instruments is redeemable by a holder of the financial instrument from an owner of the fresh water.

15. The method of claim 1, wherein the amount of fresh water is a volume of fresh water and wherein the index value is a price per unit volume.

16. A method of using financial instruments to invest in water, comprising:

determining, using a computer processor, a price of each of the financial instruments, each of the financial instruments identifying on its face a particular amount of fresh water, the price of each financial instrument determined using an index value of the fresh water and the particular amount of the fresh water, the index value of the fresh water determined based on a quantity of said fresh water constituent in at least one product, a quantity of said fresh water utilized to produce said at least one product and a price of said at least one product;

wherein the index value of the fresh water is determined using the computer processor by using one or more mathematical operations to mathematically combine the quantity of said fresh water constituent in the at least one product, the quantity of said fresh water utilized to produce said at least one product and the price of said at least one product.

17. The method of claim 16, wherein said at least one product is a publicly traded commodity.

18. The method of claim 17, wherein said at least one said product includes at least one agricultural commodity.

19. The method of claim 16, wherein said at least one product includes at least one of an agricultural commodity, a manufactured commodity and a fuel.

20. The method of claim 16 wherein said index value further depends on a quantity of an output from said at least one product and a quantity of a constituent of said at least one product.

21. The method of claim 16, wherein the quantity of said fresh water utilized to produce the at least one product excludes water that is part of the at least one product.

22. The method of claim 16, further comprising using the computer processor to calculate the index value based also on a market weight of the at least one product and wherein the price of said at least one product is the current price of the at least one product and wherein the market weight is the current market weight.

23. The method of claim 22, wherein the current price of the at least one product is updated in real time.

24. The method of claim 16, further comprising the index value of the fresh water is determined by using the computer processor to calculate the index value based also on a market weight of the at least one product.

25. The method of claim 16, wherein the financial instruments comprise at least one of a certificate, a bond, a stock, a future.

26. The method of claim 16, wherein the financial instruments are certificates.

27. The method of claim 16, further comprising using the fresh water as collateral for the amount of fresh water on the face of each of the financial instruments.

28. The method of claim 16, further comprising determining a market value of the collateral based on the index value of the fresh water.

29. The method of claim 16, further comprising issuing the financial instruments such that the particular amount of fresh water identified on the face of the financial instruments is redeemable by a holder of the financial instrument from an owner of the fresh water.

30. The method of claim 16, wherein the amount of fresh water is a volume of fresh water and wherein the index value is a price per unit volume.

31. The method of claim 16, further comprising issuing the financial instruments.

32. The method of claim 16, further comprising updating the index value.