System and method for determining an index for an item based on market information

• US 8,195,559 B2
• Filed: 10/23/2009
• Issued: 06/05/2012
• Est. Priority Date: 12/13/2001
• Status: Expired due to Term

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Heaton, Timothy H., Lutnick, Howard W.
• Primary Examiner(s): Patel, Jagdish
• Application Number:
  US12/604,960
• Publication Number:
  US 20100042531A1
• Time in Patent Office: 956 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0205 Location or geographical consideration
• CPC Class Codes: G06Q 30/0275 Auctions
• CPC Class Codes: G06Q 30/0611 Request for offers or quotes
• CPC Class Codes: G06Q 30/08 Auctions
• 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
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

Systems and methods for determining an index for an item based on market information are provided. Market information about the item is received and compiled. A standard profile for the item is determined. Index information for the item is determined based on the compiled market information. The index information comprises historical price information and statistical information about the market for the item. The index information is displayed at a user interface and updated based on updated market information. Orders to trade futures and options contracts on the item may be received, communicated, and executed.

Claims

1. A system comprising at least one process and a memory that stores a program that when executed enables the processor to perform a method comprising:

receiving market information for at least one luxury item, in which the at least one luxury item comprises at least one item that is not required for human survival;

after receiving the market information, compiling market information;

determining a standard profile for the at least one luxury item based on the compiled market information;

determining index information based on the compiled market information and the standard profile, the index information comprising at least one luxury item index, the at least one luxury item index comprising a statistical composite that measures changes in a financial market associated with the at least one luxury item; and

outputting a signal that causes a display device to display at least a portion of the index information at a user interface, the at least a portion of the index information comprising historical price information associated with the at least one luxury item, the display device being in electronic communication with the at least one processor;

receiving updated market information about the at least one luxury item;

updating the index information comprising the at least one luxury item index periodically based on the updated market information, in which the periodically updated at least one luxury item index reflects changes in a market for the luxury item; and

outputting a signal that causes a display device to display at least a portion of the updated index information at a user interface, the at least a portion of the index information comprising historical price information associated with the at least one luxury item, the display device being in electronic communication with the at least one processor.

2. The system of claim 1, wherein the at least one luxury item comprises at least one diamond.

3. The system of claim 2, wherein the market information comprises price data from at least one industry source.

4. The system of claim 2, wherein the market information comprises at least one price list for diamonds.

5. The system of claim 1, the method comprising classifying the market information to create an index specific to at least one class of luxury items.

6. The system of claim 1, the method comprising classifying the market information to create an index specific to at least one kind of luxury items.

7. The system of claim 1, the method comprising classifying the market information to create an index specific to at least one size of luxury items.

8. The system of claim 1, wherein the at least one luxury item comprises at least one wine.

9. The system of claim 1, the method comprising collecting the market information at pre-determined time intervals and updating the index to reflect changes in the market for the luxury item at the pre-determined time intervals.

10. The system of claim 1, the method comprising settling at least one trade for at least one futures contract or at least one option contract on the luxury item index.

11. The method of claim 1, in which the act of determining at least one luxury item index comprises determining an index that is a statistical composite of the market information.

12. The system of claim 2, wherein the standard profile comprises at least one of a color, cut, and clarity.

13. The system of claim 2, wherein the standard profile comprises a range of values for at least one of a color, a clarity, a proportion of depth, an angle of the table, a characteristic of the girdle, a characteristic of the culet, and a characteristic of the polish.

14. The system of claim 8, wherein the standard profile comprises at least one of type, region, winery, and vintage.

15. The system of claim 1, in which compiling the market information includes composing information from a plurality of sources into the compiled market information.

16. The system of claim 1, in which determining a standard profile includes generating a standardization that allows positions in the at least one luxury item to be easily liquidated.

17. The system of claim 1, in which the method comprises receiving a request for a listing of at least one of futures and option contracts related to the index information and communicating the listing to at least one user.

18. The system of claim 17, in which the method comprises communicating market data associated with the listing.

19. The system of claim 18, in which the market data comprises at least one of a symbol for futures or option contracts, a last price, a change in price, a highest bid price, a lowest offer price, an volume, and a value of open interest.

20. The system of claim 1, in which the method comprises:

receiving a first order to trade at least one of a first futures and a first option contract, wherein the at least one of the first futures and the first option contract specifies that at least one first luxury item has a plurality of respective first values for each characteristic of a set of characteristics defined by the standard profile.

21. The method of claim 20, in which the trade includes a spread trade based on a spread between a price of the first luxury item and a price of a second luxury item at a future date based on the index.

22. The system of claim 20, in which the method comprises:

receiving a second order to trade at least one of a second futures and a second option contract, wherein the at least one of the second futures and the second option contract specifies that at least one second luxury item has a plurality of respective second values for each characteristic of a set of characteristics defined by the standard profile.

23. The system of claim 22, in which at least one value of the first values has a greater specificity than at least one value of the second values for the same characteristic of the set of characteristics.

24. The system of claim of claim 22, in which the method comprises:

executing, by the computer system, a trade in at least one of the first futures contract, the first option contract, the second futures contract, and the second option contract.

25. The system of claim 24, in which the second values are different from the first values.

26. The system of claim 24, in which the method comprises:

facilitating delivery of at least one of the first luxury item and the second luxury item at at least one future date to satisfy the at least one of the first futures contract, first options contract, second futures contract, and second options contract; and

facilitating delivery of a respective certified grading report with the at least one of the first luxury item and the second luxury item.

27. A method comprising:

receiving, by at least one processor, market information for at least one luxury item, in which the at least one luxury item comprises at least one item that is not required for human survival;

after receiving the market information, compiling, by the at least one processor, the market information;

determining, by the at least one processor, a standard profile for the at least one luxury item based on the compiled market information;

determining, by the at least one processor, index information based on the compiled market information and the standard profile, the index information comprising at least one luxury item index, the at least one luxury item index comprising a statistical composite that measures changes in a financial market associated with the at least one luxury item; and

outputting a signal that causes a display device to display at least a portion of the index information at a user interface, the at least a portion of the index information comprising historical price information associated with the at least one luxury item, the display device being in electronic communication with the at least one processor;

receiving, by the at least one processor, updated market information about the at least one luxury item;

updating, by the at least one processor, the index information comprising the at least one luxury item index periodically based on the updated market information, in which the periodically updated at least one luxury item index reflects changes in a market for the luxury item; and

outputting a signal that causes a display device to display at least a portion of the updated index information at a user interface, the at least a portion of the index information comprising historical price information associated with the at least one luxury item, the display device being in electronic communication with the at least one processor.