AQUA INDEX

• US 20110295738A1
• Filed: 08/15/2011
• Published: 12/01/2011
• Est. Priority Date: 08/21/2007
• Status: Active Grant

• Current Assignee: Aqua Index
• Original Assignee: Aqua Index
• Inventors: SHIRAZI, Yaacov
• Granted Patent: US 8,676,673 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• 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 system that is useful for trading fresh water, the system comprising:

a) a computer having a processor, the processor configured to compute an index value of fresh water based on at least a quantity of said fresh water constituent in at least one product and a quantity of said fresh water utilized to produce said at least one product;

b) a memory of the computer configured to store the index value.

2. The system of claim 1, wherein the processor is configured to compute the index value of fresh water 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.

3. The system of claim 2, further comprising the processor configured to compute the index value also based on a market weight of said at least one product.

4. The system of claim 2, wherein the index value is computed by the processor by multiplying 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.

5. The system of claim 2, wherein the memory is also configured to store at least one of the quantity of said fresh water constituent in 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.

6. The system of claim 1, wherein the memory is also configured to store at least one of the quantity of said fresh water constituent in at least one product and the quantity of said fresh water utilized to produce said at least one product.

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

8. The system of claim 7, wherein said at least one said product includes at least one agricultural commodity.

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

10. The system 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.

11. The system 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.

12. The system of claim 1, further comprising a physical certificate reciting on its face a quantity of fresh water such that trading of the physical certificate depends on a price calculated from the quantity of fresh water and from the index value that was computed by the processor.

13. The system of claim 12, wherein the index value having been provided, prior to trading of the physical certificate, to at least one of a holder of the physical certificate, a seller of the physical certificate and a trader of the physical certificate prior to trading of the physical certificate.

14. A system for trading fresh water, the system comprising:

a) a computer having a processor, the processor configured to compute an index value of fresh water based on at least three of the following factors;

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, a price of said at least one product and a market weight of said at least one product;

b) a memory of the computer configured to store the index value; and

c) a financial instrument reciting on its face a quantity of fresh water, the financial instrument having a price that is based on the quantity of fresh water and the index value that was computed by the processor, the price enabling trading of the financial instrument.

15. The system of claim 14, further comprising a second computer having a processor and having a memory, the memory of the second computer configured to store at least one of the price of the financial instrument and the index value.

16. The system of claim 14, further comprising a second computer having a processor and having a memory, the memory of the second computer configured to store at least one of the price of the financial instrument, the index value, 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 system of claim 14, further comprising a computer having a processor that is configured to compute the price of the financial instrument from the quantity of fresh water and from the index value.

18. The system of claim 14, further comprising the computer having the processor that is configured to compute the price of the financial instrument also having a memory configured to store the price of the financial instrument.

19. The system of claim 14, wherein the financial instrument is a physical certificate.

20. The system of claim 14, wherein the financial instrument is redeemable by a holder of the financial instrument.

21. The system of claim 14, wherein the processor is configured to compute the index value 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, a price of said at least one product and a market weight of said at least one product.

22. The system of claim 14, further comprising fresh water configured to act as collateral for the financial instrument.

23. A system for trading fresh water, the system comprising:

a) a computer having a processor, the processor configured to compute an index value of fresh water based on at least two of the following factors;

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;

b) a memory of the computer configured to store the index value;

c) a physical certificate reciting on its face a quantity of fresh water, the quantity of fresh water recited in the face of the physical certificate together with the index value computed by the processor determining a price of the physical certificate, the price enabling trading of the physical certificate.

24. The system of claim 23, further comprising a computer having a processor configured to calculate the price of the physical certificate from the quantity of fresh water and from the index value.

25. The system of claim 23, wherein the index value is provided to at least one of a holder, seller, broker and trader of the physical certificate.

26. The system of claim 23, wherein the computer is configured to update the price of the at least one product in real time and wherein the price of said at least one product is the then current price of the at least one product.

27. The system of claim 23, wherein the processor is configured to calculate the index value also based on the market weight of the at least one product.