System and method for wagering-based transferable financial instruments

• US 7,233,922 B2
• Filed: 09/03/2003
• Issued: 06/19/2007
• Est. Priority Date: 04/02/2003
• Status: Expired due to Term

• Current Assignee: Cantor Index LLC
• Original Assignee: Cantor Index LLC
• Inventors: Crosthwaite, Dominic, Lutnick, Howard W., Asher, Joseph M., Riches, Guy Iain Oliver
• Primary Examiner(s): Subramanian; Narayanswamy
• Application Number:
  US10/654,280
• Publication Number:
  US 20040210507A1
• Time in Patent Office: 1,385 Days
• Field of Search: 705 35- 37
• US Class Current: 705/36.00R
• 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 40/03 Credit; Loans; Processing thereof
• 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 50/34 Betting or bookmaking, e.g. Internet betting
• CPC Class Codes: G07F 17/32 for games, toys, sports, or amusements
• CPC Class Codes: G07F 17/3288 Betting, e.g. on live events, bookmaking

Abstract

The invention provides a system and method for creating and facilitating the exchange of wagering-based transferable financial instruments. The instruments may be used to embody multiple various positions based upon the ultimate outcomes of uncertain future contingent events, including but not limited to outcomes of games of skill and chance. The invention further provides systems and platforms for monitoring, displaying information, and facilitating trading as to such instruments among multiple investment market participants, and a hosting or house participant, for time-variable buying and selling of such instruments.

Claims

1. A computer-implemented method for providing a financial instrument, comprising:

identifying a plurality of predefined probabilistic events, wherein each event is associated with a plurality of outcomes;

maintaining, in electronic storage, a point count that varies according to the outcomes of the plurality of events;

identifying a first wager that is based at least in part on the plurality of events;

determining a price based at least in part upon the point count;

establishing the financial instrument embodying at least the first wager, the financial instrument comprising the price; and

facilitating the transfer of the financial instrument for the price.

2. The computer-implemented method of claim 1, further comprising:

assigning a first point value to a first outcome of the portion of events; and

assigning a second point value to a second outcome of the portion of events.

3. The computer-implemented method of claim 2, wherein the point count is based upon a mathematical relation between the first point value and the second point value.

4. The computer-implemented method of claim 2, further comprising:

incrementing the point count by the first point value based on the occurrence of the first outcome; and

incrementing the point count by the second point value based on the occurrence of the second outcome;

wherein the incrementing by the first point value or by the second point value may be in either the negative or positive direction.

5. The computer-implemented method of claim 1, wherein the step of maintaining comprises maintaining the point count for a predetermined duration of events.

6. The computer-implemented method of claim 1, further comprising

determining a final point count at the end of the portion of events;

and

settling the financial instrument based at least in part upon the final point count.

7. The computer-implemented method of claim 6, wherein the step of settling the financial instrument comprises:

determining a relation between the final point count and the price;

facilitating transfer of payment from or to a client based at least in part upon the determined relation.

8. The computer-implemented method of claim 1, wherein:

the first outcome comprises one of a first set of outcomes, wherein the first set of outcomes is associated with a first event; and

the second outcome comprises one of a second set of outcomes, wherein the second set of outcomes is associated with a second event that is different from the first event, and wherein at least one of the outcomes included in the first set of outcomes is not included in the second set of outcomes.

9. The computer-implemented method of claim 1, wherein the plurality of predefined probabilistic events comprises at least one chance-based event selected from the group comprising:

horse races;

sporting events;

financial market events;

casino-type gambling events; and

bingo events.

10. The computer-implemented method of claim 9, wherein the casino-type gambling events comprise at least one of a spin of a slot machine and at least one spin of a roulette wheel.

11. The computer-implemented method of claim 1, wherein the plurality of predefined probabilistic events are associated with a financial market and the associated plurality of outcomes comprise:

a rise of a financial market indicator during a predetermined period of time; and

a fall of a financial market indicator during the predetermined period of time.

12. The computer-implemented method of claim 1, wherein facilitating the transfer of the financial instrument for the price comprises facilitating the transfer of the financial instrument from a first client to a second client.

13. The computer-implemented method of claim 1, wherein the price comprises a first price and wherein facilitating the transfer of the financial instrument comprises facilitating a first transfer of the financial instrument to a first party at a first time and further comprising:

receiving an offer to sell the financial instrument from the first party;

receiving a bid to buy the first financial instrument; and

facilitating a second transfer of the financial instrument from the first party to the second party at a second time, wherein the second transfer is associated with a second price.

14. An apparatus for providing at least one financial instrument, comprising:

a memory operable to store the at least one financial instrument, wherein the at least one financial instrument embodies at least a first wagering position regarding a point count associated with a plurality of probabilistic events; and

one or more processors that are coupled to the memory and that are collectively or individually operable to;

receive information identifying a plurality of predefined probabilistic events, wherein each event is associated with a plurality of outcomes;

maintain the point count in the memory by updating the point count according to the outcomes of the plurality of events;

determine a price based at least in part upon the point count; and

facilitate transfer of the financial instrument for the price.

15. The apparatus of claim 14, wherein:

the at least one bid is associated with a first client;

the at least one offer is associated with a second client; and

the processor further matches the at least one bid with the at least one offer resulting in a transfer of the at least one financial instrument from the first client to the second client.

16. The apparatus of claim 14, wherein the processor assigns a first point value to a first outcome of the portion of events, and assigns a second point value to a second outcome of the portion of events, wherein the point count is based upon a mathematical relation between the first point value and the second point value.

17. The apparatus of claim 14, wherein the processor further settles the financial instrument by determining a relation between a final point count and the price, and by facilitating transfer of payment from or to a client based at least in part upon the determined relation.

18. The apparatus of claim 14, wherein the predefined plurality of probabilistic events comprises at least one chance-based event selected from the group comprising:

horse races;

sporting events;

financial market events;

casino-type gambling events; and

bingo events.

19. The apparatus of claim 18, wherein the casino-type gambling events comprise at least one of a spin of a slot machine and a spin of a roulette wheel.

20. The apparatus of claim 14, wherein the plurality of probabilistic events are associated with a financial market and the associated plurality of outcomes comprise:

a rise of a financial market indicator during a predetermined period of time; and

a fall of a financial market indicator during the predetermined period of time.

21. The apparatus of claim 14, wherein the processor facilitates the transfer of the financial instrument from a first client to a second client.