Aqua index

• US 8,676,673 B2
• Filed: 08/15/2011
• Issued: 03/18/2014
• Est. Priority Date: 08/21/2007
• Status: Active Grant

• Current Assignee: Aqua Index
• Original Assignee: Aqua Index
• Inventors: Shirazi, Yaakov
• Primary Examiner(s): Goyea, Olusegun
• Application Number:
  US13/209,547
• Publication Number:
  US 20110295738A1
• Time in Patent Office: 946 Days
• Field of Search: 705/28, 705/30, 705/35, 705/36.R, 705/37, 705/39
• 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 system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the price of the financial instruments determined by an index value of water applied to the particular amount of water and the particular amount of water, comprising:

a processor configured to determine the index value of water applied to the particular amount of water based on a price of at least one tradable commodity other than water and based on one or more factors expressing an empirical relationship between a quantity of water and a quantity of the at least one tradable commodity,

wherein the index value of water applied to the particular amount of water is determined by the processor using one or more mathematical operations to combine (i) the price of the at least one tradable commodity and (ii) the one or more factors expressing the empirical relationship between the quantity of water and the quantity of the at least one tradable commodity; and

a display device configured to display the determined index value of water used in trading the particular amount of water using the financial instruments.

2. The system of claim 1, wherein the one or more factors comprise both (i) the quantity of the at least one tradable commodity and (ii) production of the quantity of the at least one tradable commodity.

3. The system of claim 1, wherein the one or more factors comprise at least one of (i) a quantity of water constituent in the quantity of the at least one tradable commodity and (ii) a quantity of water utilized in production of the at least one tradable commodity.

4. The system of claim 1, wherein the one or more factors comprise a quantity of water utilized to produce the quantity of the at least one tradable commodity.

5. The system of claim 1, wherein the one or more factors comprise a quantity of water constituent in the quantity of the at least one tradable commodity.

6. The system of claim 1, wherein the price of the at least one tradable commodity comprises a price of a first tradable commodity other than water and a price of a second tradable commodity other than water, and

wherein the one or more factors comprise:

a first weight assigned to the first tradable commodity,

a second weight assigned to the second tradable commodity, and

one of (i) a first amount of water utilized in production of a quantity of the first tradable commodity and a second amount of water utilized in production of a quantity of the second tradable commodity and (ii) a first amount of water utilized in production of the quantity of the first tradable commodity, a first amount of water constituent in the quantity of the first tradable commodity, a second amount of water utilized in production of the quantity of the second tradable commodity and a second amount of water constituent in the quantity of the second tradable commodity.

7. The system of claim 1, wherein the one or more factors comprise both (i) an amount of water constituent in a quantity of a particular tradable commodity of the at least one tradable commodity and (ii) an amount of water utilized in production of the quantity of the particular tradable commodity of the at least one tradable commodity.

8. The system of claim 1, wherein the one or more factors include a market weight of respective tradable commodities of the at least one tradable commodity.

27. The system of claim 6, wherein in the one or more mathematical operations,

the first weight is applied to adjust a mathematical combination of:

the price of the first tradable commodity and at least one of (i) the first amount of water utilized in production of the quantity of the first tradable commodity and (ii) the first amount of water utilized in production of the quantity of the first tradable commodity and the first amount of water constituent in the quantity of the first tradable commodity, and

the second weight is applied to adjust a mathematical combination of the price of the second tradable commodity and at least one of (i) the second amount of water utilized in production of the quantity of the second tradable commodity and (ii) the second amount of water utilized in production of the quantity of the second tradable commodity and the second amount of water constituent in the quantity of the second tradable commodity.

38. The system of claim 1, wherein the price of the at least one tradable commodity is the current price of the at least one tradable commodity.

9. A method of investing in water using financial instruments, each financial instrument identifying a particular amount of water, the price of each financial instruments determined by an index value of water applied to the particular amount of water and the particular amount of water, comprising:

determining, using a processor, the index value of water applied to the particular amount of water based on a price of at least one tradable commodity other than water and based on one or more factors expressing an empirical relationship between a quantity of water and a quantity of the at least one tradable commodity,

wherein the index value of water applied to the particular amount of water is determined by the processor using one or more mathematical operations to combine the price of the at least one tradable commodity and the one or more factors expressing the empirical relationship between the quantity of water and the quantity of the at least one tradable commodity.

10. The method of claim 9, wherein the one or more factors comprise at least one of (i) the quantity of the at least one tradable commodity and (ii) production of the quantity of the at least one tradable commodity.

11. The method of claim 9, wherein the one or more factors comprise a quantity of water that is constituent in the quantity of the at least one tradable commodity.

12. The method of claim 9, wherein the one or more factors comprise a quantity of water utilized to produce the quantity of the at least one tradable commodity.

13. The method of claim 9, wherein the one or more factors comprise at least one of (i) an amount of water constituent in the quantity of the at least one tradable commodity and (ii) an amount of water utilized in production of the quantity of the at least one tradable commodity.

14. The method of claim 9, wherein the one or more factors comprise both (i) an amount of water constituent in the quantity of the at least one tradable commodity and (ii) an amount of water utilized in production, of the quantity of the at least one tradable commodity.

15. The method of claim 9, wherein the one or more factors comprise both (i) an amount of water constituent in a quantity of a particular tradable commodity of the at least one tradable commodity and (ii) an amount of water utilized in production of the quantity of the particular tradable commodity of the at least one tradable commodity.

16. The method of claim 9, wherein the one or more factors also comprise a market weight of respective tradable commodities of the at least one tradable commodity.

17. The method of claim 9, further comprising, using a display device, to display the determined index value of water used in trading the particular amount of water using the financial instruments.

39. The method of claim 9, wherein the price of the at least one tradable commodity is the current price of the at least one tradable commodity.

41. The method of claim 9, wherein the price of the at least one tradable commodity is the current price of the at least one tradable commodity.

18. A system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the price of the financial instruments determined by an index value of water applied to the particular amount of water and the particular amount of water, comprising:

one or more processors configured to determine the index value of water applied to the particular amount of water based on a price of a first tradable product other than water, an amount of water utilized in production of a quantity of the first tradable product, a first weight assigned to the first tradable product, a price of a second tradable product other than water, an amount of water utilized in production of a quantity of the second tradable product and a second weight assigned to the second tradable product.

28. The system of claim 18, further comprising:

a display device configured to display the determined index value of water used in trading the particular amount of water using the financial instruments.

29. The system of claim 28, wherein the index value of water applied to the particular amount of water is determined by the one or more processors using one or more mathematical operations to combine the price of the first tradable product, the amount of water utilized in production of the quantity of the first tradable product, the first weight assigned to the first tradable product, the price of the second tradable product, the amount of water utilized in production of the quantity of the second tradable product and the second weight assigned to the second tradable product.

30. The system of claim 29, wherein the one or more processors are further configured to determine the index value of water applied to the particular amount of water based on a price of a third tradable product other than water, an amount of water utilized to produce a quantity of the third tradable product and a weight assigned to the third tradable product.

31. The system of claim 28, wherein the respective prices of the first and second tradable products are not dependent on each other.

32. The system of claim 28, wherein the one or more processors are configured to determine the index value of water applied to the particular amount of water based also on an amount of water constituent in the quantity of the first tradable product and an the amount of water constituent in the quantity of the second tradable product.

40. The system of claim 18, wherein the price of the first and second tradable products is the current price of the first and second tradable products.

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

determining using one or more processors, a price of each of the financial instruments, each of the financial instruments identifying a particular amount of water, the price of each financial instrument determined using an index value of water applied to the particular amount of water and the particular amount of water; and

determining, using the one or more processors, the index value of water applied to the particular amount of water based on a price of at least one tradable commodity other than water, and based on one or more factors expressing an empirical relationship between a quantity of water and a quantity of the at least one tradable commodity;

wherein the index value of water applied to the particular amount of water is determined by the one or more processors using one or more mathematical operations to combine the price of the at least one tradable commodity and the one or more factors expressing the empirical relationship between the quantity of water and the quantity of the at least one tradable commodity.

20. The method of claim 19, wherein the one or more factors comprise either

(i) a quantity of water constituent in the quantity of the at least one tradable commodity,

(ii) a quantity of water utilized to produce the quantity of the at least one tradable commodity, or

(iii) a quantity of water constituent in the quantity of the at least one tradable commodity and a quantity of water utilized to produce the quantity of the at least one tradable commodity.

21. The method of claim 20, wherein the at least one tradable commodity includes an agricultural commodity.

22. The method of claim 19, wherein the index value of water applied to the particular amount of water is determined based also on a market weight of the at least one tradable commodity.

23. The method of claim 19, wherein the one or more factors comprise a quantity of an output of the at least one tradable commodity.

24. The method of claim 23, wherein the output is from combustion of the at least one tradable commodity.

25. The method of claim 19, further comprising issuing the financial instruments.

26. The method of claim 19, further comprising using the particular amount of water identified by the financial instrument as collateral.

33. A system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the price of the financial instruments determined by an index value of water applied to the particular amount of water and the particular amount of water, comprising:

a processor configured to determine the index value of water applied to the particular amount of water based on a price of, and a weight assigned to, each of at least three tradable commodities other than water and based on, for each particular tradable commodity of the at least three tradable commodities, at least one of (i) an amount of water utilized in production of a quantity of the particular tradable commodity and (ii) an amount of water constituent in the quantity of the particular tradable commodity,

wherein the index value of water applied to the particular amount of water is determined by the processor using one or more mathematical operations to combine the price of, and the weight assigned to, each of the at least three tradable commodities other than water and, as to each of the at least three commodities, the at least one of (i) the amount of water utilized to produce the quantity of the particular tradable commodity and (ii) the amount of water constituent in the quantity of the particular tradable commodity.

34. The system of claim 33, further comprising

a display device displaying the determined index value of water used in trading the particular amount of water using the financial instruments.

42. The system of claim 33, wherein the price of each of the at least three tradable commodities is the current price of each of the at least three tradable commodities.

35. A system for trading water using financial instruments, each of the financial instruments identifying a particular amount of water, the price of the financial instruments determined by an index value of water applied to applicable to the particular amount of water and the particular amount of water, comprising:

a processor configured to determine the index value of water applied to the particular amount of water based on a price of at least one tradable commodity other than water and based on at least one of (i) a quantity of water utilized in production of a quantity of the at least one tradable commodity and (ii) a quantity of water constituent in the quantity of the at least one tradable commodity,

wherein the index value of water applied to the particular amount of water is determined by the processor using one or more mathematical operations to combine the price of the at least one tradable commodity and the at least one of (i) the quantity of water utilized to produce the quantity of the at least one tradable commodity and (ii) the quantity of water constituent in the quantity of the at least one tradable commodity.

36. The system of claim 35, further comprising:

a display device configured to display the determined index value of water used in trading the particular amount of water using the financial instruments.

37. The system of claim 35, wherein the price of the at least one tradable commodity is the current price of the at least one tradable commodity.