Method and apparatus for generating a weather index
OwnerDaniel J. Parker, Daniel G. Johnsoninventors
Life of this patent
Estimating the term…
Abstract
A tradable investment index and method for weather futures, comprised of weather data transformed using the steps of extracting historical weather data, including weather measures such as precipitation, wind speed, temperature and sunshine hours, providing the weather data to a computer database, operating on the values in the database using a computer and software program, and transforming the resulting set into an index, which is tradable in the financial, weather derivative or insurance markets.
Claims20
A tradable investment index for weather futures, comprised of weather data transformed using the steps of
- a) extracting historical weather data;
- b) providing said weather data to a computer database;
- c) operating on said database using a computer and software program;
- d) transforming the result set into an index;
- and
- e) providing said index in a report,
- whereby said index is tradable in the financial, weather derivative or insurance markets.
A process for generating a weather index, wherein said index is generated from reported weather data, and wherein participants are given discretionary access to the index for the purposes of speculation incentive for profit, business hedging, market facilitation or other useful purpose.
An apparatus for generating a weather index comprising
- a) a computer, comprised of
- i.) at least one input device,
- ii.) at least one output device,
- iii.) memory means for mass storage,
- iv.) external communications link, and
- v.) system bus to permit communication therebetween;
- b) local network, in communication with said external communications link;
- c) internet service provider;
- d) at least one database containing weather data;
- and
- e) software program means for transforming said weather data into an index,
- whereby said index is usable for investment and trading of weather derivatives.
A method for generating a weather index, comprising
- a) collection step for recording a plurality of index values associated with a market segment on computer-readable media;
- b) transformation step for transforming each value of said index values using a function dependent upon at least one baseline and at least one critical value of said index values;
- c) mapping step for mapping said function to a sequence of reference values and generating a plurality of deviation indicators, each value of the said index having one of said deviation indicators associated therewith;
- and
- d) analysis step for analyzing and reformatting raw data to produce departure and deviation indicators and generating a numerical index value.
A process for generating a weather index comprising the steps of
- obtaining weather data from weather reporting sources;
- providing means for input of bids and offers by investors;
- transforming said data into a numerical value, wherein said numerical value fluctuates depending on bids and offers from multiple parties and wherein said numerical value is combined with a par value;
- and
- reporting said index in a form usable for investment trading.
A tradable index comprising a numerical indicator of departure from normal weather parameters, wherein said index is tradable as a financial product.
Dependencies are inferred from the claim text.