Financial instrument for a specific deliverable product on a daily settlement basis
OwnerJames Harrisoninventor
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Abstract
A new class of instruments extends the use or operation of futures contracts to encompass specific deliverable products on a daily settlement basis. These new instruments can be created to cover a wide range of market sectors and financial classes. The new instruments are exchange traded instruments that define exactly and exclusively the instrument to be exchanged at the end of the trading period.
Claims57
A financial instrument covering specific deliverable products on a fixed settlement basis, the financial instrument comprising:
- a standardized contract obligating a buyer and a seller to settle the standardized contract based on a price of the standardized contract at a first effective date, through an exchange clearing house that guarantees payment to the buyer and the seller of any deliverable instrument as a result of the standardized contract,
- wherein the standardized contract is an exchange traded instrument that defines exactly and exclusively an instrument to be delivered upon settlement at the end of the first effective date.
A method of trading financial instruments covering specific deliverable products on a daily settlement basis, the method comprising:
- trading a standardized contract obligating a buyer and a seller to settle the standardized contract based on a price of the standardized contract at a first effective date, through an exchange clearing house that guarantees payment to the buyer of any amount owed to the buyer from the seller as a result of the standardized contract and that guarantees payment to the seller of any amount owed to the seller from the buyer as a result of the standardized contract,
- wherein the standardized contract is an exchange traded instrument that defines exactly and exclusively an instrument to be exchanged upon settlement at the end of the first effective date.
A system of trading financial instruments covering specific deliverable products on a fixed settlement basis, the system comprising:
- an exchange clearing house of financial instruments;
- and
- an exchange access that enables trading with the exchange clearing house, wherein the exchange clearing house facilitates trading of a contract to deliver a specific product at the end of a fixed period at a then defined purchase price of the specific product.
Dependencies are inferred from the claim text.