Commodity-Based Index and Investment and Financial Risk Management Products
AssigneeNew York Mercantile Exchange, Inc.
InventorJonathan Arginteanu
Life of this patent
Estimating the term…
Abstract
Investment and financial risk management products and methods are provided that are based on a commodity index. The commodity index has a numerical value that, based on an algorithm, tracks the settlement prices of a predetermined group of commodities on a futures exchange. Based on this index, a futures contract is offered on the futures exchange. Moreover, an exchange-traded fund, options on the exchange-traded fund, and options on the futures contract are also provided.
Claims23
A method for providing an investment or financial risk management product comprising:
- identifying a group of five or fewer commodities traded on a futures exchange;
- determining the settlement prices of each of the commodities;
- assigning a weighting factor for each of the commodities;
- calculating a component value based on the total of the settlement price of each commodity multiplied by its respective weighting factor;
- calculating an index value by applying an algorithm to the component value;
- and
- offering a futures contact, traded on the futures exchange, based on the index value.
A method for providing an investment or financial risk management product comprising:
- receiving a commodity index value from a futures exchange, the commodity index value relating to the settlement prices of a preselected group of five or fewer commodities traded on the futures exchange, wherein each of the settlement prices are multiplied by a weighting factor;
- purchasing each commodity in a proportion substantially consistent with its weighting factor;
- offering an exchange-traded fund, on a stock exchange, whose value substantially tracks the commodity index value.
An article comprising a machine-readable medium that stores machine-executable instructions for causing a machine to:
- receive the identity of a group of five or fewer commodities traded on a futures exchange;
- determine the settlement prices of each of the commodities;
- receive a weighting factor for each of the commodities;
- calculate a component value based on the total of the settlement price of each commodity multiplied by its respective weighting factor;
- calculate an index value by applying an algorithm to the component value;
- and
- calculate the price of a futures contact, traded on the futures exchange, based on the index value.
Dependencies are inferred from the claim text.