# US 2012/0078770 A1 · Method for valuing forwards, futures and options on real estate > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 2012/0078770 A1 - Document ID: US20120078770A1 - Status: Published application - Kind: A1 - Application number: 13/031,700 - Filed: 2011-02-22 - Published: 2012-03-29 - Earliest claimed: 2003-06-28 - Assignees: Radar Logic Incorporated - Inventors: Andrew T. HECHT - Web page: https://patentgrep.com/patent/US20120078770A1 ## CPC - G06Q 40/04: Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange - G06Q 40/00: Finance; Insurance; Tax strategies; Processing of corporate or income taxes - G06Q 40/06: Asset management; Financial planning or analysis - G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR ## Abstract A system and method for matching buy and sell orders is provided. A daily cash index of real estate values for a local region is maintained and a trading instrument representative of an interest in real estate in the local region is created. In this regard, a cash settlement of the trading instrument is a function of the daily cash index on the date of said cash settlement. In addition, a plurality of buy orders relating to the instrument are generated; a plurality of sell orders relating to the instrument are generated; and the buy and sell orders are matched to determine a purchase and sale of the instrument. ## Claims ### Claim at position 1 1-73. (canceled) ### Claim 74 A method for providing a daily cash index for real estate transaction values, comprising: a. for each day, performing a survey of actual real estate transactions executed on said day in a local region; b. for each day, using a computer: generating a daily cash index of real estate transaction values in the local region based upon the survey by compiling the data obtained from the survey of actual real estate transactions into a series of data points; for each day, manipulating the series of data points by statistical tools to create a normal distribution of rate prices per unit area; and for each day, calculating the price per unit area for the local sector; the price per unit area for the local sector being usable as a cash mark to market settlement value; c. for each month, using a computer, aggregating the daily surveys to generate a monthly cash index; d. generating, using a computer, a volatility value based upon the monthly cash indices over at least one year as a measure of historical performance. ### Claim 75 A method for providing a daily cash index for real estate transaction values, comprising: a. for each day, performing a survey of actual real estate transactions executed on said day in a local region; b. for each day, using a computer: generating a daily cash index of real estate transaction values in the local region based upon the survey by compiling the data obtained from the survey of actual real estate transactions into a series of data points; for each day, manipulating the series of data points by statistical tools to create a normal distribution of rate prices per unit area; and for each day, calculating the price per unit area for the local sector; the price per unit area for the local sector being usable as a cash mark to market settlement value. ### Claim 76 A method for providing a daily cash index for real estate transaction values, comprising: a. based upon historical data, using a computer, generating monthly cash indices of real estate values in a local region for each month of at least 10 prior years; b. generating, using a computer, an initial volatility value based upon the monthly cash indices over said at least 10 prior years; c. for each day, performing a survey of actual real estate transactions executed on said day in the local region; d. for each day, using a computer: generating a daily cash index of real estate transaction values in the local region based upon the survey by compiling the data obtained from the survey of actual real estate transactions into a series of data points; for each day, manipulating the series of data points by statistical tools to create a normal distribution of rate prices per unit area; and for each day, calculating the price per unit area for the local sector; the price per unit area for the local sector being usable as a cash mark to market settlement value; e. for each month, using a computer, aggregating the daily surveys on a monthly basis to generate a monthly cash index for said each month; and f. updating, using a computer, the volatility value based upon each monthly cash index generated in step e. ### Claim 77 (depends on 75) The method of claim 75, wherein the real estate transactions include residential real estate transactions. ### Claim 78 (depends on 75) The method of claim 75, wherein the daily cash index is aggregated on a monthly basis to provide a monthly index value. ### Claim 79 (depends on 75) The method of claim 75, further comprising generating a volatility value of the daily cash index, said volatility value being a function of a historic performance of the daily cash index. ### Claim 80 (depends on 79) The method of claim 79, wherein the historic performance is a function of aggregated monthly values of the daily cash index over a plurality of years. ### Claim 81 (depends on 75) The method of claim 75, wherein the daily cash index is calculated on a weighted average basis. ### Claim 82 (depends on 75) The method of claim 75, wherein the daily cash index is calculated on a moving average basis. ### Claim 83 (depends on 75) The method of claim 75, wherein the daily cash index is calculated on an exponential moving average basis. ### Claim 84 (depends on 75) The method of claim 75, wherein the daily cash index is weighted according to building classes, wherein the building classes include at least Class A building, Class B buildings, and Class C buildings ### Claim 85 (depends on 76) The method of claim 76, wherein the real estate transactions include residential real estate transactions. ### Claim 86 (depends on 75) The method of claim 75, further comprising: periodically aggregating the daily surveys to generate a periodic cash index; generating a volatility value based upon the periodic cash indices over a plurality of years. ### Claim 87 (depends on 75) The method of claim 75, further comprising: each week, aggregating the daily surveys to generate a weekly cash index; generating a volatility value based upon the weekly cash indices over a plurality of years. ### Claim 88 (depends on 75) The method of claim 75, further comprising: biweekly aggregating the daily surveys to generate a biweekly cash index; generating a volatility value based upon the biweekly cash indices over a plurality of years. ### Claim 89 (depends on 75) The method of claim 75, wherein the daily cash index is calculated as a price per square foot. ### Claim 90 (depends on 75) The method of claim 75, wherein the price per unit is one of a price per square foot, a price per square meter, price per acre and a price per hectare. ### Claim 91 (depends on 74) The method of claim 74, wherein the price per unit is one of a price per square foot, a price per square meter, price per acre and a price per hectare.