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US 2014/0372282 A1Published application
System Providing Commodity Price-Move Protection for Small Risk Holders
OwnerDamon Magnuskiinventor
Life of this patent
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Abstract
A system for providing small to medium sized entities commodity price move protection is disclosed. The system may have the steps of receiving information from a client, selecting an appropriate commodity instrument, aggregating the client with other clients, and selecting an appropriate hedge in the event that the instrument provides for more protection than is sought by the aggregated clients and protection for the service provider is desired.
Claims19
-20. (canceled)
A method of providing commodity price-move protection comprising the steps of:
- receiving a quantity of information provided by a first client comprising a payout date and a quantity of desired protection by at least one computer of a service provider;
- selecting a first commodity instrument using the at least one computer, the first commodity instrument selected to provide a price-move protection greater than or equal to the quantity of desired protection provided by the first client;
- calculating a percentage ownership required in the first commodity instrument to provide the quantity of desired protection to the first client using the at least one computer, a balance percentage of ownership being owned by a service provider;
- selecting a hedge for the service provider using the at least one computer based at least in part on the balance percentage of ownership being owned by the service provider;
- receiving a second quantity of information from a second client comprising a second payout date and a second quantity of desired protection by the at least one computer;
- aggregating the second quantity of desired protection of the second client with the quantity of desired protection of the first client by the at least one computer of the service provider, forming an aggregated quantity of desired protection;
- calculating a new percentage ownership in the first commodity instrument of the first client and the second client to provide the aggregated quantity of desired protection by the at least one computer, a second balance of ownership being owned by the service provider;
- liquidating the percentage ownership of the first client on the payout date provided by the first client by the at least one computer;
- and
- liquidating the a percentage ownership of the second client providing the second quantity of desired protection on the second payout date provided by the second client by the at least one computer.
7 more elements
A method of providing commodity price-move protection comprising the steps of:
- receiving a quantity of information provided by a first client comprising a payout date and a quantity of desired protection by at least one computer of a service provider;
- selecting a first commodity instrument from a group of commodity instruments owned by a service provider using the at least one computer, the first commodity instrument selected to provide the quantity of desired protection provided by the first client;
- aggregating the quantity of desired protection of the first client with an aggregated quantity of desired protection of a plurality of clients using the at least one computer, thereby forming a second aggregated quantity of desired protection, the first commodity instrument being capable of providing at least the second aggregated quantity of protection;
- calculating a new percentage ownership in the first commodity instrument of the first client combined with the plurality of clients to provide the second aggregated quantity of desired protection using the at least one computer, the balance of ownership being owned by the service provider;
- and
- liquidating a percentage ownership of the first client representing the quantity of desired protection in the first commodity instrument on the payout date provided by the first client.
3 more elements
Dependencies are inferred from the claim text.