Derivative Contracts that Settle Based on Transaction Data
AssigneeChicago Mercantile Exchange Inc.
InventorsRyan Pierce, Mansoor Ahmed, John Plante
Life of this patent
Estimating the term…
Abstract
The disclosed systems and methods make derivatives contracts based on an underlying virtual currency available for trading. Certain derivatives contracts have a settlement value based on the transaction fees associated with recording and/or performing transactions for the selected virtual currency. The contracts can be used, for example, by virtual currency miners against certain risks associated with mining virtual currency.
Claims23
A computer system comprising:
- a financial computer system that includes:
- an order book module that determines bid and offer prices for financial instruments;
- a match engine that matches bids and offers for financial instruments;
- and
- a trade database that stores trade information;
- a trader computer device connected to the financial computer system and configured to allow a trader to communicate with the financial computer system;
- and
- a clearinghouse computer connected to the financial computer system and that includes:
- a processor;
- and
- a computer readable medium containing computer-executable instructions that when executed cause the clearinghouse processor to:
- (a) receive transaction data for a plurality of transactions, the transaction data including transaction inputs and transaction outputs;
- (b) determine transaction differences for the plurality of transactions based on the difference between the sum of all transaction inputs and the sum of all corresponding transaction outputs associated with each transaction;
- and
- (c) determine a value of a financial instrument based on the transaction differences.
A computer implemented method for valuing financial instruments based on transaction data, the method comprising:
- receiving, by a processor, transaction data for a plurality of transactions, the transaction data including transaction inputs and transaction outputs;
- determining, by the processor, transaction differences for the plurality of transactions based on the difference between the sum of all transaction inputs and the sum of all corresponding transaction outputs associated with each transaction;
- and
- determining, by the processor, a value of a financial instrument based on the transaction differences.
A computer implemented method for valuing financial instruments based on transaction data, the method comprising:
- receiving, by a processor, transaction data for a plurality of transactions;
- determining, by the processor, transaction fees for the plurality of transactions;
- and
- determining, by the processor, a value of a financial instrument based on the transaction fees.
A computer implemented method for valuing financial instruments based on network utilization, the method comprising:
- receiving, by a processor, network utilization data for a virtual currency network;
- determining, by the processor, the network utilization for the virtual currency network based on the network utilization data;
- and
- determining, by the processor, a value of a financial instrument based on the network utilization.
Dependencies are inferred from the claim text.