Arbitrage of tracking securities
AssigneeThe Nasdaq Stock Market, Inc.
InventorsSteven M. Bloom, Michael S. Spector, John L. Jacobs
Life of this patent
Estimating the term…
Abstract
A financial product is based on a first fund that is traded on a trading marketplace in a first country. The financial product is registered in the first country. The first fund has the characteristics of being based on an index of securities that are traded in a second, different country. The first fund is arbitragable with a second fund that is based on the index and which is registered in a second different country. The first fund has a creation unit basis that is substantially the same basis as a creation unit basis for the second fund. The calculation of the net asset value of the first fund occurs at essentially or exactly the same time that second country fund has its NAV calculated.
Claims34
A memory storing a data structure that represents a financial product, the data structure for use with a computer-based method of administering a financial product that is traded on a first marketplace, the data structure comprising:
- a field that identifies a first fund that is traded on a trading marketplace in the first country, and registered in the first country,
- a field that identifies an index of securities that are traded in a second, different country that the first fund is based on and being arbitragable with a second fund that is based on the index and which is registered in the second different country with;
- the first fund having a creation unit basis that is substantially the same as a creation unit basis for the second fund.
A memory storing a data structure that represents a first tracking fund, the data structure comprising:
- a field identifying fund shares that are traded on a first marketplace, the first tracking fund registered in a first country;
- a field identifying a second tracking fund being based on an index of securities the second fund traded in a second, different country and registered in the second country;
- wherein the first tracking fund is structured with a creation unit basis that is substantially the same creation unit basis as for the second fund and where calculation of the net asset value of the first fund occurs essentially or exactly the same time that second country fund has its NAV calculated.
A computer-based method of administering a financial product that is traded on a first marketplace, comprising the characteristics of:
- administering in a computer system a first fund, the first fund having a creation unit basis that is substantially the same creation unit basis as a creation unit basis for a second fund that is traded on a second marketplace in a different country from the first fund.
A computer-based method of administrating a first fund that is traded on a first marketplace, comprising the characteristics of:
- calculating in the computer, the net asset value of the first fund at essentially or exactly the same time that the net asset value of a second country fund has its net asset value calculated, with the first fund and the second fund each tracking the same index of financial products.
A computer-based method of administrating a first fund that issues shares in a first fund, the computer-based method comprises:
- providing the first fund based on a creation unit, the creation unit having a basis that is substantially the same basis as a creation unit basis for a second fund that is traded on a second marketplace in a different country than the first fund;
- calculating in the computer the net asset value of the first fund at essentially or exactly the same time that the net asset value of the second country fund has its net asset value calculated to make the first fund arbitragable with the second fund.
A method executed in a computer system, the method comprises:
- administrating a first fund that issues shares in the first fund by:
- calculating in the computer system the net asset value of the first fund at essentially or exactly the same time that the net asset value of a second fund has its net asset value calculated to make the first fund arbitragable with the second fund, with the first fund and the second fund each having a creation unit basis that are substantially the same and with the second fund traded on a second marketplace in a different country than the first fund.
Dependencies are inferred from the claim text.