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US 8,027,899 B2Granted
System and method for forming a financial instrument indexed to entertainment revenue
AssigneeBGC Partners, Inc.
InventorsJoseph M. Asher, Howard W. Lutnick
Life of this patent
Estimating the term…
Abstract
A method for forming a securities bundle indexed to entertainment revenue includes determining a first funding amount for a first entertainment event. A second funding amount is determined for a second entertainment event. Next, a dividend schedule is determined for the first and second entertainment events. A securities bundle is formed at least partially based on the funding amounts and the dividend schedule, with the securities bundle comprising a first security and a second security. The first security is associated with the first entertainment event and the second security is associated with the second entertainment event.
Claims25
A machine-implemented method, comprising:
- determining, by an electronic trading system, a first entertainment event produced by a first entertainment company and funded by a first funding amount;
- determining, by the electronic trading system, a first period of time related to the first entertainment event;
- forming, by the electronic trading system, a first futures contract that grants a holder of the first futures contract at a date when the first period of time has ended a right to a payment based on a revenue related to the first entertainment event and the first period of time, in which the futures contract does not grant any equity right related to the first entertainment company to the holder;
- selling the first futures contract through the electronic trading system to a first buyer for a first price, in which the sale does not include a sale to fund the first funding amount, and in which the sale does not include a sale by the first entertainment company;
- receiving, by the electronic trading system, an offer to sell the first futures contract from the first buyer for a second price, in which the offer is received at a first time after the selling to the first buyer and before a start of the first period of time;
- receiving, by the electronic trading system, a bid to buy the first futures contract from a second buyer for the second price, in which the bid is received at a second time after the selling to the first buyer and before the start of the first period of time;
- in response to receiving the bid and the offer, facilitating, by the electronic trading system, an exchange of the first futures contract between the first buyer and the second buyer for the second price;
- and
- settling the first futures contract at a time when the first period of time has ended by providing the holder of the first futures contract with the payment based, in which the payment is not a payment from the first entertainment company.
6 more elements
An apparatus comprising:
- a machine readable medium having stored thereon a set of instructions that when executed by a computing device causes the computing device to perform a method comprising:
- determining a first entertainment event produced by a first entertainment company and funded by a first funding amount;
- determining a first period of time related to the first entertainment event;
- forming a first futures contract that grants a holder of the first futures contract at a date when the first period of time has ended a right to a payment based on a revenue related to the first entertainment event and the first period of time, in which the futures contract does not grant any equity right related to the first entertainment company to the holder;
- selling the first futures contract to a first buyer for a first price, in which the sale does not include a sale to fund the first funding amount, and in which the sale does not include a sale by the first entertainment company;
- receiving an offer to sell the first futures contract from the first buyer for a second price, in which the offer is received at a first time after the selling to the first buyer and before a start of the first period of time;
- receiving a bid to buy the first futures contract from a second buyer for the second price, in which the bid is received at a second time after the selling to the first buyer and before the start of the first period of time;
- in response to receiving the bid and the offer, facilitating an exchange of the first futures contract between the first buyer and the second buyer for the second price;
- and
- settling the first futures contract at a time when the first period of time has ended by providing the holder of the first futures contract with the payment based, in which the payment is not a payment from the first entertainment company.
7 more elements
Dependencies are inferred from the claim text.