System, method, and program product for managing a collective investment vehicle including a true-up operation

A method for administering a collective investment vehicle with a portfolio of securities, in relation to one or more market participants (MP's), comprising:

• performing a creation event, comprising:
• receiving a request to create one or more shares of the collective investment vehicle;
• receiving an asset from one of the MP's in relation to the creation event;
• issuing, by one or more computers and an electronic network, one or more collective investment vehicle shares directly or indirectly to the respective one MP based on the asset received;
• obtaining securities for the collective investment vehicle to become a part of the portfolio of securities;
• obtaining or creating an electronic record of security identifiers for the portfolio of securities held by the collective investment vehicle;
• calculating and disseminating automatically an intraday indicative value (IIV), by one or more computers programmed to calculate the IIV, the calculating based on or derived from the electronic record of the portfolio of securities in the collective investment vehicle, or transmitting data electronically, by the one or more computers, of contents of the portfolio of securities to one or more third parties for a calculation and dissemination of the IIV;
• performing a redemption event, comprising:
• receiving, a request to redeem shares of the collective investment vehicle for a given MP, with the request to redeem shares comprising a number of shares to redeem or a value-specifying parameter;
• determining a distribution value of assets for a distribution event, based on the number of shares to redeem or the value-specifying parameter;
• determining, based at least in part on the distribution value, a first set of one or more assets to distribute for the distribution event, comprising commodities, or securities, or legal instruments, or comprising at least two selected from a group of cash, commodities, securities or legal instruments;
• communicating before a strike time an identification of the first set of one or more assets to distribute including a number of each one of the assets, to a market participant representative (MP representative), acting on behalf of the given MP for which the collective investment vehicle shares were received, which MP representative is governed by an agreement imposing a restriction on liquidation and disclosure of the first set of assets;
• calculating, by one or more computers, a monetary value of the first set of assets as of the strike time based on price data valid as of the strike time;
• calculating, by one or more computers, a monetary value as of the strike time of the number of shares requested to be redeemed, or a monetary value as of the strike time of a number of shares approximated by the value-specifying parameter;
• calculating, by one or more computers, a redemption true-up monetary amount, based on the monetary value at the strike time of the first set of one or more assets and either the monetary value as of the strike time of the number of shares requested to be redeemed, or the monetary value as of the strike time comprising a number of shares approximated by the value-specifying parameter, to obtain the redemption true-up monetary amount;
• sending, by one or more computers and an electronic network, an electronic message to cause a transfer of all or a portion of the first set of assets directly or indirectly to an electronic account of the MP representative;
• and
• further comprising:
• requiring appointment of the respective MP representative to act for the respective given MP in at least one or more redemption events with the collective investment vehicle, with terms that govern the actions of the MP representative and at least requires a confidentiality restriction regarding an identity of all or a portion of the first set of one or more assets with respect to the MP and a liquidation parameter for all or a portion of the first set of one or more assets,
• and
• wherein the receiving an asset from the one MP for the creation event comprises receiving one or more securities for a creation basket in an account transfer from or on behalf of the one MP and/or cash from or on behalf of the one MP or a combination thereof.