Automated market maker and related methods and improvements
AssigneeMindjet LLC
InventorMatthew John Fogarty
Life of this patent
Estimating the term…
Abstract
Various problems currently exist in the operation of using prediction markets for corporate forecasting. One of these problems we address is the problem related to the “consistency and consolidation of metrics”. We hierarchically structure and link sets of markets traded using an automated market maker and dynamically balance markets.
Claims19
A method of managing prices of securities using an automated market maker, comprising:
- using the automated market maker to adjust a first price for a first security in a first market, in dependence on trades of the first security;
- and
- using the automated market maker to adjust a second price for a second security in a second market, in dependence on trades of the first security and trades of the second security.
A method of managing pricing of securities using an automated market maker, the comprising:
- using the automated market maker to adjust a first price of a first security in dependence on trades in a first market;
- using the automated market maker to adjust a second price of a second security in dependence on trades in a second market;
- and
- where adjusting each of the first price and the second price includes adjusting the respective price in a manner that maintains consistency between the first market and the second market in accordance with a mathematical dependence between the first market and the second market.
A market maker computer product adapted to automatically adjust a first price depending on first trades in a first market and to automatically adjust a second price depending on second trades in a second market, where, in adjusting the respective prices, the market maker computer product is to dynamically balance each of the first and second prices in response to both the first trades and the second trades in accordance with at least one mathematical algorithm representing correlation between the first market and the second market, and where the marked maker computer product is embodied as instructions stored on non-transitory computer-readable media.
In a system in which participants are permitted to trade in securities, each security associated with one of a first market or a second market, and in which an automated market maker is used to set prospective pricing for each market in dependence on trades in the respective market, an improvement comprising:
- linking the first and second markets according to a mathematical dependency;
- and
- using the automated market maker to set the prospective pricing for trades in the first market in dependence on the trades in the first market, and to set the prospective pricing for trades in the second market in dependence on trades in the first market and in dependence on trades in the second market according to the mathematical dependency.
Dependencies are inferred from the claim text.