Methods and apparatus relating to the formulation and trading of risk management contracts
Patent 6134536 Issued on October 17, 2000. Estimated Expiration Date: June 6, 2017. Estimated Expiration Date is calculated based on simple USPTO term provisions. It does not account for terminal disclaimers, term adjustments, failure to pay maintenance fees, or other factors which might affect the term of a patent.
Methods and apparatus which deal with the management of risk relating to specified, yet unknown, future events are disclosed.`Sponsor` stakeholders specify a particular product relating to an event or phenomenon for which there is a range of possible future outcomes.`Ordering` stakeholders then offer contracts relating to the predetermined phenomenon and corresponding range of outcomes. The offered contracts specify an entitlement or (pay-off) at the future time of maturity for each outcome, and a consideration (or premium) payable, in exchange, to a `counter-party` stakeholder.Independently of the offered contracts, the `counter-party` stakeholders input data as to their view of the likelihood of occurrence of each outcome in the predetermined range into the future, or specifically at the predetermined date of maturity.Each offered contract is priced by the processing units by calculating counterparty premiums from the registered data, and a match attempted by a comparison of the offered premium with the calculated premiums.Matched contracts can be further traded until maturity, and at-maturity processing handles the exchange of entitlement as between the matched parties to the contract.
Other References
"Heavy Losses Have Been Chalked Up by City Punters Betting on the Financial Markets," Evening Standard, Oct. 22, 1987, p. 39
"A Number of City Brokers and Dealers are Facing Financial Ruin as a Result of Losses They Have Incurred by Gambling on Future Movements in Stock Market Indices," Evening Standard, Oct. 30, 1987, p. 59
"Christopher Hales, the Managing Director of City Index, the Organisation that Allows Punters to Bet on the FTSE Index, Has Not Yet Been Offered a Porsche . . . " Evening Standard, Nov. 2, 1987, p. 50
"The Game of Professional Investment is Intolerably Boring and Over-Exacting to Anyone Who is Entirely Exempt from the Gambling Instinct, While He Who Has it Must Pay to this Propensity the Appropriate Toll," Planned Savings, Dec. 1987, pp. 50-51
"UK: Law Prohibiting Stock Market Betting Agencies from Suing Clients Overturned in Recent Legislation," The Times, Jul. 24, 1990
"UK: Court Rules Gamblers Owing Money on Bets on Stock Market Have to Pay Up," Mail on Sunday, Jul. 29, 1990, p. 61
"UK: Independent Law Report--Stock Market Movement Bet Claimed," Independent Aug. 3, 1990, p. 13
"UK: City Index Successfully Sues Spencer Leslie for .English Pound.35,000," Euroweek Aug. 3, 1990, p. 23
"UK: Times Law Report--Differences Contract is Enforceable," The Times, Oct. 3, 1990
"UK: Current Law--City Index Ltd. v. Leslie; Gaming Contracts are Unenforceable Unlike Business Contracts," Chartered Surveyor Law Report, Oct. 18, 1990, p. 132
"UK: Court of Appeal Rejects Market Gambler Case," Financial Times, Mar. 15, 1991, p. 7
"UK: Personal Finance (Savings Snips)--City Saver--City Index Link," Observer, Mar. 7, 1993, p. 35
"UK: Spread Your Bets for Dodgy Deregulation," Evening Standard, Apr. 7, 1995
"UK: How to Make a Winning Spread Bet This Summer--The New Gambling--Cover Story," The Times, Apr. 8, 1995
"UK: Family Finance--Do You Fancy a Financial Flutter?" Sunday Telegraph, Apr. 9, 1995, p. 9
Nigel Cope, "UK: Where Bookie Meets Broker," Management Today, May 1995, p. 76
Jonathan Davis, "UK: Your Money--Spread Betting--Risk and Reward in Selling the Ivory Coast Short," Independent, May 27, 1995, p. 21
"UK: Scrum on Down for New Way of Betting," Mail on Sunday, Jun. 18, 1995
Lucy Roberts, "UK: City Diary--City Index Weather Forecasts," Independent, Jun. 23, 1995, p. 26
"UK: Christmas Day Snow Index Launched," Evening Standard, Dec. 8, 1995
Joe Saumarez Smith, "Australia: City--Bookie's Move to Hit Betting Duty," Sunday Telegraph, Dec. 24, 1995, p. 2
"UK: City Diary--Spreading the Word," Daily Telegraph, Mar. 21, 1996, p. 21
"UK: City Diary--Index Link a Fairly Safe Bet," Daily Telegraph, Jul. 16, 1996, p. 25
"UK: IG Index Comments on Rivals Merger Plans," Evening Standard, Jul. 17, 1996
"UK: City Index--Partners," Financial Times, Oct. 14, 1996, p. 14
"UK: Reuters Launches Two UK Stock Indices," Reuters Limited, Nov. 8, 1996
Paul Stokes, "UK: New Index Sparks a Worldwide Market for Scotland," Scotsman, Nov. 9, 1996, p. 21
"UK: City Diary--Bookmaker Chief Appointed," Daily Telegraph, Mar. 24, 1997, p. 26
"UK: Family Finance--Bond Pep From Age Concern--Savings Scene," Sunday Telegraph, Sep. 14, 1997, p. 10
Raymond Snoddy, "UK: Mirror to Launch Online Betting Service with PA--The Mirror Group--PA News," The Times, Sep. 19, 1997, p. 25
"The DTB--West Germany's New Options and Futures Exchange. (2 of 2)," Business Briefing published in Institutional Investor, Aug. 31, 1989
Murphy, "Soffex Well-Established After First Six Months," Business Briefing published by Reuters News Service, Nov. 16, 1988
"A New Futures and Options Exchange to Come into Effect in 1990. (2 of 3)," Business Briefing Published in Euromoney Supplements, Nov. 17, 1989
"A New Futures and Options Exchange to Come into Effect in 1990. (3 of 3)," Business Briefing published in Euromoney Supplements, Nov. 17, 1989
"The Success of Soffex--The World's First Fully Automated Exchange," Business Briefing. Nov. 17, 1989
Curtis M. Elliott and Emmett J. vaughan: "Fundamentals of Risk and Insurance," John Wiley & Sons, Inc. 1972
William A. Spurr and Charles P. Bonini: "Statistical Analysis for Business Decisions," Richard D. Irwin, Inc. 1974
John W. Labuszewski and John E. Nyhoff: "Trading Options on Futures--Markets, Methods, Stragegies and Tactics," John Wiley & Sons, Inc. 1988
Edgar E. Peters: "Chaos and Order in the Capital Markets--A New View of Cycles, Prices, and Market Volatility," John Wiley & Sons, Inc. 1991
David Mayers and Clifford Smith: "The Corporate Insurance Decision"--journal article reprinted in "The Revolution in Corporate Finance" edited by Joel M. Stern & Donald H. Chew, Jr., Blackwell Finance, 1992
Charles Smithson and Clifford Smith: "Managing Financial Risk"--journal article reprinted in "The Revolution in Corporate Finance" edited by Joel M. Stern & Donald H. Chew, Jr., Blackwell Finance, 1992
Donald R. Lessard: "Finance and Global Competition: Exploiting Financial Scope and Coping with Volatile Exchange Rates"--journal article reprinted in "The Revolution in Corporate Finance" edited by Joel M. Stern & Donald H. Chew, Jr., Blackwell Finance, 1992
Alan C. Shapiro and Sheridan Titman: "An Integrated Approach to Corporate Risk Managemnt"--journal article reprinted in "The Revolution in Corporate Finance" edited by Joel M. Stern & Donald H. Chew, Jr., Blackwell Finance, 199
June 6, 2017. Estimated Expiration Date is calculated based on simple USPTO term provisions. It does not account for terminal disclaimers, term adjustments, failure to pay maintenance fees, or other factors which might affect the term of a patent.
