Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
2007-05-29
2007-05-29
Poinvil, Frantzy (Department: 3628)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
C705S035000, C705S03600T
Reexamination Certificate
active
09809025
ABSTRACT:
This invention provides methods and systems for trading and investing in groups of demand-based adjustable return (“DBAR”) contingent claims, including digital options, and for establishing markets and exchanges for such claims. The advantages of the present invention, as applied to the establishment and operation of a DBAR digital options exchange, include the ability to offer investments whose profit and loss scenarios are comparable to those for digital options or other derivatives in traditional securities markets, without the need for options or derivatives sellers or order-matching of conventional markets. A DBAR digital options exchange of the present invention can also offer conditional investments, or limit orders, in which an investment in a state of a DBAR contingent claim (such as the price of an underlying asset or index) can be executed or withdrawn in response to the implied probability of the occurrence of that state.
REFERENCES:
patent: 4903201 (1990-02-01), Wagner
patent: 5101353 (1992-03-01), Lupien et al.
patent: 5275400 (1994-01-01), Weingardt et al.
patent: 5749785 (1998-05-01), Rossides
patent: 5794207 (1998-08-01), Walker et al.
patent: 5806048 (1998-09-01), Kiron et al.
patent: 5819237 (1998-10-01), Garman
patent: 5845266 (1998-12-01), Lupien et al.
patent: 5873782 (1999-02-01), Hall
patent: 5911136 (1999-06-01), Atkins
patent: 5970479 (1999-10-01), Shepherd
patent: 6085175 (2000-07-01), Gugel et al.
patent: 6134536 (2000-10-01), Shepherd
patent: 6317728 (2001-11-01), Kane
patent: 6321212 (2001-11-01), Lange
patent: 6408282 (2002-06-01), Buist
patent: 2001/0051540 (2001-12-01), Hindman et al.
patent: WO 00/08567 (2000-02-01), None
M. Pagano, et al., “Transparency and Liquidity: A Comparison of Auction and Dealer Markets with Informed Trading”,Journal Of Finance, pp. 579-611, 1996.
A. Madhaven, “Trading Mechanisms in Securities Market”,Journal of Finance, 47, pp. 607-641, 1992.
C. Schnitzlein, “Call and Continuous Trading Mechanisms Under Asymmetric Information”,Journal of Finance, 51, pp. 613-636, 1996.
N. Economides, et al., “Electronic Call Market Trading”,Journal of Portfolio Management, pp. 10-18, Spring 1995.
C.R. Plott, et al, “Parimutuel Betting Markets as Information Aggregation Devices: Experimental Results”,Caltech Social Science Working Paper986, Apr. 1997.
W. Takahiro, “A Parimutuel System with Two Horses and a Continuum of Bettors”,Journal of Mathematical Economics, 28, pp. 85-100, 1997.
L. Shapley, et al., “Trade Using One Commodity as a Means of Payment”,Journal of Political Economy 85, pp. 937-968, 1977.
B. Bahra, “Implied Risk-Neutral Probability Density Functions From Option Prices: Theory and Application”, Bank of England, ISSN 1368-5562, 1997.
S. Athanasoulis, et. al., “Macro Markets and Financial Security”,FRBNY Economic Policy Review, pp. 21-39, Apr. 1999.
T. Watanabe, et al., “A Model of a General Parimutuel System: Characterizations and Equilibrium Selection”,International Journal of Game Theory23, pp. 237-260, 1994.
Robert A. Schwartz, “Integrating Call and Continuous Markets”,Securities Traders' Monthly, pp. 14-16, Sep. 1991.
K. Garbade, et al., “Structural Organization of Secondary Markets: Clearing Frequency, Dealer Activity, and Liquidity Risk”,Journal of Finance34. pp. 577-593, 1979.
S.L. Mintz, Measuring up: What CEOs look for in their chief financial officers, pp. 1-5, Feb. 1994.
Jonathan Karp, River Runs Dry, pp. 1-2, Nov. 1992.
Sun Hong, Japanese investment posts strong momentum, pp. 1-2, Feb. 1997.
Lack of debt trades stunts market—HSBC, Businessworld, Manila, pp. 1-2, Sep. 1998.
Tatiana Helenius, Real bonds, real-time, real fast, Wall Street & Technology, pp. 1-4, Apr. 1998.
W.J. Hurley, On the use of Martingales in Monte Carlo approaches to multiperiod parameter uncertainty in capital investment risk analysis, pp. 1-6, Jan. 1998.
Randhawa et al., Financial risk analysis using Financial Risk simulation Prog, pp. 1-4, Sep. 1993.
D.F. Kocaoglu, et al., Constrained moments simulation healthcare capital acquisitions, p. 1, Jan. 1997.
Smith Terry Ross, A Statistical model for characterizing price variability with application to dairy investment analysis, pp. 1-2, Jan. 1980.
R. Merton, Continuous-Time Finance (1990) pp. 441.
L. Williams, “Information Efficiency In Betting Markets: A Survey”,Bulletin of Economic Research, 1999, pp. 1-30, vol. 51 -No. 1, Blackwell Publishers, Malden, MA.
A. Bruce, et al, “Investigating the Roots of the Favourite-Longshot Bias: An Analysis of Decision Making by Supply- and Demand Side Agents in Parallel Betting Markets”,Journal of Behavioral Decision Making, 2000, pp. 413-430, vol. 13-No. 4, John Wiley & Sons, Ltd.
A. Bruce, et al, “Market Efficiency Analysis Requires a Sensitivity to Market Characteristics: Some Observations on a Recent Study of Betting Market Efficiency”,Applied Economics Letters, 2000, pp. 199-202, No. 7, Taylor and Francis Ltd.
K. Busche, et al, “Decision Costs and Betting Market Efficiency”,Rationality and Society, 2000, pp. 477-492, vol. 12-No. 4, Sage Publications, Thousand Oaks, CA.
E. Eisenberg, “Consensus of Subjective Probabilities: The Pari-Mutuel Method”,Annals of Mathematical Statistics, Mar. 1959, pp. 165-168, vol. 30-No. 1, Institute of Mathematical Statistics.
D. Hausch, et al,Efficiency of Racetrack Betting Markets, 1994, Academic Press, New York, NY.
J. Ingersoll, Jr., “Digital Contracts: Simple Tools for Pricing Complex Derivatives”,Journal of Business, 2000, pp. 67-87, vol. 73-No. 1, The University of Chicago, Chicago, IL.
J. Johnson, “An Empirical Study of the Impact of the Impact of Complexity on Participation in Horserace Betting”,Journal of Gambling Studies, Summer 1997, pp. 159-172, vol. 13-No. 2, Human Sciences Press, Inc.
G. Owen, “Parimutuel as a System of Aggregation of Information”,Game Theoretical Applications to Economics and Operations Research, 1997, pp. 183-195, Kluwer Academic Publishers, The Netherlands.
D. Peel, et al, “Product Bunding and a Rule of Thumb versus the Harville Formulae: Can Each Way Bets with UK Bookmakers Generate Abnormal Returns”,Applied Economics, 2000, pp. 1737-1744, NO. 32, Taylor & Francis Ltd.
R. Phatarfod, “Betting Strategies in Horse Races”,Asia-Pacific Journal of Operational Research, 1999, pp. 87-98, No. 16.
K. Rhoda, et al, “Risk Preferences And Information Flows In Racetrack Betting Markets”,The Journal of Financial Research, Fall 1999, pp. 265-285, vol. 22-No. 3.
H. Shin, “Measuring the Incidence of Insider Trading in a Market for State-Contingent Claims”,The Economic Journal, Sep. 1993, pp. 1141-1153, vol. 103-No. 402, The Royal Economic Society.
H. Shin, “Optimal Betting Odds Against Insider Traders”,The Economic Journal, Sep. 1991, pp. 1179-1185, vol. 101-No. 408, Royal Economic Society.
D.Tek, et al, “Optimal Betting and Efficiency in Parimutuel Betting Markets with Information Costs”,The Economic Journal, Jul. 1996, pp. 1-18, vol. 106-No. 437, Blackwell Publishers, Malden, MA.
Garahi et al., U.S. Appl. No. 2001/0047291, published Nov. 29, 2001.
Burton, U.S. Appl. No. 2002/0052819, published May 2, 2002.
Dass Harish T.
Kenyon & Kenyon LLP
Longitude LLC
Poinvil Frantzy
LandOfFree
Digital options having demand-based, adjustable returns, and... does not yet have a rating. At this time, there are no reviews or comments for this patent.
If you have personal experience with Digital options having demand-based, adjustable returns, and..., we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Digital options having demand-based, adjustable returns, and... will most certainly appreciate the feedback.
Profile ID: LFUS-PAI-O-3799672