Systems and methods for establishing and running an exchange...

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Reexamination Certificate

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C705S035000, C705S03600T, C705S039000, C705S044000

Reexamination Certificate

active

07739186

ABSTRACT:
Systems and methods are provided for an exchange traded fund (ETF) that tracks the price of one or more commodities, including oil. The exchange traded fund may include a commodity pool with units representing ownership interests in the commodity pool. The commodity pool may sell these units to authorized participants, who can subsequently sell these units to or repurchase these units from investors via a stock market exchange. Likewise, the commodity pool can redeem these units from the authorized participants. The commodity pool invests in short-term oil futures contracts, which may be subject to margin requirements. The commodity pool can satisfy this margin requirement by depositing U.S. Treasuries or other cash and near-cash equivalents. In addition, the commodity pool may be substantially non-leveraged such that the assets of the commodity pool do not exceed the assets of the commodity pool. A portion of the non-margined assets may be invested in U.S. Treasuries and other interest-bearing securities.

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“The Use of New York Cotton Futures Contracts to Hedge Cotton Price Risk in Developing Countries”, The World Bank, Policy Research Working Paper Series: 1328, Sudhakar, Elton Thigpen, Panos Varangis, dated 1994.

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