Claims
- 1. A method of trading a foreign currencies indexed financial instrument, the method comprising:
(a) listing for trading on an exchange a financial instrument having a composition calculated by the method comprising:
(i) determining exchange rates for a group of foreign currencies; (ii) determining competitive weights for each of the foreign currencies such that each weight reflects competition between the goods of the United States and a country corresponding to the foreign currency in the markets of third countries as well as foreign currency trading patterns in international foreign exchange markets ; and (iii) calculating a geometric average of the exchange rates with corresponding competitive weights. (b) receiving bids and offers for the financial instrument; and (c) matching bids and offers for the financial instrument.
- 2. The method of claim 1, wherein the foreign currencies consist of the European Union euro, the Australian dollar, the Canadian dollar, the Japanese yen, the Swedish krona, the Swiss franc, and the United Kingdom pound.
- 3. The method of claim 1, wherein (a) further includes (iv) multiplying the geometric average by a multiplier.
- 4. The method of claim 3, wherein (iii) comprises using the formula:
- 5. The method of claim 3, wherein (a) further includes:
(v) calculating a new multiplier when the competitive weights are changed.
- 6. The method of claim 5, wherein (v) comprises using the formula
- 7. The method of claim 1, wherein the competitive weights are published by the Board of Governors of the Federal Reserve.
- 8. The method of claim 1, further including:
(d) providing settlement services for executed trades of the financial instrument.
- 9. The method of claim 1 further comprising:
(e) providing notice of matched trades to traders associated with matched bids and offers.
- 10. The method of claim 1, wherein the competitive weights are periodically recalculated.
- 11. A method of calculating the composition of a foreign currencies indexed financial instrument, the method comprising:
(a) determining exchange rates for a group of foreign currencies; (b) determining competitive weights for each of the foreign currencies such that each weight reflects competition between the goods of the United States and a country corresponding to the foreign currency in the markets of third countries; and (c) calculating a geometric average of the exchange rates with corresponding competitive weights.
- 12. The method of claim 11, wherein the foreign currencies consist of the European Union euro, the Australian dollar, the Canadian dollar, the Japanese yen, the Swedish krona, the Swiss franc, and the United Kingdom pound.
- 13. The method of claim 11, further including (d) multiplying the geometric average by a multiplier.
- 14. The method of claim 13, wherein (c) comprises using the formula:
- 15. The method of claim 13, further including:
(e) calculating a new multiplier when the competitive weights are changed.
- 16. The method of claim 15, wherein (e) comprises using the formula
- 17. The method of claim 11, wherein the competitive weights are published by the Federal Reserve.
- 18. A computer-readable medium containing computer-readable instructions for performing the steps comprising:
(a) receiving exchange rates for a group of foreign currencies; (b) receiving competitive weights for each of the foreign currencies such that each weight reflects competition between the goods of the United States and a country corresponding to the foreign currency in the markets of third countries; and (c) calculating a geometric average of the exchange rates with corresponding competitive weights.
Parent Case Info
[0001] This application relates to and claims priority from U.S. Provisional Application serial No. 60/422,766, filed Oct. 31, 2002, the entire disclosure of which is hereby incorporated by reference.
Provisional Applications (1)
|
Number |
Date |
Country |
|
60422766 |
Oct 2002 |
US |