Abstract: An open clearing system allows local brokerage businesses to operate as autonomous exchanges with full inter connectivity to commercial bank(s). The system integrates cash management, order matching, clearing and settlement. The inter connectivity is based on the key concept of creating an engine as a “hub” independent from local Nodes. All Nodes are “piped” to the hub utilizing a common interface. This will allow orders to be matched between any two Nodes. In this manner an order placed in Node A will clear for matching at Node B for the same financial instrument. The system provides cash settlement at Nodes with different local time zone. For physical settlement Commerce Interface (to bonded warehouses) provides on line physical delivery at three linked designated bonded warehouses.

Abstract: A method and system for design and development of financial instruments which enables businesses to benefit from the economic value of risk management. First the system develops a methodology, for specific sector, to extract root products. A database is designed to continually update the technical specifications of root products to ensure the uniformity of defined generic specification. Next the system database continually monitors, stores and analyzes the market intelligence required for determining the products relative market strength. Finally, a flexible contract product is designed transforming these products to financial instruments. Such financial instruments are continuously updated, added and deleted as the technical and market conditions change.

Abstract: The invention introduces financial risk management to producers by designing a semi-standard contract associated with generic product which, in turn, is based on root product. The invention focuses on the key elements of risk management, namely, financial instrument. The financial instrument has two components one is the product that may or may not be physical and the other is the contract related to the product. The system provides a methodology, for an industry sector, to extract root elements followed by generic product. A root product is defined as an element upon which all other (physical) products are developed. The process begins with building a sector's domain knowledge represented by tree. Root products will ideally be traded in a generalized hybrid trading platform designed to accommodate forward contracts. The platform provides risk management tools and integrates financial clearing and settlement.

Abstract: An open clearing system allows local brokerage businesses to operate as autonomous exchanges with full inter connectivity to commercial bank(s). The system integrates cash management, order matching, clearing and settlement. The inter connectivity is based on the key concept of creating an engine as a “hub” independent from local Nodes. All Nodes are “piped” to the hub utilizing a common interface. This will allow orders to be matched between any two Nodes. In this manner an order placed in Node A will clear for matching at Node B for the same financial instrument. The system provides cash settlement at Nodes with different local time zone. For physical settlement Commerce Interface (to bonded warehouses) provides on line physical delivery at three linked designated bonded warehouses.

Abstract: A method and system for design and development of financial instruments which enables businesses to benefit from the economic value of risk management. First the system develops a methodology, for specific sector, to extract root products. A database is designed to continually update the technical specifications of root products to ensure the uniformity of defined generic specification. Next the system database continually monitors, stores and analyzes the market intelligence required for determining the products marketing information. Finally, a flexible contract product is designed transforming these products to financial instruments.

Abstract: A method and system for design and development of financial instruments which enables businesses to benefit from the economic value of risk management. First the system develops a methodology, for specific sector, to extract root products. A database is designed to continually update the technical specifications of root products to ensure the uniformity of defined generic specification. Next the system database continually monitors, stores and analyzes the market intelligence required for determining the products relative market strength. Finally, a flexible contract product is designed transforming these products to financial instruments.