Abstract: Systems, software, financial exchanges, and methods for a new global finical exchange are described. In one aspect, the present invention provides an exchange that lists sector, country, regional, and world electronically traded electronic representations of instruments on a set of representative global equity indices based on a single source, on an electronic exchange, open nearly 24-hours every business day, in one base currency, with periodic (annual) normalized index prices, utilizing a unique share-sized derivatives instrument as described in U.S. patent application Ser. No. 13/074,687, having cross margining, yearly expirations, associated options, and realized volatility instruments. All of these features combined into one comprehensive package will attract market participants because of a better-designed product, utilizing capital in the most efficient way possible, with features not found, or not commonly found, on any exchange, and with many cost-saving elements.

Abstract: A financial instrument, exchange, and method based upon the volatility in the price of an underlying. Such volatility contracts have a creation date, a term expiring at an expiration date, and a settlement price at the expiration date defined as “Svol”, under the formula: Svol=f{Rt1,Rt2,Rt3, . . . , Rtn}, wherein: Svol?0, n>1, t=each of a series of observation points from 1 to “n”; Rt=return of the underlying based upon each of the observation points in time “tn”; and n=total number of observations within the term. The term is selected from the group consisting of days, months, quarters and years. The settlement price is annualized based upon an approximate total number of periods in a calendar year. Rt is selected from the group consisting of: R t = ln ? ( M t M t - 1 ) ? ? and ? ? R t = ( M t - M t - 1 M t - 1 ) wherein: Mt=mark-to-market price at time “t”; and Mt?1=mark-to-market price at the time immediately prior to time “t”, at time “t?1”.