Abstract: A method for establishing a credit default swap index on a defined economic sector. A reference economic sector is identified by an index provider. A multi-credit corporate index is established for the reference economic sector. Individual credit default swap (CDS) transactions and the multi-credit corporate index are used to compile an industry sector CDS index for the reference economic sector. At least one issue or credit reference in the industry sector CDS index is weighted differently, relative to the weight of other issues or credit references in the industry sector CDS index. Structured credit instruments are issued by a dealer based on the industry sector CDS sector index. Trading positions with respect to the structured credit instruments are monitored by a dealer. The structured credit instruments are settled against the industry sector CDS index.

Abstract: The present invention relates to a process for designing, creating and distributing financial instruments which allow investors to trade flex short term interest derivative contracts that can be customized to meet its investor's needs by choosing the actual terms of the contract from a list of flexible features that include but are not limited to strike prices, start and expiration dates or option pay-out styles. The designed investment vehicle would provide a relatively inexpensive choice to investors looking to hedge specific exposures to the movement of short term interest rate indicators in an exchange-listed environment. The result of this functionality benefits the customers and brokerage firms in the sense that the contracts proposed in the present invention are an attractive hybrid of listed and OTC markets, offering the best of each.

Abstract: A product and process that will enable retail consumers to hedge their exposure to volatile household commodities, such as gasoline and natural gas, by implementing optionality through channels where individuals already purchase those commodities. In turn, this aggregated retail optionality provides an attractive investment vehicle for institutions active in the energy and commodity markets. A commodity supplier such as gasoline retailer (or natural gas utility, credit card issuer, etc.) can sell caps on the cost of gasoline, etc, to its existing customers, in return for a periodic premium billed to the customer's captive credit card statement or utility bill. A dealer can package and securitize the risk in tranches.

Abstract: A method for creating and marketing a commercial or residential real estate derivative instrument in the form of a structured note, future contract, or call or put option that provides a cash-settled payout to the buyer at a predetermined expiration date defined by the derivative instrument based upon the occurrence of a required change in value of a benchmark real estate index between a first, e.g., purchase date and the expiration date. The real estate derivatives instruments of the present invention may be used by property owners, developers, and financial institutions to hedge against a possible devaluation of their real estate assets. Institutional investors may use the derivative instruments to speculate in the value of commercial or residential real estate in order to broaden their investment portfolios.

Abstract: A method for creating, selling and servicing a contract for financing a homeowner's residential real estate property. The homeowner supplies a down-payment to fund a first portion of the purchase price of the homeowner's residential real estate property. A mortgage funds a second portion of the purchase price. The contract provides equity participation to a contract holder in the homeowner's residential real estate property in return for the contract holder funding a third portion of the purchase price. A total purchase price of the residential real estate property comprises a sum of the first portion, the second portion and the third portion.

Abstract: A method for creating and selling a contract that provides equity participation to an investor in a homeowner's residential real estate property. A contract is executed between the homeowner and an originator in which the mortgage originator purchases an equity portion of the residential real estate property from the homeowner. In connection with the purchasing, the homeowner grants a lien on the homeowner's residential real estate property to the originator in order to secure a future payment obligation of the homeowner. The future payment obligation has an amount that is determined in accordance with a value of the purchased equity portion of the homeowner's residential real property at a time of the future payment. A security is created by pooling the contract with other contracts sold to a plurality of other homeowners each of whom owns at least one of a plurality of residential real estate properties, and selling the security to an institutional investor in a secondary market.

Abstract: The present invention is directed to a method for conducting a game by a gambling operator or casino in which a plurality of players bet. A set of rules are established for the game, wherein the rules define at least one winner based on at least one financial market data value that fluctuates based on market activity in a financial market that is distinct from the game. Updates to the financial market data value are received electronically from a third-party data source. A forum is electronically coupled to the third-party data source, where the players play the game and bet against a house, in accordance with the established set of rules and the at least one financial market data value. The forum is electronically coupled to one or more third-party market makers who establish odds for the game and provide liquidity for bets of all players.

Abstract: The present invention is directed to a method used by a casino for conducting a casino game in which a plurality of players bet against each other. A set of rules is established for the game. The rules define a winner based on at least one financial market data value that fluctuates based on market activity in a financial market that is distinct from the game. Updates to the financial market data value are electronically received from a third-party data source. A forum that is electronically coupled to the third-party data source is provided where the players play the game against each other in accordance with the established set of rules and the at least one financial market data value. The casino collects a fee for conducting the game.

Abstract: A method for creating, marketing, and selling a contractual instrument for protecting a value characteristic of a homeowner's residential real estate property is provided according to the invention. The derivative instrument can be created in the form of a simple contract like a “Home Equity Protection Product” sold to the homeowner by a mortgage originator or P&C insurer. It provides a cash-settled payout to the buyer at a predetermined expiration date defined by the contract correlated to, e.g., the home's market value or home equity value, and a reduction in value of a benchmark real estate index between, e.g., the contract purchase date and the expiration date. The Home Equity Protection Contracts of the present invention may be securitized much like mortgage-backed securities on a secondary and sold to institutional investors to permit them to speculate in the value of residential real estate in order to broaden their investment portfolios.

Abstract: A method for creating and marketing a commercial or residential real estate derivative instrument in the form of a structured note, future contract, or call or put option that provides a cash-settled payout to the buyer at a predetermined expiration date defined by the derivative instrument based upon the occurrence of a required change in value of a benchmark real estate index between a first, e.g., purchase date and the expiration date. The real estate derivatives instruments of the present invention may be used by property owners, developers, and financial institutions to hedge against a possible devaluation of their real estate assets. Institutional investors may use the derivative instruments to speculate in the value of commercial or residential real estate in order to broaden their investment portfolios.