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.