Patent ID: 7590577
Filing Date: 2009-09-15
Classification: G06Q

Abstract:
1. A method implemented by a programmed computer system for use in a financial transaction involving an entity which issues shares, an entity for providing funds and a counterparty, comprising: obtaining, with the computer system, data regarding a debenture between the entity which issues shares and the entity for providing funds, wherein the debenture provides funds to the entity which issues shares; obtaining, with the computer system, data regarding a purchase of shares by the entity which issues shares from the counterparty, wherein the counterparty borrows the purchased shares; paying, by the entity which issues shares, for the purchase of shares, wherein the payment is made at least in part using at least a portion of the funds provided by the debenture; obtaining, with the computer system, data regarding a share purchase contract between the entity which issues shares and the counterparty; obtaining, with the computer system, data regarding a hedge of the share purchase contract by the counterparty; obtaining, with the computer system, data regarding a total return swap of the debenture between the entity for providing funds and the counterparty; periodically calculating, with the computer system, an amount of debenture interest owed by the entity which issues shares to the entity for providing funds; periodically paying, by the entity which issues shares, the calculated amount of debenture interest; periodically calculating, with the computer system, swap payments due under the total return swap; periodically paying the calculated swap payments due under the total return swap; periodically calculating, with the computer system, a share purchase contract premium owed by the entity which issues shares to the counterparty; periodically paying, by the entity which issues shares, the calculated share purchase contract premium; periodically calculating, with the computer system, hedge activity associated with the hedge of the share purchase contract; periodically adjusting, with the computer system, the hedge based upon the calculated hedge activity; obtaining, with the computer system, data regarding repayment of the debenture between the entity which issues shares and the entity for providing funds; repaying, by the entity which issues shares, the debenture between the entity which issues shares and the entity for providing funds; obtaining, with the computer system, data regarding the purchase of shares from the entity which issues shares by the counterparty under the share purchase contract; calculating, with the computer system, a payment due under the share purchase contract for the purchase of shares from the entity which issues shares by the counterparty; paying, by the counterparty, the calculated payment due under the share purchase contract; calculating, with the computer system, hedge unwinding activity to unwind the hedge of the share purchase contract; unwinding the hedge based upon the calculated hedge unwinding activity; and returning the shares borrowed by the counterparty.