Patent ID: 7865417
Filing Date: 2011-01-04
Classification: G06Q

Abstract:
1. A computer-implemented financial method for replicating the performance of a combination of financial instruments as a single regulated security, said method comprising the steps of: automatically receiving at a processor of a programmed computer a price of an underlying security from a price source, the underlying security comprising one or more preferred or common stocks; setting, using the programmed computer, a minimum holding period exchange date and an exchange maturity date; structuring, using the programmed computer, an exchange traded exchangeable security with the minimum holding period exchange date and the exchange maturity date; setting, using the programmed computer, an option for exchanging the exchangeable security for a predetermined specific number of shares of the underlying security, the option commencing at a time beginning or later than the minimum holding period and ending at the predetermined exchange maturity date; providing, using the programmed computer, the exchangeable security with the option for exchanging the exchangeable security for a predetermined specific number of shares of the underlying security; setting, using the programmed computer, a pre-determined linked payment paid to a holder of the exchangeable security at the maturity date in response to the exchangeable security being tendered for the underlying security at a time on or after the minimum holding period through the maturity; providing, using the programmed computer, the exchangeable security with a link to the pre-determined linked payment; automatically determining, using the programmed computer, the amount of the pre-determined linked payment; setting, using the programmed computer, an offering price at a first time for the exchangeable security, wherein the offering price is the price of the underlying security from the price source; issuing, using the programmed computer, the exchangeable security; automatically determining, using the programmed computer, at a second time if the time exceeds the minimum holding period, and exchanging the underlying security for the exchangeable security; and automatically determining, using the programmed computer, if the second time is at or after the maturity date, and crediting the amount of the pre-determined linked payment.