Patent ID: 7519554
Filing Date: 2009-04-14
Classification: G06Q

Abstract:
1. A method of processing binary options comprising: (a) defining an electronic book instrument for a corresponding binary option as a standard option on a non-tradeable cash-settled underlying futures contract; (b) assigning an expiration date for the electronic book instrument after the expiration of the binary option; (c) defining the non-tradeable underlying future maturity date after the expiration date for the binary option; (d) determining whether the binary option expired in the money; (e) for each expired binary option position, electronically transmitting a liquidating transfer transaction to an electronic futures contract clearing system; (f) for each expired binary option that cleared in the money, creating a transaction for the corresponding electronic book instrument, the electronic book instrument having a price being one currency unit less than the final value of an underlying statistical value for the expired binary options; and (g) after the expiration of the binary option, clearing the electronic book instrument on the electronic futures contract clearing system.