Patent ID: 8341059
Filing Date: 2012-12-25
Classification: G06Q

Abstract:
1. A method of creating and executing a spread instrument having n financial products, wherein n>=2, comprising the steps of: receiving at a first server an identification of a first financial product listed on a first exchange, the first financial product having a first bid price and a first offer price, the identification of the first financial product being transmitted from a terminal associated with a market maker; receiving at the first server an identification of selecting a second financial product listed on a second exchange, the second financial product having a second bid price and a second offer price, the identification of the second financial product being transmitted from the terminal associated with the market maker; receiving at the first server an assignment of a first leg weighting factor for the first financial product, the first leg weighting factor being transmitted from the terminal associated with the market maker; receiving at the first server an assignment of a second leg weighting factor for the second financial product, the second leg weighting factor being transmitted from the terminal associated with the market maker; receiving at the first server an assignment of at least one volatility risk factor for the spread instrument, the at least one volatility risk factor being transmitted from the terminal associated with the market maker; executing a software module on the first server to assign a price to the spread instrument calculated using, as inputs, the first bid price, the first offer price, the second bid price, the second offer price, the first leg weighting factor, the second leg weighting factor, and the at least one volatility risk factor; and listing the spread instrument on an exchange as a unitary tradable instrument, the unitary tradable instrument being capable of being bought and sold by diverse trading entities.