Patent ID: 8190505

Claim:
A computer implemented method for supporting a financial contract having a payout based on payout criteria linked to a specific return on at least one underlying asset, said method being implemented using a computer system comprising one or more programmable processors operatively connected to a data storage system, said method comprising: calculating, using at least one of said programmable processors, valuation data for a financial contract having payout criteria based on the specific return on an asset over a performance period, and at least one payout amount associated with the payout criteria, wherein calculating the valuation data comprises: determining, using at least one of said programmable processors, the specific return on the asset for the performance period using: a total return associated with the asset for the performance period; a risk-free return for the performance period; and a common factor return associated with the asset for the performance period; and wherein at least one of the total return, risk-free return, common factor and payout criteria are retrieved from the data storage system; and calculating, using at least one of said programmable processors, the valuation data for the financial contract using the determined specific return and the payout criteria; and communicating, using at least one of said programmable processors, the valuation data to a reporting module.