Patent ID: 7769676

Claim:
A process for determining an exchange ratio for an exchange offer, wherein according to the exchange offer, a first party is to provide, after an exchange offer period, units of a first security in exchange for units of a second security tendered by one or more second parties during the exchange offer period, wherein the exchange offer period has a start date and an expiration date, and wherein the number of units of the first security received in the exchange for the tendered units of the second security is based on the exchange ratio, the process comprising: prior to the expiration date of the exchange offer period, establishing that the exchange ratio when determined for the exchange offer will realize a dollar parity exchange comprising delivery of a specified dollar value of the first security in exchange for a fixed dollar value of the second security; determining, by a computer system, the exchange ratio based on both (i) first trading data for one of the first security and a proxy security for the first security, and (ii) second trading data for one of the second security and a proxy security for the second security, wherein the first trading data comprises price data for the one of the first security and the proxy security for the first security, and the second trading data comprises price data for the one of the second security and the proxy security for the second security, in each case over a look-back period comprising one or more trading days during the exchange offer period, wherein the computer system comprises a processor and a memory that includes processing instructions for controlling the processor, and wherein: determining the exchange ratio further comprises calculating the exchange ratio such that the exchange ratio provides for every of the fixed dollar value of the second security, an exchange for the specified dollar value of the first security; and storing the exchange ratio in the computer system.