Patent ID: 7813987

Claim:
A method for administering an actively-managed exchange traded fund (ETF) with a confidential portfolio of securities, in relation to one or more authorized participants (AP's), comprising: performing a creation event, comprising: receiving an asset from one of the AP's in relation to the creation event; issuing, by one or more computers and an electronic network, one or more ETF shares directly or indirectly to the respective one AP based on the asset received; obtaining securities for the actively-managed ETF to become a part of the confidential portfolio of securities; obtaining or creating an electronic record of security identifiers for the confidential portfolio of securities held by the ETF; calculating automatically an intraday indicative value (IIV), by one or more computers programmed to calculate the IIV, the calculating based on or derived from the electronic record of the confidential portfolio of securities in the actively-managed ETF while maintaining confidentiality of the confidential portfolio of securities held by the actively-managed ETF; disseminating electronically or having disseminated electronically the IIV via an electronic data communication feed and one or more computers; performing a redemption event, comprising: receiving electronically, by one or more computers and an electronic network, one or more shares of the ETF for a given AP; identifying securities for the redemption event comprising at least a portion of the confidential portfolio of securities; and sending, by one or more computers and an electronic network, an electronic message to transfer the identified securities directly or indirectly to an electronic account of an authorized participant representative (AP representative), acting on behalf of the given AP for which the ETF shares were received, which AP representative is governed by an agreement to maintain the portfolio of securities confidential from the AP; and further comprising: entering an agreement with the one AP to establish the respective AP representative to act for the respective one AP in at least one or more redemption events with the ETF, with the agreement comprising terms that govern the actions of the AP representative and state that an identity of securities in the confidential portfolio of securities of the ETF is not to be disclosed to the one AP, and wherein the receiving an asset from the one AP for the creation event comprises receiving one or more securities for a creation basket in an account transfer from or on behalf of the AP and/or cash from or on behalf of the AP or a combination thereof.