Patent ID: 8510205

Claim:
A system for processing futures trades contingent on odds-based sporting event markets to allow trade parties to take positions on the movement of sporting event odds without being exposed to the final outcomes of the sporting events, the system comprising: a central processing unit (CPU); and storage coupled to the CPU for storing instructions that configure the CPU to: receive odds S T for at least one sporting event, wherein odds S T correspond to a specified sporting event outcome to be decided at a time later than a specified time T; adjust the odds S T so that the sum of the inverse S T odds for all possible outcomes in the sporting event is as close as possible to 1, thereby creating a 100% market; make the adjusted odds S T available to trade parties; receive, from trade parties, forecasts F t and investment amounts a t at time t, for settlement of the adjusted odds S T for the sporting event as of the specified time T, wherein the trade parties comprise at least one trade party for a positive investment amount a t and at least one trade counter-party for a negative investment amount a t ; register at least one futures trade (F t , a t ) between the trade parties prior to time T, the registered futures trade having a conditional value equal to zero at any time prior to time T; and confirm, in response to the adjusted odds S T , payoff to or liability of the at least one trade party as equal to a t (F t /S T −1), and respectively, liability of or payoff to the at least one trade counter-party as equal to −a t (F t /S T −1).