Financial products based on a serialized index
A method for trading financial instruments includes listing, by an electronic financial exchange, financial instruments that specify which version of a serialized index the financial instrument tracks; receiving, by the electronic financial exchange, an electronic indication to buy or sell the financial instrument; executing, by the electronic financial exchange, a trade involving the financial instrument; and settling the financial instrument according to the version of the serialized index specified by the financial instrument.
1. A method of trading financial instruments, comprising:
generating via one or more computing devices a serialized index comprised of a plurality of index versions;
generating via one or more computing devices one or more financial instruments that track the plurality of index versions;
listing for trading via one or more computing devices the one or more financial instruments, wherein each of the one or more financial instruments track a different one of the plurality of index versions; and
executing via one or more computing devices at least one trade involving at least one of the one or more financial instruments.
2. The method of claim 1 , wherein the plurality index versions comprises at least one current version and one or more prior versions.
3. The method of claim 2 , wherein at least one prior version co-exists with the current version and is being tracked by at least one other financial instrument, or wherein at least one prior version is discontinued prior to, upon the creation of, or after the creation of the current version.
4. The method of claim 1 , wherein each version of the plurality of index versions comprises one or more constituents, each having a constituent weighting, selected from the group consisting of one or more stocks, bonds, securities, commodities, mutual funds, other indices, swaps, forwards, options, and derivatives.
5. The method of claim 1 , wherein at least two successive versions of the plurality of index versions differ from each other.
6. The method of claim 5 , where said at least two successive version of the plurality of index versions differ by one or more of a selection of constituents, a combination of constituents and constituent weightings.
7. The method of claim 1 , further comprising trading the at least one financial instrument according to terms specified in the at least one financial instrument and the particular version of the plurality of index versions traced by the at least one financial instrument.
8. The method of claim 1 , further comprising one or more of settling and clearing the at least one financial instrument that has been traded.
9. The method of claim 1 , wherein the at least one financial instrument is a financial derivative comprising one of a futures contract, a forwards contract, an options contract, and a swap contract.