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 for maintaining a serialized index, comprising:
defining, by one or more computing devices, one or more versions of a serialized index;
transmitting a first of the one or more versions of the serialized index to one or more financial institution servers; and
transmitting a second of the one or more versions of the serialized index to the one or more financial institution servers,
wherein the first and second versions of the serialized index are simultaneously tracked by two or more financial instruments.
2. The method of claim 1 , wherein defining one or more versions of the serialized index further comprises identifying 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.
3. The method of claim 2 , wherein the first and second versions of the serialized index each comprises a different combination of constituents and constituent weightings.
4. The method of claim 1 , wherein at least one of the two or more financial instruments comprises a financial derivative comprising one of a futures contract, a forwards contract, an options contract, and a swap contract.
5. A system for trading financial instruments, comprising:
an index server configured to provide a serialized index comprised of a plurality of index versions;
a financial institution server configured to provide one or more financial instruments that track the plurality of index versions; and
an exchange server configured to list for trading 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.
6. The system of claim 5 , wherein the plurality of index versions comprises at east one current version and one or more prior versions.
7. The system of claim 6 , wherein the exchange server is further configured to list at least one other financial instrument that tracks the at least one prior version.
8. The system of claim 5 , 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.
9. The system of claim 5 , wherein at least two successive versions of the plurality of index versions differ from each other.
10. The system of claim 9 , where the at least two successive versions of the plurality of index versions differ by one or more of a selection of constituents, a combination of constituents and constituent weightings.
11. The system of claim 5 , wherein the exchange server if further configured to list for trading the financial instrument according to terms specified in the financial instrument including the particular version of the serialized index that is tracked by the financial instrument.
12. The system of claim 5 , wherein a settlement module embodied in the exchange server is further configured to settle or clear the financial instrument that has been traded.
13. The system of claim 5 , wherein the at least one of financial instruments is a financial derivative comprising one of a futures contract, a forwards contract, an options contract, and a swap contract.
14. A system for creating and maintaining a serialized index, the system comprising:
an index server comprising one or more processors configured to execute computer executable instructions stored in a non-transitory memory, said computer executable instructions defining:
a configuration module configured to define a first version of a serialized index and a second versions of the serialized index;
a transmission module configured to transmit the version definitions of each of the first and second versions of the serialized index to one or more financial institution servers, wherein the first version of the serialized index and the second version of the serialized index are simultaneously tracked by two or more financial instruments.
15. The system of claim 14 , wherein the first and second versions of the serialized index each comprises a combination of constituents and constituent weightings, said constituents being selected from the group consisting of one or more stocks, bonds, securities, commodities, mutual funds, other indices, swaps, forwards, options, and derivatives.
16. The system of claim 15 , wherein the first and second versions of the serialized index each comprises a different combination of constituents and constituent weightings.
17. The system of claim 16 , wherein at least one of the two or more financial instruments comprises a financial derivative comprising one of a futures contract, a forwards contract, an options contract, and a swap contract.