WO2007143444A3 - Processing binary options in future exchange clearing - Google Patents

Processing binary options in future exchange clearing Download PDF

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Publication number
WO2007143444A3
WO2007143444A3 PCT/US2007/069855 US2007069855W WO2007143444A3 WO 2007143444 A3 WO2007143444 A3 WO 2007143444A3 US 2007069855 W US2007069855 W US 2007069855W WO 2007143444 A3 WO2007143444 A3 WO 2007143444A3
Authority
WO
WIPO (PCT)
Prior art keywords
clearing
binary option
options
expiration
binary
Prior art date
Application number
PCT/US2007/069855
Other languages
French (fr)
Other versions
WO2007143444A2 (en
Inventor
Edward Gogol
Dmitry Glinberg
Dale Michaels
Original Assignee
Chicago Mercantile Exchange
Edward Gogol
Dmitry Glinberg
Dale Michaels
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Chicago Mercantile Exchange, Edward Gogol, Dmitry Glinberg, Dale Michaels filed Critical Chicago Mercantile Exchange
Publication of WO2007143444A2 publication Critical patent/WO2007143444A2/en
Publication of WO2007143444A3 publication Critical patent/WO2007143444A3/en

Links

Classifications

    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/04—Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/04—Payment circuits
    • G06Q20/042—Payment circuits characterized in that the payment protocol involves at least one cheque
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
    • G06Q20/102—Bill distribution or payments
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
    • G06Q20/108—Remote banking, e.g. home banking
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
    • G06Q20/108—Remote banking, e.g. home banking
    • G06Q20/1085—Remote banking, e.g. home banking involving automatic teller machines [ATMs]
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/40—Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/02—Banking, e.g. interest calculation or account maintenance
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/03—Credit; Loans; Processing thereof
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/06—Asset management; Financial planning or analysis

Abstract

Systems and methods are disclosed for processing binary options (also referred to as digital options) in existing clearing systems, such as futures clearing systems. The binary option is treated, or processed, similar to standard options on a non-tradeable cash-settled underlying futures contract. A hypothetical instrument, referred to as a book instrument is created to facilitate clearing of the binary option. The book instrument has an expiration date after the expiration of the binary option, such as the day after the expiration of the binary option. For each binary option that expires in the money, a transaction is created for the book instrument future. The underlying book future has an assigned price that is a fixed amount less that the final price for the underlying statistical or actual value of the binary option at expiration. Transactions are loaded in the clearing system and processed and all positions are liquidated. Options exercise and assignment processing is performed in the clearing system as well as an associated clearing firm bookkeeping system.
PCT/US2007/069855 2006-05-30 2007-05-29 Processing binary options in future exchange clearing WO2007143444A2 (en)

Applications Claiming Priority (4)

Application Number Priority Date Filing Date Title
US80347206P 2006-05-30 2006-05-30
US60/803,472 2006-05-30
US11/465,028 US7519554B2 (en) 2006-05-30 2006-08-16 Processing binary options in future exchange clearing
US11/465,028 2006-08-16

Publications (2)

Publication Number Publication Date
WO2007143444A2 WO2007143444A2 (en) 2007-12-13
WO2007143444A3 true WO2007143444A3 (en) 2008-12-11

Family

ID=38791527

Family Applications (1)

Application Number Title Priority Date Filing Date
PCT/US2007/069855 WO2007143444A2 (en) 2006-05-30 2007-05-29 Processing binary options in future exchange clearing

Country Status (2)

Country Link
US (5) US7519554B2 (en)
WO (1) WO2007143444A2 (en)

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US8738499B2 (en) * 2004-01-22 2014-05-27 Nyse Mkt Llc Binary options on an organized exchange and the systems and methods for trading the same
US9460468B2 (en) * 2011-06-17 2016-10-04 Chicago Mercantile Exchange Inc. Facilitation of payments between counterparties by a central counterparty
US9317885B2 (en) * 2011-06-17 2016-04-19 Chicago Mercantile Exchange Inc. Facilitation of payments between counterparties by a central counterparty
US9311675B2 (en) * 2011-06-17 2016-04-12 Chicago Mercantile Exchange Inc. Facilitation of payments between counterparties by a central counterparty
US9317886B2 (en) * 2011-06-17 2016-04-19 Chicago Mercantile Exchange Inc. Facilitation of payments between counterparties by a central counterparty
US9317884B2 (en) * 2011-06-17 2016-04-19 Chicago Mercantile Exchange Inc. Facilitation of payments between counterparties by a central counterparty
US10552929B2 (en) 2011-06-17 2020-02-04 Chicago Mercantile Exchange Inc. Facilitation of accrual based payments between counterparties by a central counterparty
US20150149340A1 (en) * 2013-11-26 2015-05-28 Chicago Mercantile Exchange, Inc. Tandem Options Contracts Providing Fixed Binary Payout
CN107123050A (en) * 2016-02-24 2017-09-01 声达资讯股份有限公司 Customized function integration system and its method
US10311517B1 (en) 2016-06-09 2019-06-04 William Stanley Berliner Exchange-traded TBA options
US11042933B1 (en) 2017-10-17 2021-06-22 Chicago Mercantile Exchange Inc. System for processing withholding payments
US11410260B2 (en) 2019-02-11 2022-08-09 Daniel S. Gunsberg Online transaction platform system and method

Citations (1)

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US20050165669A1 (en) * 2004-01-22 2005-07-28 Montanaro Donato A. Binary options on an organized exchange and the systems and methods for trading the same

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Also Published As

Publication number Publication date
US20150170279A1 (en) 2015-06-18
US20070282760A1 (en) 2007-12-06
US20090177571A1 (en) 2009-07-09
US7519554B2 (en) 2009-04-14
WO2007143444A2 (en) 2007-12-13
US8438102B2 (en) 2013-05-07
US10037573B2 (en) 2018-07-31
US8224742B2 (en) 2012-07-17
US20130226775A1 (en) 2013-08-29
US20120290463A1 (en) 2012-11-15

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