SYSTEM AND METHODS FOR MANAGING FINANCIAL PRODUCTS RELATED TO A FUTURE EVENT OR CONDITION

摘要

Some embodiments relate to configuring and managing financial instruments such as binary options having a financial value based on the outcome of at least one a weather-related event. In some embodiments, a binary option may be specified. The binary option may have a financial value tied to one or more weather outcomes, location parameter(s), and time parameter(s). The binary option may be issued and traded on a primary and secondary market.

主权项

1. A method comprising:
receiving, by at least one processor of at least one computer, a specification of a payment condition for a financial instrument, the payment condition comprising one or more outcomes, at least one of the one or more outcomes comprising a weather event or weather condition; determining, by the at least one processor, pricing information associated with the financial instrument; causing, by the at least one processor, the financial instrument to be listed on an exchange; receiving, by the at least one processor, from at least one trader at least one order for the financial instrument, the at least one order being received from a first trader and comprising a first order specifying a price and a quantity for the financial instrument, the order having a buy or sell side, causing, by the at least one processor, the first order for the financial instrument to be executed; receiving, by the at least one processor, information about at least one actual outcome associated with the one or more outcomes; determining, by the at least one processor, whether or not the one or more outcomes actually occurred based on the received information about the at least one actual outcome; and causing, by the at least one processor, a payout to be paid to the first trader based on the executed first order and the act of determining whether or not the one or more outcomes actually occurred based on the received information about the at least one actual outcome.