System providing commodity price-move protection for small risk holders

摘要

A system for providing small to medium sized entities commodity price move protection is disclosed. The system may have the steps of receiving information from a client, selecting an appropriate commodity instrument, aggregating the client with other clients, and selecting an appropriate hedge in the event that the instrument provides for more protection than is sought by the aggregated clients and protection for the service provider is desired.

主权项

1. A method of providing commodity price-move protection comprising the steps of:
receiving a quantity of information provided by a first client comprising a payout date and a quantity of desired protection by at least one computer of a service provider selecting a first commodity instrument using the at least one computer, the first commodity instrument selected to provide a price-move protection greater than or equal to the quantity of desired protection provided by the first client; calculating a percentage ownership required in the first commodity instrument to provide the quantity of desired protection to the first client using the at least one computer, a balance percentage of ownership being owned by a service provider; selecting a hedge for the service provider using the at least one computer based at least in part on the balance percentage of ownership being owned by the service provider; receiving a second quantity of information from a second client comprising a second payout date and a second quantity of desired protection by the at least one computer; aggregating the second quantity of desired protection of the second client with the quantity of desired protection of the first client by the at least one computer of the service provider, forming an aggregated quantity of desired protection; calculating a new percentage ownership in the first commodity instrument of the first client and the second client to provide the aggregated quantity of desired protection by the at least one computer, a second balance of ownership being owned by the service provider; selecting a second hedge for the service provider using the computer based at least in part on the second balance of ownership being owned by the service provider; executing a trade for the selected second hedge; and liquidating the percentage ownership of the first client on the payout date provided by the first client by the at least one computer; and liquidating a percentage ownership of the second client providing the second quantity of desired protection on the second payout date provided by the second client by the at least one computer.