System and method for creating, listing, and clearing flexible short term interest rate derivative instruments

摘要

The present invention relates to a process for designing, creating and distributing financial instruments which allow investors to trade flex short term interest derivative contracts that can be customized to meet its investor's needs by choosing the actual terms of the contract from a list of flexible features that include but are not limited to strike prices, start and expiration dates or option pay-out styles. The designed investment vehicle would provide a relatively inexpensive choice to investors looking to hedge specific exposures to the movement of short term interest rate indicators in an exchange-listed environment. The result of this functionality benefits the customers and brokerage firms in the sense that the contracts proposed in the present invention are an attractive hybrid of listed and OTC markets, offering the best of each.