Chicago Board Options Exchange, Incorporated

Chicago Board of Options Exchange

William Speth

William Brodsky

John C Hiatt, Jr

Marty O'Connell

Eileen C Smith

David Wegener

Steve Chodash

An investment instrument based on a range of index values is disclosed that allows investors to take risk positions relative to the size, or length, of the range. The investment instrument has a monetary value that increases as the index value increases within a low range interval of the range, decreases as the index value increases within a high range interval of the range, and is fixed or capped if the index value falls within a middle range interval of the range. Typically, one settlement amount will be zero and the other will be an amount greater than the investment instrument price.

System and method for creating and trading a derivative investment instrument over a range of index values

The present invention includes a method comprising receiving a first electronic BUY STRIP order; receiving a second electronic SELL STRIP order; matching the first STRIP order with the second STRIP order, wherein the first STRIP order is a contra order to the second STRIP order; executing the matched first and second STRIP orders; generating a first plurality of tradable component financial product trades based on the executed first STRIP order; generating a second plurality of tradable component financial product trades based on the executed second STRIP order; matching the first plurality of tradable component financial product trades with the second plurality of tradable component financial product trades, wherein the first plurality of tradable component financial product trades are contra trades to the second plurality of tradable component financial product trades; and executing the matched first and second plurality of tradable component financial product trades.

Methods and systems for creating and trading strips of financial products

A method and system for creating a stock index for a group of investment management companies is disclosed. The method may include obtaining first trade information for each security representative of the group of investment management companies during a first time period, aggregating the first trade information for a predetermined time period, storing the aggregated first trade information, calculating from the aggregated first trade information an index for the group of investment management companies, determining a standardized measure of the index based on the aggregated first trade information obtained in the first time period, and periodically recalculating the index based on second trade information for each security representative of the group of investment management companies during a second time period.

Method and system for creating and trading derivative investment instruments based on an index of investment management companies

A method and system for determining and displaying market sentiment information is disclosed. The method may include obtaining customer opening option activity information from an order routing system database, excluding spread transactions from the customer opening option activity information, calculating a sum of buy call trades and sell put trades from the customer opening option activity information, calculating a total number of customer trades from the customer opening option activity information and dividing the sum of buy call trades and sell put trades by the total number of customer trades to calculate an indicator value. The indicator value may be recalculated every N period until an end of a trading day using all trades through the N period in the trading day.

Growing community of inventors

Evanston, IL, United States of America

William Speth