Invention Grant
- Patent Title: Processing binary options in future exchange clearing
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Application No.: US14598781Application Date: 2015-01-16
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Publication No.: US10037573B2Publication Date: 2018-07-31
- Inventor: Edward Gogol , Dmitriy Glinberg , Dale Michaels
- Applicant: Chicago Mercantile Exchange, Inc.
- Applicant Address: US IL Chicago
- Assignee: Chicago Mercantile Exchange, Inc.
- Current Assignee: Chicago Mercantile Exchange, Inc.
- Current Assignee Address: US IL Chicago
- Agency: Banner & Witcoff, Ltd.
- Main IPC: G06Q40/04
- IPC: G06Q40/04 ; G06Q20/04 ; G06Q20/10 ; G06Q20/40 ; G06Q40/00 ; G06Q40/02 ; G06Q40/06

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.
Public/Granted literature
- US20150170279A1 Processing Binary Options in Future Exchange Clearing Public/Granted day:2015-06-18
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