`
`US 7,725,375 B2
`(10) Patent No.:
`(12) Unlted States Patent
`
`Shepherd
`(45) Date of Patent:
`*May 25, 2010
`
`(54) SYSTEMS AND COMPUTER PROGRAM
`PRODUCTS FOR EXCHANGING AN
`OBLIGATION
`
`(75)
`
`Inventor:
`
`Ian Kenneth Shepherd, Victoria (AU)
`
`(56)
`
`References Cited
`
`U.S. PATENT DOCUMENTS
`3,573,747 A
`4/1971 Adams et al.
`.
`(Continued)
`
`(73) Assignee: Alice Corporation Pty Ltd (AU)
`
`FOREIGN PATENT DOCUMENTS
`
`( * ) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 738 days.
`
`This patent is subject to a terminal dis-
`claimer.
`
`(21) Appl.No.: 11/166,387
`
`(22)
`
`Filed:
`
`Jun. 27, 2005
`
`(65)
`
`Prior Publication Data
`
`US 2005/0246197 A1
`
`Nov. 3, 2005
`
`Related US. Application Data
`
`(63) Continuation of application No. 09/567,507, filed on
`May 9, 2000, now Pat. No. 6,912,510, which is a
`continuation of application No. 08/870,691, filed on
`Jun. 6, 1997, now Pat. No. 6,134,536, which is a con-
`tinuation-in-part of application No. 08/070,136, filed
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`continuation-in-part of application No. PCT/AU95/
`00827, filed on Dec. 7, 1995.
`
`(30)
`
`Foreign Application Priority Data
`
`May 29, 1992
`Jun. 30, 1992
`Dec. 7, 1994
`Jul. 7, 1995
`
`(AU)
`(AU)
`(AU)
`(AU)
`
`...................................... PL2677
`PL3216
`
`.................................... PM9922
`..................................... PN4060
`
`(51)
`
`Int. Cl.
`(2006.01)
`G06Q 40/00
`(52) US. Cl.
`........................................................ 705/35
`(58) Field of Classification Search ................... 705/37,
`705/35
`
`EP
`
`0 276 816 A2
`
`8/1988
`
`.
`(Confirmed)
`Primary Examinerilames A Kramer
`Assistant ExamineriEric T Wong
`(74) Attorney, Agent, or FirmiSterne, Kessler, Goldstein &
`Fox P.L.L.C.
`
`(57)
`
`ABSTRACT
`
`Methods and apparatus which deal with the management of
`risk relating to specified, yet unknown, future events are
`disclosed.
`
`‘Sponsor’ stakeholders specify a particular product relat-
`ing to an event or phenomenon for which there is a range
`of possible future outcomes.
`‘Ordering’ stakeholders then offer contracts relating to the
`predetermined phenomenon and corresponding range of
`outcomes. The offered contracts specify an entitlement
`or (pay-off) at the future time of maturity for each out-
`come, and a consideration (or premium) payable, in
`exchange, to a ‘counter-party’ stakeholder.
`Independently of the offered contracts, the ‘counter-party’
`stakeholders input data as to their view of the likelihood
`of occurrence of each outcome in the predetermined
`range into the future, or specifically at the predetermined
`date of maturity.
`Each offered contract is priced by the processing units by
`calculating counter-party premiums from the registered
`data, and a match attempted by a comparison of the
`offered premium with the calculated premiums.
`Matched contracts can be further traded until maturity, and
`at-maturity processing handles the exchange of entitle-
`ment as between the matched parties to the contract.
`
`See application file for complete search history.
`
`47 Claims, 117 Drawing Sheets
`
`5200
`
` Stan ofday
`
`Consideration]
`Entitlement
`Transfer Entities
`
`PAYACC
`management
`
`Apple Exhibit 1232 Page 00001
`
`Apple Exhibit 1232 Page 00001
`
`
`
`US 7,725,375 B2
`
`Page 2
`
`l\l\l\l\l\l\l\
`r\l\l\l\l\r\l\l\l\l\r\l\lxl\l\l\lx
`
`3,581,072
`3,956,615
`2 314,352
`346,442
`376,978
`.412,287
`,484,304
`648,037
`674,044
`694,397
`722,055
`739,478
`.751,640
`766,539
`774,663
`799,156
`823,264
`823,265
`831,526
`,839,804
`RE32,985
`,891,503
`903,201
`916,605
`931,932
`933,842
`953,085
`975,840
`2 980,826
`5,012,077
`5,021,953
`5,021,967
`5,025,138
`5,038,284
`5,051,887
`5,063,507
`5,077,665
`5,093,787
`5,101,353
`5,126,932
`5,126,936
`5,136,501
`5,148,365
`5,168,446
`5,220,501
`5,239,640
`5,262,942
`5,265,007
`5,285,383
`5,297,031
`5,297,032
`5,361,199
`5,375,055
`5,453,601
`5,455,407
`5,546,557
`5,615,133
`5,704,045
`5,727,165
`5,740,427
`5,872,955
`5,898,154
`5,970,479
`6,014,627
`6,122,625
`6,134,536
`6,157,918
`6,912,510
`7,149,720
`20010039527
`20030023546
`
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`Join in Foreign Exchange Clearing Venture”, The
`IndependentiLondon, Jul. 1, 1992.
`“BBA, FX Net, Echo Draft Responses to BIS’ Farrant Report on
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`“Chemical and Citibank Race to Market Rival Corporate C onfrrma-
`tions Systems”, FX Week Waters Information Services, Aug. 24,
`1992.
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`“UK: Personal Finance (Savings Snips)iCity Saver4ity Index
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`“UK: How to Make a Winning Spread Bet This SummeriThe New
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`Jonathan Davis, “LK: Your Moneyispread BettingiRisk and
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`18, 1995.
`Lucy Roberts, “UK: City Diary%ity Index Weather Forecasts,”
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`
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`“UK: City Di
`4
`Index Link a Fairly Safe Bet,” Daily Telegraph,
`The Telegraph plc, London, Jul. 16, 1996, p. 25.
`“UK: IG Index Comments on Rivals Merger Plans,” Evening Stan-
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`“UK: City IndexiPartners,” Financial Times, Financial Times Lim-
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`US 7,725,375 B2
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`Page 5
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`(2 of 3),” Business Briefing published in Eur'omoney Supplements,
`Nov. 17,1989.
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`(3 of 3),” Business Briefing publishing in Euromoney Supplements,
`Nov. 17, 1989, p. 14.
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`National Securities Trading System (NST S),
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`Control of the World ’s Richest and Fastest Growing Financial Mar-
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`to Make
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`Page 00005
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`US 7,725,375 B2
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`Technology to Mange Products For Hedging Interest-rate Instru-
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`Dec. 6, 1990.
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