Method and apparatus for creating and administering a publicly traded interest in a commodity pool

Abstract

Systems, methods, apparatus, computer program code and means for creating and administering a publicly traded interest in a commodity pool include forming a commodity pool having a first position in a futures contract and a corresponding second position in a margin investment, and issuing equity interests of the commodity pool to third party investors.

1 . A method, comprising: 
 forming a commodity pool having a first subsidiary pool and a second subsidiary pool, said first subsidiary pool having a position in at least a first futures contract and a position in at least a first margin investment;    issuing first equity interests of said first subsidiary pool to said second subsidiary pool;    issuing second equity interests from said second subsidiary pool to investors, said second equity interests adapted for trade on an exchange; and    calculating, on a regular basis, pricing information of said second equity interests using a computer system, said computer system receiving price information associated with said at least first futures contract and said at least first margin investment.    
   
   
       2 . The method of  claim 1 , wherein said at least first margin investment is an investment in securities approximately equal in size to the position in the at least first futures contract.  
   
   
       3 . The method of  claim 1 , wherein the at least first margin investment is an investment in Treasury securities.  
   
   
       4 . The method of  claim 1 , wherein the at least a first futures contract is a futures contract traded on a designated contract market.  
   
   
       5 . The method of  claim 4 , wherein the futures contract is a long-dated contract on a commodity index and traded on a designated contract market.  
   
   
       6 . The method of  claim 1 , wherein the at least first margin investment is a position in U.S. Treasury securities, the method further comprising: 
 depositing said position in U.S. Treasury securities with a futures commission merchant.    
   
   
       7 . The method of  claim 1 , wherein said issuing said second equity to investors further comprises transmitting said pricing information to at least a first exchange.  
   
   
       8 . The method of  claim 1 , wherein said issuing said second equity interests further comprises aggregating said second equity interests into creation units and issuing said creation units as shares for trade on an exchange.  
   
   
       9 . The method of  claim 1 , further comprising: 
 updating said position in said at least first futures contract based on a number of said second equity interests issued to investors.    
   
   
       10 . The method of  claim 9 , further comprising: 
 updating said position in said at least first margin investment based on said updated position in said at least first futures contract.    
   
   
       11 . The method of  claim 1 , wherein said computer system receives price information from at least a first data source over a network.  
   
   
       12 . The method of  claim 1 , further comprising: 
 receiving, from a trading device interacting with said exchange, an order to purchase an amount of said second equity interests.    
   
   
       13 . The method of  claim 12 , wherein said receiving an order causes an administrator device associated with said first subsidiary pool to update sad position in said at least first futures contract.  
   
   
       14 . An apparatus, comprising: 
 a processor;    a communication device coupled to receive market information from at least a first market data source, said market information including price information associated with an at least first futures contract and at least a first margin investment; and    a storage device in communication with said processor and storing instructions adapted to be executed by said processor to: 
 support the formation of a commodity pool having a first subsidiary pool and a second subsidiary pool, said first subsidiary pool having a position in at least the first futures contract and a position in at least the first margin investment;  
 support the issuance of first equity interests of said first subsidiary pool to said second subsidiary pool;  
 support the issuance of second equity interests from said second subsidiary pool to investors, said second equity interests adapted for trade on an exchange; and  
 calculate, on a regular basis, pricing information of said second equity interests.