Method And Apparatus For Conducting A Transaction

Abstract

Systems, methods, apparatus, computer program code and means for conducting a transaction are provided. In some embodiments, a unit is issued to a holder including a forward contract and a note, in which the note specifies an initial capped remarketing, at least a first subsequent capped remarketing, and an uncapped remarketing, the uncapped remarketing performed only if each of the capped remarketings fail.

1 - 21 . (canceled) 
     
     
         22 . A computer-implemented method comprising:
 creating, by a processor, a forward contract specifying a settlement amount and a settlement date;   creating, by the processor, a note securing obligations of a holder under the forward contract, wherein the note specifies an initial capped remarketing, a first subsequent capped remarketing, and an uncapped remarketing each of which are scheduled to occur prior to the settlement date and the uncapped remarketing is performed only if the initial capped remarketing and the first subsequent remarketing fail;   structuring the note as a combination of capped and uncapped remarketings resulting in treatment of the note as Tier 1 capital for purposes of regulations applicable to financial institutions; and   issuing the forward contract and the note as a unit.   
     
     
         23 . The computer-implemented method of  claim 22 , wherein the note further specifies an opportunistic remarketing period during which an issuer of the unit has discretion to perform at least one of a capped and an uncapped remarketing. 
     
     
         24 . The computer-implemented method of  claim 22 , further comprising a second and a third subsequent capped remarketing prior to the uncapped remarketing. 
     
     
         25 . The computer-implemented method of  claim 22 , wherein a remarketing is successful if the note can be resold for an amount greater than the settlement amount. 
     
     
         26 . The computer-implemented method of  claim 22 , wherein a remarketing is successful if the note can be resold for an amount greater than the settlement amount plus a remarketing fee. 
     
     
         27 . The computer-implemented method of  claim 22 , wherein an issuer of the unit is a financial institution obligated to maintain Tier 1 and Tier 2 capital and wherein the unit is treated as Tier 1 capital. 
     
     
         28 . The computer-implemented method of  claim 22 , further comprising identifying terms of the forward contract involving an issuer, the holder, and an equity security. 
     
     
         29 . A system comprising:
 a means for creating a forward contract having a contract term extending from an issue date to a settlement date and specifying a share delivery ratio for calculating a share delivery of issuer stock to a holder at the settlement date in exchange for a settlement amount;   a means for creating a note securing obligations of the holder under the forward contract, wherein the note specifies an initial capped remarketing, a first subsequent capped remarketing, an opportunistic remarketing period, and an uncapped remarketing, the uncapped remarketing performed only if each of the capped remarketings and any other remarketings attempted during said opportunistic remarketing period fail; and   a means for issuing the forward contract and the note as a unit.   
     
     
         30 . The system of  claim 29 , wherein the note is a contingent note. 
     
     
         31 . The system of  claim 29 , further comprising:
 a means for attempting the initial capped remarketing of the note portion, wherein the initial capped remarketing is attempted prior to the settlement date of the forward contract portion and is subject to a reset rate cap;   a means for attempting the subsequent capped remarketing if the initial capped remarketing is unsuccessful; and   a means for attempting, if both the initial capped remarketing and the subsequent capped remarketing are unsuccessful, a final remarketing of said note portion of said mandatory unit, wherein the final remarketing is attempted prior to the settlement date and is not subject to the reset rate cap.   
     
     
         32 . The system of  claim 29 , further comprising a communication device to receive information from at least one of an issuer, the holder, a remarketing agent, and a market data source. 
     
     
         33 . The system of  claim 29 , wherein the opportunistic remarketing period is a period during which an issuer of the unit has discretion to perform at least one of a capped and an uncapped remarketing. 
     
     
         34 . The system of  claim 29 , wherein a remarketing is successful if the note can be resold for an amount greater than the settlement amount. 
     
     
         35 . The system of  claim 29 , wherein a remarketing is successful if the note can be resold for an amount greater than the settlement amount plus a remarketing fee. 
     
     
         36 . The system method of  claim 29 , further comprising a means for identifying terms of the forward contract involving an issuer, the holder, and an equity security. 
     
     
         37 . A system comprising:
 a processor; and   a storage device in communication with the processor and storing instructions that when executed by the processor are configured to:
 administer an attempt of an initial capped remarketing of a note portion of a mandatory unit prior to a settlement date of a forward contract portion of the mandatory unit, the initial capped remarketing subject to a reset rate cap; 
 determine if the attempt of the initial capped remarketing is successful; 
 administer an attempt of a subsequent capped remarketing if the initial remarketing is unsuccessful; 
 determine if the subsequent capped remarketing is successful; and 
 administer an attempt, if both the initial capped remarketing and the subsequent capped remarketings are unsuccessful, a final remarketing of the note portion of the mandatory unit, wherein the final remarketing is attempted prior to the settlement date and is not subject to the reset rate cap. 
   
     
     
         38 . The system of  claim 37 , further comprising a communication device coupled to receive information from at least one of an issuer, a holder, a remarketing agent, and a market data source. 
     
     
         39 . The system of  claim 37 , wherein the note further specifies an opportunistic remarketing period during which an issuer of the mandatory unit has discretion to perform at least one of a capped and an uncapped remarketing. 
     
     
         40 . The system of  claim 39 , wherein the instructions when executed further cause the processor to determine if the opportunistic remarketing period has expired. 
     
     
         41 . The system of  claim 39 , wherein a remarketing is successful if the note can be resold for an amount greater than the settlement amount.