Breakout indexes

Abstract

Methods and systems for calculating values for indexes based on breakout currencies are provided. A prospective breakout index may be formed before an entity breaks out of a monetary union. Other aspects relate to calculating an initial index value on a breakout date. An initial exchange rate of the breakout currency may be combined with a breakout value and/or a base value. In one embodiment, the breakout value is the reciprocal of the initial exchange rate. Therefore, in accordance with certain embodiments, the initial index value of the breakout index may be equal to the base value. Further aspects relate to calculating a second index value. A second exchange rate of the breakout currency may be utilized with the fixed base value and the breakout value to calculate the second index value of the breakout index. Further aspects relate to creating a prospective currency unit for a monetary union.

1 . A computer-implemented method of calculating an index value of a breakout index comprising:
 receiving an indication of an issuance of a first breakout currency by an entity of a monetary union, and   in response, calculating with a processor an initial index value of a breakout index based upon the first breakout currency, the calculating comprising:
 determining a fixed base value of a breakout index; 
 receiving an initial exchange rate of the first breakout currency against a currency of the monetary union; 
 determining a breakout value of the first breakout currency, wherein the breakout value is established as a reciprocal of the initial exchange rate; 
 combining the fixed base value of the breakout index such that the initial index value of the breakout index is equal to the base value; 
   calculating with the processor a second index value of the breakout index, the calculating comprising:
 receiving a second exchange rate of the first breakout currency instrument against the currency of the monetary union; and 
 combining the fixed base value, the second exchange rate of the first breakout financial instrument, and the breakout value to create the second index value of the breakout index. 
   
     
     
         2 . (canceled) 
     
     
         3 . The computer-implemented method of further comprising:
 receiving bids and offers for a breakout financial instrument based upon the breakout index; and   matching bids and offers for the breakout financial instrument.   
     
     
         4 . The computer-implemented method of  claim 3 , wherein the bids and offers are received at an order book module of the exchange computer system and are matched at a match engine of the exchange computer system. 
     
     
         5 . The computer-implemented method of  claim 4 , wherein the currency of the monetary union is the Euro. 
     
     
         6 . The computer-implemented method of  claim 4 , wherein the currency of the monetary union comprises the Euro or a derivative thereof. 
     
     
         7 . The computer-implemented method of  claim 4 , wherein the first breakout currency is a previously existing currency. 
     
     
         8 . A non-transitory computer-readable medium having computer-executable instructions that when executed by a processor, perform at least:
 receiving an indication of an issuance of a first breakout currency by an entity of a monetary union, and   in response, calculating with a processor an initial index value of a breakout index based upon the first breakout currency, the calculating comprising:
 determining a fixed base value of a breakout index; 
 receiving an initial exchange rate of the first breakout currency against a currency of the monetary union; 
 determining a breakout value of the first breakout currency, wherein the breakout value is established as a reciprocal of the initial exchange rate; 
 combining the fixed base value of the breakout index such that the initial index value of the breakout index is equal to the base value; 
   calculating a second index value of the breakout index, the calculating comprising:
 receiving a second exchange rate of the first breakout currency instrument against the currency of the monetary union; and 
   combining the fixed base value, the second exchange rate of the first breakout financial instrument, and the breakout value to create the second index value of the breakout index.   
     
     
         9 . (canceled) 
     
     
         10 . The non-transitory computer-readable medium of  claim 8 , further comprising computer-executable instructions that when executed by the processor, perform at least:
 receiving bids and offers for a breakout financial instrument based upon the breakout index; and   matching bids and offers for the breakout financial instrument.   
     
     
         11 . The non-transitory computer-readable medium of  claim 8 , further comprising computer-executable instructions that when executed by the processor, perform at least:
 receiving bids and offers at a match engine; and   matching bids and offers at a match engine.   
     
     
         12 . The non-transitory computer-readable medium of  claim 11 , wherein the currency of the monetary union is the Euro. 
     
     
         13 . The non-transitory computer-readable medium of  claim 11 , wherein the currency of the monetary union comprises the Euro or a derivative thereof. 
     
     
         14 . The non-transitory computer-readable medium of  claim 11 , wherein the first breakout currency is a previously existing currency. 
     
     
         15 . A computer system comprising:
 a processor;   a non-transitory computer-readable medium operatively connected to the processor and having computer-executable instructions that when executed by the processor, perform at least:
 (a) receiving an indication of an issuance of a first breakout currency by an entity of a monetary union, and 
 (b) in response to (a), calculating with a processor an initial index value of a breakout index based upon the first breakout currency, the calculating comprising:
 determining a fixed base value of a breakout index; 
 receiving an initial exchange rate of the first breakout currency against a currency of the monetary union; 
 determining a breakout value of the first breakout currency, wherein the breakout value is established as a reciprocal of the initial exchange rate; 
 combining the fixed base value of the breakout index such that the initial index value of the breakout index is equal to the base value; 
 
 calculating a second index value of the breakout index, the calculating comprising:
 receiving a second exchange rate of the first breakout currency instrument against the currency of the monetary union; and 
 
 combining the fixed base value, the second exchange rate of the first breakout financial instrument, and the breakout value to create the second index value of the breakout index. 
   
     
     
         16 . (canceled) 
     
     
         17 . The computer system of  claim 15 , wherein the non-transitory computer-readable medium further comprises computer-executable instructions that when executed by a processor, perform at least:
 receiving bids and offers for a breakout financial instrument based upon the breakout index; and   matching bids and offers for the breakout financial instrument.   
     
     
         18 . The computer system of  claim 17 , wherein the currency of the monetary union is the Euro. 
     
     
         19 . The computer system of  claim 17 , wherein the currency of the monetary union comprises the Euro or a derivative thereof. 
     
     
         20 . The computer system of  claim 17 , wherein the first breakout currency is a previously existing currency.