Title of Invention

PROXY ASSET SYSTEM AND METHOD

Abstract

A new form of security designated the proxy asset provides risk management capabilities, such as liquid interests in illiquid assets and economic indicators, without the deficiencies associated with other types of financial instruments. A proxy assets set is defined to respond to one or more indices. Each proxy asset has a share value and a number of shares. The proxy assets have a proxy assets set account value equal to a sum over all proxy assets of the products of the share value and the number of shares. At least one proxy asset account value per share is a function of an index. The function is called an account formula. The account value for the entire set of proxy assets is constrained by a value of a resources pool. The proxy asset account value is reevaluated according to the account formula upon occurrence of each event of a plurality of predetermined events.

Full Text

CLAIMS 1. A method of providing shares in a proxy asset set, each proxy asset in said proxy asset set having a proxy asset account value, said method comprising: A. defining a proxy asset set account value equal to the sum of the account values of all proxy assets in said proxy asset set, including constraining said proxy asset set account value by a value of a resource pool; B. defining a first set of shaves representing claims on a first subset of said proxy assets, wherein said first set of shares experience an increase in value as a function of a positive change in one or mors indices according to a first formula; C. defining a second set ef shares representing claims on a second subset of proxy assets, wherein said second set of shares experience an increase in value as a Amotion of a negative change in said one or more indices according to a second formula; D shifting one or more of said proxy assets between said .first set of shares and said second set of shares as a function of said first and second formulas; and E. offeiing sakl first set of shares and said second set of shares, wherein at least some shares irom one or both of said first set of shares and said second set of shares may be procured? without a requirement of procuring sets of shares comprised of shares fioni said first set of shares and said second set of shares. 2. A method as in claim 1, wherein at least one issuer does said offering and the issuer has substantially the seme number of shares from said first set of shares and said second set of shares, 3. A method as in claim 2, wherein said shifting is controlled by said issuer. 4. A method a* in claim 1, wherein said offering includes offering at least some shares from said first set of shares and some shares from said second set of shares at different times. 5. A method as; Ln claim 1, wherein said resource pool is at least partly collateralized with relatively stable securities. 6. A method as in claim 1, wherein said proxy assets represent claims on one or more foreign or domestic liquid or illiquid assets or proxy assets, such as assets chosen from a group comprising stocks, bonds, mutual funds, groups of stocks, accounts, real property, personal property, and one or more streams of income from one or more corporations, partnerships, joint ventures, sole proprietorships, individuals, trusts, estates, or contracts, '7. A method as in claim I, wherein said proxy assets represent claims on one or more underlying asserts represented by said one or more indices. I, A method as in claim 1, wherein at least one index from said one or more indices represents a composite index chosen from a group comprising: 1) NASDAQ; 2) S&P500; 3) Dow Jones Industrial Average; 4) NYSE Composite; and 5) Nikkei. 9, A method as m claim 1, wherein ai least one index from said one or more indices is weighted 10. A -method as in claim 1, wherein said offering includes offering by a plurality of issuers. II. A method as in. claim L wheiein said proxy asset set includes a plurality of types of proxy as:>eui. wherein each type of proxy asset represents a claim on one or mors different liquid or illiquid assets. 12 A method as in claim I, wherein shares from said first set of shares and shares from said second set of shares may be issued and redeemed at different times. 13. A method as in claim 1, wherein shares from said first set of shares and shares from said second set of shares are offered as a function of one or more conditions, including at least one of the value of the resource pool reaching a threshold value, the value of the one or more indices reaching a threshold value* the value of at bast one of the first set of shares and said second sat of shares reaching a threshold value, 14. A method as in claim 1, wherein said offering includes offering shares from at least one of said first set of shares and said second set of shares on an exchange. A, method as in claim. 1, wherein said offering includes offering by an issuer to an investor of available shares from one of said first set of shares or said second set of shares in accordance with an agreement imposing conditions on at least one of said shifting or on a distribution to said investor as a function of a value of said available shares. 16. A method as in claim 1, further comprising: F. terminating the offering shares from at least one of said first set of shares and said second set of shares as a function of a triggering event, wherein said triggering event is chosei:. from a group of events comprising: 1) a termination of a predetermined period of time; 2) a value variation in said set of indices; 2) a change in rate of return of said proxy asset shares; 4) a change in a set of one or more economic indicators; f) a change in level of risk reward, 6) a change in the value of the resource pool; and 7) a change in the prime lending rate. 17. A method as in claim 1, further comprising: F. adjusting the value of said resource pool as a fimefron of % triggering event, wherein said triggering event is chosen from a group of events comprising: 1) a termination of a predetermined period of rime; 2) adding or deleting an index from said set of indices; 3) a value variation in said set of indices; 4) a change in a set of one or more economic indicators; 5) a change in a level of risk reward; and i) a change in the prime lending rate. 13. A system for providing shares in a proxy asset sec, each proxy asset.in said proxy asset set having a proxy asset account value, said system comprising: A. a metnory ic-r storing a proxy asset set account value equal to the sum of the account values of all proxy assets in said proxy asset ser, wherein said proxy asset set account value is constrained by a value of a resource pool; B. at least one proxy asset share manager coupled to said memory and configured to: i) define and store a first set of shares representing claims on a first subset of said proxy assets, wherein said first set of shares; experience an increase in value a$ a function of a positive change in one or more indices according to a first formula; 2) define and store a second set of shares representing claims on a second subset of . proxy assets, wherein said second set of shares experience an increase in value as a function-of a negative change in said one or more indices according to a second formula; C. a shifter coupled to said proxy assst manager and configured to shift one or tnore of said proxy assets between said first set of shares and said second set of shares as a function of said first and Second formulas; and E. a broker module coupled to said proxy asset manager and configured r.o offer said first set of shares and said second set of shares, w herein at least some shares from one or both of said lirai -set of shaves and said second set of shades maybe procured, without a requirement, of piocuung sets nf shares comprised of shares from said first set of shares and said second set of shares. 19. A system as in claim 18, wherein said broker module is configured to facilitate generation of oners by at least one issuer, wherein said issuer has substantially the same number of shares from s.aid first set of shares and said second set of shares 20. A system as in claim 19S wherein said shifter is configured for control by said issuer for the staies offered by said issuer. 21. A system as in claim IS, wherein said broker module is configured for offering at least some shares from said first set of shares and some set of shares from said second set of shares at different times. 22 A system as in claim 18, wherein said resource pool is at least partly collateralized with relatively stable securities, 23. A syatem as in claim 13, wherein said proxy assets represent claims on one or more foreign or domestic liquid or illiquid assess or proxy assets, such as assets chosen from a group comprising stocks, bonds, mutual fends, groups of stocks, accounts, real property, personal property, and one or more streams of income from one or more corporations, partnerships Joint ventures, sole proprietorships, individuals, trusts, estates, or contracts. 2.4. A system as in claim 1, wherein said proxy asseis represent claims on one or more underlying assets represented by said one or more indices. 25, A. system as in claim 18, wherein at least one index from said one or more indices represents a composite index chosen from a group comprising: 1) NASDAQ; 2) S&P500; 3) Dow Jones Industrial Average; 4) NYSE Composite; and 5) Nikkei. 2. A system a;? in claim IS, wherein at least one index from said one or more indices is weighted. 27. A system as in claim 18, wherein said broker module is configured to facilitate offers of stains by a plurality of issuers. 28. A system as in claim 18, wherein said proxy asset set includes a plurality of types of proxy assets, wherein each type of proxy asset represents a claim ou one or more different liquid or illiquid assets. 29. A system ss in claim 185 wherein said proxy asset manager includes a redemption module and shares from said, first set of shares and shares from said second set of shares may be issued ard redeem 3d at different times. 30 A s>stem as in claim 18, wherein shares from said first set of shares and shares from said second set of shares are offered by said broker module as a function of one or more conditions, including at least one of the value of the resource pool reaching a threshold value, the value of the one or more indices reaching a threshold value, the value of at least one of the first set of shares and said second set of shares reaching a threshold value. 31. A system as in claim 18, wherein said broker module is configured to offer shares from at least one of said first set of shares and said second set of shares on an exchange. 32. A. system as in claim 1, wherein said broker module is configured to facilitate offering by an issuer ID an investor of available shares from one of said first set of shares or said second set of chares in accordance with an agreement imposing conditions on at least one of said shifting or on a distribution to said investor as a function of a value of said available shares. 33. A system as in claim IS, further comprising: E. a termination module configured to terminate the offering of shares from at least one of said first set of shares and said second set of shares as a Amotion of a triggering event, wherein said triggering event is chosen from a group of events comprising; 1) a termination of a predetermined period of time; 2) a value variation in said set of indices; 3) a change in rate of return of said proxy asset shares; 4) a change in a set of one or more economic indicators; 5) a change in level of risk reward; 6) a change in the value of the resource pool; and 7) a change in the prime lending rate. 34. A svstem. as in claim IS, wherein said proxy asset manager incl'udes- E, an adjustment module configured to adjust the value of said resource pool as a function of a triggering event, wherein said triggering event is chosen from a group of events comprising: 1) a temiination of a predetermined period of time; 2) adding or deleting an index from said set of indices; 3) a value variation in said set of indices; 4) a change in a set of one or more economic indicators; 5) a change in a level of risk reward, and 6) a change in the prime lending rate. 3:>. A method for providing a proxy asset set of two or more proxy assets that responds to a set of one or more indices, each proxy asset of the proxy assets set having a proxy asset account value and a number of proxy asset shares representing equal claims on the proxy asset account value, the proxy asset set having a total number of shares equal to a sum over all the number of proxy asset shares in the proxy assets set and having a proxy assets set account value equal to a sum over all the proxy asset account values of die proxy assets set, die method comprising: A. de:xaing a proxy asset account value with a pcedeterrnined account formula responsive to at least one corresponding index of the set of one or more indices; B, constraining the proxy assets set account value by a value of a resources pool; and C reevaluating the proxy asset account value according to the account formula upon occurrence of each event of a plurality of predetermined events, wherein said one or more indices includes at least one of an index that represents one or more corporate stocks, mutual fluids, proxy assets, or a composite index chosen from a group of indices derived from or comprising one oc more of the: 1) NASDAQ; 2) S&P500; 3) Dow Jones Industrial Average; 4) NYSE Composite; and 5) Nikkei. 36. The method of claim 35, further comprising: "). offering at least some of said proxy assets shares for public or private trading. 3". The method of claim 35, further comprising: D. offering at least some of said proxy assets shares on an. exchange. 3;;. The method of claim 35, further comprising: ]> trading ai least some of said proxy asset shares. 33. The method of claim 35, further comprising: D. forming, item said proxy asset shares, a first set of shares configured to experience an ■Increase in value as a function of a positive change in said set of indices; and E, forming, from said proxy asset shares, a second set of shares configured to experience an rncrease in value as a function of a negative change in said set of indices. 40, The method of claim 39, further comprising: - I F shifting on* or more of saad proxy assets between said first set of shares and said second set of shares. H. The method of claim 35, further comprising: D. redeeming at least some of said proxy asset shares. 42. The -.method of claim 35, further comprising: D. offering at least some of said proxy asset shares; and E terminating the offering of said proxy asset shares 2.s a function of a triggering event, wherein said triggering event is chosen from a group of events comprising: 1) a tenaination of a predetermined period of time, 2) a value variation in said sec of indices; 3) a change in rate of return of said proxy asset; shares, 4) a change in a set of one or more economic indicators; 5) a change in level of risk reward] 6) a change in the value of the resource pool; and 7) a change in the prime lending rate. 43. The method of claim 35', further comprising: D. adjusting the value of said resource pool as a fraction of a triggering event, wherein said triggering: event is chosen from a group of events comprising: i) a termination of a predetermined period of time; 2) adding or deleting an index from said set of indices; 3) a value variation in said set of indices; 4) a change in a set of one or more economic indicators; 5) a change in a level of risk reward; and 6) a change in the prime lending rate. 44. The method of claim 35, wherein the account formula includes a leverage factor, and wherein said leverage factor is applied to weight one ot moce of said set of indices. 45. A system for providing a proxy asset set of two or more proxy assets that respond to a set of eras or mere indices, each proxy asset of the proxy assets set having a proxy asset account value and a number of proxy asset shares, the proxy asset set having a total number of shares :qual to a sum over the proxy assets set of the number of proxy asset shares and having a proxy islets set account value equal to a sum over the proxy assets set of the proxy asset account vaiue, he system comprising: A. a network, B. a computer readable medium connected to ths network, said computer readable medium storing a value of a resources pool and a number of shares of each proxy asset for eucb. investor of a set of investors; C. o:ie or more bank processors connected tG the network configured to compute the value of the resources pool; and D. ovie or more proxy assets set processors configured for evaluating a proxy asset account value as a. function of at least one corresponding index of the set of one or more indues, and for constraining the proxy assets set account value by the value of the resources pool, whei'f^n said one or more indices includes at least one of an index that represents one or more corporate stocks, mutual funds, proxy assets, or a composite index chosen from a group of indices derived from or comprising one or more of the: 1) NASDAQ; 2) S&P500; 3) Dow Jones industrial Average; 4) NYSE Composite; and 5) Nikkei. 46. The system of claim 45, wherein said proxy assets set processor is further configured to offer at Uast some of said proxy assets shares for private trading. 4" . The system of claim 45, wherein said proxy assexs set processor is further configured to offer atlsast some of said proxy assets shares for public trading. 4i<. the system of claim wherein said proxy assets sec processor is farther configured to trade at least some asset shares.> 49. The system cf claim 45, wherein said proxy assets set processor is further configured to: 1) farm, from said proxy asset shares, a first set of shares configured to experience an increases in value as a function of a positive change in said set of indices; and 2) form, from said proxy asset shares, a second set of shares configured to experience an increase in value as a function of a negative change in said set of indices. 1 The system of claim 49, wherein said proxy assets processor is further configured to shift ntf or mors of said proxy assets between said first s-si of shares and said second set of shares. 1. The system of claim 45, wherein said proxy assets sec processor is further configured to ;deem at least some of said proxy asset shares. 2. The system of claim 45, wherein said proxy assets set processor is farther configured to: offer at least some of said proxy asset shares; and terminate said offer of said proxy asset shares as a function of a triggering event, wherein said triggering event is chosen from a group of events comprising: L) a termination of a predetermined period of time; 2) a value variation in said set of indices; 3) a change in rate o f return of said proxy asset shares; 4) a change in a set of one or more economic indicators; 5) a change in level of risk reward; 6) a change in the value of the resource pool; and 7) a change in the prime lending rate. 53. The system of claim 45, wherein said proxy assets set processor is further configured to adjust di* value of said resource pool as a function of a triggering event, wherein said triggering 3 vent is chosen from a group of events comprising: 1) a termination of a predetermined period of time; 2) adding or deleting an index from said set of indices; 3) a value variation in said set of indices; 4) a change in a set of one or more economic indicators; 5) a change in a level of risk reward; and 6) a change in the prime lending rate. 54. The system of claim 45, wherein the account formula includes a leverage factor, and wherein said leverage factor is applied to weight one or more of said set of indices. . A method of providing shares in a proxy asset substantially as herein described with reference to the accompanying drawings.

Documents:

1551-chenp-2003 abstract.pdf

1551-chenp-2003 claims granted.pdf

1551-chenp-2003 form 1.pdf

1551-chenp-2003 form 13.pdf

1551-chenp-2003 form 2.pdf

1551-chenp-2003 form 3.pdf

1551-chenp-2003 petition.pdf

1551-chenp-2003 power of attorney.pdf

1551-chenp-2003-claims.pdf

1551-chenp-2003-correspondnece-others.pdf

1551-chenp-2003-correspondnece-po.pdf

1551-chenp-2003-description(complete).pdf

1551-chenp-2003-drawings.pdf

1551-chenp-2003-form 1.pdf

1551-chenp-2003-form 18.pdf

1551-chenp-2003-form 3.pdf

1551-chenp-2003-form 5.pdf

1551-chenp-2003-pct.pdf