Derivative contracts that settle based on transaction data

Patent metadata

Field	Value
Publication number	US-12340417-B2
Application number	US-202217948641-A
Country	US
Kind code	B2
Filing date	Sep 20, 2022
Priority date	Jun 30, 2016
Publication date	Jun 24, 2025
Grant date	Jun 24, 2025

Abstract

The disclosed systems and methods make derivatives contracts based on an underlying virtual currency available for trading. Certain derivatives contracts have a settlement value based on the transaction fees associated with recording and/or performing transactions for the selected virtual currency. The contracts can be used, for example, by virtual currency miners against certain risks associated with mining virtual currency.

First claim

The invention claimed is:

1. A computer system comprising:
a processor configured to:
electronically monitor, via a virtual currency network, transaction data for a plurality of transactions for a virtual currency processed by the virtual currency network and stored on a blockchain;
determine, automatically based on the monitored transaction data, a network utilization of the virtual currency network indicative of a transaction processing time for each of the plurality of transactions, wherein an increase in the network utilization is indicative of an increase in the transaction processing time and a reduction in a capacity of the virtual currency network to process transactions and a decrease in the network utilization is indicative of a decrease in the transaction processing time and an increase in the capacity of the virtual currency network to process transactions;
determine, based on the network utilization, a value of a financial instrument held by one or more participants;
generate a minimum requirement for the one or more participants based at least partially on the value of the financial instrument;
determine whether an amount of funds on an account with a clearinghouse computer, coupled with the processor, for a participant of the one or more participants is below or exceeds the minimum requirement; and
one of credit or debit the account of the participant based on the determination that the amount of funds on the account is below or exceeds the minimum requirement.

2. The computer system of claim 1 , further comprising:
an order book module that determines bid and offer prices for the financial instrument; and
a match engine coupled with the order book module and operative to match bids and offers for the financial instrument to execute transactions there between for a purchase and/or a sale of the financial instrument and report executed transactions to the clearinghouse computer.

3. The computer system of claim 1 , wherein the network utilization is determined based on an amount of available space in the virtual currency network.

4. The computer system of claim 1 , wherein the network utilization is determined based on a number of transactions awaiting processing by the virtual currency network.

5. The computer system of claim 1 , wherein the network utilization is determined based on a list of transactions in a memory pool.

6. The computer system of claim 1 , wherein the transaction data includes transaction inputs and transaction outputs for each of the plurality of transactions.

7. The computer system of claim 1 , wherein the financial instrument comprises a futures contract.

8. The computer system of claim 7 , wherein the value of the financial instrument comprises a cash settlement value of the futures contract.

9. The computer system of claim 1 , wherein the transaction data comprises data for virtual currency transactions.

10. A computer implemented method comprising:
monitoring, electronically by a processor via a virtual currency network, transaction data for a plurality of transactions for a virtual currency processed by the virtual currency network and stored on a blockchain;
determining, automatically by the processor based on the monitored transaction data, a network utilization of the virtual currency network indicative of a transaction processing time for each of the plurality of transactions, wherein an increase in the network utilization is indicative of an increase in the transaction processing time and a reduction in a capacity of the virtual currency network to process transactions and a decrease in the network utilization is indicative of a decrease in the transaction processing time and an increase in the capacity of the virtual currency network to process transactions;
determining, by the processor based on the network utilization, a value of a financial instrument held by one or more participants;
generating, by the processor, a minimum requirement for the one or more participants based at least partially on the value of the financial instrument;
determining, by the processor, whether an amount of funds on an account with a clearinghouse computer, coupled with the processor, for a participant of the one or more participants is below or exceeds the minimum requirement; and
one of crediting or debiting, by the processor, the account of the participant based on the determination that the amount of funds on the account is below or exceeds the minimum requirement.

11. The computer implemented method of claim 10 , further comprising:
determining, by an order book module, bid and offer prices for the financial instrument; and
matching, by a match engine coupled with the order book module, bids and offers for the financial instrument to execute transactions there between for a purchase and/or a sale of the financial instrument and reporting executed transactions to the clearinghouse computer.

12. The computer implemented method of claim 10 , wherein the network utilization is determined based on an amount of available space in the virtual currency network.

13. The computer implemented method of claim 10 , wherein the network utilization is determined based on a number of transactions awaiting processing by the virtual currency network.

14. The computer implemented method of claim 10 , wherein the network utilization is determined based on a list of transactions in a memory pool.

15. The computer implemented method of claim 10 , wherein the transaction data includes transaction inputs and transaction outputs for each of the plurality of transactions.

16. The computer implemented method of claim 10 , wherein the financial instrument comprises a futures contract.

17. The computer implemented method of claim 16 , wherein the value of the financial instrument comprises a cash settlement value of the futures contract.

18. The computer implemented method of claim 10 , wherein the transaction data comprises data for virtual currency transactions.

19. A computer system comprising:
means for electronically monitoring, via a virtual currency network, transaction data for a plurality of transactions for a virtual currency processed by the virtual currency network and stored on a blockchain;
means for determining, automatically based on the monitored transaction data, a network utilization of the virtual currency network indicative of a transaction processing time for each of the plurality of transactions, wherein an increase in the network utilization is indicative of an increase in the transaction processing time and a reduction in a capacity of the virtual currency network to process transactions and a decrease in the network utilization is indicative of a decrease in the transaction processing time and an increase in the capacity of the virtual currency network to process transactions;
means for determining, based on the network utilization, a value of a financial instrument held by one or more participants;
means for generating a minimum requirement for the one or more participants based at least partially on the value of the financial instrument;
means for determining whether an amount of funds on an account with a clearinghouse computer for a participant of the one or more participants is below or exceeds the minimum requirement; and
means for one of crediting or debiting the account of the participant based on the determination that the amount of funds on the account is below or exceeds the minimum requirement.

20. The computer system of claim 19 , wherein the network ut

Assignees

• Chicago Mercantile Exchange Inc

Inventors

• Pierce Ryan
• Ahmed Mansoor
• Plante John

Classifications

• G06Q2220/00

  Business processing using cryptography · CPC title

• G06Q50/18

  Legal services · CPC title

• G06Q20/381

  Currency conversion · CPC title

• G06Q20/065

  using e-cash · CPC title

• G06Q40/04 Primary

  Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange · CPC title