Method and system for securitizing a currency related commodity

Abstract

Systems and methods for providing a tradable (e.g., exchange-listed) instrument by securitizing foreign currency using a foreign currency trust or other special-purpose vehicle that is established to hold one or more particular foreign currency and to issue foreign currency trust shares and/or receipts corresponding to the value of the foreign currency(s) held by the Trust. The foreign currency trust shares may represent a proportional interest in the Trust and/or the foreign currency held by the trust. The Trust may include one or more Trust accounts to receive and store the foreign currency deposited with the Trust. The Trust can operate to receive an investment amount in a first currency and provide shares or Trust receipts having a value in a second currency. The shares or receipts of the trust can be listed, quoted, and traded on a trading system.

1 . A tradable instrument representing ownership of an interest in a fund asset, the tradable instrument being tradable on a financial exchange using an electronic communication network, wherein the fund asset has an asset value denominated in at least one first currency and a trading value that can be denominated in a second currency different from the first currency, and wherein the fund asset has a yield value representative of the relative values of the at least one first currency and the second currency. 
     
     
         2 . The tradable instrument as recited in  claim 1 , wherein the first currency is a non-U.S. currency and the second currency is U.S. dollars. 
     
     
         3 . The tradable instrument as recited in  claim 1 , wherein the at least one first currency comprises a plurality of different currencies. 
     
     
         4 . The tradable instrument as recited in  claim 1 , wherein the at least one first currency comprises any of a currency index and a basket of currencies. 
     
     
         5 . A tradable instrument representing ownership of an interest in a fund asset,
 the instrument being tradable on a financial exchange using an electronic communication network,   wherein the fund asset represents at least one non-U.S. currency, and   wherein the fund asset has a value denominated in U.S. dollars, and   wherein the fund asset has a value representative of the relative values of such non-U.S. currency and the U.S. dollar.   
     
     
         6 . An instrument issued by a statutory trust comprising a trust share that represents an undivided beneficial interest in a portfolio of at least one first currency with a market value denominated in a second currency different from the at least one first currency that fluctuates in response to changes in value of the underlying at least one first currency, the trust share being tradable on a financial exchange using an electronic communication network. 
     
     
         7 . The instrument as recited in  claim 6 , wherein the trust share is capable of being traded on a trading system and able to be purchased and redeemed through the trust. 
     
     
         8 . The instrument as recited in  claim 6 , wherein the first currency is a non-U.S. currency and the second currency is U.S. dollars. 
     
     
         9 . An instrument issued by a statutory trust comprising a trust receipt that represents an undivided beneficial interest in a portfolio of at least one first currency with a market value denominated in a second currency different from the at least one first currency that fluctuates in response to changes in value of the underlying at least one first currency, the trust receipt being tradable on a financial exchange using an electronic communication network. 
     
     
         10 . The instrument as recited in  claim 9 , wherein the share is capable of being traded on a trading system and able to be purchased and redeemed through the trust. 
     
     
         11 . The instrument of  claim 9 , wherein the first currency is a non-U.S. currency and the second currency is U.S. dollars. 
     
     
         12 . An instrument issued by a statutory trust comprising a trust share that represents an undivided beneficial interest in a portfolio of at least one non-U.S. currency with a market value denominated in U.S. currency that will fluctuate in response to changes in value of the underlying non-U.S. currency, the trust share being tradable on a trading system. 
     
     
         13 . The instrument as recited in  claim 12 , wherein the trust share is capable of being purchased and redeemed through the trust. 
     
     
         14 . An instrument issued by a statutory trust comprising a trust receipt that represents an undivided beneficial interest in a portfolio of at least one non-U.S. currency with a market value denominated in U.S. currency that will fluctuate in response to changes in value of the underlying non-U.S. currency, the trust receipt being tradable on a trading system. 
     
     
         15 . The instrument as recited in  claim 12 , wherein the trust receipt is capable of being purchased and redeemed through the trust. 
     
     
         16 . A trading system, comprising:
 a fund held by a custodian and consisting of at least one first currency; and   a tradable instrument being tradable on a financial exchange and representing ownership of an interest in the fund and having a value denominated in a second currency different from the at least one first currency and representative of the relative values of said at least one first currency and the second currency, the instrument being issued to an investor in exchange for an investment amount.   
     
     
         17 . The trading system as recited in  claim 16 , wherein the at least one first currency is invested in interest bearing accounts providing for a market rate of return. 
     
     
         18 . The trading system as recited in  claim 16 , wherein the at least one first currency is a non-U.S. currency and the second currency is U.S. dollars. 
     
     
         19 . The trading system as recited in  claim 18 , wherein the first currency is a plurality of different currencies. 
     
     
         20 . A trading system, comprising
 a fund held by a custodian and consisting of at least one non-U.S. currency and invested at market rates of return, and   a tradable instrument being tradable on a financial exchange and representing ownership of an interest in the fund and having a value denominated in U.S. dollars and representative of the relative values of at least one non-U.S. currency and the U.S. dollar, the instrument being issued to an investor in exchange for an investment amount.   
     
     
         21 . The trading system as recited in  claim 20 , wherein the investment amount is the second currency. 
     
     
         22 . A trading system, comprising:
 a statutory trust, the assets of which consist of at least one first currency bearing interest at market rates of return and held by a custodian for the benefit of investors; and   an instrument issued by the trust representing an undivided beneficial interest in the trust assets, the instrument having a value denominated in a second currency different from the first currency and being tradable on a financial exchange.   
     
     
         23 . The system as recited in  claim 22 , wherein the instrument is capable of being purchased and redeemed through the trust. 
     
     
         24 . The trading system as recited in  claim 23 , wherein the at least one first currency is a non- U.S. currency and the second currency is U.S. dollars. 
     
     
         25 . The trading system as recited in  claim 23 , wherein the at least one first currency is a plurality of different currencies. 
     
     
         26 . A trading system, comprising:
 a statutory trust, the assets of which consist of at least one non-U.S. currency bearing a return and held by a custodian for the benefit of investors; and   an instrument issued by the trust representing an undivided beneficial interest in the trust assets, the instrument having a value denominated in U.S. currency and being tradable on a financial exchange.   
     
     
         27 . The trading system as recited in  claim 26 , wherein the instrument is capable of being purchased and redeemed through the trust. 
     
     
         28 . A method of investing, comprising
 accepting from an investor an investment amount in at least one first currency;   establishing a fund with a custodian;   investing said at least one first currency in assets denominated in said at least one first currency that bears a return; and   issuing to said investor a tradable instrument representing ownership of an interest in the fund and having a value denominated in a second currency different from the first currency and representative of the relative values of said at least one first currency or currencies and the second currency, the instrument being tradable on a financial exchange using an electronic communication network.   
     
     
         29 . The method as recited in  claim 28 , wherein the assets comprise any of demand deposits and money market accounts. 
     
     
         30 . The method as recited in  claim 28 , wherein the first currency is at least one non-U.S. currency and the second currency is U.S. dollars. 
     
     
         31 . The method as recited in  claim 30 , wherein the at least one non-U.S. currency comprises a plurality of different currencies. 
     
     
         32 . The method as recited in  claim 30 , wherein the at least one non-U.S. currency comprises a currency index. 
     
     
         33 . The method as recited in  claim 28 , further comprising facilitating the ability to buy and/or sell options on the tradable instrument through an options trading system. 
     
     
         34 . A method of investing, comprising
 accepting from an investor an investment amount in at least one first currency,   establishing a monetary fund; and   issuing to said investor a tradable instrument representing ownership of at 1 interest in the fund and having a value denominated in a second currency different from the at least one first currency and representative of the relative values of said at least one first currency and the second currency, the instrument being tradable on a financial exchange using an electronic communication network.   
     
     
         35 . The method as recited  claim 34 , further comprising facilitating the ability to buy and/or sell options on the tradable instrument through an options trading system. 
     
     
         36 . The method as recited in  claim 34 , further comprising investing said at least one first currency to generate a return.