System and Method for Trading Based on Tournament-Style Events

Abstract

A system for trading a plurality of derivative financial instruments comprises a processor operable to receive a first order to buy a derivative financial instrument that represents a contestant in a contest. The processor is further operable to receive a second order to sell the derivative financial instrument. The processor is further operable to determine a market price based at least in part on the first order and the second order. The processor is further operable to execute a trade at the determined market price. The system further comprises a memory operable to store the first order and/or the second order.

1 . (canceled) 
     
     
         2 . An apparatus, comprising:
 at least one processor; and   at least one memory that stores at least one of a first order and a second order, and that stores instructions which, when executed by the at least one processor, direct the at least one processor to:
 receive, from a first trader of a group of traders, a first order to buy a financial instrument that represents a contestant in a contest associated with a television show, wherein the first trader is associated with a first account of virtual electronic currency; 
 receive, from a second trader of the group of traders, a second order to sell the financial instrument, wherein the second trader is associated with a second account of virtual electronic currency; 
 determine a price of the financial instrument based at least in part on the first order, the second order, and at least one of a result associated with a stage of the contest and a performance of the contestant in the contest; 
 execute a trade at the determined price; 
 determine an updated price of the financial instrument if the contestant loses the contest, in which the act of determining the updated price comprises:
 reducing the price of the financial instrument to zero if the contestant loses the contest; and 
 
 determine whether to temporarily halt trading of the financial instrument during an episode of the television show. 
   
     
     
         3 . The apparatus of  claim 2 , wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:
 determine an initial price of the financial instrument based at least in part on a characteristic of the contestant.   
     
     
         4 . The apparatus of  claim 2 , wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:
 adjust the price based at least in part on a subsequent result associated with at least one subsequent stage of the contest.   
     
     
         5 . The apparatus of  claim 4 , wherein adjusting the price comprises:
 adjusting the price after each stage of the contest.   
     
     
         6 . The apparatus of  claim 2 , wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:
 compare a first portfolio of financial instruments associated with the first trader against a second portfolio of financial instruments associated with the second trader; and   determine a winning trader from among the group of traders based at least in part on the comparison between the first and second portfolios.   
     
     
         7 . The apparatus of  claim 2 , wherein the financial instrument comprises a stock,
 in which the television show is a game show comprising the contest,   in which a game show host of the game show interacts with multiple contestants of the game show including the contestant during the contest, and   in which the game show host does not compete in the contest.   
     
     
         8 . The apparatus of  claim 2 , wherein reducing the price to zero if the contestant loses the contest comprises:
 reducing the price to zero upon determining that the contestant was eliminated from the contest,   wherein the contest comprises an awards event, and   and wherein the contestant comprises at least one nominee for an award at the awards event, wherein more than two contestants are nominated for the award prior to a start of the awards event.   
     
     
         9 . The apparatus of  claim 2 , wherein the stage of the contest is one of a plurality of stages of the contest, the plurality of stages of the contest respectively corresponding to a plurality of episodes of the television show. 
     
     
         10 . The apparatus of  claim 2 , wherein the stage of the contest corresponds to an episode of the television show. 
     
     
         11 . The apparatus of  claim 2 , wherein:
 the first trader is associated with a first account of electronic currency; and   the second trader is associated with a second account of electronic currency; and   the instructions, when executed by the at least one processor, further direct the at least one processor to:
 debit the first account according to the trade; and 
 credit the second account with proceeds of the trade. 
   
     
     
         12 . The apparatus of  claim 2 , wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:
 determine a redemption value associated with the financial instrument; and   adjust the redemption value based at least in part on a subsequent result associated with at least one subsequent stage of the contest,   in which the contest comprises an awards event, and   in which the contestant comprises at least one nominee for an award at the awards event, wherein more than two contestants are nominated for the award prior to a start of the awards event.   
     
     
         13 . The apparatus of  claim 12 , wherein the redemption value represents a maximum value for which a trading exchange will redeem a share of the financial instrument. 
     
     
         14 . The apparatus of  claim 2 , wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:
 regulate a contents of a portfolio of financial instruments associated with the first trader such that a number of shares of the financial instrument in the portfolio does not exceed a configurable percentage of all of the shares of financial instruments in the portfolio.   
     
     
         15 . The apparatus of  claim 2 , wherein the instructions, when executed by the at least one processor, further direct the at least one processor to:
 receive a passcode from the first trader; and   verify, based at least in part on the passcode, that the first trader is eligible to participate in trading the financial instrument,   wherein the contest is not a sporting competition.   
     
     
         16 . A method comprising:
 receiving, by at least one processor of a computing device, from a first trader of a group of traders, a first order to buy a financial instrument that represents a contestant in a contest associated with a television show, wherein the first trader is associated with a first account of virtual electronic currency;   receiving, by the at least one processor, from a second trader of the group of traders, a second order to sell the financial instrument wherein the second trader is associated with a second account of virtual electronic currency;   determining, by the at least one processor, a price of the financial instrument based at least in part on the first order, the second order, and at least one of a result associated with a stage of the contest and a performance of the contestant in the contest;   executing, by the at least one processor, a trade at the determined price;   determining that the contestant lost the contest;   determining an updated price of the financial instrument if the contestant loses the contest, in which the act of determining the updated price comprises:
 reducing the price of the financial instrument to zero responsive to the contestant losing the contest; and 
   determining whether to temporarily halting trading of the financial instrument during an episode of the television show.   
     
     
         17 . The method of  claim 16 , further comprising:
 determining an initial price of the financial instrument based at least in part on a characteristic of the contestant.   
     
     
         18 . The method of  claim 16 , further comprising:
 adjusting the price based at least in part on a subsequent result associated with at least one subsequent stage of the contest.   
     
     
         19 . The method of  claim 16 , further comprising:
 comparing a first portfolio of financial instruments associated with the first trader against a second portfolio of financial instruments associated with second trader; and   determining a winning trader from among the group of traders based at least in part on the comparison between the first and second portfolios.   
     
     
         20 . The method of  claim 16 , wherein the financial instrument comprises a stock,
 in which the television show is a game show comprising the contest,   in which a game show host of the game show interacts with multiple contestants of the game show including the contestant during the contest, and   in which the game show host does not compete in the contest.   
     
     
         21 . A non-transitory computer-readable medium for storing instructions, the computer-readable medium being a tangible medium, the instructions being executable by a processor to:
 receive, from a first trader of a group of traders, a first order to buy a financial instrument that represents a contestant in a contest associated with a television show wherein the first trader is associated with a first account of virtual electronic currency;   receive, from a second trader of a group of traders, a second order to sell the financial instrument, wherein the second trader is associated with a second account of virtual electronic currency;   determine a price of the financial instrument based at least in part of the first order,   the second order, and at least one of a result associated with a stage of the contest and a performance of the contestant in the contest;   execute a trade at the determined price;   determine an updated price of the financial instrument if the contestant loses the contest, in which the act of determining the updated price comprises:
 reducing the price of the financial instrument to zero responsive to the contestant losing the contest; and 
   determine whether to temporarily halt trading of the financial instrument during an episode of the television show.