- FIG. 4 is a flowchart illustrating anexample method400 for creating or otherwise forming asecurities bundle140 that includes a plurality ofsecurities145 indexed to particular entertainment events in accordance with one embodiment of the present disclosure. Generally,method400 describes an example technique, in which one ormore entertainment companies110, and other possible participants, forms securities bundle140 to be indexed to entertainment revenue of certain entertainment events offered by the one ormore entertainment companies110.System100 contemplates using any appropriate combination and arrangement of logical or physical elements or participants implementing some or all of the described functionality.

Method

400 begins atstep405, whereentertainment company110 selects the particular entertainment industry for funding. For example,entertainment company110 may comprise a multimedia company with a plurality of entertainment subsidiaries for various types of entertainment events. Next, atstep410,entertainment company110 determines abundle140 for the selected industry.Entertainment company110 then determines an expected closing date forbundle140 atstep415. A securities bundle template is then generated atstep420. Once the generic or empty securities bundle140 has been generated or otherwise determined,entertainment company110 then adds a plurality of entertainment events to the particular securities bundle140 insteps425 through455.

Atstep425,entertainment company110 selects a first entertainment event forbundle140. Next,entertainment company110 determines the amount of funding desired for the selected event, atstep430. The funding amount comprises at least a portion of the cost for financing the entertainment event. Next, atstep435,entertainment company110 determines one or more dividend dates and/or a dividend schedule for theparticular security145. Once the various parameters have been determined,entertainment company110 compiles these parameters and designs one ormore securities145 or trust certificates for the selected event, atstep440. Next, atdecisional step445,entertainment company110 determines if there are more entertainment events to be added to securities bundle140. If there are more events to be bundled, thenentertainment company110 selects the next event atstep450 andmethod400 returns to step430. Once there are no more entertainment events to be bundled,entertainment company110 provides the securities bundle140 to special-purpose trust120 atstep452, which then issues securities bundle140 and thecomponent securities145 atstep454. The method terminates atstep456.

FIG. 5 is a flowchart illustrating anexample method500 for purchasing or offering asecurities bundle140, which includes a plurality ofsecurities145 indexed to particular entertainment events in accordance with one embodiment of the present disclosure. At a high level,method500 describes an example technique that includes selecting an offered securities bundle140 and purchasing the selectedbundle140 for a market determined price. In one embodiment,method500 begins once the special-purpose trust120 has obtained the information for the formation of one ormore securities bundles140 fromentertainment company110. As with the previous flowchart,system100 contemplates using any appropriate combination and arrangement of logical or physical elements implementing some or all of the described functionality.

Method

500 begins atstep505, whereinvestor130 selects an entertainment industry that he is interested in funding or otherwise financially participating in. Next, atstep510,investor130 selects a particular securities bundle140 associated with the selected industry.Investor130 then selects afirst security145 in the selected securities bundle140 atstep515. Next, an expected revenue for the event associated with the selectedsecurity145 is then determined atstep520. The determined expected revenue is added to a total expected revenue for the selectedbundle140 atstep525. It will be understood that the total expected revenue is illustrative of merely one technique for determining the total return thatinvestor130 may expect from selected securities bundle140.

Next, atdecisional step530,investor130 determines if there aremore securities145 in securities bundle140. If there aremore securities140, theninvestor130 selects thenext security145 atstep535 andmethod500 returns to step520. Once there are nomore securities145 in securities bundle140, theninvestor130 determines a return value and a purchase amount of securities bundle140 based, at least in part, on the determined total expected revenue atstep540. Next, at step545,investor130 communicates the determined return value to the bundle creator, such asentertainment company110.Investor130 typically also communicates the desired or expected purchase amount of selected securities bundle140. If a communicated purchase amount and return value are not accepted byentertainment company110 or special-purpose trust120 theninvestor130 determines a new return value and purchase amount atstep555 andmethod500 returns to step545. Once the purchase amount and return value have been successfully negotiated, then the return value is associated with theparticular securities145 atstep560. Next, atstep565,investor130 purchases securities bundle140 based on the accepted purchase value. The method terminates atstep567.

The preceding flowcharts and accompanying description illustrate only

exemplary methods

400 and500. In short,system100 contemplates using any suitable technique for performing these and other tasks. Accordingly, many of the steps in these flowcharts may take place simultaneously and/or in different orders than as shown. Moreover,system100 may use methods with additional steps, fewer steps, and/or different steps, so long as the methods remain appropriate.

FIG. 6 illustrates an example after-market system600 for offering futures or secondary market transactions based on the securities bundles140 initially offered in the system ofFIG. 1. Following each initial offering, securities bundle140 may be automatically or manually split or unbundled into thecomponent securities145, which may be individually traded through after-market600, such as a market center600 (or “secondary market”) orfutures exchange620.System600 includes any suitable number and combination of processing and memory devices used to perform the features and functions described herein.System600 increases the accessibility of market participants to the trading ofsecurities bundles140 and/orcomponent securities145.

According to certain embodiments, thesecurities145 may be available for trading in the secondary market after the closing date or purchase date. The secondary market may include amarket center610, such as an electronic communications network (ECN) or Automated Trading System (ATS). Eachsecurities market center610 comprises all manner of order execution venues including exchanges, ECNs and ATSs. Eachmarket center610 maintains a bid and offer price in a givensecurity145 by having participants that stand ready, willing, and able to buy or sell at publicly quoted prices, also referred to as market center prices. Eachmarket center610 provides market center prices forparticular securities145. For example, a first market center may offer a particular bid price and/or offer price forparticular securities145, while another market center may offer a different bid price and/or offer price for thesame securities145. Certain market centers610 may also charge a transaction cost in order to execute a trading order. Eachmarket center610 may also have different policies regarding the disclosure to market makers of various details of a trading order, such as, for example, the size of a trading order.Market center610 may be customized or otherwise tailored to the entertainment industry or particular events. For example, the trading of asecurity145 may be halted once an underlying entertainment event substantially begins, such as the opening weekend for a movie.

According to certain embodiments, the secondary market may also includedealers640,regulators650,brokers660, andinvestors630.Dealers640 generally act as market-makers in both the market center and the futures exchange.Regulatory service providers650 may provide surveillance of and other market oversight services to one or both example markets.Broker660 may be any securities broker.Broker660 may supply any suitable data involving asecurity145 to a potential investor, and may facilitate the trading ofsecurities145 withinsystem600.

Futures contracts (or options on futures contracts) on eachsecurity145 may also be listed on afutures exchange620, for example the Cantor Exchange (CX), or other trading facility to enhance liquidity in the market for one ormore securities145.Futures exchange620 may be registered with the Commodity Futures Trading Commission (CFTC). Generally, a futures contract is an agreement to buy or to sell an asset such as, for example, a loan, currency, commodity or any suitable financial instrument (e.g., asecurities bundle140, anyunderlying securities145, or a right to payment based upon an entertainment event) at some time in the future, whereby the price of the asset is agreed upon at the time the agreement is made. Unlike a stock, which represents equity in a company and an asset that can be held for an indefinite time, the futures contract normally has a finite life. The futures contract can be used for hedging price-fluctuation risks or for taking advantage of price movements, rather than for the buying or selling of the actual asset.

In one embodiment, parties to a futures contract can agree on a fixed purchase price to buy the right to a payment that is indexed to some quantifiable parameter associated with an underlying entertainment event. For example, a first party could sell to a second party a futures contract in the right to a $1 payment per each $1 million of revenue earned by an underlying entertainment event. If the futures contract was sold for $50 and the entertainment event earned $55 million upon the settlement date, then the second party would have netted $5 from the first party. If the futures contract was sold for $50 and the entertainment event earned $45 million upon the settlement date, then the first party would have netted $5 from the second party. Of course, the values used in this example could vary. Moreover, the right to payment could be associated with any other quantifiable parameter associated with the underlying entertainment event during any suitable period of time (e.g., the number of seats sold to a particular movie at a particular theater; the number of showings of a particular movie; the number of theaters in which a particular movie was shown; the number of days that a particular movie was shown; revenue at a particular theater for a particular movie; etc).

In another embodiment, parties to a futures contract can agree on a fixed purchase price to buy asecurities bundle140 or anyunderlying securities145 at the expiration of the contract. For example, the seller of this futures contract can agree to sell asecurities bundle140 or anyunderlying securities145 to the buyer at expiration at the fixed sales price. As time passes, the contract's value changes relative to the fixed price at which the trade was initiated according to the value of the underlying securities bundle140 or anyunderlying securities145. This creates profits or losses for the traders. In most cases, delivery of the securities bundle140 or theunderlying securities145 associated with the futures contract does not take place. Rather, the contract is cash-settled based upon, for example, the purchase price and the value of the underlying securities bundle140 orsecurities145 at the time of settlement.

In still other embodiments, parties may offer to take a position on the outcome of various events associated with an underlying entertainment event. For example, a first party may offer to take the position that a particular movie will gross over $50 million by the first dividend date. A counterparty may offer to take the position that the particular movie will not gross over $50 million by the first dividend date. A third party intermediary may accept both offers, settle the transaction, and pay the profits on the transaction according to a fixed mathematical calculation less a suitable commission (i.e., a return of 11 to 10 on a relatively even proposition). The fixed return determined for any particular transaction may be established by the third party intermediary according to the perceived likelihood of the event occurring. The third party intermediary may be any suitable participant insystem600.

System

600 may also includefutures commission merchants665 that are involved in the solicitation or acceptance of commodity orders for future delivery of commodities related to the futures contract market. Afutures commission merchant665 is able to handle futures contract orders as well as extend credit to customers wishing to enter into such positions. These include many of the brokerages that investors in the futures markets deal with.

FIG. 7 illustrates anexample method700 for transacting asecurity145 from securities bundle140 in an after-market600 according to one embodiment of the present disclosure. Generally,method700 describes an example technique, in whichinvestor130 selects one ormore securities145 fromsecurities140 and individually offers the selectedsecurities145 inmarket center610 and/orfutures exchange620. After-market600 contemplates using any appropriate combination and arrangement of logical elements or players implementing or utilizing some or all of the described functionality. In short, after-market600 contemplates using any suitable technique for performing these and other tasks. Accordingly, many of the steps in the following flowchart may take place simultaneously and/or in different orders than as shown. Moreover, after-market600 may use methods with additional steps, fewer steps, and/or different steps, so long as the methods remain appropriate.

Method

700 begins atstep705, where asecurities bundle140 is identified. Atstep710, the identified securities bundle140 is automatically, dynamically, logically, or otherwise unbundled. Next, atstep715,investor130 selectsfirst security145 from securities bundle140.Investor130 then offers the selected security in a particular after-market atstep720. It will be understood that this offer does not have to be binary. For example,investor130 may offer the selected security throughmarket center610, while concurrently negotiating a futures contract throughfutures exchange620.

If the selectedsecurity145 is offered throughmarket center610, then negotiation and purchasing techniques may be utilized. For example,investor130 may communicate an offer on theparticular security145 atstep725. Based on this offer,investor130 may receive a bid on theparticular security145 atstep730. Ifinvestor130 does not accept the bid atdecisional step735, thenmethod700 returns to step725, whereinvestor130 may communicate the same or different offer on theparticular security145. Once the bid is accepted,investor130 receives the purchase funds from the purchaser atstep740.Investor130 then provides theparticular security145 or any representation or data thereof to the purchaser. Next, atstep750, the purchaser details are communicated to special-purpose trust120 for subsequent dividend and returns.

Alternatively or in combination, the selectedsecurity145 may be offered through a futures exchange. In this case, the securities bundle140 or anyunderlying security145 is associated with a potential futures contract atstep755. Next, atstep760,investor130 communicates an offer on the futures contract. Atstep765,investor130 may receive a bid on the futures contract based on the communicated offer. Ifinvestor130 does not accept the bid atdecisional step770, thenmethod700 returns to step760. Once an agreement is reached on the futures contract associated with aparticular security145, theninvestor130 receives the purchase funds atstep775. The futures contract is then provided to the purchaser atstep780. The method terminates atstep782.

Although this disclosure has been described in terms of certain embodiments and generally associated methods, alterations and permutations of these embodiments and methods will be apparent to those skilled in the art. Accordingly, the above description of example embodiments does not define or constrain this disclosure. Other changes, substitutions, and alterations are also possible without departing from the spirit and scope of this disclosure.