Importance

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Abstract

A method and system are provided for executing a transaction relating to a first futures contract. The first futures contract involves a tradable asset, such as crude oil or another commodity, and a first contract price and a first settlement price expressed in a first currency, such as U.S. dollars. The first settlement price is updated on a periodic basis, typically daily. The method involves providing a second futures contract having an underlying instrument that includes the first futures contract. The second futures contract includes a second latest possible delivery date and a second contract price and a second settlement price that are denominated in a second currency. The second settlement price is updated periodically. A periodic mark-to-market operation credits or debits a buyer of the second futures contract based on the periodic update to the second settlement price. Delivery of the second contract occurs when the buyer pays the current second settlement price in the second currency and receives the first futures contract. Then, delivery of the first futures contract is completed by delivering either the tradable entity or a financial equivalent of the tradable entity based on the current first settlement price.

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First Claim