US 12,288,256 B1
Systems, methods, and program products for operating an exchange-traded fund
Eliot Samuels, Schlieren (CH); Andrew Ward Moedinger, Schlieren (CH); Gareth Jose-Lee Pinto, Birmensdorf (CH); Hans Martin Eliasson, Olten (CH); Henry Gaston Williamson, Jr., St. Simons Island, GA (US); and Christina Corazon Smith-Lutz, Olten (CH)
Assigned to SolidusLink AG, Schlieren (CH)
Filed by SolidusLink AG, Schlieren (CH)
Filed on Nov. 28, 2022, as Appl. No. 18/070,145.
Application 18/070,145 is a continuation of application No. 16/952,971, filed on Nov. 19, 2020, granted, now 11,551,298.
Claims priority of provisional application 62/938,062, filed on Nov. 20, 2019.
Int. Cl. G06Q 40/04 (2012.01); G06Q 10/30 (2023.01); G06Q 30/018 (2023.01); G06Q 40/03 (2023.01)
CPC G06Q 40/04 (2013.01) [G06Q 10/30 (2013.01); G06Q 30/0185 (2013.01); G06Q 40/03 (2023.01)] 22 Claims
OG exemplary drawing
 
1. A system comprising an administrator computer system associated with a fund holding secured notes collateralized by a precious metal, a first authorized participant device associated with a first authorized participant of the fund and operably connected to the administrator computer system, a first set of two or more secured note issuer devices, each associated with one or more note issuers that issue secured notes held by the fund, a second set of two or more secured note issuer devices, the first set of two or more secured note issuer devices and the second set of two or more secured note issuer devices operably connected to the administrator computer system, a fourth set of one or more vault administrator devices associated with one or more vaults holding precious metal securing the secured notes held by the fund, the fourth set of one or more vault administrator devices operably connected to the administrator computer system and a custodian device associated with a custodian to issue and redeem shares in the fund where the custodian device is operably connected to the administrator computer system, wherein the administrator computer system is configured to perform the steps of:
a. obtaining from the first authorized participant device, a first order to redeem a first amount of shares of the fund for a second amount of secured notes collateralized by a third amount of precious metal associated with the second amount of secured notes, including authorized participant identification information associated with the first authorized participant;
b. verifying the first order, wherein the verifying step includes:
(1) confirming that the first authorized participant is an authorized participant associated with the fund based on the authorized participant identification information;
(2) confirming that the first authorized participant owns the first amount of shares;
(3) determining that the second amount of secured notes and the third amount of precious metal corresponds to the first amount of shares;
c. generating first settlement instructions to transfer the first amount of shares from a first authorized participant account associated with the first authorized participant to a fund account associated with the fund;
d. sending the first settlement instructions to the first authorized participant device associated with the first authorized participant of the fund;
e. confirming receipt of the first amount of shares in the fund account;
f. confirming the second amount of secured notes corresponds to the third amount of precious metal and the first amount of shares;
g. updating, using a diversification module operably connected to the administrator computer system, order diversification information associated with the second amount of secured notes collateralized by the third amount of precious metal in accordance with a diversification algorithm and a first allocation of all of the secured notes held by the fund among a fifth set of two or more secured note issuers prior to receiving the first order,
wherein the order diversification information indicates a second allocation of the second amount of secured notes among the fifth set of two or more secured note issuers, and is based at least on the equation:

OG Complex Work Unit Math
where M is a total number of secured note issuers in the fifth set of two or more secured note issuers, AN represents a respective amount of secured notes associated with each respective secured note issuer N of the fifth set of two or more secured note issuers M, DN,k represents an account allocation value for each respective account k of a first set of custody accounts VN for each respective secured note issuer N of the fifth set of two or more secured note issuers M, and G is the third amount of precious metal and
wherein the diversification algorithm indicates a target amount of secured notes associated with each secured note issuer of the fifth set of the two or more secured note issuers and the order diversification information is updated to substantially maintain the target amount of secured notes associated with each secured note issuer after the first order is filled;
h. generating secured note redemption instructions to transfer the second amount of secured notes to the fifth set of two or more secured note issuers in accordance with the order diversification information and the second allocation to redeem the second amount of secured notes for the third amount of precious metal;
i. sending the secured note redemption instructions to the second set of two or more secured note issuer devices associated with the fifth set of two or more secured note issuers to:
(1) transfer the second amount of secured notes from the fund to the fifth set of two or more secured note issuers; and
(2) redeem the second amount of secured notes;
j. receiving confirmation of the transfer of the second amount of secured notes to the fifth set of two or more secured note issuers;
k. generating precious metal settlement instructions to transfer the third amount of precious metal in accordance with the order diversification information;
l. sending the precious metal settlement instructions to the fourth set of one or more vault administrator devices associated with a third set of custody accounts at one or more vaults;
m. receiving confirmation of the transfer of the third amount of precious metal in accordance with the order diversification information,
wherein the third amount of precious metal is credited to a first authorized participant custody account associated with the first authorized participant;
n. generating share eliminating instructions to eliminate the first amount of shares corresponding to the second amount of secured notes and the third amount of precious metal;
o. sending the share eliminating instructions to a custodian device;
p. receiving confirmation that the first amount of shares has been eliminated; and
q. publishing share price information including diversification information associated with the fifth set of two or more secured note issuers.