CREATING AND MAINTAINING NEW MARKETS FOR WILD STOCKS USING A NEW DERIVATIVE INSTRUMENT

Description: University inventors have invented a method for creating and maintaining an orderly market in a perishable commodity that is (1) harvested from the wild, (2) renewable, (3) in uncertain supply, and (4) prone to over-exploitation. This method employs a new kind of derivatives contract that overcomes liquidity constraints and promotes resource sustainability. It has utility for building an orderly market when liquidity concerns loom large, for managing risk in illiquid markets, and for reducing price volatility in illiquid markets.

Case Number: SD2005-074
Keywords: resource management, commodities exchange
Inquiries To: invent@ucsd.edu