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Dynamic pricing system and method for complex energy securities

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TLDR
In this paper, a dynamic pricing system for complex energy securities, comprising a communications interface executing on a network-connected server and adapted to receive information from a plurality of iNodes, an event database coupled to the communications interface, and a pricing server coupled with the event database and the pricing server, is described.
Abstract
A dynamic pricing system for complex energy securities, comprising a communications interface executing on a network-connected server and adapted to receive information from a plurality of iNodes, an event database coupled to the communications interface and adapted to receive events from a plurality of iNodes via the communications interface, a pricing server coupled to the communications interface, and a statistics server coupled to the event database and the pricing server, is disclosed. According to the invention, the pricing server, on receiving a request to establish a price for an energy security, requests at least one statistical indicia of risk from the statistics server, the statistical indicia of risk being computed by the statistics server based on a plurality of historical data obtained from the event database, and the pricing server computes a price for the security based at least in part on the statistical indicia of risk.

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