Automated auction processor for underwriting securities
First Claim
1. A system for executing an underwriting transaction, said system comprising:
- a first computer for operation by at least one issuer, said issuer comprising one of a state, a municipality, and another non-federal authority;
a second computer for operation by at least one underwriter, said underwriter comprising one of a bank, a broker, and a dealer; and
an automated underwriting auction processor coupled to both said first and said second computers, said automated auction processor comprising control logic that maintains a universal protocol for said issuer and said underwriter for processing to consummation said underwriting transaction in real-time.
1 Assignment
0 Petitions
Accused Products
Abstract
An automated underwriting auction processor is presented. States, municipalities, and other non-federal authorities issue municipal securities to an underwriter or syndicate of underwriters during an underwriting period. The underwriters then trade the securities in a secondary market. The efficiency and fairness of this process is improved using a networked system, which includes multiple computers or workstations, connected to an automated auction processor. The processor provides issuers and participants equal real-time access to the underwriting process. Moreover, the automated auction processor provides a universal underwriting protocol to ensure that only qualified issuers and participants are allowed to participate. This results in a fair and more efficient underwriting process compared to the traditional sealed-bid auction and negotiated underwriting processes.
-
Citations
34 Claims
-
1. A system for executing an underwriting transaction, said system comprising:
-
a first computer for operation by at least one issuer, said issuer comprising one of a state, a municipality, and another non-federal authority;
a second computer for operation by at least one underwriter, said underwriter comprising one of a bank, a broker, and a dealer; and
an automated underwriting auction processor coupled to both said first and said second computers, said automated auction processor comprising control logic that maintains a universal protocol for said issuer and said underwriter for processing to consummation said underwriting transaction in real-time. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20)
-
-
17. A system for executing an underwriting transaction, said system comprising:
-
a first computer for operation by at least one issuer, said issuer comprising one of a state, a municipality, and another non-federal authority;
a second computer for operation by at least one underwriter, said underwriter comprising one of a bank, a broker, and a dealer; and
an automated underwriting auction processor coupled to both said first and second computers, said auction processor comprising control logic that maintains a universal protocol for both said issuer and said underwriter for executing said underwriting transaction in real-time, wherein said control logic;
qualifies each said underwriter;
pools issues from each said issuer;
receives bids on said issue pool from each said underwriter qualified to bid;
evaluates said bids;
allocates said issues to at least one said underwriter; and
distributes results of said underwriting transaction to both said first and said second computers.
-
-
21. A method for executing an underwriting transaction, said method comprising:
-
receiving electronically offers of financial instruments from a plurality of issuers, wherein each of said plurality of issuers is one of a state, a municipality, and another non-federal authority;
qualifying a plurality of underwriters in accordance with electronically submitted criteria, each said underwriter being one of a bank, a broker, and a dealer;
pooling said financial instruments from said plurality of issuers;
receiving electronically bids from each of said plurality of underwriters qualified to bid; and
distributing said financial instruments to at least one of said plurality of underwriters. - View Dependent Claims (22, 23, 24, 25, 26, 27, 28, 29, 30, 31)
-
-
32. A method for executing an underwriting transaction, said method comprising:
-
receiving electronically an offer of a financial instrument from an issuer, wherein said issuer is one of a state, a municipality, and another non-federal authority;
qualifying an underwriter in accordance with electronically submitted criteria, said underwriter being one of a bank, a broker, and a dealer;
pooling said financial instrument from said issuer with another financial instrument from a second issuer;
receiving electronically a bid from said underwriter qualified to bid; and
distributing said financial instruments to said underwriter.
-
-
33. Apparatus for executing an underwriting transaction, said apparatus comprising:
-
a first computer means for operation by at least one issuer, said issuer comprising one of a state, a municipality, and another non-federal authority;
a second computer means for operation by at least one underwriter, said underwriter comprising one of a bank, a broker, and a dealer; and
an automated underwriting auction processor means coupled to both said first and said second computer means, said automated auction processor means comprising control logic that maintains a universal protocol for said issuer and said underwriter for processing to consummation said underwriting transaction in real-time.
-
-
34. Apparatus for executing an underwriting transaction, said apparatus comprising:
-
means for receiving electronically an offer of a financial instrument from an issuer, wherein said issuer is one of a state, a municipality, and another non-federal authority;
means for qualifying an underwriter in accordance with electronically submitted criteria, said underwriter being one of a bank, a broker, and a dealer;
means for pooling said financial instrument from said issuer with another financial instrument from a second issuer;
means for receiving electronically a bid from said underwriter qualified to bid; and
means for distributing said financial instruments to said underwriter.
-
Specification