Method and system of exchanging and deriving economic benefit from exchanging securities

• US 20020198833A1
• Filed: 05/03/2002
• Published: 12/26/2002
• Est. Priority Date: 05/03/2001
• Status: Abandoned Application

• Current Assignee: Jacob Wohlstadter
• Original Assignee: Jacob Wohlstadter
• Inventors: Wohlstadter, Jacob
• Application Number:
  US10/138,038
• Publication Number:
  US 20020198833A1
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and system of conducting transactions in securities provides a measure of economic benefit to the issuing entity whenever a security issued by the entity is involved in a transaction. For example, an entity issuing stock may receive a measure of economic benefit whenever the stock is traded between third parties on a stock exchange. A computer system or computer program running on a computer system forming a computerized exchange may be provided to enable transactions in securities and to calculate a measure of economic benefit payable to the issuing entity for transactions involving securities issued by that entity. The measure of economic benefit may take the form of any benefit to the issuing entity or of detriment to one of the other parties or intermediaries involved in the transaction.

Claims

1. A computer-implemented method for assessing a payment against an event relating to an issuer'"'"'s security, the method comprising operating one or more computers or computer systems to:

receive and monitor electronic signals provided in response to, and characterizing, market activity, for a payment-generating event related to said security;

identify among the monitored signals data identifying payment-generating events relating to the security in accordance with predefined payment-generating event criteria upon the occurrence of which the issuer of the security is to receive or be credited with a payment; and

associate, with the data identifying payment-generating events, related payment information.

2. The method of claim 1 wherein associating includes flagging the data as relating to a payment-generating event.

3. The method of claim 1 wherein associating includes adding at least one of further data and instructions for processing the event data.

4. The method of claim 2 or claim 3 further including electronically communicating the related payment information and the data identifying payment-generating events to a computer system or systems for processing a payment or credit to the issuer.

5. The method of claim 1 wherein the market activity includes, but is not limited to, transactions in one or more securities, including said security.

6. The method of claim 1, further including operating said one or more computers to compute the payment information and append it to the identified data.

7. The method of any of claims 1-6 further comprising debiting and crediting a plurality of accounts in response to the identification of a payment-generating event.

8. The method of claim 7 wherein the step of debiting and crediting the plurality of accounts occurs substantially in real-time with the identification of a payment-generating event.

9. The method of claim 1 wherein the monitoring occurs prior to clearing and/or settling.

10. The method of claim 1 wherein the monitoring occurs during clearing and/or settling.

11. The method according to claim 1 wherein the payment-generating event is a transaction unrelated instance.

12. The method according to claim 11 wherein the payment is based upon one or more characteristics of the security-issuing entity.

13. The method according to claim 11 wherein the payment is based upon one or more characteristics of the market.

14. The method according to claim 1 wherein the payment-generating event is a transaction related instance.

15. The method according to claim 14 further comprising:

operatively connecting said computer, computers or computer system or systems to a securities exchange system;

operating the computer, computers or computer system or systems to retrieve transaction information from the exchange system;

calculating the payment; and

determining at least one party responsible for making the payment.

16. The method according to claim 15 wherein the transaction information comprises only transactions that are completed through clearing and/or settling.

17. The method according to claim 1 wherein the payment-generating event is a predetermined triggering event.

18. The method according to claim 1 wherein the payment-generating event is identified according to a predefined payment calculation and/or payment configuration.

19. The method according to claim 1 wherein the payment is due and owing to the issuing entity.

20. The method according to claim 19 wherein the issuing entity directs the payment to an other entity.

21. The method according to claim 20 wherein the other entity is an entity associated with the security issuer.

22. The method according to claim 20 wherein the other entity is an entity federated with the security issuer.

23. The method according to claim 1 wherein crediting the payment to the issuing entity includes crediting or paying the payment to an entity other than the issuing entity on behalf of the issuing entity.

24. The method according to claim 1 wherein the payment generating event is an associated transaction.

26. The exchange system of claim 25, wherein the measure of economic benefit is due to the issuing entity upon the occurrence of a transaction unrelated instance.

27. The exchange system of claim 25, wherein the measure of economic benefit is due to the issuing entity upon the occurrence of a transaction related instance.

28. The exchange system of claim 25, wherein at least one of the first and second computer means comprises at least one computer programmed to implement at least a corresponding one of the first set of rules and the second set of rules.

29. The exchange system of claim 25, further comprising at least one network of exchanges wherein the exchange network is configured to have a centralized access point for each exchange in the exchange network.

30. The exchange system of claim 29, wherein at least one of the standalone exchanges is an issuer-exchange.

31. The exchange system of claim 30 wherein the issuer-exchange is configured to also trade securities other than the issuer'"'"'s securities.

32. The exchange system of claim 30 wherein the issuer-exchange is hosted by a third party.

33. The exchange system of claim 32 wherein access to the hosted issuer-exchange is provide through one or more of a link and a framed window into the hosted issuer-exchange.

35. The computerized payment calculation system of claim 34 wherein the computing device is configured to communicate with a historical system of the computerized stock exchange.

37. In a computer-implemented exchange system according to any of claims 29-33, a method for defining a payment calculation and/or payment configuration comprising:

configuring one or more rules for calculating a payment to be assessed against an issuer'"'"'s security; and

configuring one or more rules for allocating the payment to one or more payment receiving entities.

38. The method according to claim 37 wherein the payment calculation and/or payment configuration is selected from a set of pre-approved payment and/or payout configuration settings.

39. The method according to claim 37 wherein the payment calculation and/or payment configuration is defined at one or more predetermined times.

40. The method according to claim 39 wherein the predetermined times are prescribed by one or more rules of an exchange.

41. The method according to claim 39 further comprising:

defining a plurality of payment calculation and/or payment configurations; and

a variable relationship, wherein the payment calculation and/or payment configuration used for either a specific transaction related, or specific transaction unrelated, instance is prescribed by the variable relationship.

25. A computer-implemented exchange system configured to intermediate transactions in securities issued by at least one entity, the exchange system comprising at least one exchange, each exchange comprising:

first computer means for conducting the transactions according to a first set of rules relating to a predetermined protocol; and

second computer means for conducting, according to a second set of rules, transfers of a measure of economic benefit to issuing entities of securities involved in the transactions; and

if there are two or more exchanges, means permitting said exchanges to intercommunicate.

34. A computerized payment calculation system for assessing a payment against an issuer'"'"'s security, comprising:

a computing device programmed to implement a set of rules for assessing the payment, wherein the computing device is configured to communicate with a computerized stock exchange.

36. Storage media containing software that, when executed on a computing system, performs a method for assessing a payment against an issuer'"'"'s security, the method comprising the steps of:

receiving and monitoring electronic signals provided in response to, and characterizing, market activity, for a payment-generating event related to said security;

identifying among the monitored signals data identifying payment-generating events relating to the security in accordance with predefined payment-generating event criteria upon the occurrence of which the issuer of the security is to receive or be credited with a payment; and

associating, with the data identifying payment-generating events, related payment information.

42. A computer implemented method for assessing a royalty against an issuer'"'"'s security, the method comprising:

monitoring market activity for a royalty generating event;

identifying the royalty generating event; and

flagging and/or stamping the royalty generating event identified with royalty information.

43. The method of claim 42 wherein the step of monitoring for the royalty generating event occurs at the front-end.

44. The method of claim 43 wherein the royalty is immediately computed and included in the royalty information.

45. The method of claim 44 further comprising debiting and crediting a plurality of accounts.

46. The method of claim 45 wherein the step of debiting and crediting the plurality of accounts occurs substantially in real-time.

47. The method of claim 42 wherein the step of monitoring for the royalty generating event occurs at the back-end.

48. The method of claim 47 wherein the back-end monitoring occurs prior to clearing and/or settling.

49. The method of claim 47 wherein the back-end monitoring occurs during clearing and/or settling.

50. The method according to claim 42 wherein the royalty generating event is a transaction unrelated instance.

51. The method according to claim 50 wherein the royalty is based upon one or more characteristics of the issuing entity.

52. The method according to claim 50 wherein the royalty is based upon one or more characteristics of the market.

53. The method according to claim 42 wherein the royalty generating event is a transaction related instance.

54. The method according to claim 53 further comprising:

connecting to an exchange system;

retrieving transaction information from the exchange system;

calculating the royalty; and

determining at least one party responsible for payment of the royalty.

55. The method according to claim 54 wherein the transaction information comprises only transactions that are completed through clearing and/or settling.

56. The method according to claim 42 wherein the royalty generating event is a predetermined triggering event.

57. The method according to claim 42 wherein the royalty generating event is identified according to a predefined royalty calculation and/or payment configuration.

58. The method according to claim 42 wherein the royalty is due and owing to the issuing entity.

59. The method according to claim 58 wherein the issuing entity directs the royalty to an other entity.

60. The method according to claim 59 wherein the other entity is an associated entity.

61. The method according to claim 59 wherein the other entity is a federated entity.

62. The method according to claim 42 wherein the royalty is due and owing to a market participant other than the issuing entity.

63. The method according to claim 42 wherein the royalty generating event is an associated transaction.

64. A method for defining a royalty calculation and/or payment configuration comprising:

configuring one or more rules for calculating a royalty to be assessed against an issuer'"'"'s security; and

configuring one or more rules for allocating the royalty to one or more royalty receiving entities.

65. The method according to claim 64 wherein the royalty calculation and/or payment configuration is selected from a set of pre-approved royalty and/or payout configuration settings.

66. The method according to claim 64 wherein the royalty calculation and/or payment configuration is defined at one or more predetermined times.

67. The method according to claim 66 wherein the predetermined times are prescribed by one or more rules of an exchange.

68. The method according to claim 64 further comprising:

defining a plurality of royalty calculation and/or payment configurations; and

a variable relationship, wherein the royalty calculation and/or payment configuration used for either a specific transaction related, or specific transaction unrelated, instance is prescribed by the variable relationship.

70. The exchange of claim 69, wherein the measure of economic benefit is due to the issuing entity upon the occurrence of a transaction unrelated instance.

71. The exchange of claim 69, wherein the measure of economic benefit is due to the issuing entity upon the occurrence of a transaction related instance.

72. The exchange of claim 69, further comprising at least one computer programmed to implement at least one of the first set of rules and the second set of rules.

73. The exchange of claim 69, further comprising one or more of a standalone exchange, an exchange network and a network of exchange networks.

74. The exchange of claim 73, wherein one or more of the exchange networks or network of exchange networks are formed based on one or more issuer characteristics.

75. The exchange of claim 73, further comprising at least one exchange network wherein the exchange network is configured to have a centralized access point for each exchange in the exchange network.

76. The exchange of claim 73, wherein at least one of the standalone exchanges is an issuer-exchange.

77. The exchange of claim 76 wherein the issuer-exchange is configured to also trade securities other than the issuer'"'"'s securities.

78. The exchange of claim 76 wherein the issuer-exchange is hosted by a third party.

79. The exchange of claim 78 wherein access to the hosted issuer-exchange is provide through one or more of a link and a framed window into the hosted issuer-exchange.

69. An exchange configured to intermediate transactions in securities issued by at least one entity, the exchange comprising:

a first set of rules relating to a protocol for conducting the transactions in the securities; and

a second set of rules relating to transfer of a measure of economic benefit to issuing entities of securities involved in the transactions.

80. A computerized royalty calculation system for assessing a royalty against an issuer'"'"'s security, comprising:

a computing device programmed to implement a set of rules for assessing the royalty, wherein the computing device is configured to communicate with a computerized stock exchange.

81. The computerized royalty calculation system of claim 80 wherein the computing device is configured to communicate with a historical system of the computerized stock exchange.

82. Storage media containing software that, when executed on a computing system, performs a method for assessing a royalty against an issuer'"'"'s security, the method comprising the steps of:

monitoring market activity for a royalty generating event;

identifying the royalty generating event; and

flagging and/or stamping the royalty generating event identified with royalty information.