Systems and methods for improving the liquidity and distribution network for luxury and other illiquid items

• US 20030115131A1
• Filed: 10/28/2002
• Published: 06/19/2003
• Est. Priority Date: 12/13/2001
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: eSpeed Incorporated (BGC Group, Inc.)
• Inventors: Lutnick, Howard W., Heaton, Timothy H.
• Granted Patent: US 7,685,050 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0205 Location or geographical consideration
• CPC Class Codes: G06Q 30/0275 Auctions
• CPC Class Codes: G06Q 30/0611 Request for offers or quotes
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

Systems and methods for improving the liquidity and distribution network for luxury and other illiquid items are provided. These systems and methods preferably include the trading of futures and options contracts, which will provide the liquidity and distribution network for luxury items. Possible embodiments of these systems and methods include the trading of futures and options contracts for diamonds and wine. Another embodiment of this invention preferably includes generating indexes for diamond prices, wine prices, luxury item prices, housing values, mortgage prepayments, privately-held companies or for anything with from sufficiently liquid points of value. Another embodiment of this invention preferably includes a centralized data base for retrieving closing and current auction prices for determining the value of, and best method for the auctioning of various items The data provided by this data base would improve liquidity by creating greater price transparency.

Claims

1. A method comprising:

creating a standard diamond profile; and

posting a futures or options contract based on the diamond profile.

2. The method of claim 1, the creating a standard profile further comprising specifying a pre-determined value for color, cut, clarity and weight.

3. The method of claim 2 the standardizing further comprising specifying the value for cut comprising specifying a range of values at least one of the angle of the table, the characteristics of the girdle, the characteristic of the culet, the characteristic of the polish, and for the physical dimensions of the diamond.

4. The method of claim 1 further comprising providing delivery of at least a single diamond in satisfaction of the futures or options contract.

5. The method of claim 4 further comprising providing a certified grading report associated with the delivery of the at least a single diamond.

6. A method for trading of diamonds futures or options contracts in a computer-based futures or options exchange system, comprising:

accessing a listing of a plurality of diamonds futures or options contracts;

selecting a diamonds futures or options contract from the listing; and

viewing trading status of the diamonds futures or options contract.

7. A method comprising:

offering a diamond futures or options contract; and

executing a trade of the diamond futures or options contract based on the offering.

8. A method comprising:

creating a standard wine profile; and

posting a futures or options contract based on the wine profile.

9. The method of claim 8 the creating a standard wine profile further comprising identifying criteria for at least one of type, region, winery, vintage and price.

10. The method of claim 8 further comprising providing delivery of at least a single wine in satisfaction of the futures or options contract.

11. A method for trading of wine futures or options contracts in a computer-based futures or options exchange system, comprising:

accessing a listing of a plurality of wine futures or options contracts;

selecting a wine futures or options contract from the listing; and

viewing trading status of the wine futures or options contract.

12. A method comprising:

offering a wine futures or options contract; and

executing a trade of the wine futures or options contract based on the offering.

13. A method comprising:

creating a standard luxury item profile; and

posting a futures or options contract based on that profile.

14. The method of claim 13 where the luxury item is diamonds.

15. The method of claim 13 where the luxury item is wine.

16. The method of claim 13 further comprising providing delivery of at least a single luxury item based on the futures or options contract.

17. A method comprising:

creating a custom luxury item profile based on user input;

posting a futures or options contract based on that profile.

18. The method of claim 17 where the luxury item is diamonds.

19. The method of claim 17 where the luxury item is wine.

20. The method of claim 17 further comprising providing delivery of at least a single luxury item based on the futures or options contract.

21. A method for trading of luxury item futures or options contracts in a computer-based futures or options exchange system, comprising:

accessing a listing of a plurality of luxury item futures or options contracts;

selecting a luxury item futures or options contract from the listing; and

viewing trading status of the luxury item futures or options contract.

22. A method comprising:

offering a luxury item futures or options contract; and

executing a trade of the luxury item futures or options contract based on the offering.

23. A method for creating an index for the support of diamonds futures or options contracts comprising:

electronically capturing diamond data from industry price lists;

electronically compiling the diamond data;

electronically sorting the diamond data; and

electronically updating the diamond data to form a diamond index.

24. A method for creating an index for the support of wine futures or options contracts comprising:

electronically capturing the wine data from industry price lists;

electronically compiling the wine data;

electronically sorting the wine data; and

electronically updating the wine data to form a wine index.

26. The method of claim 24 where luxury item is diamonds.

27. The method of claim 24 where luxury item is wine.

25. A method for creating an index for the support of luxury item futures or options contracts comprising:

electronically capturing luxury item data from industry price lists;

electronically compiling the luxury item data;

electronically sorting the luxury item data; and

electronically updating the luxury item data to form a luxury item index.

28. A method for creating an index for housing values comprising:

electronically capturing housing values data from real estate price surveys;

electronically compiling the housing values data;

electronically sorting the housing values data; and

electronically updating the housing values data to create a housing values index.

29. The method of claim 28 further comprising creating the index for a particular region.

30. The method of claim 28 further comprising restricting the capturing of the data to a particular region.

31. The method of claim 28 further comprising creating the index based on user inputted criteria.

32. A method for creating an index for housing values comprising:

electronically capturing housing values data from mortgage applications;

electronically compiling the housing values data;

electronically sorting data the housing values data; and

electronically updating the housing values data to form a housing values index.

33. The method of claim 32 further comprising creating the index for a particular region.

34. The method of claim 32 further comprising restricting the capturing of the data to a particular region.

35. The method of claim 32 further comprising creating the index based on user inputted criteria.

36. A method for creating an index for privately-held companies comprising:

electronically capturing data about privately-held companies from Earnings Before Interest Depreciation and Taxes (EBIDTA);

electronically compiling the data about privately-held companies;

electronically sorting the data about privately-held companies; and

electronically updating the data about privately-held companies to form a privately-held company index.

37. A method for creating an index for mortgage prepayments comprising:

electronically capturing mortgage prepayment data from banking institutions;

electronically compiling the mortgage prepayment data;

electronically sorting the mortgage prepayment data; and

electronically updating the mortgage prepayment data to form a mortgage prepayment index.

38. A method for tracking Internet auctions comprising:

providing an access tool that is user configurable to electronically search at least one Internet auction site for auction data;

capturing the data;

compiling the data;

extracting a portion of the auction data; and

providing a calculation tool that is user configurable to perform at least one user-defined calculation on the extracted portion of the auction data.

39. The method of claim 38 further comprising searching a plurality of Internet auction sites.

40. The method of claim 38 further comprising tracking auctions in progress.

41. The method of claim 38 further comprising tracking completed auctions.

42. The method of claim 38 further comprising tracking bid validation for completed auctions over a computer network.

43. The method of claim 38 further comprising tracking a bid validation for auctions in progress over a computer network.

44. The method of claim 38 further comprising extracting the data based on pre-determined criteria.

45. The method of claim 38 further comprising extracting the data based on user-inputted criteria.

46. The method of claim 38 further comprising calculating the extracted data based on pre-determined criteria.

47. The method of claim 38 further comprising calculating the extracted data based on user-inputted criteria.

48. The method of claim 38 where calculating the extracted portion of the auction data further comprises comparing different auction methods and the final price paid for completed auctions.

49. The method of claim 38 where calculating the extracted portion of the auction data further comprises comparing different auction methods and the final price received for completed auctions.

50. The method of claim 38 where calculating the extracted portion of the auction data further comprises calculating the lowest price paid in a completed auction.

51. The method of claim 38 where calculating the extracted portion of the auction data further comprises calculating the highest price paid in a completed auction.

52. The method of claim 38 where calculating the extracted portion of the auction data further comprises calculating the mean price paid in a completed auction.

53. The method of claim 38 where calculating the extracted portion of the auction data further comprises calculating the median price paid in a completed auction.

54. The method of claim 38 where calculating the extracted portion of the auction data further comprises calculating the mode of prices paid in a completed auction.

55. The method of claim 38 where calculating the extracted portion of the auction data further comprises calculating the range of prices paid in a completed auction.

56. The method of claim 38 where calculating the extracted portion of the auction data further comprises calculating the deviation of prices paid in a completed auction.

57. The method of claim 38 where calculating the extracted portion of the auction data further comprises calculating relevant statistical metrics.

58. The method of claim 38 where calculating the extracted portion of the auction data further comprises performing at least one calculation with at least one piece of auction data.

59. The method of claim 38 where calculating the extracted portion of the auction data further comprises creating a graph based on the data.

60. The method of claim 38 where calculating the extracted portion of the auction data further comprises creating a graph of prices paid in a completed auction over a period of time.

61. The method of claim 38 further comprising updating the data in real-time.

62. The method of claim 38 further comprising updating the data at suitable pre-determined intervals.

63. The method of claim 39 where calculating the extracted portion of the auction data further comprises comparing different Internet auction sites, auction methods, and the bid history for auctions in progress.

64. The method of claim 39 where calculating the extracted portion of the auction data further comprises comparing different Internet auction sites, auction methods, and the final price received for completed auctions.

65. A system comprising:

a storage device;

a processor connected to the storage device, the storage device storing a program for controlling the processor, the processor operative with the program to;

create a standard diamond profile; and

post a diamond futures or options contract based on the profile.

66. The system of claim 65 the standard diamond profile comprising a pre-determined value for color, cut, clarity and weight.

67. The system of claim 66, the standard diamond profile further comprising the value for cut comprising specifying a range of values at least one of the angle of the table, the characteristics of the girdle, the characteristic of the culet, the characteristic of the polish, and for the physical dimensions of the diamond.

68. A system for trading of diamond futures or options contracts, the system comprising:

a server comprising;

a server storage device;

a server processor connected to the server storage device, the server storage device storing a program for controlling the server processor; and

the server processor operative with the program to transact a trade of the diamond futures or options contracts;

a plurality of workstations, each of the plurality of workstations operative to communicate with the server, each of the workstations comprising;

a workstation storage device;

a workstation processor connected to the workstation storage device, the workstation storage device storing a workstation program for controlling the workstation processor, the workstation processor operative with the workstation program to;

access a listing of a plurality of diamonds futures or options contracts;

select a diamond futures or options contract from the listing;

view trading status of the diamonds futures or options contract; and

enter into and proceed with trades;

a clearing center operative to communicate with the server, the clearing center comprising;

a clearing storage device; and

a clearing processor connected to the clearing storage device, the clearing storage device that stores a clearing program for controlling the clearing processor, the clearing processor that is operative with the clearing program to cause the transactions to be completed and cleared and to verify that the transactions are completed and cleared.

69. A system comprising:

a storage device;

a processor connected to the storage device, the storage device storing a program for controlling the processor, the processor operative with the program to;

create a standard wine profile; and

post a wine futures or options contract based on the profile.

70. The system of claim 69, the standard wine profile further comprising criteria for at least one of type, region, winery, vintage and price.

71. A system for trading of wine futures or options contracts, the system comprising:

a server comprising;

a server storage device;

a server processor connected to the server storage device, the server storage device storing a program for controlling the server processor; and

the server processor operative with the program to transact a trade of the wine futures or options contracts;

a plurality of workstations, each of the plurality of workstations operative to communicate with the server, each of the workstations comprising;

a workstation storage device;

a workstation processor connected to the workstation storage device, the workstation storage device storing a workstation program for controlling the workstation processor, the workstation processor operative with the workstation program to;

access a listing of a plurality of wines futures or options contracts;

select a wine futures or options contract from the listing;

view trading status of the wines futures or options contract; and

enter into and proceed with trades;

a clearing center operative to communicate with the server, the clearing center comprising;

a clearing storage device; and

a clearing processor connected to the clearing storage device, the clearing storage device that stores a clearing program for controlling the clearing processor, the clearing processor that is operative with the clearing program to cause the transactions to be completed and cleared and to verify that the transactions are completed and cleared.

72. A system comprising:

a storage device;

a processor connected to the storage device, the storage device storing a program for controlling the processor, the processor operative with the program to;

create a standard luxury item profile; and

post a luxury item futures or options contract based on the profile.

73. The system of claim 72 where the luxury item is diamonds.

74. The system of claim 72 where the luxury item is wine.

75. A system comprising:

a storage device;

a processor connected to the storage device, the storage device storing a program for controlling the processor, the processor operative with the program to;

create a custom luxury item profile; and

post a luxury item futures or options contract based on the custom profile.

76. The system of claim 75 where the luxury item is diamonds.

77. The system of claim 75 where the luxury item is wine.

78. A system for trading of luxury item futures or options contracts, the system comprising:

a server comprising;

a server storage device;

a server processor connected to the server storage device, the server storage device storing a program for controlling the server processor; and

the server processor operative with the program to transact a trade of the luxury item futures or options contracts;

a plurality of workstations, each of the plurality of workstations operative to communicate with the server, each of the workstations comprising;

a workstation storage device;

a workstation processor connected to the workstation storage device, the workstation storage device storing a workstation program for controlling the workstation processor, the workstation processor operative with the workstation program to;

access a listing of a plurality of luxury items futures or options contracts;

select a luxury item futures or options contract from the listing;

view trading status of the luxury items futures or options contract; and

enter into and proceed with trades;

a clearing center operative to communicate with the server, the clearing center comprising;

a clearing storage device; and

a clearing processor connected to the clearing storage device, the clearing storage device that stores a clearing program for controlling the clearing processor, the clearing processor that is operative with the clearing program to cause the transactions to be completed and cleared and to verify that the transactions are completed and cleared.

79. A system for creating an index for the support of diamond futures or options contracts, the system comprising:

an index processor operative to;

electronically capture diamond data from industry price lists;

electronically compile the diamond data;

electronically sort the diamond data; and

electronically update the diamond data to form a diamond index.

80. A system for creating an index for the support of wine futures or options contracts, the system comprising:

an index processor operative to;

electronically capture wine data from industry price lists;

electronically compile the wine data;

electronically sort the wine data; and

electronically update the wine data to form a wine index.

81. A system for creating an index for the support of luxury item futures or options contracts, the system comprising:

an index processor operative to;

electronically capture luxury item data from industry price lists;

electronically compile the luxury item data;

electronically sort the luxury item data; and

electronically update the luxury item data to form a luxury item index.

82. The system of claim 81 where the luxury item is diamonds.

83. The system of claim 81 where the luxury item is wine.

84. A system for creating an index for housing values, the system comprising:

an index processor operative to;

electronically capture housing values data from real estate price surveys;

electronically compile the housing values data;

electronically sort the housing values data; and

electronically update the housing values data to form a housing values index.

85. The system of claim 84 the index for housing values data restricted to a particular region.

86. The system of claim 84 the electronically capturing of the housing values data restricted to a particular region.

87. The system of claim 84 the index for housing values data created based on user inputted criteria.

89. The system of claim 84 the index for housing values data restricted to a particular region.

90. The system of claim 84 the electronically capturing of the housing values data restricted to a particular region.

91. The system of claim 84 the index for housing values data created based on user inputted criteria.

88. A system for creating an index for housing values, the system comprising:

an index processor operative to;

electronically capture housing values data from mortgage applications;

electronically compile the housing values data;

electronically sort the housing values data; and

electronically update the housing values data to form a housing values index.

92. A system for creating an index for privately-held companies, the system comprising:

an index processor operative to;

electronically capture privately-held companies data from Earnings Before Interest Depreciation and Taxes (EBIDTA);

electronically compile the privately-held companies data;

electronically sort the privately-held companies data; and

electronically update the privately-held companies data to form a privately-held companies index.

93. A system for creating an index for mortgage prepayments, the system comprising:

an index processor operative to;

electronically capture mortgage prepayment data from banking institutions;

electronically compile the mortgage prepayment data;

electronically sort the mortgage prepayment data; and

electronically update the mortgage prepayment data to form a mortgage prepayment index.

94. A system for tracking Internet auctions, the system comprising:

a server comprising;

a server storage device;

a server processor connected to the server storage device, the server storage device storing a server program for controlling the server processor, the server processor operative with the server program to;

electronically search at least one Internet auction site for auction data;

capture the auction data;

compile the auction data;

extract a portion of the auction data; and

perform at least one calculation on the extracted portion of the auction data;

a plurality of workstations operative to communicate with the server, the workstation comprising;

a workstation storage device;

a workstation processor connected to the workstation storage device, the workstation storage device storing a workstation program for controlling the workstation processor, the workstation processor operative with the workstation program to;

view the extracted auction data;

view the calculated auction data; and

enable the user to configure the searching, capturing, compiling, sorting, extracting, and arranging of the auction data.

95. The system of claim 94 wherein the server processor is further operative with the server program to search a plurality of Internet auction sites.

96. The system of claim 94 wherein the server processor is further operative with the server program to search auctions in progress.

97. The system of claim 94 wherein the server processor is further operative with the server program to search completed auctions.

98. The system of claim 94 wherein the server processor is further operative with the server program to track bid validation for completed auctions over a computer network.

99. The system of claim 94 wherein the server processor is further operative with the server program to track bid validation for auctions in progress over a computer network.

100. The system of claim 94 wherein the server processor is further operative with the server program to extract the data based on pre-determined criteria.

101. The system of claim 94 wherein the server processor is further operative with the server program to extracting the data based on user-inputted criteria.

102. The system of claim 94 wherein the server processor is further operative with the server program to calculate the extracted data based on pre-determined criteria.

103. The system of claim 94 wherein the server processor is further operative with the server program to calculate the extracted data based on user-inputted criteria.

104. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data compares different auction systems and the final price paid for completed auctions.

105. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data compares different auction systems and the final price received for completed auctions.

106. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates the lowest price paid in a completed auction.

107. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates the highest price paid in a completed auction.

108. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates the mean price paid in a completed auction.

109. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates the median price paid in a completed auction.

110. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates the mode of prices paid in a completed auction.

111. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates the range of prices paid in a completed auction.

112. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates the deviation of prices paid in a completed auction.

113. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates relevant statistical metrics.

114. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data calculates at least one calculation with at least one piece of auction data.

115. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data is further operative to create a graph based on the data.

116. The system of claim 94 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data is further operative to create a graph of prices paid in a completed auction over a period of time.

117. The system of claim 94 wherein the server processor is further operative with the server program to update the data in real-time.

118. The system of claim 94 wherein the server processor is further operative with the server program to update the data at suitable pre-determined intervals.

119. The system of claim 95 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data compares different Internet auction sites, auction systems, and the bid history for auctions in progress.

120. The system of claim 95 wherein the server processor operative with the server program to perform calculations on the extracted portion of the auction data compares different Internet auction sites, auction systems, and the final price paid for completed auctions