System and method for providing liquidity

• US 20030172019A1
• Filed: 03/06/2002
• Published: 09/11/2003
• Est. Priority Date: 03/06/2002
• Status: Active Grant

• Current Assignee: ReFlow Services LLC
• Original Assignee: ReFlow Services LLC
• Inventors: Getty, Gordon P.
• Granted Patent: US 8,112,331 B2
• Time in Patent Office: Days
• US Class Current: 705/36
• 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

Abstract

A method of providing liquidity to an investment fund utilizing a liquidity vehicle, including prompting at least one investment fund having a net share outflow to offer shares to the liquidity vehicle, purchasing at least one offered share, and holding the at least one purchased share in the liquidity vehicle for a period of time.

Claims

1. A method of providing liquidity to an investment fund utilizing a liquidity vehicle, comprising:

(a) prompting at least one investment fund having a net share outflow to offer shares to the liquidity vehicle;

(b) purchasing at least one offered share; and

(c) holding the at least one purchased share in the liquidity vehicle for a period of time.

2. The method of claim 1, wherein the investment fund is prompted by the liquidity vehicle in step (a).

3. The method of claim 1, wherein the investment fund is prompted by a third party in step (a).

4. The method of claim 1, further comprising:

(d) redeeming at least one of the at least one purchased share from the investment fund.

5. The method of claim 4, wherein the at least one offered share is purchased in step (b) prior to the next trading day after the occurrence of an outflow of shares of the same investment fund.

6. The method of claim 5, wherein step (d) is performed prior to the next trading day following the occurrence of an inflow of shares of the same investment fund.

7. The method of claim 5, wherein step (d) is performed within five trading days of the occurrence of an inflow of shares of the same investment fund on a trading day.

8. The method of claim 1, wherein a fee is charged by the liquidity vehicle in connection with the purchase of the at least one offered share in step (b).

9. The method of claim 8, wherein the fee is determined through an auction.

10. The method of claim 8, wherein the fee is determined through a dutch auction.

11. The method of claim 8, wherein the fee is determined by the liquidity vehicle.

12. The method of claim 1, wherein a fee is charged by an entity other than the liquidity vehicle in connection with the purchase of the at least one offered share in step (b).

13. The method of claim 1, wherein the period of time for holding the at least one purchased share in step (c) does not exceed the period between the sale of the at least one share in step (b) to the liquidity vehicle and the date by which the investment fund has experienced a net share inflow following the sale equal to at least the number of shares sold to the liquidity vehicle in step (b).

14. The method of claim 1, wherein the period of time for holding the at least one purchased share in step (c) does not exceed a predetermined number of days more than the period between the sale of the at least one share in step (b) to the liquidity vehicle and the date by which the investment fund has experienced a net share inflow following the sale equal to at least the number of shares sold to the liquidity vehicle in step (b).

15. A system for providing liquidity to an investment fund utilizing a liquidity vehicle, comprising:

a processor;

a memory in communication with said processor;

a display in communication with said processor; and

an input device in communication with said processor,

wherein said processor prompts at least one investment fund having a net share outflow to offer shares to the liquidity vehicle;

wherein said processor causes at least one offered share to be purchased; and

wherein said processor causes the at least one purchased share in the liquidity vehicle to be held for a period of time.

16. A system for providing liquidity to an investment fund utilizing a liquidity vehicle, comprising:

means for prompting at least one investment fund having a net share outflow to offer shares to the liquidity vehicle;

means for purchasing at least one offered share; and

means for holding the at least one purchased share in the liquidity vehicle for a period of time.

17. A computer-readable medium having stored thereon computer-executable instructions for performing the steps comprising:

(a) prompting at least one investment fund having a net share outflow to offer shares to the liquidity vehicle;

(b) purchasing at least one offered share; and

(c) holding the at least one purchased share in the liquidity vehicle for a period of time.