System and method for conducting an electronic financial asset deposit auction over computer network

• US 20040006531A1
• Filed: 07/03/2003
• Published: 01/08/2004
• Est. Priority Date: 03/24/2000
• Status: Active Grant

• Current Assignee: Khai Hee Kwan
• Original Assignee: Khai Hee Kwan
• Inventors: Kwan, Khai Hee
• Granted Patent: US 8,001,035 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• 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

Abstract

A trusted computer system for conducting an electronic financial asset deposit auction over a computer network such as the Internet wherein invited depositor members are anonymous and bid against themselves for a number of sessions no greater than the number of depositor members. At each session, a member is declared a winner and eliminated from further sessions. The winner then collects the pooled discount deposits with repayment due in the next session payable to the winner of the said session. The aforesaid steps are repeated until one depositor is left wherein said depositor will receive the highest rate of return.

Claims

1. A method for conducting a trusted deposit auction within at least one network connected to at least one depositor'"'"'s computer, said method operating on a host computer, comprising the steps:

A) receiving bid amount as a discount from principal from anonymous members of a trusted network wherein said members are depositors;

B) selecting the winner from said bids submitted by depositors;

C) excluding said winner-depositor from future auctions;

D) depositing pooled funds for winner'"'"'s account;

E) repeating steps A, B, C, D at predetermined intervals with remaining depositors; and

whereby funds comprising cash equivalent or cash.

2. The method of claim 1 wherein pooled funds consist funds from each selected winner making principal repayment at each predetermined interval beginning from the next interval following the winning interval.

3. The method of claim 1 wherein pooled funds consist receiving the discounted principal from each remaining depositor not selected as winner at each predetermined interval, said discount is equivalent to the bid amount submitted by selected winner.

4. The method of claim 1 whereby membership of a depositor network is by invitation only.

5. The method of claim 1 whereby said networks are linked for deposit auction by invitation from at least one member of one network having relationship with at least one member of the target link network.

6. The method of claim 1 whereby said step of repeating at step E is executed until one depositor is remaining or for a fixed number of sessions as agreed by the members at the outset of the auction whereby said number of sessions is no greater than the number of depositors at the outset.

13. Computer executable software code stored on a computer readable storage medium implementing the method of claim 1.

14. Computer executable software code stored on a computer readable storage medium implementing the method of claim 2.

15. Computer executable software code stored on a computer readable storage medium implementing the method of claim 3.

16. Computer executable software code stored on a computer readable storage medium implementing the method of claim 4.

17. Computer executable software code stored on a computer readable storage medium implementing the method of claim 5.

18. Computer executable software code stored on a computer readable storage medium implementing the method of claim 6.

19. A trusted deposit auction system including a computer connected to a network programmed to perform the method of claim 1.

20. A trusted deposit auction system including a computer connected to a network programmed to perform the method of Claim 6.

7. A trusted deposit auction system comprising:

at least a trusted network consisting of anonymous members computers;

a host server connected to the network;

wherein said host server further comprising;

A) means for receiving bid amount as a discount from principal from anonymous members of a trusted network wherein said members are depositors;

B) means for selecting the winner from said bids submitted by depositors;

C) means for excluding said winner-depositor from future auctions;

D) means for depositing pooled funds for winner'"'"'s account;

E) means for repeating means A, B, C, D at predetermined intervals with remaining depositors; and

whereby funds comprising cash equivalent or cash.

8. The system of claim 7 wherein pooled funds consist funds from each selected winner making principal repayment at each predetermined interval beginning from the next interval following the winning interval.

9. The system of claim 7 wherein pooled funds consist means to receive the discounted principal from each remaining depositor not selected as winner at each predetermined interval, said discount is equivalent to the bid amount submitted by selected winner.

10. The system of claim 7 whereby membership of a depositor network is by invitation only.

11. The system of claim 7 whereby said networks are linked for deposit auction by invitation from at least one member of one network having relationship with at least one member of the target link network.

12. The system of claim 7 whereby said repeating means E is executed until one depositor is remaining or for a fixed number of sessions as agreed by the members at the outset of the auction whereby said number of sessions is no greater than the number of depositors at the outset.