Computer-implemented securities trading system with a virtual specialist function

• US 20040049447A1
• Filed: 09/04/2003
• Published: 03/11/2004
• Est. Priority Date: 03/25/1996
• Status: Active Grant

• Current Assignee: Michael R. Burns, Timothy M. Keiser
• Original Assignee: Michael R. Burns, Timothy M. Keiser
• Inventors: Keiser, Timothy M., Burns, Michael R.
• Granted Patent: US 8,606,685 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• 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 computer-implemented financial management system provides the trading of securities via a network using virtual currency. A server computer receives buy and sell orders for derivative financial instruments from a plurality of client computers. The server computer attempts to match the buy and sell orders and then generates a market price through the use of a virtual specialist program executed by the server computer. The virtual specialist program responds to an imbalance in the matching of the buy and sell orders. The virtual currency accumulated by HSX account holders as a result of successful trading may be converted to another currency, credited toward the cost of merchandise provided through a vendor'"'"'s web site, etc.

Claims

1. A method for trading a plurality of derivative financial instruments over the Internet, comprising:

receiving a first order to buy a derivative financial instrument that selectively represents a movie or a movie talent in an entertainment industry, said movie corresponding to a stock and said movie talent corresponding to a bond for trading over the Internet;

receiving a second order to sell said derivative financial instrument;

setting a market price based on the received first and second orders; and

executing a trade at the set market price.

2. The method according to claim 1, further comprising setting a price for a new stock offering on the basis of a potential box office revenue for a movie represented by said new stock offering.

3. The method according to claim 1, further comprising setting a price for a new bond offering on the basis of a talent'"'"'s popularity rating in the entertainment industry, such that one bond representing one talent with a low popularity rating is issued with a higher yield than another bond representing another talent with a high popularity rating.

4. The method according to claim 1, wherein the set market price is represented by electronic currency.

5. The method according to claim 4, further comprising debiting a first account controlled by a first trader who issued said first order in the electronic currency for the executed trade, and crediting a second account controlled by a second trader who issued said second order with proceeds in the electronic currency for the executed trade.

6. The method according to claim 5, wherein the electronic currency is Hollywood dollars.

7. The method according to claim 1, wherein the set market price reflects a current production status of said movie.

8. The method according to claim 1, wherein the set market price is indicative of the traders'"'"' interest in said movie such that a potential box office revenue for said movie may be predicted far in advance of the movie release.

9. The method according to claim 1, wherein the set market price is indicative of the traders'"'"' interest in said talent such that a potential box office revenue for said movie may be predicted far in advance of the movie release.

10. A system for trading a plurality of derivative financial instruments over the Internet, comprising:

means for receiving a first order to buy a derivative financial instrument that selectively represents a movie or a movie talent in an entertainment industry, said movie corresponding to a stock and said movie talent corresponding to a bond for trading over the Internet;

means for receiving a second order to sell said derivative financial instrument;

means for setting a market price based on the received first and second orders; and

means for executing a trade at the set market price.

11. The system according to claim 10, further comprising means for setting a price for a new stock offering on the basis of a potential box office revenue for a movie represented by said new stock offering.

12. The system according to claim 10, further comprising means for setting a price for a new bond offering on the basis of a talent'"'"'s popularity rating in the entertainment industry, such that one bond representing one talent with a low popularity rating is issued with a higher yield than another bond representing another talent with a high popularity rating.

13. The system according to claim 10, wherein the set market price is represented by electronic currency.

14. The system according to claim 13, further comprising means for debiting a first account controlled by a first trader who issued said first order in the electronic currency for the executed trade, and means for crediting a second account controlled by a second trader who issued said second order with proceeds in the electronic currency for the executed trade.

15. The system according to claim 14, wherein the electronic currency is Hollywood dollars.

16. The system according to claim 10, wherein the set market price reflects a current production status of said movie.

17. The system according to claim 10, wherein the set market price is indicative of the traders'"'"' interest in said movie such that a potential box office revenue for said movie may be predicted far in advance of the movie release.

18. The system according to claim 10, wherein the set market price is indicative of the traders'"'"' interest in said talent such that a potential box office revenue for said movie may be predicted far in advance of the movie release.

19. A computer-readable storage medium for storing program code means for, when executed, causing a computer to perform a method for trading a plurality of derivative financial instruments over the Internet, the method comprising:

receiving a first order to buy a derivative financial instrument that selectively represents a movie or a movie talent in an entertainment industry, said movie corresponding to a stock and said movie talent corresponding to a bond for trading over the Internet;

receiving a second order to sell said derivative financial instrument;

setting a market price based on the received first and second orders; and

executing a trade at the set market price.