Automated financial instrument exchange apparatus and systems

• US 20040153390A1
• Filed: 01/30/2003
• Published: 08/05/2004
• Est. Priority Date: 01/30/2003
• Status: Active Grant

• Current Assignee: Goldman Sachs & Co. LLC (Goldman Sachs Group Incorporated)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Cohen, David M., Saulys, Vincent V., McNeil, Richard P.
• Granted Patent: US 7,783,546 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

According to one embodiment, deal information associated with a bond exchange is determined, the deal information including information associated with a plurality of eligible financial instruments and at least one new financial instrument. In addition, offer information is received from a plurality of remote client devices via a communication network. An exchange allocation is then automatically calculated based on the deal information and the offer information. Moreover, target information associated with at least one financial instrument may be determined and used to calculate the exchange allocation.

Claims

1. A method, comprising:

determining deal information associated with a bond exchange, the deal information including information associated with a plurality of eligible issues and at least one new issue;

determining target information associated with at least one of the issues;

receiving offer information from a plurality of remote client devices via a communication network; and

automatically calculating a bond exchange allocation based on the deal information, the target information, and the offer information.

2. The method of claim 1, wherein the bond exchange is associated with a plurality of eligible issues and a plurality of new issues.

3. The method of claim 1, wherein the deal information includes at least one of:

(i) issuer information, (ii) an issuer identifier, (iii) a bond identifier, (iv) an open date, (v) an open time, (vi) a close date, (vii) a close time, (viii) a settlement date, (ix) a deal status, (x) supplemental deal information, (xi) yield information, (xii) reference bond information, (xiii) a minimum price, (xiv) a maximum price, and (xv) a price increment.

4. The method of claim 1, wherein the received offer information comprises an electronic letter of transmittal.

5. The method of claim 1, wherein the received offer information includes at least one of:

(i) a client identifier, (ii) client information, (iii) a bond exchange identifier, (iii) a bond identifier, (iv) a bond amount, (v) a bid type, (vii) clearing agent information, (viii) a bond price, and (ix) a bond spread.

6. The method of claim 1, wherein the bond exchange allocation is based on at least one of:

(i) an offer date, (ii) an offer time, and (iii) an optimization of issuer benefit.

7. The method of claim 1, wherein the communication network comprises at least one of:

(i) a public network, (ii) a proprietary network, (iii) a wireless network, and (iv) the Internet.

8. The method of claim 1, wherein deal information may be associated with any of a plurality of bond exchanges and a plurality of issuers.

9. The method of claim 1, further comprising:

receiving potential offer information from the client device.

10. The method of claim 1, further comprising:

transmitting bond exchange information to the remote client device.

11. The method of claim 10, wherein the bond exchange information transmitted to the client device comprises at least one of:

(i) an exchange supplement, (ii) an offering circular, (iii) a hypothetical example, (iv) agreement information, (v) a list of electronic letters of transmittal associated with a particular client, and (vi) allocation information.

12. The method of claim 1, further comprising:

transmitting issuer information to a remote issuer device.

13. The method of claim 12, wherein the issuer information transmitted to the issuer device comprises at least one of:

(i) a list of electronic letters of transmittal associated with a plurality of clients, (ii) cumulative total information, (iii) allocation amounts, (iv) allocation percentages, and (v) re-formatted information.

14. The method of claim 12, wherein the issuer information transmitted to the issuer device comprises at least one of:

(i) setup information, (ii) an issuer identifier, (iii) a bond identifier, (iv) an open date, (v) an open time, (vi) a close date, (vii) a close time, (viii) a settlement date, (ix) yield information, (x) price information, (xi) reference bond information, (xii) a minimum price, (xiii) a maximum price, and (xiv) a price increment.

15. The method of claim 12, wherein the issuer information transmitted to the issuer device comprises at least one of:

(i) analysis information, (ii) a bond identifier, (iii) a minimum spread, (iv) a maximum spread, (v) a spread increment, (vi) a minimum face amount, (vii) a maximum face amount, and (viii) a face amount multiple.

16. The method of claim 1, further comprising:

transmitting settlement agent information to a remote settlement agent device.

17. The method of claim 16, wherein the settlement agent information transmitted to the settlement agent device comprises at least one of:

(i) a settlement report, (ii) settlement instructions, (iii) acceptance blocking information, (iv) settlement blocking information, (v) participant information, (vi) contact information, and (vii) refresh frequency information.

18. The method of claim 1, further comprising:

transmitting clearing agent information to a remote clearing agent device.

19. The method of claim 18, wherein the clearing agent information transmitted to the clearing agent device comprises at least one of:

(i) a clearing status, (ii) preliminary allocations, (iii) final allocations, (iv) participant information, (v) contact information, and (vi) refresh frequency information.

20. The method of claim 1, further comprising:

providing at least one of;

(i) system progress information, (ii) submitted letters of transmittal information, (iii) stored letters of transmittal information, and (iv) deleted letters of transmittal information.

21. The method of claim 1, further comprising:

providing at least one of;

(i) system administrator information, (ii) an administrator identifier, (iii) an administrator role, and (iv) manager information.

22. The method of claim 1, further comprising:

exchanging at least one of;

(i) system bank entry form information, (ii) a user identifier, (iii) a bank identifier, and (iv) a bank address.

23. The method of claim 1, further comprising:

calculating hypothetical analysis information.

24. The method of claim 23, wherein the hypothetical analysis information includes at least one of:

(i) assumption information, (ii) assumed clearing information for a plurality of eligible issues, (iii) assumed spread information for at least one new issue, (iv) assumed coupon information for at least one new issue, (v) an assumed benchmark rate, (vi) an assumed settlement date, and (vii) hypothetical yield information.

25. The method of claim 23, further comprising:

receiving input information from a remote issuer device, the input information being used to calculate the hypothetical analysis information and including at least one of;

(i) a bond identifier, (ii) a benchmark, (iii) a spread, (iv) a coupon, (v) an acceptable indication, (vi) a lock indication, and (vii) a clearance optimization indication.

26. The method of claim 23, further comprising at least one of:

(i) storing the hypothetical analysis information, (ii) storing the hypothetical analysis information as a preliminary allocation, and (iii) executing the hypothetical analysis information as a final execution.

27. An apparatus, comprising:

a processor;

a communication device coupled to said processor and adapted to communicate via a communication network; and

a storage device in communication with said processor and storing instructions adapted to be executed by said processor to;

determine deal information associated with a bond exchange, the deal information including information associated with a plurality of eligible issues and at least one new issue;

determine target information associated with at least one of the issues;

receive offer information from a plurality of remote client devices via a communication network; and

automatically calculate a bond exchange allocation based on the deal information, the target information, and the offer information.

28. The apparatus of claim 27, wherein said storage device further stores at least one of:

(i) an issuer database, (ii) a bond exchange database, (iii) a client database, (iv) a letter of transmittal database, and (v) an allocation database.

29. The apparatus of claim 27, wherein said communication device is adapted to communicate with at least one of:

(i) an issuer device, (ii) a client device, (iii) a settlement agent device, and (iv) a clearing agent device.

30. A medium storing instructions adapted to be executed by a processor to perform a method, said method comprising:

determining deal information associated with a bond exchange, the deal information including information associated with a plurality of eligible issues and at least one new issue;

determining target information associated with at least one of the issues;

receiving offer information from a plurality of remote client devices via a communication network; and

automatically calculating a bond exchange allocation based on the deal information, the target information, and the offer information.

31. A method, comprising:

transmitting to a remote bond exchange controller deal information associated with a bond exchange, the deal information including information associated with at least one eligible issue and at least one new issue;

transmitting to the remote bond exchange controller target information associated with at least one of the issues; and

receiving bond exchange allocation information from the bond exchange controller, the bond exchange allocation information being automatically calculated based on the deal information, the target information, and offer information provided from a client device.

32. A method, comprising:

transmitting offer information to a remote bond exchange controller via a communication network; and

receiving bond exchange allocation information from the bond exchange controller, the bond exchange allocation information being automatically calculated based on;

(i) the offer information, (ii) deal information associated with a bond exchange, the deal information including information associated with a plurality of eligible issues and at least one new issue, and (iii) target information associated with at least one of the issues.

33. A method, comprising:

determining deal information associated with a financial instrument exchange, the deal information including information associated with a plurality of eligible financial instruments and at least one new financial instrument;

determining target information associated with at least one of the financial instruments;

receiving offer information from a plurality of remote client devices via a communication network; and

automatically calculating an exchange allocation based on the deal information, the target information, and the offer information.