Electronic bartering system

• US 20060190416A1
• Filed: 04/18/2006
• Published: 08/24/2006
• Est. Priority Date: 08/05/1999
• Status: Active Grant

• Current Assignee: Bartersecurities Incorporated
• Original Assignee: Bartersecurities Incorporated
• Inventors: Himmelstein, Richard
• Granted Patent: US 7,587,370 B2
• Time in Patent Office: Days
• US Class Current: 705/80
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• 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 50/188 Electronic negotiation

Abstract

A bartering system implements barters between a plurality of parties each having one or more classes of items available for barter. Preferably, barter orders are created by designating a selected quantity of a first class of items to be bartered, designating a date range for transferring title of the first class items to be bartered, designating a barter value of the first class of items to be bartered, and designating a second class of items to be acquired. Barter orders are posted via the Internet to a barter database and may be displayed via the Internet. Posted barter orders whose first class of items match the second class of items of a barterer'"'"'s order are preferably displayed. Posted barter orders from the display are selected to effectuate a barter transaction which combines a barterer'"'"'s barter order with the selected posted order(s).

Claims

1. A method for facilitating the bartering of publicly traded securities on a computerized system, comprising:

receiving on the computerized system a first barter order from a user including;

a first security including a quantity thereof to be sold in a barter,

a second security different from the first security to be purchased in said barter concurrent with the sale of the first security, and

a condition relating to the value of said barter under which condition said barter may be executed;

comparing on the computerized system said first barter order to a list including multiple barter orders, each of said multiple barter orders including;

a first security including a quantity thereof to be sold in a barter,

a second security different from the first security to be purchased in said barter concurrent with the sale of the first security, and

a condition relating to the value of said barter under which condition said barter may be executed;

determining from said list a plurality of selected barter orders which, if executed, will consummate said first barter order and one or more of said list of a plurality of selected barter orders;

transmitting to said user, based on said determining, an indication that said first barter order may be executed; and

receiving from said user a request to execute said barter order.

2. The method of claim 1 and further comprising executing said barter order including executing at least two of said plurality of selected barter orders.

3. The method of claim 1 further comprising executing a selected barter order by using a matching engine to link multiple barter orders.

4. The method of claim 1 wherein said receiving on the computerized system a first barter order further comprises receiving a time within which said barter may occur.

5. The method of claim 1 wherein each of said barter orders further includes a time within which said barter order may occur.

6. The method of claim 1 wherein said first barter order further includes a quantity of said second security.

7. The method of claim 1 further comprising transmitting to multiple parties an indication that said first barter order may be executed.

8. The method of claim 1 further comprising displaying an available quantity of a security to be bartered.

9. The method of claim 8 further comprising displaying a remaining quantity of a security to be bartered, after a portion of said available amount is bartered.

10. The method of claim 1 and further including displaying to the user a single phantom barter order representative of the execution of the first barter order and the plurality of selected barter orders.

11. A computerized system for facilitating the bartering of publicly traded securities, comprising:

a memory; and

a processor disposed in communication with said memory, said processor configured to

receive a first barter order from a user including;

a first security including a quantity thereof to be sold in a barter,

a second security different from said first security to be purchased in said barter concurrent with the sale of said first security, and

a condition relating to the value of said barter under which condition said barter may be executed;

compare said first barter order to a list including multiple barter orders, each of said barter orders including;

a first security including a quantity thereof to be sold in a barter,

a second security different from said first security to be purchased in said barter concurrent with the sale of said first security, and

a condition relating to the value of said barter under which condition said barter may be executed;

determine from said list a plurality of selected barter orders which, if executed, will consummate said first barter order and one or more of said list of a plurality of selected barter orders;

transmit to said user, based on said determining, an indication that said first barter order may be executed; and

receive from said user a request to execute said barter order.

12. A computerized system for facilitating the bartering of publicly traded securities, comprising:

means for receiving a first barter order from a user including;

a first security including a quantity thereof to be sold in a barter,

a second security different from said first security to be purchased in said barter concurrent with the sale of said first security, and

a condition relating to the value of said barter under which condition said barter may be executed;

means for comparing said first barter order to a list including multiple barter orders, each of said barter orders including;

a first security including a quantity thereof to be sold in a barter,

a second security different from said first security to be purchased in said barter concurrent with the sale of said first security, and

a condition relating to the value of said barter under which condition said barter may be executed;

means for determining from said list a plurality of selected barter orders which, if executed, will consummate said first barter order and one or more of said list of plurality of selected barter orders;

means for transmitting to said user, based on said determining, an indication that said first barter order may be executed; and

means for receiving from said user a request to execute said barter order.

13. A method for bartering publicly traded securities on a computerized system, comprising:

displaying a plurality of barter orders to a user, each of said barter orders comprising a first security and a second security to be exchanged in a barter transaction, the second security different than the first security;

communicating in association with each barter order a value indicator showing a gain or loss on the barter transaction based on a value ratio determined using a market value of the first security and a market value of the second security; and

receiving from said user a barter order selection for processing.

14. The method of claim 13 wherein the value indicator comprises one of the group including a value ratio, a percentage and a dollar amount for display.

15. The method of claim 14 wherein the value ratio includes a ratio based upon a=a barter value of said first security, b=a market price of said first security, x=a barter value of said second security, and y=a market price of said second security.

16. The method of claim 15 wherein the value ratio is selected from the group including (x/y)/(a/b), (a/b)/(x/y) and (b/a)−

(y/x).

17. The method of claim 16 and further including modifying said value ratio using one of the group including a predetermined value and a predetermined variable.

18. The method of claim 16 wherein each of said first security and said second security are selected from the group consisting of:

stocks, cash, certificates of deposit, barter dollars, notes, bonds, stock options, himmelstein options, option puts, option calls, commodities, futures, annuities, muni bonds, government bonds, finds, strips, Ginnie Maes, Fannie Maes, Freddie Macs, unit investment trusts, T-bills, and commodity money.

19. The method of claim 16 wherein b=a market price of said first security plus future interest income from said first security and y=a market price of said second security plus future interest income from said second security

20. The method of claim 13 and further including transmitting the barter order selection to a third party processor remote from said user to initiate the execution of the barter order selection.

21. The method of claim 13 wherein said receiving a barter order selection comprises receiving said barter order selection via information inputted through a graphical user interface.

22. The method of claim 16 further comprising receiving with said barter order selection a dividend reinvestment option selected from the group consisting of:

no preference, stock with a dividend reinvestment program, and stock without a dividend reinvestment program.

23. The method of claim 16 wherein said displaying further comprises displaying real time changes to selected barter orders.

24. The method of claim 16 wherein a quantity of said first security or said second security is a decimal amount.

25. The method of claim 13 further comprising displaying an available quantity of a security to be bartered.

26. The method of claim 25 further comprising displaying a remaining quantity of a security to be bartered, after a portion of said available amount is bartered.

27. A system for bartering publicly traded securities, comprising:

a processor;

a display connected to the processor; and

a memory containing instructions for controlling the operation of the processor to perform the steps of;

displaying, on the display, a plurality of barter orders to a user, each of said barter orders comprising a first security and a second security to be exchanged in a barter transaction, the second security different than the first security;

communicating in association with each barter order a value indicator showing a gain or loss on the barter transaction based on a value ratio determined using a market value of the first security and a market value of the second security; and

receiving from said user a barter order selection for processing.

28. A method for bartering publicly traded securities on a computerized system, comprising:

means for displaying a plurality of barter orders to a user, each of said barter orders comprising a first security and a second security to be exchanged in a barter transaction, the second security different than the first security;

means for communicating in association with each barter order a value indicator showing a gain or loss on the barter transaction based on a value ratio determined using a market value of the first security and a market value of the second security;

means for receiving from said user a barter order selection for processing; and

means for transmitting the barter order selection for processing.