METHODS AND SYSTEMS FOR INCENTIVIZING PARTICIPATION IN A MARKETPLACE THROUGH THE ISSUANCE OF WARRANTS

• US 20080195521A1
• Filed: 02/14/2007
• Published: 08/14/2008
• Est. Priority Date: 09/25/2001
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Lutnick, Howard W., Noviello, Joseph, Uman, Jonathan, Varacchi, Frederick, Uman, Julie, Varacchi, Eileen
• Granted Patent: US 7,765,149 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• 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

Methods and corresponding system are provided herewith that, in at least one embodiment, include the act or acts of issuing at least one warrant to a participant, in which the warrant is convertible into at least one ownership share of an entity associated with a marketplace; receiving information associated with the participant'"'"'s execution of trading activities in the marketplace; determining, based on the received information, a quantity of warrants eligible for conversion into ownership shares; converting the eligible warrants into a quantity of ownership shares; and transmitting an indicia indicating the quantity of ownership shares.

Claims

1. A method that comprises a computer system configured to:

issue at least one warrant to a participant, in which the warrant is convertible into at least one ownership share of an entity associated with a marketplace;

receive information associated with the participant'"'"'s execution of trading activities in the marketplace;

determine, based on the received information, a quantity of warrants eligible for conversion into ownership shares;

convert the eligible warrants into a quantity of ownership shares; and

transmit an indicia indicating the quantity of ownership shares.

2. The method of claim 1, in which the trading activity comprises at least one of the following:

a bid, an offer, a request to modify, and a request to cancel.

3. The method of claim 1, in which the participant is a member of a vertical market, in which the vertical market comprises goods and services that share a relationship.

4. The method of claim 1, in which the marketplace is an electronic exchange.

5. The method of claim 1, in which the entity comprises one of the following:

a corporation, a LLC, an exchange, an electronic exchange, a trading platform, and an investment fund.

6. The method of claim 1, in which the received information comprises:

a revenue generated by the participant'"'"'s execution of the trading activities in the marketplace.

7. The method of claim 1, in which the received information comprises:

a quantity of trading activities being executed by the participant.

8. The method of claim 1, in which the received information comprises:

a percentage of growth in the marketplace, in which the growth is associated with the participant'"'"'s execution of trading activities in the marketplace.

9. The method of claim 1, in which the quantity of warrants eligible for conversion is determined in accordance to a conversion rate that is defined by an agreement, in which the agreement is established before any warrants are issued.

10. The method of claim 1, in which converting the eligible warrants into the quantity of ownership shares further comprises:

receiving an indication that a target has been achieved; and

converting the eligible warrants into the quantity of ownership shares.

11. The method of claim 10, in which the target comprises:

a revenue generated by the participant'"'"'s execution of trading activities within the marketplace, in which the revenue is measured within a period of time.

12. The method of claim 1, in which converting the eligible warrants into the quantity of ownership shares comprises converting each warrant into ownership shares based on a conversion ratio that is defined by an agreement.

13. The method of claim 1, in which converting the eligible warrants into the quantity of ownership shares comprises converting a portion of each warrant into ownership shares.

14. A storage medium containing machine instructions readable by a computer system that includes a data store to configure the computer system to:

issue at least one warrant, in which the warrant incentivizes a participant to execute trading activities in a marketplace and the warrant may be converted into at least one ownership share of an entity associated with the marketplace;

receive information associated with the participant'"'"'s execution of the trading activities in the marketplace;

determine, based on the received information, a quantity of warrants eligible for conversion into ownership shares;

convert the eligible warrants into a quantity of ownership shares; and

transmit an indicia indicating the quantity of ownership shares.

15. The system of claim 14, in which the participant is a member of a vertical market, in which the vertical market comprises goods and services that share a relationship.

16. The system of claim 14, in which the entity comprises one of the following:

a corporation, a LLC, an exchange, an electronic exchange, a trading platform, and an investment fund.

17. The system of claim 14, in which the received information comprises:

a revenue generated by the participant'"'"'s execution of the trading activities in the marketplace.

18. The system of claim 14, in which the received information comprises:

a quantity of trading activities being executed by the participant.

19. The system of claim 14, in which the quantity of warrants eligible for conversion is determined in accordance to a conversion rate that is defined by an agreement, in which the agreement is established before any warrants are issued.

20. The system of claim 14, in which converting the eligible warrants into the quantity of ownership shares further comprises:

receiving an indication that a target has been achieved; and

converting the eligible warrants into the quantity of ownership shares.

21. The system of claim 20, in which the target comprises:

a revenue generated by the participant'"'"'s execution of trading activities within the marketplace.

22. The system of claim 14, in which converting the eligible warrants into the quantity of ownership shares comprises converting each warrant into ownership shares based on a conversion ratio that is defined by an agreement.

23. A method that comprises a computer system configured to:

issue at least one warrant, in accordance to an agreement, in which the warrant incentivizes a participant to execute trading activities in a marketplace and the warrant may be converted into at least one ownership share of an entity associated with the marketplace;

receive information associated with the participant'"'"'s execution of the trading activities in the marketplace;

determine, based on the received information and a conversion rate, a quantity of warrants eligible for conversion into ownership shares;

convert the eligible warrants into a quantity of ownership shares, in which the quantity of ownership shares are converted based on a conversion ratio;

transmit an indicia indicating the quantity of ownership shares; and

generating an agreement, in which the agreement is established before the issuance of any warrants, and in which the agreement comprises parameters for;

(i) determining a quantity of warrants issued,

(ii) determining the conversion rate used for determining the quantity of eligible warrants, and

(iii) determining the conversion ratio used for determining the quantity of ownership shares.

24. The method of claim 23, in which the participant is a member of a vertical market, in which the vertical market comprises goods and services that share a relationship.

25. The method of claim 23, in which the received information comprises:

a revenue generated by the participant'"'"'s execution of the trading activities in the marketplace.

26. The method of claim 23, in which the received information comprises:

a quantity of trading activities being executed by the participant.