SYSTEM AND METHOD FOR ELECTRONIC TRADING AND DELIVERY OF A COMMODITIZED PRODUCT

• US 20090313161A1
• Filed: 05/21/2009
• Published: 12/17/2009
• Est. Priority Date: 05/17/2000
• Status: Abandoned Application

• Current Assignee: Bullion Direct, Inc.
• Original Assignee: Bullion Direct, Inc.
• Inventors: KATYAL, Vivek, MCALLISTER, Charles Hadley
• Application Number:
  US12/470,343
• Publication Number:
  US 20090313161A1
• 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 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention provides a system and method for trading of a commoditized product through a distributed network of computers, and for delivering the commoditized products after the trade. The system includes an order matching routine, a payment routine, a product qualification routine, and a distribution routine. The invention provides for secure electronic trading of a commoditized product through a hub centric platform that provides for a real order exchange in a real time environment, allows individual buyers and sellers to remain anonymous to each other, eliminates size or volume as a means of discrimination for transaction, and maximizes distribution efficiency.

Claims

1. A method for providing secure electronic trading of a commoditized product between at least one seller and at least one buyer, and for providing distribution of the commoditized product from at least one seller to at least one buyer, wherein a hub centric platform administers a seller account, a buyer account, a data management system, a system account, a seller portfolio account, a buyer portfolio account, a qualification routine, a payment routine, and a distribution routine comprising:

receiving a sell order from at least one seller to sell a commoditized product;

receiving a buy order from at least one buyer to buy a commoditized product;

matching the sell order with at least one buy order from the at least one buyer;

matching the buy order with at least one sell order from the at least one seller;

determining the qualification of the at least one buyer or the at least one seller;

receiving the commoditized product from the at least one seller;

qualifying the commoditized product received from the at least one seller;

drawing a seller payment from the system account; and

distributing a seller payment to the at least one seller account.

2. The method of claim 1 wherein the at least one buyer comprises at least two buyers, and the at least one seller comprises one seller.

3. The method of claim 1 wherein the at least one seller comprises at least two sellers and the at least one buyer comprises one buyer.

4. The method of claim 1 wherein the buyer designates a distribution routine by selecting from shipping the commoditized product to another location, accumulating the commoditized product in a designated account, or taking delivery of the commoditized product.

5. The method of claim 1 where distribution comprises shipping the commoditized product by overnight delivery means, standard delivery means, ground delivery means, or air delivery means.

6. The method of claim 1 further comprising the at least one seller selects a prior pay option for shipping commoditized product to the platform.

7. The method of claim 6 wherein the prior pay option comprises;

the hub centric platform sending a negotiable payment document to the seller, wherein the negotiable payment document is subject to a bank hold of funds until the commoditized product shipped from the seller is received and qualified by the hub centric platform;

the seller depositing the negotiable payment document into a designated account;

the seller shipping the commoditized product to the hub centric platform;

the product is qualified by the hub centric platform,

the hub centric platform notifies the bank to release the hold on the negotiable payment document; and

payment funds are released to the seller designated account.

8. The method of claim 7 wherein the seller designated account is a portfolio account on the hub centric platform, a credit union account, a brokerage account, a bank account, or any combination thereof.

9. The method of claim 1 wherein the qualification routine comprises authentication of commoditized product, inspection of commoditized product, verification of commoditized product, authentication of buyer or seller information, inspection of buyer or seller information, performing credit checks on buyer or seller, verification of market price of the commoditized product, or any combination thereof.

10. The method of claim 1 wherein the qualification routine is performed automatically or manually.

11. The method of Claim 7, further comprising:

the hub centric platform receiving the shipping package with the commoditized product from the seller;

the hub centric platform determining whether the commoditized product matches the sell order; and

in response to determining that the commoditized product matches the sell order,

notifying the bank to remove the temporary hold on the negotiable payment document to the seller.

12. The method of Claim 7, further comprising:

in response to determining that the commoditized product does not match the sell order,

maintaining the temporary hold on the payment to the seller; and

notifying the seller that the commoditized product does not match the sell order.

13. The method of Claim 1, wherein the commoditized product comprises any product or service having a size, weight, color or quality specification.

14. The method of Claim 1, wherein the commoditized product is precious metal, agricultural products, building products, business services, or any combination thereof.

15. A hub centric platform for trading a commoditized product comprising means for matching orders for at least one seller and at least one buyer wherein at least one seller and at least one buyer are not limited by size or volume of order, the at least one seller and at least one buyer remain anonymous to one another;

multiple buy orders can fulfill one sell order and multiple sell orders can fulfill one buy order, one shipment results from fulfillment of any buy order and one payment results from any sell order;

means for qualifying commoditized product, buyer information, seller information, market pricing information, or any combination thereof;

means for providing real time order and pricing information;

means for accumulation and managing buyer and seller transactions;

means for distributing commoditized product, and

means for issuing payments, and

means for accepting commoditized products sold.

16. The hub centric platform of claim 15 further comprising:

a proprietary software program to perform all functions;

a telecommunications system operated by the software program;

a network of computers for accessing the software program; and

a system of checks and balances to monitor the software, the telecommunications system, and the network of computers.