SYSTEMS AND METHODS FOR IMPROVING THE LIQUIDITY AND DISTRIBUTION NETWORK FOR LUXURY AND OTHER ILLIQUID ITEMS

• US 20100174659A1
• Filed: 02/10/2010
• Published: 07/08/2010
• Est. Priority Date: 12/13/2001
• Status: Active Grant

• Current Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Original Assignee: BGC Partners Incorporated (BGC Group, Inc.)
• Inventors: Lutnick, Howard W., Heaton, Timothy H.
• Granted Patent: US 8,417,620 B2
• Time in Patent Office: Days
• US Class Current: 705/313
• CPC Class Codes: G06Q 30/0205 Location or geographical consideration
• CPC Class Codes: G06Q 30/0275 Auctions
• CPC Class Codes: G06Q 30/0611 Request for offers or quotes
• 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
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

Systems and methods for improving the liquidity and distribution network for luxury and other illiquid items are provided. These systems and methods preferably include the trading of futures and options contracts, which will provide the liquidity and distribution network for luxury items. Possible embodiments of these systems and methods include the trading of futures and options contracts for diamonds and wine. Another embodiment of this invention preferably includes generating indexes for diamond prices, wine prices, luxury item prices, housing values, mortgage prepayments, privately-held companies or for anything with from sufficiently liquid points of value. Another embodiment of this invention preferably includes a centralized data base for retrieving closing and current auction prices for determining the value of, and best method for the auctioning of various items. The data provided by this data base would improve liquidity by creating greater price transparency.

Claims

1. A method comprising:

receiving, over a communication network, index configuration information from at least one user, the index configuration information specifying a region;

after receiving the index configuration information, electronically compiling, by a computer system, data that indicates a respective value of each of a plurality of instances of real estate located in the user-specified region;

determining, by the computer system, a value of a user-configured index based on the data associated with the user-specified region; and

transmitting, over the communication network, a representation of the value of the user-configured index to the at least one user.

2. The method of claim 1, further comprising:

receiving second index configuration information from at least one second user, the second index configuration information specifying a second region, wherein the second region includes a subset of the region;

after receiving the second information, compiling second data that indicates a second respective value of each of a second plurality of instances of real estate located in the user-specified second region;

determining a second value of a second user-configured index based on the second data associated with the user-specified second region; and

transmitting a second representation of the second value of the second user-configured index to the at least one second user.

3. The method of claim 1, further comprising creating for the at least one user, an option contract based on the user-configured index.

4. The method of claim 1, further comprising creating for the at least one user, a futures contract based on the user-configured index.

5. The method of claim 1, in which electronically compiling comprises electronically compiling from price surveys of real estate.

6. The method of claim 1, in which electronically compiling further comprises electronically sorting the data based on at least one criterion.

7. The method of claim 1, wherein the index configuration information includes information that states the region in detail.

8. The method of claim 1, further comprising:

receiving new data that indicates a respective value of at least one instance of real estate located in the user-specified region; and

updating the user-configured index in response to the new data.

9. The method of claim 1, in which transmitting includes presenting through a graphical user interface.

10. An apparatus comprising:

a machine readable medium, having stored thereon a plurality of instructions, that when executed by a processor, causes the apparatus to;

receive, over a communication network, index configuration information from at least one user, the index configuration information specifying a region;

after receiving the information, electronically compile data that indicates a respective value of each of a plurality of instances of real estate located in the user-specified region;

determine a value of a user-configured index based on the data associated with the user-specified region; and

transmit, over the communication network, a representation of the value of the user-configured index to the at least one user.

11. The apparatus of claim 10, in which the plurality of instructions, that when executed by a processor, causes the apparatus to:

receive second index configuration information from at least one second user, the second index configuration information specifying a second region, wherein the second region includes a subset of the first region;

after receiving the second information, compile second data that indicates a respective value of each of a second plurality of instances of real estate located in the user-specified second region;

determine a second value of a second user-configured index based on the second data associated with the user-specified second region; and

transmit a representation of the second value of the second user-configured index to the at least one second user.

12. The apparatus of claim 10, in which the plurality of instructions, that when executed by a processor, causes the apparatus to:

create for the at least one user, an option contract based on the user-configured index.

13. The apparatus of claim 10, in which the plurality of instructions, that when executed by a processor, causes the apparatus to:

create for the at least one user, a futures contract based the user-configured index.

14. The apparatus of claim 10, in which electronically compiling comprises electronically compiling from price surveys of real estate.

15. The apparatus of claim 10, in which electronically compiling comprises electronically sorting the data based on at least one criterion.

16. The apparatus of claim 10, wherein the index configuration information includes information that states the region in detail.

17. The apparatus of claim 10, in which the plurality of instructions, that when executed by a processor, causes the apparatus to:

receive new data that indicates a respective value of at least one instance of real estate located in the user-specified region; and

updating the user-configured index in response to the new data.

18. The apparatus of claim 10, in which transmitting includes presenting through a graphical user interface.

19. The apparatus of claim 10, further comprising the processor.