Methods and Systems for Market Clearance

• US 20110119172A1
• Filed: 01/18/2011
• Published: 05/19/2011
• Est. Priority Date: 12/06/1999
• Status: Active Grant

• Current Assignee: Aggregation Commerce LLC
• Original Assignee: Aggregation Commerce LLC
• Inventors: Alsberg, Peter A., Wise, Andrew J.
• Granted Patent: US 8,442,898 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

In a marketplace, offers are processed that are intended to be associated with other offers in a pool. The offers specify conditions for acceptance. Improvable offers are received that are capable of being associated with offers having more favorable specifications than initial offers associated with the improvable offers. Nonimprovable offers that have more favorable specifications than initial offers associated with improvable offers are identified. The identified nonimprovable offers are associated with corresponding improvable offers. Straddles, which comprise a set of offers and a limit on the associations, may span multiple pools. Information about the marketplace may be obtained from data generated by the operation of the marketplace.

Claims

1. A computer-implemented method for clearing offers, each of which specifies conditions for acceptance, the method comprising:

receiving a plurality of advantaged offers each having a respective requested close time, wherein an advantaged offer is one which, once associated with a given disadvantaged offer, will be transacted upon, either in accordance with terms originally associated with the advantaged offer, or in accordance with better terms;

respectively associating individual advantaged offers with individual available most-favorable disadvantaged offers each having a respective requested close time, wherein the conditions of acceptance of the individual advantaged offers are met by respective disadvantaged offers;

changing the association of one of the individual associated advantaged offers to a newly available disadvantaged offer that offers more favorable terms than a currently associated disadvantaged offer, when the newly available disadvantaged offer is received and meets the conditions of acceptance of the associated advantaged offer, wherein the step of changing the association is performed in order of chronological priority of receipt of the advantaged offers;

at a predetermined time based on respective requested close times of associated individual advantaged offers and disadvantaged offers, clearing the associated individual advantaged offers and disadvantaged offers to produce cleared individual advantaged offers and disadvantaged offers; and

transmitting transaction directives to transacting buyers and sellers associated respectively with the cleared individual advantaged offers and disadvantaged offers.

2. A method according to claim 1, wherein the advantaged and disadvantaged offers are each associated with a pool and a corresponding pool close event.

3. A method according to claim 1, wherein the specified conditions for acceptance of the offers have attributes related to terms of acceptance of that offer, and wherein determining which of the disadvantaged offers have more favorable specifications further comprises:

applying attributes of one of the advantaged offers to a price function for one of the disadvantaged offers to systematically calculate a price.

4. A method according to claim 3, wherein the calculated price includes all appropriate costs.

5. A method according to claim 3, wherein determining which of the disadvantaged offers have more favorable specifications further comprises:

applying a weighting function to the calculated price.

6. A method according to claim 3, wherein applying attributes of one of the advantaged offers comprises:

using as the price function a table in which price ranges correspond to attributes of an advantaged offer.

7. A method according to claim 3, wherein applying attributes of one of the advantaged offers comprises:

using as the price function a computer program configured to calculate a price based on attributes of the advantaged offer.

8. A method according to claim 1, wherein the specifications of conditions for acceptance of the offers include price specifications, and wherein determining which disadvantaged offers have more favorable specifications further comprises:

comparing price specifications.

9. A method according to claim 8, wherein the price specifications are constant prices, and wherein comparing the price specifications comprises:

comparing constant prices.

10. A method according to claim 1, wherein available disadvantaged offers comprise those disadvantaged offers that are not already associated with other offers.

11. A method according to claim 1, wherein the specifications of the conditions of acceptance of the advantaged offers further comprise:

a product specification, a quantity specification, a pool specification, and a fragment list; and

wherein determining which disadvantaged offers have more favorable specifications includes;

examining the product specification, quantity specification, pool specification, and fragment list of the improvable offers.

12. A method according to claim 1, wherein the specifications of the conditions of acceptance of the disadvantaged offers further comprise:

a product specification, a quantity specification, a pool specification, and a fragment list; and

wherein determining which disadvantaged offers have more favorable specifications includes;

examining the product specification, quantity specification, pool specification, and fragment list of the disadvantaged offers.

13. A method according to claim 11, wherein the quantity specification further comprises a minimum quantity and a maximum quantity;

and wherein determining which disadvantaged offers have more favorable specifications includes;

examining the minimum and maximum quantities.

14. A method according to claim 12, wherein the quantity specification further comprises:

a minimum quantity and a maximum quantity; and

wherein determining which disadvantaged offers have more favorable specifications includes;

examining the minimum and maximum quantities.

15. The method of claim 1, wherein the requested close time is established by an event.

16. The method of claim 1, wherein the advantaged offers are binding advantaged offers.

17. The method of claim 1, wherein the disadvantaged offers are binding disadvantaged offers.

18. A computer-implemented method for generating events to be posted to a marketplace, the method comprising:

receiving a description of transactions to be offered in the marketplace;

expanding the description of transactions to be offered in the marketplace into at least one offer, with specified conditions of acceptance; and

generating a set of post events based on the at least one offer in a manner to cause the transactions to be offered in a marketplace in which a marketplace method for processing offers is used, and the marketplace method comprising;

receiving a plurality of advantaged offers each having a respective requested close time, wherein an advantaged offer is one which, once associated with a given disadvantaged offer, will necessarily be transacted upon, either in accordance with terms originally associated with the advantaged offer, or in accordance with better terms;

respectively associating individual advantaged offers with individual available most-favorable disadvantaged offers each having a respective requested close time, wherein the conditions of acceptance of the individual advantaged offers are met by respective disadvantaged offers;

changing the association of one of the individual advantaged offers to a newly available disadvantaged offer that offers more favorable terms than a currently associated disadvantaged offer, when the newly available disadvantaged offer is received and meets the conditions of acceptance of the associated advantaged offer, wherein the step of changing the association is performed in order of chronological priority of receipt of the advantaged offers;

at a predetermined time based on respective requested close times of associated individual advantaged offers and disadvantaged offers, clearing the associated individual advantaged offers and disadvantaged offers to produce cleared individual advantaged offers and disadvantaged offers; and

transmitting transaction directives to transacting buyers and sellers associated respectively with the cleared individual advantaged offers and disadvantaged offers.

19. A method according to claim 18, wherein the description of transactions is a stepped-price schedule having price breaks at each price step in the stepped-price schedule, and wherein generating a set of post events includes:

generating an uninterruptible sequence of offers, each offer in the sequence corresponding to a price step in the stepped-price schedule, and each offer having a reserve price equal to the price break of the price step.

20. A method according to claim 18, wherein the description of transactions is an all-or-none specification having a minimum quantity, and wherein generating a set of post events includes:

posting an offer with a minimum quantity specification corresponding to the minimum quantity in the all-or-none specification.

21. A method according to claim 18, wherein the description of transactions is a fill-or-kill specification having a minimum quantity, and wherein generating a set of post events includes:

posting an offer with a minimum quantity specification corresponding to the minimum quantity in the fill-or-kill specification; and

withdrawing the offer if the minimum quantity specification cannot be satisfied.

22. A method according to claim 18, wherein the description of transactions is a fill-and-withdraw specification having a desired quantity, and wherein generating a set of post events includes:

posting an offer with a maximum quantity specification corresponding to the desired quantity in the fill-and-withdraw specification; and

withdrawing any quantity of the offer not immediately filled.

23. A method according to claim 18, wherein receiving a description of offered transactions further includes:

providing a user interface to specify products in the offer.

24. A method according to claim 18, wherein generating a set of post events further includes:

generating offers contingent on the occurrence of an event.

25. The method of claim 18, wherein the requested close time is established by an event.

26. The method of claim 18, wherein the advantaged offers are binding advantaged offers.

27. The method of claim 18, wherein the disadvantaged offers are binding disadvantaged offers.

28. A computer-implemented method for generating events to be posted to a marketplace, the method comprising:

receiving a description of transactions to be offered in the marketplace;

expanding the description of transactions to be offered in the marketplace into at least one offer, with specified conditions of acceptance; and

generating a set of post events based on the at least one offer in a manner to cause the transactions to be offered in a marketplace in which a marketplace method for processing offers is used, and the marketplace method comprising;

receiving a plurality of advantaged offers, each having a respective requested close time;

associating each advantaged offer with one or more available most-favorable disadvantaged offers each having a respective requested close time, wherein the conditions of acceptance of each advantaged offer are met by each disadvantaged offer that has been associated with the advantaged offer;

changing the association of an advantaged offer to a newly available disadvantaged offer that offers more favorable terms than a currently associated disadvantaged offer, when the newly available disadvantaged offer is received and meets the conditions of acceptance of the associated advantaged offer;

at a predetermined time based on respective requested close times of associated advantaged and disadvantaged offers, clearing the associated individual advantaged offers and disadvantaged offers to produce cleared individual advantaged offers and disadvantaged offers; and

transmitting transaction directives to transacting buyers and sellers associated respectively with the cleared individual advantaged offers and disadvantaged offers, wherein the events include straddles specifying a straddle limit, which restricts the number of associations, and

wherein generating a set of post events further comprises;

creating an offer corresponding to one of the descriptions;

adding the created offer to any corresponding straddles; and

generating a straddle including the created offer if no corresponding straddles exist.

29. A method according to claim 28, further comprising the steps of:

monitoring the marketplace for new opportunities to post an offer corresponding to offers in a posted straddle; and

adding an offer corresponding to the new opportunity to the posted straddle.

30. The method of claim 28, wherein the advantaged offers are binding advantaged offers.

31. The method of claim 28, wherein the disadvantaged offers are binding disadvantaged offers.