Private stock option account control and exercise system
First Claim
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1. A system for the management of a plurality of distinct accounts corresponding to the provision of privately issued option contract rights to a group of individuals in accordance with pre-established plan criteria, comprising:
- addressable data storage means for nonvolatile storage of data in accounts segregated according to participant and client entries wherein participant data records include demographic and employment related information and specified accounts of granted, vested, and exercised options, of option holdings information for each of said accounts, of plan criteria, and of an axiomatic rule system at least in part defining said plan criteria and the exercise of said options;
client/participant communication means for accessing system management for entry of transaction requests and confirmation of stored information;
system management processor means for accessing said storage means and receiving said client/participant transaction requests and processing automatic security transactions in accordance therewith; and
brokerage account means for accessing market price data on select securities and implementing said system-requested security transactions in accordance with said option holdings information and said axiomatic rule system.
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Abstract
A data processing system for the management of stock option accounts for a plurality of participants. The system invokes one of several distinct option Plans that govern the transaction choices available to the participants. The governing option plans are defined by the sponsoring company in terms of grant, vest and expiration date for the option contracts. The system implements the designated Plans for multiple client companies providing several distinct modes for option exercise by the participant.
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Citations
49 Claims
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1. A system for the management of a plurality of distinct accounts corresponding to the provision of privately issued option contract rights to a group of individuals in accordance with pre-established plan criteria, comprising:
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addressable data storage means for nonvolatile storage of data in accounts segregated according to participant and client entries wherein participant data records include demographic and employment related information and specified accounts of granted, vested, and exercised options, of option holdings information for each of said accounts, of plan criteria, and of an axiomatic rule system at least in part defining said plan criteria and the exercise of said options; client/participant communication means for accessing system management for entry of transaction requests and confirmation of stored information; system management processor means for accessing said storage means and receiving said client/participant transaction requests and processing automatic security transactions in accordance therewith; and brokerage account means for accessing market price data on select securities and implementing said system-requested security transactions in accordance with said option holdings information and said axiomatic rule system. - View Dependent Claims (2, 3, 4, 5)
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6. A data processing method for the management of a plurality of separate accounts corresponding to individual option grants pursuant to a company-sponsored privately issued stock option benefit plan, comprising the steps of:
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accessing a stored database of participants, client companies, and option account plans wherein said client companies sponsor said plans and said plans delineate the accrued options for each participant account in accordance with an axiomatic rule system in said stored database, which axiomatic rule system at least in part defines said plan and the exercise of said option grants; communicating with said participants and clients and at least one established market for exercising accrued options that have vested and for transacting securities in accordance with said plan; updating said database pursuant to both time- and event-driven information including confirmation of changes in the number, value, or expiration date of new, vested, and exercised options; exercising options in accordance with said axiomatic rule system and stored database information and pursuant to participant requests by either a cash, stock, or cashless exercise method wherein said exercise step includes confirmation that price variable MAR-- P(D) is greater than a participant target price TP(I) and that the price excess over the total transactions for a given account is sufficient to pay the fees for said total of the transactions. - View Dependent Claims (7, 8, 9, 10)
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11. A data processing system for the management of plural accounts corresponding to the accrual of privately issued option rights in client securities in accordance with an option account governing plan comprising:
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database means for storing plural account files corresponding to individual participants for option rights wherein said account files include biographic data on each of said participants, option right data for each of said participants, and an axiomatic rule system at least in part defining said plan and the exercise of said option rights; data processing means for updating said account files pursuant to time driven events and participant input; option transaction processor means for receiving option exercise transaction requests from each of said participants and implementing a security transaction effecting said option rights in accordance with said plan and said axiomatic rule system and providing an output indicative of the status of said requested transaction; and transaction report means for acknowledging said participant'"'"'s transaction pursuant to said option transaction processor output on an event or time driven basis. - View Dependent Claims (12, 13, 14, 15, 16)
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17. A system for controlling the account and execution of options privately issued in accordance with a predefined plan and tradable or exercisable on a publicly accessible exchange, comprising:
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at least one database storing addressable and updatable data mappable onto a plurality of individual accounts and comprising information indicative of the identity of each of said accounts, option holdings information for each of said accounts, and an axiomatic rule system at least in part defining said plan and the exercise of said options, said option holdings information including the number of privately issued options each for vested and nonvested options, the vesting date for each nonvested option, the expiration date of each option, the exercise price for each option issued in accordance with said plan, and any cash holding in such account; a first communication system for accessing market information including price information and date information from said exchange relating to said options, and for updating said option holdings information therewith; a second communication system for receiving and storing individual-requested transaction information for an option in an account associated with said individual; and a brokerage system for executing said individual-requested transaction in accordance with said axiomatic rule system, said option holdings information, and said market information. - View Dependent Claims (18, 19, 20, 21, 22, 23, 24, 25, 26)
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27. A data processing method for the management of a plurality of separate accounts corresponding to individual option grants pursuant to a company-sponsored, privately issued option benefit plan, said options for the purchase of securities, comprising the steps of:
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providing an accessible database including data indicative of participants'"'"' identities, client companies, and option account plus, wherein said client companies sponsor said plans and said plan data delineates the accrued options for each participant account in accordance with an axiomatic rule system in said stored database, which axiomatic rule system at least in part defines said plan and the exercise of said option grants; communicating with and receiving communications from said participants, said clients, and at least one established market for exercising accrued options that have vested; updating said database pursuant to both time- and event-driven information including confirmation of changes in the number, value, or expiration date of new, vested, and exercised options; and exercising options pursuant to participant requests and in accordance with said axiomatic rule system wherein said exercise step includes confirmation that the exercise price of each of said options requested to be exercised is not less than the price of said security associated therewith. - View Dependent Claims (28, 29, 30, 31, 32, 33, 34, 35)
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36. A method for controlling the account and execution of options issued privately in accordance with a predefined plan and tradable or exercisable on a publicly accessible exchange, comprising:
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providing at least one database storing addressable and updatable data mappable onto a plurality of individual accounts and comprising information indicative of the identity of each of said accounts, option holdings information for each of said accounts, and an axiomatic rule system at least in part defining said plan and the exercise of said options, said option holdings information including the number of privately issued options each for vested and nonvested options, the vesting date for each nonvested option, the expiration date of each option, the exercise price for each option issued in accordance with said plan, and any cash holding in such account; accessing market information including price information and date information from said exchange relating to said options; updating said option holdings information based on said accessed market information; receiving and storing individual-requested transaction information for an option in an account associated with said individual; and brokering said individual-requested transaction in accordance with said axiomatic rule system, said option holdings information, and said market information. - View Dependent Claims (37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49)
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Specification