System and method for conducting securities transactions over a computer network

• US 6,408,282 B1
• Filed: 04/15/1999
• Issued: 06/18/2002
• Est. Priority Date: 03/01/1999
• Status: Expired due to Term

• Current Assignee: UBS Business Solutions AG (UBS Ag)
• Original Assignee: Wit Capital Corporation (Charles Schwab Corporation)
• Inventors: Buist, Walter D.
• Primary Examiner(s): Hafiz, Tariq R.
• Assistant Examiner(s): Jeanty, Romain
• Application Number:
  US09/292,553
• Time in Patent Office: 1,160 Days
• Field of Search: 705/36, 705/37
• US Class Current: 705/36.00R
• 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

The system and method of the preferred embodiment supports trading of securities over the Internet both on national exchanges and outside the national exchanges. The preferred embodiment supports an improved human interface and a continuous display of real-time stock quotes on the user'"'"'s computer screen. The ergonomic graphical user interface (GUI) of the preferred embodiment includes several functional benefits in comparison with existing on-line consumer trading systems. In the preferred embodiment, the users are subscribers to a securities trading service offered over the Internet. Preferably, each subscriber to this service is simultaneously connected from his own computer to a first system which provides user-to-user trading capabilities and to a second system which is a broker/dealer system of his/her choice. The system providing the user-to-user trading services preferably includes a root server and a hierarchical network of replicated servers supporting replicated databases. The user-to-user system provides real-time continuously updated stock information and facilitates user-to-user trades that have been approved by the broker/dealer systems with which it interacts. Users of the preferred system can trade securities with other users of the system. As part of this user-to-user trading, a user can accept a buy or sell offer at the terms offered or he can initiate a counteroffer and negotiate a trade.

Claims

1. A computer system supporting user-to-user trading of securities comprising:

software for receiving over a network an offer to sell a fixed amount of a certain security from a first user computer;

software for revising a first list of offers to sell said certain security stored in a first database, wherein said first list of offers to sell comprises current offers to sell fixed amounts of said certain securities received from user computers, and wherein said revising comprises adding said offer to sell received from said first user computer to said first list stored in said first database;

software for synchronizing a first list of offers to sell stored in said first database with a second list of offers to sell stored in a second database in response to revising of said first list of offers to sell, wherein said synchronizing comprises revising said second list of offers to sell to reflect revisions made to said first list of offers to sell;

software for retrieving from said second list of offers to sell stored in said second database said offer to sell from said first user computer and communicating over the network said offer to sell from said first user to other user computers of users participating in the user-to-user trading and currently subscribed to receive updates of offers to sell the certain securities;

software for electronically receiving over the network an acceptance of said offer to sell from said first user, said acceptance provided by a second user computer;

software for revising said second list of offers to sell stored on said second database by removing said offer to sell from said first user from said second list of offers to sell stored in said second database; and

software for synchronizing said second list of offers to sell with said first list of offers to sell in response to revising of said second list of offers to sell, wherein said synchronizing comprises revising said first list of offers to sell to reflect revisions made to said second list of offers to sell.

2. The system of claim 1 further comprising:

software for receiving over the network from a third user computer an offer to buy a fixed amount of said security and for adding said order to a first list of offers to buy stored in said first database or to a second list of offers to buy stored in said second database;

software for synchronizing said second list of offers to buy into said first list of offers to buy in response to revising of said second list of offers to buy, wherein said synchronizing comprises revising said first list of offers to buy to reflect revisions made to said second list of offers to buy; and

software for synchronizing said first list of offers to buy stored in said first database with said second list of offers to buy stored in said second database in response to revising of said first list of offers to buy, wherein said synchronizing comprises revising said second list of offers to buy to reflect revisions made to said first list of offers to buy.

3. The system of claim 2 further comprising software for updating data transmitted to user computers of users participating in the user-to-user trading and currently subscribed to receive updates of offers to sell or of offers to buy the certain securities to reflect revisions to said first list of offers to buy stored in said first database or to said second list of offers to buy stored in said second database.

4. The system of claim 3 further comprising software electronically enabling a fourth user computer to accept said offer to buy received from said third user computer.

5. The system of claim 4 further comprising software for revising said first list of offers to buy stored in said first database or second list of offers to buy stored in said second database to reflect that said fourth user computer has accepted said third user'"'"'s offer to buy.

6. The system of claim 5 wherein said offer to buy is received from a broker/dealer, after transmission thereto by said third user computer.

7. The system of claim 6 wherein said offer to sell is received from a broker/dealer, after transmission thereto by said first user computer.