Method and an apparatus for a trading market design and deployment system

• US 7,558,752 B1
• Filed: 10/01/1999
• Issued: 07/07/2009
• Est. Priority Date: 08/07/1998
• Status: Expired due to Term

• Current Assignee: Ariba Incorporated (SAP SE)
• Original Assignee: Ariba Incorporated (SAP SE)
• Inventors: Shoham, Yoav, Ephrati, Eithan, Wellman, Michael
• Primary Examiner(s): Carlson; Jeffrey D
• Application Number:
  US09/410,856
• Time in Patent Office: 3,567 Days
• Field of Search: 705/37, 705/26, 705/14
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A universal or special-purpose auction system and method are disclosed wherein at least one auction allocation policy is implemented which results in adjusting a bid submitted by a trader or a clearing calculation is modified to incorporate a constraint.

Claims

1. An online auction system comprising:

an auction server;

a market specification console coupled to the auction server over a network, wherein the market specification console configured to enable a market designer to specify a market phase for an auction, the market phase having a predefined termination time, and wherein the market specification console is configured to enable a market designer to define an auction allocation policy to govern the market phase;

an auction module coupled to the auction server, the auction module configured to perform a transaction to automatically adjust a submitted bid for an item during an auction, wherein the submitted bid is associated with a trading identity, wherein the adjustment to the bid is based on the auction allocation policy, wherein the adjusted bid is to be compared with a plurality of competitive submitted bids to determine whether the adjusted bid is successful, each of the plurality of competitive submitted bids is associated with a plurality of competitive trading identities, wherein the submitted bid indicates an amount due for the item when the adjusted bid is successful, and wherein the submitted bid is a different value relative to the adjusted bid;

a universal trading console configured to receive during the market phase of the auction a first bid for an item having a fixed quantity from a first trader over the network, wherein the first bid has a first bid price and a first bid quantity, the first bid being one of a plurality of bids from a plurality of traders during the market phase, wherein the first trader is one of the plurality of traders;

a bid transformer configured to automatically adjust the first bid price received during the market phase of the auction from the first trader based upon the allocation policy associated, wherein the bid transformer coupled to the universal trading console via a network;

a bid verifier configured to check the adjusted first bid price to verify that the first bid satisfies a set of bid criteria to determine whether the first bid is admitted for the market phase; and

a clearer coupled to the auction server, the clearer configured to compare the adjusted first bid price with a plurality of admitted bids for the market phase, wherein the clearer is configured to select a plurality of successful bids from the plurality of admitted bids including the first bid and a second bid after the predefined termination time, the second bid having a second bid price and a second bid quantity, the second bid being from a second trader of the plurality of traders, the second trader being associated with a predefined group according to the allocation policy, wherein the clearer is configured to allocate a first quantity of the item for the first bid, wherein the clearer is configured to allocate a second quantity of the item for the second bid, the second quantity being no greater than a predefined percentage of the fixed quantity, the predefined percentage being associated with the group according to the allocation policy, the sum of the first quantity and the second quantity being no greater than the fixed quantity, the first bid price to indicate an amount due for the item, wherein the first bid price is a different value relative to the adjusted first bid price.

2. The auction system of claim 1, wherein the adjusted first bid price is greater than the first bid price.

3. The auction system of claim 1, wherein the adjusted first bid price is less than the first bid price.

4. The auction system of claim 1, wherein the auction allocation policy indicates a trader of the predefined group is entitled to a price discount.

5. The auction system of claim 1, wherein the auction allocation policy indicates a trader of the predefined group is entitled to a penalty percentage.

6. A machine-readable medium having instructions to cause a machine to perform a method for facilitating a trading market system, the method comprising:

receiving at a server from a market designer via a market specification console instructions for specifying a market phase for an auction, the market phase having a predefined termination time;

the server defining an auction allocation policy to govern the market phase;

receiving via a universal trading console a first bid during the market phase of the auction for an item having a fixed quantity from a first trader via a network, the first bid having a first bid price and a first bid quantity, the first bid being one of a plurality of bids received from a plurality of traders during the market phase for the auction item over the network;

using a bid transformer coupled to the universal trading console for adjusting automatically the first bid price during the market phase of the auction based on the auction allocation policy;

using a bid verifier for checking the adjusted first bid price to verify that the first bid satisfies a set of bid criteria to determine whether the first bid is admitted for the market phase;

comparing the adjusted first bid price with a plurality of admitted bids for the market

after the predetermined termination time, selecting a plurality of successful bids from the plurality of admitted bids including the first bid and a second bid, the second bid having a second bid price and a second bid quantity, the second bid being from a second trader of the plurality of traders, and the second trader being associated with a predefined group according to the allocation policy;

allocating a first quantity of the item for the first bid, the first bid price to indicate an amount due for the item, wherein the first bid price is a different value relative to the adjusted first bid price; and

allocating a second quantity of the item for the second bid, the second quantity being no greater than a predefined percentage of the fixed quantity, the predefined percentage being associated with the group according to the allocation policy, wherein the sum of the first quantity and the second quantity is no greater than the fixed quantity.

7. The machine-readable medium of claim 6, wherein the allocation policy indicates a trader of the predefined group is entitled to a price discount.

8. The machine-readable medium of claim 6, wherein the allocation policy indicates a trader of the predefined group is entitled to be assessed a penalty percentage.

9. The machine-readable medium of claim 6, wherein the adjusted first bid price is less than the first bid price.

10. The machine-readable medium of claim 6, wherein the adjusted first bid price is greater than the first bid price.

11. A computer implemented method for online auction, comprising:

receiving at a server from a market designer via a market specification console instructions for specifying a market phase for an auction, the market phase having a predefined termination time;

the server defining an auction allocation policy based on the market phase;

receiving via a universal trading console a first bid during the market phase of the auction for an item having a fixed quantity from a first trader via a network, the first bid having a first bid price and a first bid quantity, the first bid being one of a plurality of bids received from a plurality of traders during the market phase for the auction item over the network;

using a bid transformer coupled to the universal trading console for adjusting automatically the first bid price during the market phase of the auction based on the auction allocation policy;

using a bid verifier for checking the adjusted first bid price to verify that the first bid satisfies a set of bid criteria to determine whether the first bid is admitted for the market phase;

comparing the adjusted first bid price with a plurality of admitted bids for the market phase selecting a plurality of successful bids after the predetermined termination time from the plurality of admitted bids including the first bid and a second bid, the second bid having a second bid price and a second bid quantity, the second bid being from a second trader of the plurality of traders, and the second trader being associated with a predefined group according to the allocation policy;

allocating a first quantity of the item for the first bid, the first bid price to indicate an amount due for the item, wherein the first bid price is a different value relative to the adjusted first bid price; and

allocating a second quantity of the item for the second bid, the second quantity being no greater than a predefined percentage of the fixed quantity, the predefined percentage being associated with the group according to the allocation policy, wherein the sum of the first quantity and the second quantity is no greater than the fixed quantity.

12. The method of claim 11, wherein the allocation policy indicates a trader of the predefined group is entitled to a price discount.

13. The method of claim 11, wherein the allocation policy indicates the a trader of the predefined group is entitled to be assessed a penalty percentage.

14. The method of claim 11, wherein the adjusted first bid price is less than the first bid price.

15. The method of claim 11, wherein the adjusted first bid price is greater than the first bid price.

16. An apparatus for online auction, comprising:

means for receiving at a server from a market designer via a market specification console instructions for specifying a market phase for an auction, the market phase having a predefined termination time;

means for the server defining an auction allocation policy based on the market phase;

means for receiving via a universal trading console a first bid during the market phase of the auction for an item having a fixed quantity from a first trader via a network, the first bid having a first bid price and a first bid quantity, the first bid being one of a plurality of bids received from a plurality of traders during the market phase for the auction item over the network;

means for using a bid transformer coupled to the universal trading console for adjusting automatically the first bid price during the market phase of the auction based on the auction allocation policy;

means for using a bid verifier to check the adjusted first bid price to verify that the first bid satisfies a set of bid criteria to determine whether the first bid is admitted for the market phase;

means for comparing the adjusted first bid price with a plurality of admitted bids for the market phase means for selecting a plurality of successful bids after the predetermined termination time from the plurality of admitted bids including the first bid and a second bid, the second bid having a second bid price and a second bid quantity, the second bid being from a second trader of the plurality of traders, and the second trader being associated with a predefined group according to the allocation policy;

means for allocating a first quantity of the item for the first bid, the first bid price to indicate an amount due for the item, wherein the first bid price is a different value relative to the adjusted first bid price; and

means for allocating a second quantity of the item for the second bid, the second quantity being no greater than a predefined percentage of the fixed quantity, the predefined percentage being associated with the group according to the allocation policy, wherein the sum of the first quantity and the second quantity is no greater than the fixed quantity.

17. The apparatus of claim 16, wherein the allocation policy indicates a trader of the predefined group is entitled to a price discount.

18. The apparatus of claim 16, wherein the allocation policy indicates a trader of the predefined group is entitled to be assessed a penalty percentage.

19. The apparatus of claim 16, wherein the adjusted first bid price is less than the first bid price.

20. The apparatus of claim 16, wherein the adjusted first bid price is greater than the first bid price.