System for implementing a security issuer rights management process over a distributed communications network, deployed in a financial marketplace
First Claim
1. A system for implementing a security issuer rights management process (SIRMP) over a distributed communications network, and deployed in a financial marketplace involving one or more equity security issuers, one or more equity security purchasers, one or more equity security borrowers, said system comprising:
- a data center, including one or more relational database servers (RDBMS), application servers, and web servers, interfaced with the infrastructure of said distributed communications network;
a first networked group of computer systems for use by said one or more said equity security issuers, and being interfaced with the infrastructure of said distributed communications network, and including client machines and server machines, for supporting packet-based communications between said data center and said first networked group of computer systems;
a second networked group of computer systems for use by said one or more equity security borrowers, and being interfaced with the infrastructure of said distributed communications network, and including client machines and server machines, for supporting packet-based communications between said data center and said second networked group of computer systems;
wherein said data center supports the implementation of a network-level financial accounting system that recognizes and accounts for a set of equity rights possessed by said security issuer of equity securities prior to equity security issuance, and ensures that said set of equity rights is unbundled, separated into a plurality of individual equity rights (ER (α
. . . λ
, $)), including the equity right to lend (ER (κ
, $)), and recombined into non-borrowable equity securities that exclude the equity right to lend (ER (κ
, $)) and which are offered for sale in said financial marketplace;
wherein said equity security issuer of an equity security to be issued in said financial marketplace (i) withholds from, and prior to, an equity security issuance, the equity right to lend (ER (κ
, $)), to create said non-borrowable equity security, which precludes lending or borrowing of said non-borrowable equity security by said purchasers of said non-borrowable equity security and, which, can be borrowed only from said equity security issuer at lending rates set by said equity security issuer, thereby precluding the lending of said non-borrowable equity security by said equity security purchasers in said financial marketplace;
wherein said equity security issuer uses said first networked group of computer systems to communicate with said data center via packet-based communications, to set borrowing rates and periods for said non-borrowable equity security held by said equity security purchasers, and which can be borrowed by security borrowers from said equity security issuer only after procuring the equity right to lend (ER (κ
, $)) from said equity security issuer pursuant to agreement with said borrowing rates and periods;
wherein said equity security borrower uses said second networked group of computer systems to communicate with said data center via packet communications, and (i) requests from said equity security issuer, the equity right to lend (ER (κ
, $)) for said non-borrowable equity security pursuant to said borrowing rates and periods set by said equity security issuer, (ii) accepts said borrowing rates and periods set by said equity security issuer, and (iii) receives said equity right to lend (ER (κ
, $)) associated with said non-borrowable equity security, from said equity security issuer, via said data center, so that said equity security borrower can borrow said non-borrowable equity security from said equity security issuer for the purpose of selling said non-borrowable equity security short in said financial marketplace; and
wherein said data center automatically accounts for the allocation of said borrowed equity right to lend (ER (κ
, $)) associated with said non-borrowable equity security, and payment of said borrowing rates agreed to between said equity security issuer and said equity security borrower.
2 Assignments
0 Petitions
Accused Products
Abstract
A computer network-implemented system recognizes that (i) the security issuer retains (i.e. withholds) the right to lend a debt or equity security prior to security issuance, and (ii) the system allows security borrowers to request from the security issuers, through the system, the right to borrow the non-borrowable equity security from the security issuer, according to borrowing/lending rates and time periods set by the security issuer with the system, so that (iii) security borrowers can then acquire the right to lend the non-borrowable security from the security issuer, and thereafter, (iv) security borrowers can sell the non-borrowable security short in the financial marketplace and profit from a short sale, without adversely effecting the security issuer.
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Citations
21 Claims
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1. A system for implementing a security issuer rights management process (SIRMP) over a distributed communications network, and deployed in a financial marketplace involving one or more equity security issuers, one or more equity security purchasers, one or more equity security borrowers, said system comprising:
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a data center, including one or more relational database servers (RDBMS), application servers, and web servers, interfaced with the infrastructure of said distributed communications network; a first networked group of computer systems for use by said one or more said equity security issuers, and being interfaced with the infrastructure of said distributed communications network, and including client machines and server machines, for supporting packet-based communications between said data center and said first networked group of computer systems; a second networked group of computer systems for use by said one or more equity security borrowers, and being interfaced with the infrastructure of said distributed communications network, and including client machines and server machines, for supporting packet-based communications between said data center and said second networked group of computer systems; wherein said data center supports the implementation of a network-level financial accounting system that recognizes and accounts for a set of equity rights possessed by said security issuer of equity securities prior to equity security issuance, and ensures that said set of equity rights is unbundled, separated into a plurality of individual equity rights (ER (α
. . . λ
, $)), including the equity right to lend (ER (κ
, $)), and recombined into non-borrowable equity securities that exclude the equity right to lend (ER (κ
, $)) and which are offered for sale in said financial marketplace;wherein said equity security issuer of an equity security to be issued in said financial marketplace (i) withholds from, and prior to, an equity security issuance, the equity right to lend (ER (κ
, $)), to create said non-borrowable equity security, which precludes lending or borrowing of said non-borrowable equity security by said purchasers of said non-borrowable equity security and, which, can be borrowed only from said equity security issuer at lending rates set by said equity security issuer, thereby precluding the lending of said non-borrowable equity security by said equity security purchasers in said financial marketplace;wherein said equity security issuer uses said first networked group of computer systems to communicate with said data center via packet-based communications, to set borrowing rates and periods for said non-borrowable equity security held by said equity security purchasers, and which can be borrowed by security borrowers from said equity security issuer only after procuring the equity right to lend (ER (κ
, $)) from said equity security issuer pursuant to agreement with said borrowing rates and periods;wherein said equity security borrower uses said second networked group of computer systems to communicate with said data center via packet communications, and (i) requests from said equity security issuer, the equity right to lend (ER (κ
, $)) for said non-borrowable equity security pursuant to said borrowing rates and periods set by said equity security issuer, (ii) accepts said borrowing rates and periods set by said equity security issuer, and (iii) receives said equity right to lend (ER (κ
, $)) associated with said non-borrowable equity security, from said equity security issuer, via said data center, so that said equity security borrower can borrow said non-borrowable equity security from said equity security issuer for the purpose of selling said non-borrowable equity security short in said financial marketplace; andwherein said data center automatically accounts for the allocation of said borrowed equity right to lend (ER (κ
, $)) associated with said non-borrowable equity security, and payment of said borrowing rates agreed to between said equity security issuer and said equity security borrower. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A system for implementing a security issuer rights management process (SIRMP) over a distributed computer network having an infrastructure, and deployed in a financial marketplace involving one or more debt security issuers, one or more debt security purchasers, one or more debt security borrowers, said system comprising:
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a data center, including one or more relational database servers (RDBMS), application servers, and web servers, interfaced with the infrastructure of said distributed communications network; a first networked group of computer systems for use by said one or more said debt security issuers, and being interfaced with the infrastructure of said distributed communications network, and including client machines and server machines, for supporting packet-based communications between said data center and said first networked group of computer systems; and a second networked group of computer systems for use by said one or more debt security borrowers, and being interfaced with the infrastructure of said distributed communications network, and including client and server machines, for supporting packet-based communications between said data center and said second networked group of computer systems; wherein said data center supports the implementation of a network-level financial accounting system that recognizes and accounts for a set of debt rights possessed by said debt security issuer of equity securities prior to debt security issuance, and ensures that said set of debt rights is unbundled, separated into a plurality of individual debt rights (DR (α
. . .ι
, $)), including the debt right to lend (DR (η
, $)) and recombined into non-borrowable debt securities that exclude the debt right to lend (DR (η
, $)) and which are offered for sale in said financial marketplace;wherein said debt security issuer of a debt security to be issued in said financial marketplace (i) withholds from, and prior to, a debt security issuance, the debt right to lend (DR (η
, $)), to create said non-borrowable debt security, which precludes lending or borrowing of said non-borrowable debt security by said purchasers of said non-borrowable debt security and, which, can be borrowed only from said debt security issuer at lending rates set by said debt security issuer, thereby precluding the lending of said non-borrowable debt security by said debt security purchasers in said financial marketplace;wherein said debt security issuer uses said first networked group of computer systems to communicate with said data center via packet-based communications, to set borrowing rates and periods for said non-borrowable debt security held by said debt security purchasers, and which can be borrowed by debt security borrowers from said debt security issuer only after procuring the debt right to lend (DR (η
, $)) from said debt security issuer pursuant to agreement with said borrowing rates and periods;wherein said debt security borrower uses said second networked group of computer systems to communicate with said data center via packet-based communications, and (i) requests from said debt security issuer, the debt right to lend (DR (η
, $)) for said non-borrowable debt security pursuant to said borrowing rates and periods set by said debt security issuer, (ii) accepts said borrowing rates and periods set by said debt security issuer, and (iii) receives said debt right to lend (DR (η
, $)) associated with said non-borrowable debt security, from said debt security issuer, via said data center, so that said debt security borrower can borrow said non-borrowable debt security from said debt security issuer for the purpose of selling said non-borrowable debt security short in said financial marketplace; andwherein said data center automatically accounts for the allocation of said borrowed debt right to lend (DR (η
, $)) associated with said non-borrowable debt security, and payment of said borrowing rates agreed to between said debt security issuer and said debt security borrower. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
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Specification