Computer-implemented securities trading system

• US 8,756,142 B1
• Filed: 12/17/1999
• Issued: 06/17/2014
• Est. Priority Date: 03/25/1996
• Status: Expired due to Fees

• Current Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Original Assignee: CFPH LLC (Cantor Fitzgerald, L.P.)
• Inventors: Keiser, Timothy M., Burns, Michael R.
• Primary Examiner(s): Kazimi, Hani M
• Assistant Examiner(s): Graham, Clement B
• Application Number:
  US09/465,607
• Time in Patent Office: 5,296 Days
• Field of Search: 705/1, 705 35- 38, 705/36.R, 707/10, 707100-106, 463/25
• US Class Current: 705/37
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• 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

A computer-implemented financial management system provides the trading of securities via a network using virtual currency. A server computer receives buy and sell orders for derivative financial instruments from a plurality of client computers. The server computer attempts to match the buy and sell orders and then generates a market price through the use of a virtual specialist program executed by the server computer. The virtual specialist program responds to an imbalance in the matching of the buy and sell orders. The virtual currency accumulated by HSX account holders as a result of successful trading may be converted to another currency, credited toward the cost of merchandise provided through a vendor'"'"'s web site, etc.

Claims

1. A method, comprising:

setting, using a computing device, an initial price for a derivative financial instrument that represents a movie in an entertainment industry, in which setting the initial price comprises;

setting the initial price for the derivative financial instrument based at least in part on a potential box office revenue for the movie;

receiving via a remote device a first order to buy the derivative financial instrument that represents the movie in the entertainment industry, the derivative financial instrument comprising a stock for trading over a network;

receiving via the remote device a second order to sell the derivative financial instrument;

setting, using the computing device, a market price for the derivative financial instrument based at least in part on the first order and the second order, in which the computing device and the remote device are in communication; and

executing a trade of the derivative financial instrument at the set market price.

2. The method of claim 1, in which the network comprises the Internet.

3. The method of claim 1, in which the set market price is presented by electronic currency.

4. The method of claim 3, in which the electronic currency comprises actual dollars.

5. The method of claim 3, in which the electronic currency comprises virtual currency.

6. The method of claim 5, in which the virtual currency comprises Hollywood dollars.

7. The method of claim 1, further comprising:

determining, using the computing device, a net price movement of the market price;

stopping, using the computing device, trading of the derivative financial instrument based at least in part on the net price movement.

8. The method of claim 1, further comprising:

offering the derivative financial instrument at the initial price.

9. An apparatus, comprising:

a processor; and

a memory, in which the memory stores instructions which, when executed by the processor, direct the processor to;

set an initial price for a derivative financial instrument that represents a movie in an entertainment industry, in which setting the initial price comprises;

setting the initial price for the derivative financial instrument based at least in part on a potential box office revenue for the movie;

receive via a remote device a first order to buy the derivative financial instrument that represents the movie in the entertainment industry, the derivative financial instrument comprising a stock for trading over a network;

receive via the remote device a second order to sell the derivative financial instrument;

set a market price for the derivative financial instrument based at least in part on the first order and the second order, in which the computing device and the remote device are in communication; and

execute a trade of the derivative financial instrument at the set market price.

10. The apparatus of claim 9, in which the network comprises the Internet.

11. The apparatus of claim 9, in which the set market price is presented by electronic currency.

12. The apparatus of claim 11, in which the electronic currency comprises actual dollars.

13. The apparatus of claim 11, in which the electronic currency comprises virtual currency.

14. The apparatus of claim 9, in which the memory further stores instructions which, when executed by the processor, direct the processor to:

determine a net price movement of the market price;

stop trading of the derivative financial instrument based at least in part on the net price movement.

15. The apparatus of claim 9, in which the memory further stores instructions which, when executed by the processor, direct the processor to:

offer the derivative financial instrument at the initial price.

16. An article of manufacture, comprising:

a non-transitory tangible storage medium, in which the storage medium stores instructions which, when executed by a processor, direct the processor to;

set an initial price for a derivative financial instrument that represents a movie in an entertainment industry, in which setting the initial price comprises;

setting the initial price for the derivative financial instrument based at least in part on a potential box office revenue for the movie;

receive via a remote device a first order to buy the derivative financial instrument that represents the movie in the entertainment industry, the derivative financial instrument comprising a stock for trading over a network;

receive via the remote device a second order to sell the derivative financial instrument;

set a market price for the derivative financial instrument based at least in part on the first order and the second order, in which the computing device and the remote device are in communication; and

execute a trade of the derivative financial instrument at the set market price.

17. The article of manufacture of claim 16, in which the network comprises the Internet.

18. The article of manufacture of claim 16, in which the set market price is presented by electronic currency.

19. The article of manufacture of claim 18, in which the electronic currency comprises actual dollars.

20. The article of manufacture of claim 18, in which the electronic currency comprises virtual currency.

21. The article of manufacture of claim 16, in which the storage medium further stores instructions which, when executed by the processor, direct the processor to:

determine a net price movement of the market price;

stop trading of the derivative financial instrument based at least in part on the net price movement.

22. The article of manufacture of claim 16, in which the storage medium further stores instructions which, when executed by the processor, direct the processor to:

offer the derivative financial instrument at the initial price.

23. A method, comprising:

setting, using a computing device, an initial price for a derivative financial instrument that represents a movie talent in an entertainment industry, in which setting the initial price comprises;

setting the initial price for the derivative financial instrument based at least in part on a popularity rating for the movie talent in the entertainment industry;

receiving via a remote device a first order to buy the derivative financial instrument that represents the movie talent in the entertainment industry, the derivative financial instrument comprising a bond for trading over a network;

receiving via the remote device a second order to sell the derivative financial instrument;

setting, using the computing device, a market price for the derivative financial instrument based at least in part on the first order and the second order, in which the computing device and the remote device are in communication; and

executing a trade of the derivative financial instrument at the set market price.

24. The method of claim 23, in which the network comprises the Internet.

25. The method of claim 23, in which the set market price is presented by electronic currency.

26. The method of claim 25, in which the electronic currency comprises actual dollars.

27. The method of claim 25, in which the electronic currency comprises virtual currency.

28. The method of claim 27, in which the virtual currency comprises Hollywood dollars.

29. The method of claim 23, further comprising:

determining, using the computing device, a net price movement of the market price;

stopping, using the computing device, trading of the derivative financial instrument based at least in part on the net price movement.

30. The method of claim 23, further comprising:

offering the derivative financial instrument at the initial price.

31. The method of claim 30, in which offering the derivative financial instrument at the initial price comprises:

issuing the bond with a higher yield than another bond that represents another movie talent, in which the popularity rating for the movie talent is lower than a popularity rating for the another movie talent.

32. An apparatus, comprising:

a processor; and

a memory, in which the memory stores instructions which, when executed by the processor, direct the processor to;

set an initial price for a derivative financial instrument that represents a movie talent in an entertainment industry, in which setting the initial price comprises;

setting the initial price for the derivative financial instrument based at least in part on a popularity rating for the movie talent in the entertainment industry;

receive via a remote device a first order to buy the derivative financial instrument that represents the movie talent in the entertainment industry, the derivative financial instrument comprising a bond for trading over a network;

receive via the remote device a second order to sell the derivative financial instrument;

set a market price for the derivative financial instrument based at least in part on the first order and the second order, in which the computing device and the remote device are in communication; and

execute a trade of the derivative financial instrument at the set market price.

33. The apparatus of claim 32, in which the network comprises the Internet.

34. The apparatus of claim 32, in which the set market price is presented by electronic currency.

35. The apparatus of claim 34, in which the electronic currency comprises actual dollars.

36. The apparatus of claim 34, in which the electronic currency comprises virtual currency.

37. The apparatus of claim 32, in which the memory further stores instructions which, when executed by the processor, direct the processor to:

determine a net price movement of the market price;

stop trading of the derivative financial instrument based at least in part on the net price movement.

38. The apparatus of claim 32, in which the memory further stores instructions which, when executed by the processor, direct the processor to:

offer the derivative financial instrument at the initial price.

39. The apparatus of claim 38, in which offering the derivative financial instrument at the initial price comprises:

issuing the bond with a higher yield than another bond that represents another movie talent, in which the popularity rating for the movie talent is lower than a popularity rating for the another movie talent.

40. An article of manufacture, comprising:

a non-transitory tangible storage medium, in which the storage medium stores instructions which, when executed by a processor, direct the processor to;

set an initial price for a derivative financial instrument that represents a movie talent in an entertainment industry, in which setting the initial price comprises;

setting the initial price for the derivative financial instrument based at least in part on a popularity rating for the movie talent in the entertainment industry;

receive via a remote device a first order to buy the derivative financial instrument that represents the movie talent in the entertainment industry, the derivative financial instrument comprising a bond for trading over a network;

receive via the remote device a second order to sell the derivative financial instrument;

set a market price for the derivative financial instrument based at least in part on the first order and the second order, in which the computing device and the remote device are in communication; and

execute a trade of the derivative financial instrument at the set market price.

41. The article of manufacture of claim 40, in which the network comprises the Internet.

42. The article of manufacture of claim 40, in which the set market price is presented by electronic currency.

43. The article of manufacture of claim 42, in which the electronic currency comprises actual dollars.

44. The article of manufacture of claim 42, in which the electronic currency comprises virtual currency.

45. The article of manufacture of claim 40, in which the memory further stores instructions which, when executed by the processor, direct the processor to:

determine a net price movement of the market price;

stop trading of the derivative financial instrument based at least in part on the net price movement.

46. The article of manufacture of claim 40, in which the memory further stores instructions which, when executed by the processor, direct the processor to:

offer the derivative financial instrument at the initial price.

47. The article of manufacture of claim 46, in which offering the derivative financial instrument at the initial price comprises:

issuing the bond with a higher yield than another bond that represents another movie talent, in which the popularity rating for the movie talent is lower than a popularity rating for the another movie talent.