METHOD AND SYSTEM FOR ISSUING PRIMARY SECURITIES IN A TRADING MARKET

• US 20120011044A1
• Filed: 06/22/2011
• Published: 01/12/2012
• Est. Priority Date: 02/27/2009
• Status: Abandoned Application

• Current Assignee: Direct Markets Services LLC
• Original Assignee: Rodman & Renshaw Holding LLC (Direct Markets Holdings Corp.)
• Inventors: Vasinkevich, Michael
• Application Number:
  US13/166,338
• Publication Number:
  US 20120011044A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Methods and corresponding systems and non-transitory computer readable media are provided that cause at least one interface screen to be displayed on at least one client device associated with a primary issuer. The interface screen or screen generally includes information regarding an offering of primary securities and at least one form element for the primary issuer to define terms of an offer to sell the primary securities. The primary issuer may therewith submit an offer to sell the primary securities and confirm that the primary issuer is legally authorized to issue the primary securities. Thereafter, the offer to sell the primary securities may be communicated to a trading market for execution.

Claims

1. A method comprising:

causing at least one interface screen to be displayed on at least one client device, the at least one interface screen comprising at least one item of information regarding an offering of primary securities and at least one form element for an issuer of the primary securities to define terms of an offer to sell the primary securities;

receiving from the at least one client device the offer to sell the primary securities and a confirmation that the issuer of the primary securities is legally authorized to issue the primary securities; and

communicating the offer to sell the primary securities to a trading market.

2. The method of claim 1, wherein the trading market comprises at least one of an exchange and an over the counter marketplace.

3. The method of claim 1, wherein the primary securities comprise new equity securities indistinguishable from corresponding secondary securities in the trading market.

4. The method of claim 1, wherein the primary securities comprise new debt securities indistinguishable from corresponding secondary securities in the trading market.

5. The method of claim 1, comprising communicating the offer to a trading desk associated with an intermediary and communicating the offer to the trading market via the intermediary.

6. The method of claim 1, wherein the legal authority to issue the primary security requires a regulatory registration, and wherein the at least one interface screen comprises at least one form element for the primary issuer to confirm that the issuer has filed the regulatory registration for the offering and that the regulatory registration is still in force.

7. The method of claim 6, wherein the regulatory registration comprises a shelf registration.

8. The method of claim 1, wherein the at least one interface screen further comprises a display of market data associated with the primary securities in the trading market.

9. The method of claim 8, wherein the at least one item of information regarding the offering comprises a size of the offering or a number of primary securities that the primary issuer is authorized legally to sell, and wherein the at least one interface screen comprises a display of the cash value of the offering.

10. The method of claim 1, wherein the at least one item of information regarding the offering comprises a remaining cash value of the offering taking into account a size of the offering or a number of primary securities that the primary issuer is authorized legally to sell, and any securities previously sold in the offering.

11. The method of claim 10, comprising calculating a number of primary securities available for sale in the offering based on the remaining cash value of the offering and a market price of the primary securities in the trading market.

12. The method of claim 1, wherein the at least one interface screen comprises at least one form element for the primary issuer to specify instructions for selling the primary securities on the trading market, the method comprising communicating the offer to sell the primary securities with the instructions specified by the issuer.

13. The method of claim 12, wherein the instructions comprise an indication that the offer is at least one of a passive, a midpoint, an aggressive, a volume weighted average price (VWAP), a participate, a day offer, and a good till cancelled offer.

14. The method of claim 12, wherein the instructions comprise an indication that the offer to sell the primary securities is a market order, and wherein the offer communicated to the trading market is a market order.

15. The method of claim 1, wherein the primary securities are offered without underwriting.

16. The method of claim 1, wherein the primary securities are offered using at least one of an underwriter and a placement agent.

17. The method of claim 1, comprising receiving a deposit of a number of unissued, authorized securities for the offering from the issuer, wherein the at least one item of information regarding the offering comprises the number of unissued, authorized securities deposited.

18. The method of claim 17, comprising determining a remaining number of securities available to be sold in the offering based on the number of securities deposited and any securities sold in the offering, wherein the at least one interface screen comprises a display of the remaining number of securities available to be sold in the offering.

19. A method comprising:

receiving and storing details of an issuer and a shelf registration of said issuer, said shelf registration authorizing said issuer to sell primary securities up to a specified dollar amount;

receiving, pursuant to a distribution agreement, a first number of unissued, authorized shares of said primary securities whose total value does not exceed said specified dollar amount;

receiving, via a user interface, an order from said issuer to sell a second number of shares of said primary securities, said second number not exceeding said first number; and

transmitting said order to a securities marketplace.

20. A method as in claim 19, further comprising receiving an indication that at least a portion of said order has been executed.

21. A method as in claim 20, further comprising transmitting data comprising said indication to said user interface for display to said issuer.

22. A method as in claim 21, wherein said user interface displays to said issuer a total dollar amount of shares of said primary securities sold.

23. A method comprising:

displaying at least one interface screen on a client device, the at least one interface screen comprising at least one item of information regarding an offering of primary securities and at least one form element for an issuer of the primary securities to define terms of an offer to sell the primary securities in a trading market;

communicating the offer to sell the primary securities from the client device to a computing device coupled to the client device over a network; and

confirming that the issuer of the primary securities is legally authorized to issue the primary securities.

24. The method of claim 23, wherein the trading market comprises at least one of an exchange and an over the counter marketplace.

25. The method of claim 23, wherein the primary securities comprise new equity securities indistinguishable from corresponding secondary securities in the trading market.

26. The method of claim 23, wherein the legal authority to issue the primary security requires a regulatory registration, and wherein the at least one interface screen comprises at least one form element for the primary issuer to confirm that the issuer has filed the regulatory registration for the offering and that the regulatory registration is still in force.

27. The method of claim 26, wherein the regulatory registration comprises a shelf registration.

28. The method of claim 23, wherein the at least one interface screen further comprises a display of market data associated with the primary securities in the trading market.

29. The method of claim 28, wherein the at least one item of information regarding the offering comprises a size of the offering or a number of authorized primary securities that the primary issuer is authorized legally to sell, and wherein the at least one interface screen comprises a display of the cash value of the offering.

30. The method of claim 23, wherein the at least one item of information regarding the offering comprises a remaining cash value of the offering taking into account a size of the offering or a number of authorized primary securities that the primary issuer is authorized legally to sell, and any securities previously sold in the offering.

31. The method of claim 30, the interface screen comprising a display of a number of primary securities available for sale in the offering calculated based on the remaining cash value of the offering and a market price of the primary securities in the trading market.

32. The method of claim 23, comprising depositing a number of unissued, authorized securities for the offering with a provider, wherein the at least one item of information regarding the offering comprises the number of unissued, authorized securities deposited.

33. The method of claim 32, wherein the at least one interface screen comprises a display of a remaining number of securities available to be sold in the offering, the remaining number of securities available to be sold in the offering determined based on the number of securities deposited and any securities previously sold in the offering.

34. A system comprising at least one computing device coupled to at least one client device over a network, the at least one computing device operable at least to:

cause at least one interface screen to be displayed on the at least one client device, the at least one interface screen comprising at least one item of information regarding an offering of primary securities and at least one form element for an issuer of the primary securities to define terms of an offer to sell the primary securities;

receive from the at least one client device the offer to sell the primary securities and a confirmation that the issuer of the primary securities is legally authorized to issue the primary securities; and

communicate the offer to sell the primary securities to a trading market.

35. The system of claim 34, wherein the trading market comprises at least one of an exchange and an over the counter marketplace.

36. The system of claim 34, wherein the primary securities comprise new equity securities indistinguishable from corresponding secondary securities in the trading market.

37. The system of claim 34, wherein the primary securities comprise new debt securities indistinguishable from corresponding secondary securities in the trading market.

38. The system of claim 34, the at least one computing device further operable to communicate the offer to a trading desk associated with an intermediary and communicate the offer to the trading market via the intermediary.

39. The system of claim 34, wherein the legal authority to issue the primary security requires a regulatory registration, and wherein the at least one interface screen comprises at least one form element for the primary issuer to confirm that the issuer has filed the regulatory registration for the offering and that the regulatory registration is still in force.

40. The system of claim 39, wherein the regulatory registration comprises a shelf registration.

41. The system of claim 34, wherein the at least one interface screen further comprises a display of market data associated with the primary securities in the trading market.

42. The system of claim 41, wherein the at least one item of information regarding the offering comprises a size of the offering or a number of authorized primary securities that the primary issuer is authorized legally to sell, and wherein the at least one interface screen comprises a display of the cash value of the offering.

43. The system of claim 34, wherein the at least one item of information regarding the offering comprises a remaining cash value of the offering taking into account a size of the offering or a number of authorized primary securities that the primary issuer is authorized legally to sell, and any securities previously sold in the offering.

44. The system of claim 43, the at least one computing device further operable to calculate a number of primary securities available for sale in the offering based on the remaining cash value of the offering and a market price of the primary securities in the trading market.

45. The system of claim 34, wherein the at least one interface screen comprises at least one form element for the primary issuer to specify instructions for selling the primary securities on the trading market, the at least one computing device further operable to communicate the offer to sell the primary securities with the instructions specified by the issuer.

46. The system of claim 45, wherein the instructions comprise an indication that the offer is at least one of a passive, a midpoint, an aggressive, a volume weighted average price (VWAP), a participate, a day offer, and a good till cancelled offer.

47. The system of claim 45, wherein the instructions comprise an indication that the offer to sell the primary securities is a market order, and wherein the offer communicated to the trading market is a market order.

48. The system of claim 43, wherein the primary securities are offered without underwriting.

49. The system of claim 34, wherein the primary securities are offered using at least one of an underwriter and a placement agent.

50. The system of claim 34, the at least one computing device further operable to receive a number of unissued, authorized securities for the offering from the issuer deposited, wherein the at least one item of information regarding the offering comprises the number of unissued, authorized securities deposited.

51. The system of claim 50, the at least one computing device further operable to determine a remaining number of securities available to be sold in the offering based on the number of securities deposited and any securities sold in the offering, wherein the at least one interface screen comprises a display of the remaining number of securities available to be sold in the offering.

52. A system comprising at least one computing device coupled to at least one client device over a network, the at least one computing device operable at least to:

receive and store details of an issuer and a shelf registration of said issuer, said shelf registration authorizing said issuer to sell primary securities up to a specified dollar amount;

receive, pursuant to a distribution agreement, a first number of unissued, authorized shares of said primary securities whose total value does not exceed said specified dollar amount;

receive, via a user interface, an order from said issuer to sell a second number of shares of said primary securities, said second number not exceeding said first number; and

transmit said order to a securities marketplace.

53. A system as in claim 52, the at least one computing device further operable to receive an indication that at least a portion of said order has been executed.

54. A system as in claim 53, the at least one computing device further operable to transmit data comprising said indication to said user interface for display to said issuer.

55. A system as in claim 54, wherein said user interface displays to said issuer a total dollar amount of shares of said primary securities sold.

56. A system comprising at least one client device coupled over a network to at least one computing device, the at least one client device operable at least to:

display at least one interface screen comprising at least one item of information regarding an offering of primary securities and at least one form element for an issuer of the primary securities to define terms of an offer to sell the primary securities in a trading market;

communicate the offer to sell the primary securities to the computing device coupled to the client device over a network; and

confirm that the issuer of the primary securities is legally authorized to issue the primary securities.

57. The system of claim 56, wherein the trading market comprises at least one of an exchange and an over the counter marketplace.

58. The system of claim 56, wherein the primary securities comprise new equity securities indistinguishable from corresponding secondary securities in the trading market.

59. The system of claim 56, wherein the legal authority to issue the primary security requires a regulatory registration, and wherein the at least one interface screen comprises at least one form element for the primary issuer to confirm that the issuer has filed the regulatory registration for the offering and that the regulatory registration is still in force.

60. The system of claim 59, wherein the regulatory registration comprises a shelf registration.

61. The system of claim 56, wherein the at least one interface screen further comprises a display of market data associated with the primary securities in the trading market.

62. The system of claim 61, wherein the at least one item of information regarding the offering comprises a size of the offering or a number of authorized primary securities that the primary issuer is authorized legally to sell, and wherein the at least one interface screen comprises a display of the cash value of the offering.

63. The system of claim 56, wherein the at least one item of information regarding the offering comprises a remaining cash value of the offering taking into account a size of the offering or a number of authorized primary securities that the primary issuer is authorized legally to sell, and any securities previously sold in the offering.

64. The system of claim 63, the interface screen comprising a display of a number of primary securities available for sale in the offering calculated based on the remaining cash value of the offering and a market price of the primary securities in the trading market.

65. The system of claim 56, wherein the primary issuer deposits a number of unissued, authorized securities for the offering with a provider, and wherein the at least one item of information regarding the offering comprises the number of unissued, authorized securities deposited.

66. The system of claim 65, wherein the at least one interface screen comprises a display of a remaining number of securities available to be sold in the offering, the remaining number of securities available to be sold in the offering determined based on the number of securities deposited and any securities previously sold in the offering.

67. A non-transitory computer readable medium having software stored thereon that when executed by a computing device causes the computing device to perform a method comprising:

causing at least one interface screen to be displayed on at least one client device, the at least one interface screen comprising at least one item of information regarding an offering of primary securities and at least one form element for an issuer of the primary securities to define terms of an offer to sell the primary securities;

receiving from the at least one client device the offer to sell the primary securities and a confirmation that the issuer of the primary securities is legally authorized to issue the primary securities; and

communicating the offer to sell the primary securities to a trading market.

68. A non-transitory computer readable medium having software stored thereon that when executed by a computing device causes the computing device to perform a method comprising:

receiving and storing details of an issuer and a shelf registration of said issuer, said shelf registration authorizing said issuer to sell primary securities up to a specified dollar amount;

receiving, pursuant to a distribution agreement, a first number of unissued, authorized shares of said primary securities whose total value does not exceed said specified dollar amount;

receiving, via a user interface, an order from said issuer to sell a second number of shares of said primary securities, said second number not exceeding said first number; and

transmitting said order to a securities marketplace.

69. A non-transitory computer readable medium having software stored thereon that when executed by a client device causes the computing device to perform a method comprising:

displaying at least one interface screen on the client device, the at least one interface screen comprising at least one item of information regarding an offering of primary securities and at least one form element for an issuer of the primary securities to define terms of an offer to sell the primary securities in a trading market;

communicating the offer to sell the primary securities from the client device to a computing device coupled to the client device over a network; and

confirming that the issuer of the primary securities is legally authorized to issue the primary securities.

70. A method comprising:

receiving and storing details of an issuer and a shelf registration of said issuer, said shelf registration authorizing said issuer to sell primary securities up to a specified number of securities;

receiving, pursuant to a distribution agreement, a first number of unissued, authorized shares of said primary securities that does not exceed said specified number of securities;

receiving, via a user interface, an order from said issuer to sell a second number of shares of said primary securities, said second number not exceeding said first number; and

transmitting said order to a securities marketplace.

71. A system comprising at least one computing device coupled to at least one client device over a network, the at least one computing device operable at least to:

receive and storing details of an issuer and a shelf registration of said issuer, said shelf registration authorizing said issuer to sell primary securities up to a specified number of securities;

receive, pursuant to a distribution agreement, a first number of unissued, authorized shares of said primary securities that does not exceed said specified number of securities;

receive, via a user interface, an order from said issuer to sell a second number of shares of said primary securities, said second number not exceeding said first number; and

transmit said order to a securities marketplace.

72. A non-transitory computer readable medium having software stored thereon that when executed by a computing device causes the computing device to perform a method comprising:

receiving and storing details of an issuer and a shelf registration of said issuer, said shelf registration authorizing said issuer to sell primary securities up to a specified number of securities;

receiving, pursuant to a distribution agreement, a first number of unissued, authorized shares of said primary securities that does not exceed said specified number of securities;

receiving, via a user interface, an order from said issuer to sell a second number of shares of said primary securities, said second number not exceeding said first number; and

transmitting said order to a securities marketplace.