Method and system for optimal pricing and allocation with allotments
First Claim
1. A computer-implemented method for generating an order book of reservations for potential equity instrument purchasers in a set of equity instruments to be offered by an issuer comprising the steps of:
- (a) storing, on one or more computer readable media that are operatively coupled to one or more processors, a database comprising information relating to a plurality of units of an equity offering of one or more types at one or more prices that are available for reservation, wherein(i) each of said units of the equity offering is intended to be offered as a equity instrument for later sale to the potential equity instrument purchasers, and(ii) for at least one of the types having at least one of the prices, a plurality of units is available for reservation;
(b) transmitting, from the one or more processors which are operatively connected to one or more communication devices, a first set of one or more signals to at least a first plurality of the potential equity instrument purchasers that identify the status of the plurality of units of the equity offering, wherein the status comprises an identification of units of the equity offering at each type and each price that are available;
(c) receiving, at the one or more processors, a second set of one or more signals that indicate a request by a first potential equity instrument purchaser to reserve a first group of one or more of said units of the equity instrument offering;
(d) determining, at the one or more processors, using the second set of one or more signals, a first reservation comprising units within the first group that are available for reservation;
(e) updating the database on the one or more computer readable media to reflect the first reservation;
(f) transmitting, from the one or more processors, a third set of one or more signals to at least a second plurality of potential equity instrument purchasers that identify at least the following(i) units within the plurality of units of the equity instrument offering that are available for request for reservation, and(ii) the first reservation as being reserved;
(g) receiving, at the one or more processors, a fourth set one or more signals that indicate a request by a second potential equity instrument purchaser to reserve a second group of one or more units of the equity instrument offering;
(h) determining, at the one or more processors, using the fourth set of one or more signals, a second reservation comprising units within the second group that are available for reservation;
(i) updating the database on the one or more computer readable media to reflect the second reservation;
(j) transmitting, from the one or more processors, a fifth set of one or more signals to at least a third plurality of potential equity instrument purchasers that identify at least the following;
(i) units within the plurality of units of the equity instrument offering that are available for request for reservation,(ii) the first reservation as being reserved, and(iii) the second reservation as being reserved;
(k) terminating, upon the occurrence of a condition, the transmission of signals that identif the plurality of equity units that are intended to be offered for later sale; and
(l) generating the order book that comprises reservations that are stored on said database.
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0 Petitions
Accused Products
Abstract
A method and system for the determination of optimal pricing and allocation of securities in an open, competitive environment. The method and system may also be used in developing pre-markets of other items that are difficult to price and allocate in a competitive manner, such as the underwriting/securitization of contracts for property; future revenue/earning streams from an asset and/or group of assets; underwritten insurance portfolios, intellectual property and other goods and services. The system of price optimization and allocation is accomplished by interactive feedback of information using a display and including competitive participation of individual members of the public (and/or their agents) or institutional buyers over a data network e.g., the Internet, uncovering the nature and identification of demand in a self-organizing fashion. Demand emerges through participants'"'"' interaction with the system and with each other, via a graphically-supported, interactive reservation process. Indications of interest (e.g., bids) may be treated as an allotment.
77 Citations
74 Claims
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1. A computer-implemented method for generating an order book of reservations for potential equity instrument purchasers in a set of equity instruments to be offered by an issuer comprising the steps of:
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(a) storing, on one or more computer readable media that are operatively coupled to one or more processors, a database comprising information relating to a plurality of units of an equity offering of one or more types at one or more prices that are available for reservation, wherein (i) each of said units of the equity offering is intended to be offered as a equity instrument for later sale to the potential equity instrument purchasers, and (ii) for at least one of the types having at least one of the prices, a plurality of units is available for reservation; (b) transmitting, from the one or more processors which are operatively connected to one or more communication devices, a first set of one or more signals to at least a first plurality of the potential equity instrument purchasers that identify the status of the plurality of units of the equity offering, wherein the status comprises an identification of units of the equity offering at each type and each price that are available; (c) receiving, at the one or more processors, a second set of one or more signals that indicate a request by a first potential equity instrument purchaser to reserve a first group of one or more of said units of the equity instrument offering; (d) determining, at the one or more processors, using the second set of one or more signals, a first reservation comprising units within the first group that are available for reservation; (e) updating the database on the one or more computer readable media to reflect the first reservation; (f) transmitting, from the one or more processors, a third set of one or more signals to at least a second plurality of potential equity instrument purchasers that identify at least the following (i) units within the plurality of units of the equity instrument offering that are available for request for reservation, and (ii) the first reservation as being reserved; (g) receiving, at the one or more processors, a fourth set one or more signals that indicate a request by a second potential equity instrument purchaser to reserve a second group of one or more units of the equity instrument offering; (h) determining, at the one or more processors, using the fourth set of one or more signals, a second reservation comprising units within the second group that are available for reservation; (i) updating the database on the one or more computer readable media to reflect the second reservation; (j) transmitting, from the one or more processors, a fifth set of one or more signals to at least a third plurality of potential equity instrument purchasers that identify at least the following; (i) units within the plurality of units of the equity instrument offering that are available for request for reservation, (ii) the first reservation as being reserved, and (iii) the second reservation as being reserved; (k) terminating, upon the occurrence of a condition, the transmission of signals that identif the plurality of equity units that are intended to be offered for later sale; and (l) generating the order book that comprises reservations that are stored on said database. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74)
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Specification