Methods and systems for purchase of commodities
DCFirst Claim
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1. A commodity purchasing system, comprising:
- a data storage device;
a processor connected to the data storage device;
a plurality of buyer interfaces, recorded on the data storage device, comprising a set of pictures, text or voice statements that provide instructions and protocols that will cause a respective plurality of buyer-operated computers to display to a respective plurality of buyers sell data received from a seller, and to receive from the plurality of buyers hedge transaction data and bid data, said hedge transaction data for each buyer including a hedge commodity, and said bid data for each buyer including a basis for a desired commodity;
a network connection to a commodity exchange that periodically receives a real-time exchange rate quote for the hedge commodity;
a bid generating program, comprising computer-readable instructions to cause the processor to periodically update the bid data for each buyer in the plurality of buyers so that said bid data for said each buyer includes an updated bid price for the desired commodity, wherein said bid generating program calculates said updated bid price by subtracting said each buyer'"'"'s basis from the real-time exchange rate quote;
a seller interface, recorded on the data storage device, comprising a set of pictures, text or voice statements that provide instructions and protocols that will cause a seller-operated computer to display to the seller the bid data received from the plurality of buyers, and to receive the sell data from the seller, said sell data including a net sell price for the desired commodity and, for each buyer in the plurality of buyers, a transaction cost associated with selling the desired commodity to said each buyer, wherein said transaction cost is based on a cost the seller will incur or avoid in connection with delivering the desired commodity at a time and a location specified by said each buyer;
an offer generating program, comprising computer-readable instructions that cause the processor to periodically update the sell data for the seller so that the sell data includes a plurality of specific offers for the plurality of buyers, respectively, each specific offer including a specific sell price for each buyer, the specific sell price being calculated by adding the transaction cost associated with said each buyer to the net sell price; and
a conformance monitoring program, comprising computer-readable instructions that cause the processor to periodically compare the bid data for each buyer in the plurality of buyers to the specific offer for said each buyer, and send an alert to the seller and a particular buyer in the plurality of buyers if a conformance is detected between the bid data for said particular buyer and the specific offer for said particular buyer;
wherein, the processor, operating under control of the conformance monitoring program, detects the conformance when (i) the updated bid price in the bid data for the particular buyer matches the specific sell price in the specific offer for the particular buyer, (ii) a quality specification in the bid data for said particular buyer matches a quality attribute in the specific offer for the particular buyer, (iii) a type specification in the bid data for said particular buyer matches a type attribute in the specific offer for the particular buyer, and (iv) a color specification in the bid data for said particular buyer matches a color attribute in the specific offer for the particular buyer.
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Abstract
The invention is directed to methods and systems for commodities procurement with concomitant hedging. The invention enables automatic commodity purchase at a desired basis level when a seller'"'"'s price matches a buyer'"'"'s basis bid and concomitantly automatically placing an electronic commodities order to hedge the buyer'"'"'s purchase.
22 Citations
27 Claims
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1. A commodity purchasing system, comprising:
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a data storage device; a processor connected to the data storage device; a plurality of buyer interfaces, recorded on the data storage device, comprising a set of pictures, text or voice statements that provide instructions and protocols that will cause a respective plurality of buyer-operated computers to display to a respective plurality of buyers sell data received from a seller, and to receive from the plurality of buyers hedge transaction data and bid data, said hedge transaction data for each buyer including a hedge commodity, and said bid data for each buyer including a basis for a desired commodity; a network connection to a commodity exchange that periodically receives a real-time exchange rate quote for the hedge commodity; a bid generating program, comprising computer-readable instructions to cause the processor to periodically update the bid data for each buyer in the plurality of buyers so that said bid data for said each buyer includes an updated bid price for the desired commodity, wherein said bid generating program calculates said updated bid price by subtracting said each buyer'"'"'s basis from the real-time exchange rate quote; a seller interface, recorded on the data storage device, comprising a set of pictures, text or voice statements that provide instructions and protocols that will cause a seller-operated computer to display to the seller the bid data received from the plurality of buyers, and to receive the sell data from the seller, said sell data including a net sell price for the desired commodity and, for each buyer in the plurality of buyers, a transaction cost associated with selling the desired commodity to said each buyer, wherein said transaction cost is based on a cost the seller will incur or avoid in connection with delivering the desired commodity at a time and a location specified by said each buyer; an offer generating program, comprising computer-readable instructions that cause the processor to periodically update the sell data for the seller so that the sell data includes a plurality of specific offers for the plurality of buyers, respectively, each specific offer including a specific sell price for each buyer, the specific sell price being calculated by adding the transaction cost associated with said each buyer to the net sell price; and a conformance monitoring program, comprising computer-readable instructions that cause the processor to periodically compare the bid data for each buyer in the plurality of buyers to the specific offer for said each buyer, and send an alert to the seller and a particular buyer in the plurality of buyers if a conformance is detected between the bid data for said particular buyer and the specific offer for said particular buyer; wherein, the processor, operating under control of the conformance monitoring program, detects the conformance when (i) the updated bid price in the bid data for the particular buyer matches the specific sell price in the specific offer for the particular buyer, (ii) a quality specification in the bid data for said particular buyer matches a quality attribute in the specific offer for the particular buyer, (iii) a type specification in the bid data for said particular buyer matches a type attribute in the specific offer for the particular buyer, and (iv) a color specification in the bid data for said particular buyer matches a color attribute in the specific offer for the particular buyer. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14)
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15. A commodity purchasing system, comprising:
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a web page server; a central processor; a commodity-purchasing software program, residing on the web page server; a plurality of buyer interface web pages on the web page server configured to cause a respective plurality of buyer-operated computers to display to a respective plurality of buyers sell data received from a seller, and to transmit to the central processor hedge transaction data and bid data received from the plurality of buyers, said hedge transaction data for each buyer including a hedge commodity, and said bid data for each buyer including a basis for a desired commodity; a seller interface web page on the web page server configured to cause a seller-operated computer to display to the seller the bid data received from the plurality of buyers, and to transmit to the central processor sell data received from the seller, said sell data including a net sell price for the desired commodity and, for each buyer in the plurality of buyers, a transaction cost associated with selling the desired commodity to said each buyer, wherein said transaction cost is based on a cost the seller will incur or avoid in connection with delivering the desired commodity at a time and a location specified by said each buyer; and a commodity exchange network connection that periodically delivers to the central processor a real-time exchange rate quote for the hedge commodity; wherein the commodity-purchasing software program comprises a set of computer-readable instructions to cause the central processor and web page server to transmit the plurality of buyer interface web pages to the plurality of buyer-operated computers and to transmit the seller interface web page to the seller-operated computer, periodically update the bid data presented by the seller interface web page so that said bid data includes an updated bid price for the desired commodity for each buyer in the plurality of buyers, said updated bid price being calculated by subtracting said each buyer'"'"'s basis from the real-time exchange rate quote, periodically update the sell data presented by the plurality of buyer interface web pages so that the sell data for the seller includes a specific offer for each buyer in the plurality of buyers, each specific offer including a specific sell price for said each buyer, wherein the commodity-purchasing software program calculates the specific sell price for said each buyer by adding the transaction cost associated with said each buyer to the net sell price, and periodically compare the bid data for each buyer in the plurality of buyers to the specific offer for said each buyer, and send an alert to the seller and a particular buyer in the plurality of buyers if a conformance is detected between the bid data for said particular buyer and the specific offer for said particular buyer; wherein, the commodity-purchasing software program is configured to cause the central processor to detect the conformance when (i) the updated bid price in the bid data for the particular buyer matches the specific sell price in the specific offer for the particular buyer, (ii) a quality specification in the bid data for said particular buyer matches a quality attribute in the specific offer for the particular buyer, (iii) a type specification in the bid data for said particular buyer matches a type attribute in the specific offer for the particular buyer, and (iv) a color specification in the bid data for said particular buyer matches a color attribute in the specific offer for the particular buyer. - View Dependent Claims (16, 17, 18, 19, 20)
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21. A method for purchasing commodities on a computer system comprising a central processor, a web page server and a network connection to a commodities exchange, the method comprising:
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using the web page server and the central processor to transmit to a plurality of buyer-operated computers a respective plurality of buyer web pages for a respective plurality of buyers, each buyer web page being configured to cause the buyer-operated computer to display sell data received from a seller and to receive from the plurality of buyers hedge transaction data and bid data, said hedge transaction data for each buyer including a hedge commodity, and said bid data for each buyer including a basis for a desired commodity; periodically receiving on the central processor, via the network connection to the commodities exchange, a real-time exchange rate quote for the hedge commodity; using the web page server and the central processor to periodically update the bid data for each buyer in the plurality of buyers so that said bid data for said each buyer includes an updated bid price for the desired commodity, wherein said central processor calculates the updated bid price by subtracting said each buyer'"'"'s basis from the real-time exchange rate quote; using the web page server and the central processor to transmit to a seller-operated computer a seller web page configured to cause the seller-operated computer to display the bid data received from the plurality of buyers and to receive from the seller the sell data, said sell data including a net sell price for the desired commodity and, for each buyer in the plurality of buyers, a transaction cost associated with selling the desired commodity to said each buyer, wherein said transaction cost is based on a cost the seller will incur or avoid in connection with delivering the desired commodity at a time and a location specified by said each buyer; using the central processor to periodically update the sell data for the seller so that the sell data includes a plurality of specific offers for the plurality of buyers, respectively, each specific offer including a specific sell price for each buyer, wherein the central processor calculates the specific sell price by adding the transaction cost associated with said each buyer to the net sell price; and using the central processor to periodically compare the bid data for each buyer in the plurality of buyers to the specific offer for said each buyer to determine whether a conformance exists between the bid data for a particular buyer in the plurality of buyers and the specific offer for said particular buyer; and if a conformance exists, causing the central processor to send an electronic alert to the seller-operated computer and the buyer-operated computer for the particular buyer; wherein, the central processor is configured to determine that the conformance exist when (i) the updated bid price in the bid data for the particular buyer matches the specific sell price in the specific offer for the particular buyer, (ii) a quality specification in the bid data for said particular buyer matches a quality attribute in the specific offer for the particular buyer, (iii) a type specification in the bid data for said particular buyer matches a type attribute in the specific offer for the particular buyer, and (iv) a color specification in the bid data for said particular buyer matches a color attribute in the specific offer for the particular buyer. - View Dependent Claims (22, 23, 24, 25, 26, 27)
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Specification