Granted Patent B2

US 7,778,896 · App. 10/309,750 · Granted Aug 17, 2010

Abstract

Claims (86)

1. A Depositary Receipt authority system, comprising:

at least one computer network;

a database configured to store information related to the issuance and cancellation of Depositary Receipts;

computer memory configured to store instructions; and

a processor coupled with the memory, the database, and the at least one computer network, the processor configured to execute the instructions, the instructions configured to cause the processor to: receive a request from another processor via the at least one computer network to convert purchased ordinary shares to Depositary Receipts; automatically communicate directions to certain computer systems via the at least one computer network to facilitate the conversion of purchased ordinary shares to Depositary Receipts; obtain a foreign exchange rate quote for the conversion from a foreign exchange dealer authority; determine a pass through cost to convert the ordinary shares based on the quoted foreign exchange rate and the information stored in the database; present the determined pass through cost for approval; receive an approval of the determined pass through cost; and accept the quoted foreign exchange rate based on the received approval.

2. The Depositary Receipt authority system of claim 1 , wherein the instructions are further configured to cause the processor to automatically establish a connection with a clearing agent authority and issue directions to the clearing agent authority to facilitate the conversion of the purchased ordinary shares.

3. The Depositary Receipt authority system of claim 2 , wherein the directions are configured to cause the clearing agent authority to:

remit a fee to an American Depositary Receipt bank in exchange for issued Depositary Receipts;

deliver the Depositary Receipts to an investor in exchange for payment of the pass through cost; and

transfer a payment to a foreign exchange dealer based on an accepted foreign exchange rate.

4. The Depositary Receipt authority system of claim 2 , wherein the directions are configured to cause the clearing agent authority to:

deliver collateral to an American Depositary Receipt bank in exchange for the American Depositary Receipt bank pre-releasing the Depositary Receipts;

remit an issuance fee to the American Depositary Receipt bank in exchange for the Depositary Receipts;

deliver the Depositary Receipts to an investor in exchange for payment of the pass through cost; and

transfer a payment to a foreign exchange dealer based on the accepted foreign exchange rate.

5. The Depositary Receipt authority system of claim 4 , wherein the directions are further configured to cause the clearing agent authority to receive a return of the collateral from the bank.

6. The Depositary Receipt authority system of claim 1 , wherein the instructions are further configured to cause the processor to automatically establish a connection with an American Depositary Receipt bank authority and to issue directions to the American Depositary Receipt bank authority.

7. The Depositary Receipt authority system of claim 6 , wherein the directions are configured to cause the American Depositary Receipt bank authority to:

instruct a local custodian authority to receive the purchased ordinary shares from a local clearing agent;

receive a notice from the local custodian authority when the local custodian authority receives the purchased local shares from the local clearing agent; and

issue the Depositary Receipts to a clearing agent in exchange for a fee.

8. The Depositary Receipt authority system of claim 6 , wherein the directions are configured to cause the American Depositary Receipt bank authority to:

receive collateral;

pre-release the Depositary Receipts to a clearing agent in exchange for delivery of the collateral; and

receive a fee in exchange for delivery of the Depositary Receipts.

9. The Depositary Receipt authority system of claim 8 , wherein the directions are further configured to cause the American Depositary Receipt bank authority to:

instruct a local custodian authority to receive the purchased ordinary shares from a local clearing agent;

receive a notice from the local custodian authority when the local custodian authority receives the purchased local shares from the local clearing agent; and

return the collateral once the notice is received from the local custodian authority.

10. The Depositary Receipt authority system of claim 1 , wherein the instructions are further configured to cause the processor to automatically establish a connection with a foreign exchange dealer authority and to issue directions to the foreign exchange dealer authority, the directions configured to cause the foreign exchange dealer authority to:

issue an instruction to a local foreign exchange dealer authority to deliver foreign currency to a local clearing agent; and

receive a payment from a clearing agent.

11. The Depositary Receipt authority system of claim 1 , wherein the instructions are further configured to cause the processor to automatically establish a connection with a local clearing agent authority and to issue directions to the local clearing agent authority, the directions configured to cause the local clearing agent authority to:

receive the purchased ordinary shares from a local broker and deliver the purchased ordinary shares to a local custodian; and

receive foreign currency from a local foreign exchange dealer and deliver the foreign currency to the local broker in exchange for the purchased ordinary shares.

12. A Depositary Receipt authority system, comprising:

at least one computer network;

a database configured to store information related to the issuance and cancellation of Depositary Receipts;

computer memory configured to store instructions; and

a processor coupled with the memory, the database, and the at least one computer network, the processor configured to execute the instructions, the instructions configured to cause the processor to: receive a request from another processor via the at least one computer network to cancel Depositary Receipts associated with the sale of ordinary shares; automatically communicate directions to certain computer systems via the at least one computer network to facilitate the cancellation of the Depositary Receipt; automatically establish a connection with a foreign exchange dealer authority in response to the received request and obtain a foreign exchange rate quote for the cancellation from the foreign exchange dealer authority; determine a pass through cost to cancel the Depositary Receipts based on the quoted foreign exchange rate and the information stored in the database; present the determined pass through cost for approval; receive an approval of the determined pass through cost; and accept the quoted foreign exchange rate based on the received approval.

13. The Depositary Receipt authority system of claim 12 , wherein the instructions are further configured to cause the processor to automatically establish a connection with a clearing agent authority and issue directions to the clearing agent authority to facilitate the cancellation of the Depositary Receipts.

14. The Depositary Receipt authority system of claim 13 , wherein the directions are configured to cause the clearing agent authority to:

deliver collateral to an American Depositary Receipt bank in exchange for the American Depositary Receipt bank pre-releasing ordinary shares;

receive funds from a foreign exchange dealer;

deliver a settlement amount from the received funds to an investor in exchange for the Depositary Receipts;

deliver the Depositary Receipts to the American Depositary Receipt bank; and

remit a cancellation fee to the American Depositary Receipt bank.

15. The Depositary Receipt authority system of claim 14 , wherein the directions are further configured to cause the clearing agent authority to receive a return of the collateral from the American Depositary Receipt bank once the Depositary Receipts are delivered.

16. The Depositary Receipt authority system of claim 13 , wherein the instructions are further configured to cause the processor to automatically establish a connection with an American Depositary Receipt bank authority and to issue directions to the American Depositary Receipt bank authority.

17. The Depositary Receipt authority system of claim 16 , wherein the directions are configured to cause the American Depositary Receipt bank authority to:

instruct a local custodian authority to release ordinary shares to a local clearing agent;

receive the Depositary Receipts from a clearing agent; and

cancel the Depositary Receipts in exchange for a fee.

18. The Depositary Receipt authority system of claim 17 , wherein the directions are configured to cause the American Depositary Receipt bank authority to: receive the collateral; and return the collateral once the Depositary Receipts are received from the local clearing agent.

19. The Depositary Receipt authority system of claim 13 , wherein the instructions are further configured to cause the processor to automatically establish a connection with a foreign exchange dealer authority and to issue directions to the foreign exchange dealer authority, the directions configured to cause the foreign exchange dealer authority to:

issue an instruction to a local foreign exchange dealer authority to receive foreign currency from a local clearing agent; and

deliver a payment to a clearing agent.

20. The Depositary Receipt authority system of claim 13 , wherein the instructions are further configured to cause the processor to automatically establish a connection with a local clearing agent authority and to issue directions to the local clearing agent authority, the directions configured to cause the local clearing agent authority to:

receive ordinary shares from a local custodian and deliver the received ordinary shares to a local broker; and

receive foreign currency from the local broker in exchange for the ordinary shares received from the local custodian and deliver the foreign currency to a local foreign exchange dealer.

21. A Depositary Receipt authority system, comprising:

at least one computer network;

a database configured to store information related to the issuance and cancellation of Depositary Receipts received via the at least one computer network;

computer memory configured to store instructions; and

a processor coupled with the memory, the database, and the at least one computer network, the processor configured to execute the instructions, the instructions configured to cause the processor to continuously update information related to the cost of issuing and canceling certain Depositary Receipts by obtaining an updated foreign exchange quote and updating a pass through cost based on the updated foreign exchange quote and to display, based on the updated foreign exchange quote and the updated pass through cost, the continuously updated information based on the information related to the issuance and cancellation of Depositary Receipts received via the at least one computer network.

22. The Depositary Receipt authority system of claim 21 , wherein the information stored in the database includes at least one of conversion ratio, information related to an investor, information related to a local market, and information related certain costs associated with the issuance or cancellation of the certain Depositary Receipts.

23. The Depositary Receipt authority system of claim 22 , wherein the information related to an investor comprises information related to special pricing given to the investor.

24. The Depositary Receipt authority system of claim 22 , wherein the information related to a local market includes information related to local brokers for the local market.

25. The Depositary Receipt authority system of claim 21 , wherein the instructions are further configured to cause the processor to store information related to the issuance and cancellation of the certain Depositary Receipts.

26. The Depositary Receipt authority system of claim 25 , wherein the instructions are further configured to cause the processor to store information related to the underlying ordinary share transaction.

27. The Depositary Receipt authority system of claim 25 , wherein the instructions are further configured to cause the processor to display historical information related to past issuance or cancellation of Depositary Receipts.

28. The Depositary Receipt authority system of claim 21 , wherein the information displayed includes a foreign exchange rate.

29. The Depositary Receipt authority system of claim 21 , wherein the information displayed includes a pass through cost.

30. The Depositary Receipt authority system of claim 21 , wherein the information displayed includes an ordinary share price.

31. A method for trading in a local market with clearing and settlement in Depositary Receipts and U.S. dollars, comprising:

automatically establishing a connection between a first processor and a second processor, wherein the second processor is part of a foreign exchange dealer authority, via at least one computer network;

requesting a foreign exchange rate from the second processor of the foreign exchange dealer authority;

receiving via the at least one computer network a foreign exchange rate quote in response to the foreign exchange rate request;

automatically determining using the first processor a pass through cost for the issuance or cancellation of Depositary Receipts based on the quoted foreign exchange rate and information stored in a database electronically coupled to the first processor;

presenting the determined pass through cost for approval;

receiving an approval of the determined pass through cost; and

accepting the quoted foreign exchange rate based on the received approval.

32. The method of claim 31 , further comprising automatically establishing a connection with a clearing agent authority and issuing directions to the clearing agent authority.

33. The method of claim 31 , further comprising automatically establishing a connection with an American Depositary Receipt bank authority and issuing directions to the American Depositary Receipt bank authority.

34. The method of claim 31 , further comprising automatically establishing a connection with a foreign exchange dealer authority and automatically issuing directions to the foreign exchange dealer authority.

35. The method of claim 31 , further comprising automatically establishing a connection with a local clearing agent authority and automatically issuing directions to the local clearing agent authority.

Assignments (11)