Internet-Based System for Auctioning Securities
A method of auctioning exchange traded assets is described. Before commencing the auction bidding, the seller establishes a maximum asset amount representing a greatest amount of the exchange traded assets to be auctioned, and a minimum asset price representing a minimum acceptable bid amount for a given amount of the exchange traded assets. During the bidding, bids are received for the assets, with each bid including a bid price and a corresponding bid amount of assets. After the bidding, a market demand is determined that represents the total of all the bid amounts for the bids. If the market demand is greater than or equal to the maximum asset amount, a clearing price is established that allocates the maximum asset amount of the assets according to the bids at a final price between and including the clearing price and the minimum asset price. Otherwise, if the market demand is less than the maximum asset amount, the market demand amount of the assets according to the bids at a final price equal to the minimum asset price.
1 . A computer implemented method for auctioning exchange traded assets, the method comprising:
before commencing auction bidding, establishing:
i. a maximum asset amount representing a greatest amount of the exchange traded assets to be auctioned, and
ii. a minimum asset price representing a minimum acceptable bid amount for a given amount of the exchange traded assets;
during auction bidding, receiving a plurality of auction bids for the exchange traded assets, each auction bid including a bid price and a corresponding bid amount of assets;
after the auction bidding, determining a market demand representing a total of all the bid amounts for the auction bids received during the auction bidding; and
if the market demand is greater than or equal to the maximum asset amount, establishing a clearing price that allocates the maximum asset amount of the exchange traded assets according to the auction bids at a final price between and including the clearing price and the minimum asset price; or
else, if the market demand is less than the maximum asset amount, allocating the market demand amount of exchange traded assets according to the auction bids at a final price equal to the minimum asset price.
2 . A method according to claim 1 , wherein the exchange traded assets are exchange traded securities.
3 . A method according to claim 1 , wherein the exchange traded assets are exchange traded commodities.