SYSTEMS AND METHODS FOR DISPLAYING OPTIMAL PRICING AND ALLOCATION FOR A SET OF DEBT INSTRUMENTS
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.
1 . A computer-implemented method for generating an order book of reservations for potential debt instrument purchasers in a set of debt instruments to be offered by an issuer for later sale comprising the steps of:
(a) storing, in one or more computers, one or more databases comprising debt instrument offering information relating to a plurality of units of a debt instrument offering of one or more types at one or more yields that are available for reservation, wherein
(i) each of said units of the debt instrument offering is intended to be offered as a debt instrument for later sale to the potential debt instrument purchasers, and
(ii) for at least one of the types having at least one of the yields, a plurality of units is available for reservation;
(b) transmitting, from the one or more computers to a first plurality of participant computers, each of which is associated with a respective potential debt instrument purchaser, first status information comprising at least an identification of units of the debt instrument offering at each type and each yield that are available and first display information comprising instructions to direct a respective graphical user interface for a respective participant computer to display at least the first status information;
(c) receiving, at the one or more computers from a first participant computer associated with a first potential debt instrument purchaser, a first request to reserve a first group of one or more of said units of the debt instrument offering;
(d) determining, at the one or more computers, using the first request, a first reservation comprising units within the first group that are available for reservation;
(e) updating the one or more databases in the one or more computers to reflect the first reservation;
(f) transmitting, from the one or more computers to at least a second plurality of participant computers, each of which is associated with a respective potential debt instrument purchaser, second status information that identify at least the following:
(i) units within the plurality of units of the debt instrument offering that are available for request for reservation, and
(ii) the first reservation as being reserved,
and second display information comprising instructions to direct a respective graphical user interface for a respective participant computer to display at least the second status information;
(g) receiving, at the one or more computers from a second participant computer associated with a second potential debt instrument purchaser, a second request to reserve a second group of one or more units of the debt instrument offering;
(h) determining, at the one or more computers, using the second request, a second reservation comprising units within the second group that are available for reservation;
(i) updating the one or more databases in the one or more computers, to reflect the second reservation;
(j) transmitting, from the one or more computers to at least a third plurality of participant computers, each of which is associated with a potential debt instrument purchaser, third status information that identify at least the following:
(i) units within the plurality of units of the debt instrument offering that are available for request for reservation,
(ii) the first reservation as being reserved, and
(iii) the second reservation as being reserved,
and third display information comprising instructions to direct a respective graphical user interface for a respective participant computer to display at least the third status information;
(k) terminating, upon an occurrence of a condition, the transmission of status information that identify a plurality of debt instrument units that are intended to be offered for later sale; and
(l) generating the order book that comprises reservations that are stored in the one or more databases in the one or more computers.
2 . The method of claim 1 , further comprising, prior to step (k), the steps of:
(1) receiving, at the one or more computers from a third participant computer associated with a third potential debt instrument purchaser, a third request to reserve a third group of one or more units of the debt instrument offering;
(2) determining, at the one or more computers, using the third request, a third reservation comprising units within the third group that are available for reservation;
(3) modifying, using the one or more computers, at least one of the first reservation or the second reservation;
(4) updating the one or more databases in the one or more computers, to reflect the third reservation and the modification of at least one of the first reservation or the second reservation;
(5) transmitting, from the one or more computers to at least a fourth plurality of participant computers, each of which is associated with a potential debt instrument purchaser, fourth status information that identify at least the following:
(i) units within the plurality of units of the debt instrument offering that are available for request for reservation,
(ii) the status of the first reservation,
(iii) the status of the second reservation, and
(iv) the third reservation as being reserved,
and fourth display information comprising instructions to direct a respective graphical user interface for a respective participant computer to display at least the fourth status information.
3 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprise instructions to direct the respective graphical user interfaces to display for each reservation yield along a first axis and quantity along a second axis.
4 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display along a third axis an additional aspect of each reservation.
5 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a plurality of axes, and the information displayed in at least one axis changes.
6 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a representation of a normalization comprising at least two reservations.
7 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a representation of previous offerings of similar units.
8 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a representation of reservations exceeding a predetermined size.
9 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a representation of a type of entity associated with each reservation.
10 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a representation that is one or more of the following: static, iterative, or a simulation.
11 . The method of claim 1 , wherein display information sent to a graphical user interface of the first participant computer is generated based at least in part on information relating to the first potential debt instrument purchaser.
12 . The method of claim 1 , wherein display information sent to a graphical user interface of the second participant computer is generated based at least in part on information relating to the second potential debt instrument purchaser.
13 . The method of claim 1 , wherein display information sent to a graphical user interface of the third participant computer is generated based at least in part on information relating to the third potential debt instrument purchaser.
14 . The method of claim 2 , wherein the fourth display information, further comprises instructions to direct the respective graphical user interface to display additional information with at least one modified reservation.
15 . The method of claim 1 , wherein at least one of the first display information, the second display information, or the third display information, respectively further comprises instructions to direct a respective graphical user interface to display a calculator.
16 . The method of claim 2 , wherein the fourth display information further comprises instructions to direct the respective graphical user interface to display a representation of there being accepted reservations that exceed the number of available units.
17 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a representation of a spread in the yields associated with each reservation.
18 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a representation of changes in yields of the reservations over time.
19 . The method of claim 2 , wherein the fourth display information further comprises instructions to direct the respective graphical user interface to display a representation of changes in yields of the reservations over time.
20 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct a respective graphical user interface to display an identification of the potential purchaser of at least one of the first reservation, the second reservation, or the third reservation.
21 . The method of claim 2 , wherein the fourth display information further comprises instructions to direct the respective graphical user interface to display an identification of the potential purchaser of at least one of the first reservation, the second reservation, the third reservation, or the fourth reservation.
22 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display a representation of a projected set of reservations.
23 . The method of claim 22 , wherein the representation includes a representation of the outcomes of game theory-based scenarios.
24 . The method of claim 1 , wherein the method is carried out as a simulation.
25 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display multiple displays for units having different characteristics.
26 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display split screens for units having different characteristics.
27 . The method of claim 1 , wherein the first display information, the second display information, and the third display information, respectively further comprises instructions to direct the respective graphical user interfaces to display tabbed screens for units having different characteristics.
28 . The method of claim 1 , wherein the debt instruments, when offered for later sale, are comprising at least one of corporate bonds, commercial paper, municipal bonds, international bonds, sovereign debt, sub-sovereign debt, public debt, securitization of assets, notes, or convertible debt securities.
29 . The method of claim 1 , wherein the one or more types are comprising at least one of debt instruments of a series, debt instruments having the same maturity, debt instruments having the same coupon rate, or debt instruments available for reservation by a predetermined investor class.
30 . The method of claim 1 , wherein the yield comprises one or more of the following: a yield rate, an interest rate, a coupon rate, a yield equivalent, a yield-to-maturity rate, a yield-to-call rate, a yield-to-worst-call rate, or a spread from an index.