SYSTEMS AND METHODS FOR DISPLAYING OPTIMAL PRICING AND ALLOCATION FOR A SET OF CONTRACT RIGHTS 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 contract rights purchasers in a set of contract rights to be offered by an issuer comprising the steps of:
(a) storing, in one or more computers one or more databases comprising contract rights offering information relating to a plurality of units of an contract rights offering of one or more types at one or more prices that are available for reservation, wherein
(i) each of said units of the contract rights offering is intended to be offered as a contract rights for later sale to the potential contract rights 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 computers to a first plurality of participant computers, each of which is associated with a respective potential contract rights purchaser, first status information comprising at least an identification of units of the contract rights offering of each type and each price 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 contract rights purchaser, a first request to reserve a first group of one or more of said units of the contract rights 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 contract rights purchaser, second status information that identify at least the following:
(i) units within the plurality of units of the contract rights 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 contract rights purchaser, a second request to reserve a second group of one or more units of the contract rights 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 contract rights purchaser, third status information that identify at least the following:
(i) units within the plurality of units of the contract rights 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 the plurality of contract rights 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 contract rights purchaser, a third request to reserve a third group of one or more units of the contract rights 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 contract rights purchaser, fourth status information that identify at least the following:
(i) units within the plurality of units of the contract rights 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 price 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 contract rights 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 contract rights 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 contract rights 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 prices 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 prices 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 prices 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 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 price is an interest yield or yield equivalent.
29 . 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.
30 . The method of claim 1 , wherein the contractual rights comprise revenue streams from one or more contracts.
31 . The method of claim 1 , wherein the contractual rights are for goods.
32 . The method of claim 31 , wherein the goods are commodities.
33 . The method of claim 1 , wherein the contract rights are for services.
34 . The method of claim 1 , wherein the contractual rights are used to hedge risk.
35 . The method of claim 34 , wherein the method used to hedge risk is insurance.
36 . The method of claim 1 , wherein the contractual rights are to real property.
37 . The method of claim 1 , wherein the contractual rights are to used property.
38 . The method of claim 1 , wherein the contractual rights are to intellectual property.
39 . The method of claim 1 , wherein the one or more types comprise contractual rights of a series.
40 . The method of claim 1 , wherein the one or more types comprise contractual rights having the same maturity.
41 . The method of claim 1 , wherein the one or more types comprise contractual rights having the same price.
42 . The method of claim 1 , wherein the one or more types comprise contractual rights available for reservation by a predetermined potential contract rights purchaser class.