Process and apparatus for conducting auctions over electronic networks

Abstract

An apparatus and process for conducting auctions, specifically municipal bond auctions, over electronic networks, particularly the Internet, is disclosed. The auctioneer maintains a web site from which information about bonds to be auctioned can be obtained. A user participates in the auction by accessing the web site via a conventional Internet browser and is led through a sequence of screens that perform the functions of verifying the user's identity, assisting the user in preparing a bid, verifying that the bid conforms to the rules of the auction, displaying to the user during the course of the auction selected bid information regarding bids received and informing the bidder how much time remains in the auction. The user may be given the option of confirming the accuracy of his bid before submitting the bid. The auctioneer is able to review bidding history, determine the winner and notify the winner over the network, and display selected auction results to bidders and observers over the network.

1 - 64 . (canceled) 
   
   
       65 . A computer-mediated method of conducting an auction of a financial instrument over the Internet, wherein bidders can be in different physical locations and can simultaneously participate in the auction, said bidders having access to web browsers, said bidders' web browsers communicating over the Internet with at least one computer having auction software, said method comprising:
 a) enforcing at least one standard bidders must satisfy to submit competing bids;   b) enforcing at least one auction rule competing bids must satisfy;   c) displaying the official auction time;   d) receiving, over the Internet, bids from bidders using web browsers;   e) enabling bidders to modify their bid inputs;   f) permitting comparison of received bids; and   g) providing information allowing for display of at least the best bid.   
   
   
       66 . The method of  claim 65  including conducting multiple auctions simultaneously. 
   
   
       67 . The method of  claim 65  including offering multiple instruments in the same auction. 
   
   
       68 . The method of  claim 65  wherein bidders may participate in a plurality of auctions simultaneously. 
   
   
       69 . The method of  claim 65  wherein bidders may bid more than one instrument in the same auction. 
   
   
       70 . The method of  claim 65  wherein bidders may bid more than one instrument in multiple auctions conducted simultaneously. 
   
   
       71 . The method of  claim 65  wherein bidders may bid portions of a single instrument. 
   
   
       72 . The method of  claim 65  wherein bidders register before submitting bids. 
   
   
       73 . The method of  claim 65  wherein bidders log in with an identification and password. 
   
   
       74 . The method of  claim 65  including providing bidders online access to offering documents. 
   
   
       75 . The method of  claim 65  including providing a display that informs bidders of the time remaining in a bidding period. 
   
   
       76 . The method of  claim 65  wherein a bid improvement is made by submitting a lower bid. 
   
   
       77 . The method of  claim 65  wherein bid improvements are made in minimum increments. 
   
   
       78 . The method of  claim 65  wherein the lowest bid is the best bid. 
   
   
       79 . The method of  claim 65  wherein bidders supply conditions to their bids. 
   
   
       80 . The method of  claim 65  wherein a bidder enters and modifies a bid without submitting it. 
   
   
       81 . The method of  claim 65  wherein a bidder confirms or acknowledges a bid after submission. 
   
   
       82 . The method of  claim 65  wherein a bidder may view at least the best bid during the bidding period and improve it. 
   
   
       83 . The method of  claim 65  wherein rank order of bids is displayed. 
   
   
       84 . The method of  claim 65  wherein status of a bidder's bid relative to other bids is displayed during the bidding period. 
   
   
       85 . The method of  claim 65  further including providing a means for bidders to confirm their intention to submit bids before their bids are treated as submitted. 
   
   
       86 . The method of  claim 65  further including performing, on behalf of bidders, calculations using bid related inputs. 
   
   
       87 . The method of  claim 65  wherein the bidding period may be extended after bidding begins. 
   
   
       88 . The method of  claim 65  wherein information related to at least one bid submission such as time of submission is saved in a data log. 
   
   
       89 . The method of  claim 65  further including displaying an observation page from which to observe submitted bids. 
   
   
       90 . The method of  claim 65  further including releasing bidding results. 
   
   
       91 . The method of  claim 65  wherein confirmation of winning bids may be delivered electronically. 
   
   
       92 . The method of  claim 65  wherein confirmation of winning bids may be delivered automatically. 
   
   
       93 . The method of  claim 65  wherein said bidder inputs a price for said instrument. 
   
   
       94 . The method of  claim 65  wherein said bidder inputs an interest rate for said instrument. 
   
   
       95 . The method of  claim 65  wherein said bidder inputs a price and interest rate combination for said instrument. 
   
   
       96 . The method of  claim 65  wherein said bidder inputs a principal amount for said instrument. 
   
   
       97 . The method of  claim 65  wherein said bidder inputs a maturity date for said instrument. 
   
   
       98 . The method of  claim 65  wherein software such as Java applet code or plug-ins that implement certain auction related functions is delivered to bidders computers. 
   
   
       99 . The method of  claim 65  wherein one or more menu-driven web pages are employed to create and modify auction parameters. 
   
   
       100 . The method of  claim 65  wherein one or more menu-driven web pages are employed to regulate access to certain web pages. 
   
   
       101 . The method of  claim 65  wherein one or more menu-driven web pages are employed to authorize bidder participation. 
   
   
       102 . The method of  claim 65  wherein one or more menu-driven web pages are employed to set bid limitations for one or more bidders. 
   
   
       103 . The method of  claim 65  further including communicating signals relating to said auction over a network at least in part using Hypertext Transfer Protocol. 
   
   
       104 . The method of  claim 65  further including not allowing bidders to change said auction rules once bidding commences. 
   
   
       105 . In a computer system for conducting an auction of at least one financial instrument over the Internet, said computer system being structured to receive bids from bidders' web browsers over the Internet, wherein the bidders can simultaneously participate in auctions from different physical locations, said computer system executing auction software stored on a storage device, said storage device storing:
 first instructions that, when executed, receive bids over the Internet for at least one financial instrument from bidders using web browsers;   second instructions that, when executed, enforce at least one standard for bidders to satisfy before they can submit competing bids;   third instructions that, when executed, enforce at least one auction rule for competing bids to satisfy;   fourth instructions that, when executed, display the official auction time;   fifth instructions that, when executed, enable bidders to modify their bids;   sixth instructions that, when executed, permit comparison of received bids to facilitate determination of winning bids;   and seventh instructions that, when executed, provide information for displaying winning bids.   
   
   
       106 . A computer system for mediating an auction of at least one interest-bearing financial instrument, said computer system being structured to receive bids from bidders using web browsers, wherein the bidders can be in different physical locations and can simultaneously participate in the auction, said computer system comprising:
 means for enforcing at least one standard bidders must satisfy to submit competing bids;   means for enforcing at least one auction rule competing bids must satisfy;   means for displaying the official auction time;   means for receiving, over the Internet, bids from bidders using web browsers;   means for enabling bidders to modify their bid inputs;   means for permitting comparison of received bids; and   means for providing information allowing for display of at least the best bid.   
   
   
       107 . A computer-mediated method of conducting an auction of an instrument over the Internet, wherein bidders can be in different physical locations and can simultaneously participate in the auction, said bidders having access to web browsers, said bidders' web browsers communicating over the Internet with at least one computer having auction software, said method comprising:
 a) enforcing at least one standard bidders must satisfy to submit competing bids;   b) enforcing at least one auction rule competing bids must satisfy;   c) displaying the official auction time;   d) receiving, over the Internet, bids from bidders using web browsers;   e) enabling bidders to modify their bid inputs;   f) permitting comparison of received bids; and   g) providing information allowing for display of at least the best bid.   
   
   
       108 . The method of  claim 107  including conducting multiple auctions simultaneously. 
   
   
       109 . The method of  claim 107  including offering multiple instruments in the same auction. 
   
   
       110 . The method of  claim 107  wherein bidders may participate in a plurality of auctions simultaneously. 
   
   
       111 . The method of  claim 107  wherein bidders may bid more than one instrument in the same auction. 
   
   
       112 . The method of  claim 107  wherein bidders may bid more than one instrument in multiple auctions conducted simultaneously. 
   
   
       113 . The method of  claim 107  wherein bidders may bid portions of a single instrument. 
   
   
       114 . The method of  claim 107  wherein bidders register before submitting bids. 
   
   
       115 . The method of  claim 107  wherein bidders log in with an identification and password. 
   
   
       116 . The method of  claim 107  including providing bidders online access to offering documents. 
   
   
       117 . The method of  claim 107  including providing a display that informs bidders of the time remaining in a bidding period. 
   
   
       118 . The method of  claim 107  wherein a bid improvement is made by submitting a lower bid. 
   
   
       119 . The method of  claim 107  wherein bid improvements are made in minimum increments. 
   
   
       120 . The method of  claim 107  wherein the lowest bid is the best bid. 
   
   
       121 . The method of  claim 107  wherein bidders supply conditions to their bids. 
   
   
       122 . The method of  claim 107  wherein a bidder enters and modifies a bid without submitting it. 
   
   
       123 . The method of  claim 107  wherein a bidder confirms or acknowledges a bid after submission. 
   
   
       124 . The method of  claim 107  wherein a bidder may view at least the best bid during the bidding period and improve it. 
   
   
       125 . The method of  claim 107  wherein rank order of bids is displayed. 
   
   
       126 . The method of  claim 107  wherein status of a bidder's bid relative to other bids is displayed during the bidding period. 
   
   
       127 . The method of  claim 107  further including providing a means for bidders to confirm their intention to submit bids before their bids are treated as submitted. 
   
   
       128 . The method of  claim 107  further including performing, on behalf of bidders, calculations using bid related inputs. 
   
   
       129 . The method of  claim 107  wherein the bidding period may be extended after bidding begins. 
   
   
       130 . The method of  claim 107  wherein information related to at least one bid submission such as time of submission is saved in a data log. 
   
   
       131 . The method of  claim 107  further including displaying an observation page from which to observe submitted bids. 
   
   
       132 . The method of  claim 107  further including releasing bidding results. 
   
   
       133 . The method of  claim 107  wherein confirmation of winning bids may be delivered electronically. 
   
   
       134 . The method of  claim 107  wherein confirmation of winning bids may be delivered automatically. 
   
   
       135 . The method of  claim 107  wherein said bidder inputs a price for said instrument. 
   
   
       136 . The method of  claim 107  wherein said bidder inputs an interest rate for said instrument. 
   
   
       137 . The method of  claim 107  wherein said bidder inputs a price and interest rate combination for said instrument. 
   
   
       138 . The method of  claim 107  wherein said bidder inputs a principal amount for said instrument. 
   
   
       139 . The method of  claim 107  wherein said bidder inputs a maturity date for said instrument. 
   
   
       140 . The method of  claim 107  wherein software such as Java applet code or plug-ins that implement certain auction related functions is delivered to bidders computers. 
   
   
       141 . The method of  claim 107  wherein one or more menu-driven web pages are employed to create and modify auction parameters. 
   
   
       142 . The method of  claim 107  wherein one or more menu-driven web pages are employed to regulate access to certain web pages. 
   
   
       143 . The method of  claim 107  wherein one or more menu-driven web pages are employed to authorize bidder participation. 
   
   
       144 . The method of  claim 107  wherein one or more menu-driven web pages are employed to set bid limitations for one or more bidders. 
   
   
       145 . The method of  claim 107  further including communicating signals relating to said auction over a network at least in part using Hypertext Transfer Protocol. 
   
   
       146 . The method of  claim 107  further including not allowing bidders to change said auction rules once bidding commences. 
   
   
       147 . In a computer system for conducting an auction of at least one instrument over the Internet, said computer system being structured to receive bids from bidders' web browsers over the Internet, wherein the bidders can simultaneously participate in auctions from different physical locations, said computer system executing auction software stored on a storage device, said storage device storing:
 first instructions that, when executed, receive bids over the Internet for at least one instrument from bidders using web browsers;   second instructions that, when executed, enforce at least one standard for bidders to satisfy before they can submit competing bids;   third instructions that, when executed, enforce at least one auction rule for competing bids to satisfy;   fourth instructions that, when executed, display the official auction time;   fifth instructions that, when executed, enable bidders to modify their bids;   sixth instructions that, when executed, permit comparison of received bids to facilitate determination of winning bids;   and seventh instructions that, when executed, provide information for displaying winning bids.   
   
   
       148 . A computer system for mediating an auction of at least one interest-bearing financial instrument, said computer system being structured to receive bids from bidders using web browsers, wherein the bidders can be in different physical locations and can simultaneously participate in the auction, said computer system comprising:
 means for enforcing at least one standard bidders must satisfy to submit competing bids;   means for enforcing at least one auction rule competing bids must satisfy;   means for displaying the official auction time;   means for receiving, over the Internet, bids from bidders using web browsers;   means for enabling bidders to modify their bid inputs;   means for permitting comparison of received bids; and   means for providing information allowing for display of at least the best bid.