Single-period auctions network decentralized trading system and method

Abstract

A method and system serve for network dealing for conducting single-period auctions where there is one seller and at least one buyer, but typically multiple buyers. The method and system allow for posting of at least one or multiple items offered for sale on a network by a computer at the seller interconnected to other computers on the network. Bids are submitted by buyers for the items offered for sale with the seller requiring predetermined information about the buyer submitting bids before determining a selling price. The seller applies a selected set of criteria to strike out bids the seller does not wish to consider and applies a seller determined criteria to determine the price at which the seller is willing to sell the item(s).

1 - 27 . (canceled) 
     
     
         28 . A method, comprising:
 during a single auction period:
 receiving, by a computer system associated with a particular credit-extending entity, an offer to trade at least one item; 
 conveying, by the computer system, the offer to a plurality of entities to which the particular credit-extending entity has extended credit; 
 receiving, by the computer system, two or more bids on the offer from two or more bidding entities of the plurality of entities, wherein individual ones of the received bids are within one or more corresponding stored trading limits set by the particular credit-extending entity for the bidding entities; 
 conveying, by the computer system, the received two or more bids to a credit-extending entity other than the particular credit-extending entity; and 
   after the single auction period concludes, receiving information, by the computer system, indicating whether at least one of the conveyed two or more bids was matched at a computed closing price.   
     
     
         29 . The method of  claim 28 , wherein the conveying the received two or more bids includes conveying the two or more bids as an aggregated bid, and wherein the receiving the information indicating whether at least one of the conveyed two or more bids was matched includes receiving information indicating whether the aggregated bid was matched. 
     
     
         30 . The method of  claim 29 , wherein the aggregated bid includes:
 a first bid to purchase a first quantity of the at least one item, wherein the first bid originates from a first entity to which the particular credit-extending entity has directly extended credit, and wherein the first entity has directly received an offer for trade of the at least one item from the particular credit-extending entity; and   a second bid to purchase a second quantity of the at least one item, wherein the second bid originates from a second entity to which the particular credit-extending entity has not directly extended credit, and wherein the second entity has not directly received an offer for trade of the at least one item from the particular credit-extending entity, wherein the second entity has directly received an offer for trade of the at least one item from a third entity that has directly extended credit to the second entity, and wherein the third entity is different from the particular credit-extending entity.   
     
     
         31 . The method of  claim 28 , wherein the particular credit-extending entity is an obligor with respect to the conveyed two or more bids, and wherein the offer to trade at least one item is an offer to trade shares with an offeror. 
     
     
         32 . The method of  claim 28 , wherein at least one of the received bids originates from an entity to whom the intermediate credit-extending entity has indirectly extended credit. 
     
     
         33 . The method of  claim 28 , wherein the corresponding stored trading limits for individual ones of the two or more bidding entities are stored on the computer system. 
     
     
         34 . The method of  claim 33 , wherein said conveying the received two or more bids to a credit-extending entity other than the particular credit-extending entity includes conveying the received two or more bids to a credit-extending entity that has:
 received the offer to trade the at least one item from an offeror; and   conveyed the offer to trade the at least one item to the computer system.   
     
     
         35 . The method of  claim 28 ,
 wherein said conveying the received two or more bids to a credit-extending entity other than the particular credit-extending entity includes conveying the received two or more bids to a first entity that has extended credit to the particular credit-extending entity: and   wherein said receiving information indicating whether at least one of the conveyed two or more bids was matched includes receiving the information from an second entity that is distinct from the first entity.   
     
     
         36 . A first computer system associated with a first credit-extending entity, comprising:
 one or more processors;   memory storing program instructions executable by the first computer system, using the one or more processors, to cause the first computing system to:
 receive an offer to bid on at least one item during a single-period auction; 
 convey, during the single-period auction, the offer to a plurality of entities to whom the first credit-extending entity has extended credit; 
 receive, during the single-period auction, two or more bids from the plurality of entities in response to the conveyed offer; 
 convey, during the single-period auction, one or more of the bids received from the plurality of entities to a second credit-extending entity; 
 after the close of the single-period auction, receive information indicating matched ones of the conveyed one or more bids. 
   
     
     
         37 . The first computer system of  claim 36 , the memory further storing one or more values limiting the ability of individual ones of the plurality of entities to bid on the offer. 
     
     
         38 . The first computer system of  claim 37 , wherein the one or more values are specified by the first credit-extending entity. 
     
     
         39 . The first computer system of  claim 36 , wherein the second credit-extending has extended credit to the first credit-extending entity. 
     
     
         40 . The first computer system of  claim 36 , wherein at least one of the received two or more bids originates from a particular bidding entity to which the first credit-extending entity indirectly extends credit. 
     
     
         41 . The first computer system of  claim 40 , wherein the first credit-extending entity indirectly extending credit to the particular bidding entity includes the first credit-extending entity directly extending credit to a third credit-extending entity, the third credit-extending entity having directly extended credit to the particular bidding entity. 
     
     
         42 . The first computer system of  claim 40 , wherein the first credit-extending entity indirectly extending credit to the particular bidding entity includes the first credit-extending entity directly extending credit to a third credit-extending entity, the third credit-extending entity having directly extended credit to a fourth credit-extending entity, the fourth credit-extending entity having directly extended credit to the particular bidding entity. 
     
     
         43 . A method, comprising:
 receiving, by a computer system of a first credit-extending entity, an offer to bid on one or more items as part of an Internet-based, single-period auction conducted by a second credit-extending entity;   re-conveying, by the computer system, the offer to a group of entities to whom the first credit-extending entity has a direct credit relationship;   receiving, by the computer system, a plurality of bids on the offer from the group of entities, wherein the plurality of bids includes at least one bid originating from an entity not within the group of entities but to whom one of the group of entities has directly or indirectly extended credit.   
     
     
         44 . The method of  claim 43 , further comprising conveying the received plurality of bids to an entity from whom the credit-extending entity received the offer to bid. 
     
     
         45 . The method of  claim 43 , wherein said single-period auction is conducted as a Dutch auction. 
     
     
         46 . The method of  claim 43 , wherein the first credit-extending entity and the second credit-extending entities are financial institutions, and wherein the one or more items include a financial instrument. 
     
     
         47 . The method of  claim 43 , wherein the one or more items include shares of a company.