Differential Commission and Electronic Order Matching Process for the Distribution of Primary Market Fixed Income Securities

Abstract

An apparatus and process (collectively the “system”) for conducting and managing the primary offering of fixed income securities, specifically, but not exclusively, fixed rate municipal bonds at different prices for like maturities over electronic networks, particularly, but not exclusively, the Internet, is disclosed.

1 - 34 . (canceled) 
     
     
         35 . A computer-implemented communication and order matching method for fixed income securities, comprising:
 building and maintaining an inquiry database;   building and maintaining a syndicate inputs database;   comparing the inquiry database with the syndicate inputs database; and   identifying matches between the data in the inquiry database and the syndicate inputs database.   
     
     
         36 . The method of  claim 35 , further comprising:
 receiving inputs from at least one broker dealer;   comparing the inquiry database and syndicate inputs database matches to the broker dealer inputs; and   assessing compliance of the order solicitation generations by the results of the comparison.   
     
     
         37 . The method of  claim 36 , wherein the at least one broker dealer inputs comprise at least one field that contains data regarding one of maximum sales credits and a suitability rating. 
     
     
         38 . The method of  claim 35 , wherein the method is further employed in a secondary market. 
     
     
         39 . The method of  claim 35 , wherein the inquiry database comprises at least one field that contains at least one of the following: a desired commission, a minimum commission, a maximum commission, a commission range acceptable to the a first offerer, or any combination thereof. 
     
     
         40 . The method of  claim 35 , wherein the inquiry database comprises at least one field that contains at least one of the following: a desired commission, a minimum commission, a maximum commission, a commission range acceptable to a subsequent offerer, or any combination thereof. 
     
     
         41 . The method of  claim 35 , wherein an offerer enters data to build the inquiry database. 
     
     
         42 . The method of  claim 41 , wherein the offerer is at least one of the following: a broker, a retail salesperson, an institutional salesperson, or any combination thereof. 
     
     
         43 . The method of  claim 35 , wherein the inquiry database comprises at least one field that contains data regarding at least one of the following: state of issuer, minimum maturity date, maximum maturity date, federal tax-exempt status, state tax-exempt status, bank-qualified status, alternative minimum tax, AAA Insurance status, minimum underlying rating, desired commission, maximum price, minimum commission, minimum coupon, minimum yield, brokerage name, investor name, investor account number, or any combination thereof. 
     
     
         44 . The method of  claim 35 , wherein the inquiry database is comprised of multiple discrete databases. 
     
     
         45 . The method of  claim 44 , wherein the multiple databases are linked. 
     
     
         46 . The method of  claim 35 , wherein the data regarding an individual inquiry in the inquiry database is only maintained for a set period. 
     
     
         47 . The method of  claim 46 , wherein the period is about 14 days. 
     
     
         48 . The method of  claim 46 , wherein, after the set period expires, a notice is transmitted to the originator of the individual inquiry data. 
     
     
         49 . The method of  claim 48 , wherein the originator is at least one of the following: a user, a broker, a customer, a retail salesperson, an institutional salesperson, or any combination thereof. 
     
     
         50 . The method of  claim 35 , further comprising receiving authorization from a brokerage firm to generate an order solicitation. 
     
     
         51 . The method of  claim 35 , wherein the inquiry database is updated by at least one of a user, a broker, a sales assistant, a customer, a retail salesperson and an institutional salesperson. 
     
     
         52 . The method of  claim 35 , wherein syndicate representatives enter data to build the syndicate inputs database. 
     
     
         53 . The method of  claim 35 , wherein the syndicate inputs database comprises at least one field that contains data regarding at least one of the following: name of issuer, title of issue/series, state of issuer, lead underwriter, award date, dated date, settlement date, first interest payment date, federal tax-exempt, state tax-exempt, bank-qualified, alternative minimum tax, call date first, call price first, call date par, AAA insurance, letter of credit bank, letter of credit expiration, liquidity provider, liquidity expiration, Moody's Rating, S&P Rating, Fitch Rating, date—serial nos., date—term nos., initial reoffering price—serial nos., initial reoffering price—term nos., coupon—serial nos., coupon—term nos., maximum sales commissions—serial nos., maximum commissions—term nos., initial reoffering yield—serial nos., initial reoffering yield—term nos., or any combination thereof. 
     
     
         54 . The method of  claim 35 , wherein the fixed income security is at least one of the following: a municipal bond, a corporate bond, a government agency security, or any combination thereof. 
     
     
         55 . The method of  claim 35 , wherein the syndicate inputs database is comprised of multiple discrete databases. 
     
     
         56 . The method of  claim 55 , wherein the multiple databases are linked. 
     
     
         57 . The method of  claim 35 , further comprising generating an order solicitation based upon the matches between the inquiry database and the syndicate inputs database. 
     
     
         58 . The method of  claim 57 , further comprising placing an order, by a buyer, based upon the generated order solicitation. 
     
     
         59 . The method of  claim 58 , wherein the buyer is at least one of the following: a user, a broker, a sales assistant, a customer, a retail salesperson, an institutional salesperson, an investor, a retail investor, an institutional investor, or any combination thereof. 
     
     
         60 . The method of  claim 35 , further comprising placing an order, by a buyer, based upon the matches. 
     
     
         61 . The method of  claim 60 , wherein the buyer is at least one of the following: a user, a broker, a sales assistant, a customer, a retail salesperson, an institutional salesperson, an investor, a retail investor, an institutional investor, or any combination thereof. 
     
     
         62 . The method of  claim 35 , further comprising generating a notice to a user that a particular price will allow the user to earn the lower of a desired commission and the maximum commission for the fixed income security, as agreed to by an underwriter. 
     
     
         63 . The method of  claim 35 , wherein the fixed income security is a municipal bond offered on the primary market. 
     
     
         64 . The method of  claim 63 , further comprising:
 matching a user's preferred range of issue states from the inquiry database with a state of issue from the syndicate inputs database;   matching the user's preferred range of maturities from the inquiry database with a fixed income security issue maturity range from the syndicate inputs database;   matching the user's four dimensions of tax status from the inquiry database with a fixed income security tax status from the syndicate inputs database;   matching the user's preferred ratings from the inquiry database with a fixed income security rating from the syndicate inputs database;   matching the user's preferred minimum suitability rating from the inquiry database with a fixed income security minimum suitability rating from the syndicate inputs database; and   based upon any matches, increasing a sales credit to a maximum amount, as determined by data in at least one of the inquiry and the syndicate inputs database.   
     
     
         65 . The method of  claim 64 , further comprising matching a user's preferred bond insurance status from the inquiry database with a fixed income security bond insurance status from the syndicate inputs database. 
     
     
         66 . The method of  claim 65 , wherein the bond insurance status indicates whether the fixed income security is covered by AAA insurance. 
     
     
         67 . An apparatus for implementing a differential commission method for the distribution of primary market fixed income securities, comprising:
 a computer having a computer-readable storage medium with program instructions stored thereon, which, when executed by at least one processor of the computer, cause the processor to:   build and maintain an inquiry database;   build and maintain a syndicate inputs database;   compare the inquiry database with the syndicate inputs database; and   identify matches between the data in the inquiry database and the syndicate inputs database.