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-based system for conducting an auction of a financial instrument comprising:
 a server communicating with users' computing devices via an electronic network, the server enabling users' computing devices connected to the electronic network to participate in real-time auctions for financial instruments, the server including:   a centralized clock that is the official auction clock providing official auction time to users' computing devices via the electronic network;   a bidder interface processor providing, to the users' computing devices via the electronic network, one or more screens including input fields enabling bidders to prepare and submit bids by inputting bid-related information into the fields;   a bid submission processor communicating with the centralized clock, the bid submission processor receiving submitted bids, associating received bids with bidder identification information, and time-stamping the received bids with the official auction time and generating a log of bids, bidder identification information and time stamps;   the bid submission processor registering timely submitted bids by comparing the time stamp of each bid to an indicator of a scheduled auction closing time;   a rule enforcement processor communicating with the bid submission processor, the rule enforcement processor checking whether submitted bids conform to rules of the auction for the financial instrument and generating non-conformance messages when bids are non-conforming;   a bid processor that generates auction results from the log; and   a communications processor communicating with the rule enforcement processor, the bid submission processor and the bid processor, the communications processor communicating the non-conformance messages, the indicator of the scheduled auction closing time and at least some of the auction results to users' computing devices.   
     
     
         66 . The computer-based system of  claim 65  wherein the server comprises a single server including the centralized clock, the bidder interface processor, the bid submission processor, the rule enforcement processor, the bid processor, and the communications processor. 
     
     
         67 . The computer-based system of  claim 65  wherein the bidder interface processor receives requests from users' computing devices, and the communications processor sends back markup language responses. 
     
     
         68 . The computer-based system of  claim 65  wherein the bidder interface processor provides a calculate function that causes the calculator to perform calculations upon user request. 
     
     
         69 . The computer-based system of  claim 65  wherein the log includes (i) the calculated value of each bid, (ii) an official auction clock time stamp for each bid; and (iii) the identity of each bidder. 
     
     
         70 . The computer-based system of  claim 65  wherein the bidder interface processor recalculates and refreshes display of calculated yield or price of said financial instrument before submitting them as bids to the bid submission processor. 
     
     
         71 . The computer-based system of  claim 65  wherein the rule enforcement processor provides bidders with automatic notification via warning messages when bids do not conform to auction rules. 
     
     
         72 . The computer-based system of  claim 65  wherein the bid processor is configured to provide a sealed bid auction. 
     
     
         73 . The computer-based system of  claim 65  wherein the server allows an auctioneer to conduct multiple real-time auctions simultaneously. 
     
     
         74 . The computer-based system of  claim 65  wherein the server further comprises an auction administration processor employing one or more menu-driven web pages that permit an auction administrator to create and modify auctions. 
     
     
         75 . The computer-based system of  claim 65  wherein the server includes an observer processor that permits an observer of said financial instrument to view the auction in progress. 
     
     
         76 . The computer-based system of  claim 65  wherein the communications processor informs bidders of an amount of official auction time remaining in the auction. 
     
     
         77 . The computer-based system of  claim 65  wherein the bidder interface processor includes an update mechanism enabling users' computing devices to display updates of official auction time. 
     
     
         78 . The computer-based system of  claim 77  wherein the bidding interface processor provides a countdown of official auction time remaining in a bidding period. 
     
     
         79 . The computer-based system of  claim 65  wherein the bid submission processor uses the official auction time to flag bids submitted after the auction closing time. 
     
     
         80 . The computer-based system of  claim 65  wherein the bid processor generates a rank order of bids. 
     
     
         81 . The computer-based system of  claim 65  wherein the communications processor communicates only a user's results. 
     
     
         82 . The computer-based system of  claim 65  wherein the communications processor provides a leading bidder with an electronic notice of at least some of the auction results before the auction closing time. 
     
     
         83 . The computer-based system of  claim 65  wherein the bid submission processor verifies bidder registration information and confirms identity of bidders before permitting the bidders to submit bids. 
     
     
         84 . The computer-based system of  claim 65  wherein the communications processor transmits the messages and auction results over the same electronic network used to receive inputted bid-related information. 
     
     
         85 . The computer-based system of  claim 65  wherein the bidder interface processor transmits code implementing the screens as markup language to users' computing devices as each screen is requested. 
     
     
         86 . The computer-based system of  claim 65  wherein the bid processor is structured to provide bidder anonymity in silent real-time auctions. 
     
     
         87 . The computer-based system of  claim 65  wherein the communications processor broadcasts a current leading bid before the auction closing time. 
     
     
         88 . The computer-based system of  claim 65  wherein the bidder interface processor takes users through a bidding process and provides computational assistance in preparing bids. 
     
     
         89 . The computer-based system of  claim 65  wherein the bidder interface processor provides users with (a) the principal maturity amounts and due dates for maturity of financial instruments being auctioned, and (b) yields, prices and/or proceeds associated with submitted bids in real-time.