Biddable financial instrument, online competitive bidding platform for trading thereof and associated system and method of trading thereof

Abstract

The present invention relates to a new type of biddable financial instrument that can be traded on an online competitive bidding process and system and method of trading thereof specifically designed to accommodate the specific needs of these new biddable financial instruments associated primarily with the introduction in the instruments core of a contractual bidder or new properties like acceleration of term linked with trading on the competitive bidding software. The inventor contemplates the use of a large number of new biddable financial instruments, for example B-VRDOs, B-TOBs, and B-MLVRS s. The platform, system and method of trading associated thereto allows for easy portfolio management, Dutch trading, payment of interest, entry of good to cancel trade orders, priority management tools, acceleration of maturity, and offering on a secondary offering stage non-acquired positions held by the contractual bidder.

What is claimed is: 
     
         1 . A system comprising at least one network enabled server, the system configured to:
 display an investor interface of a remote competitive bidding software platform on a processing device located remotely from the at least one network enabled server;   determine, via a clearing rate module, a clearing rate for a biddable financial instrument for a period;   accept bids, via a multi-party bidding module, from at least a non-contractual buyer and at least a contractual buyer under at least one contractual obligation to place a bid for an issue of the biddable financial instrument, wherein the investor interface includes a display of a list of positions including at least one opening position of current holdings held in a portfolio of the investor, and the competitive bidding software platform to react differently to a desire by the investor to change the volume of a current position in the list of positions between two subsequent periods.   
     
     
         2 . The system of  claim 1 , wherein the biddable financial instrument is selected from a group consisting of biddable variable rate demand obligations, biddable tender option bonds, and biddable market liquidity variable rate security. 
     
     
         3 . The system of  claim 1 , wherein the investor interface is displayed on an internet browser connected via HTML format to a web server and wherein the remote competitive bidding software platform is a web-based html application for generating information to web-enabled browsers like the investor software interface. 
     
     
         4 . The system of  claim 1 , further configured to offer, via a secondary offering module, a biddable financial instruments owned by the contractual bidder for purchase to at least another non-contractual bidder. 
     
     
         5 . The system of  claim 1 , wherein the clearing rate module uses a Dutch auction system for determining the clearing rate. 
     
     
         6 . The system of  claim 5 , wherein the clearing rate module assigns a priority of roll orders at the clearing market rate, buy orders at the clearing market rate, and buy orders of the contractual bidder. 
     
     
         7 . A method comprising:
 displaying, via at least one network enabled server, an investor interface of a remote competitive bidding software platform on a processing device located remotely from the at least one network enabled server;   determining, via a clearing rate module, a clearing rate for a biddable financial instrument for a period;   accepting bids, via a multi-party bidding module, from at least one non-contractual buyer and at least one contractual buyer under at least one contractual obligation to place a bid for an issue of the biddable financial instrument, wherein the investor interface includes a display of a list of positions including at least one opening position of current holdings held in a portfolio of the investor, and the competitive bidding software platform to react differently to a desire by the investor to change the volume of a current position in the list of positions between two subsequent periods.   
     
     
         8 . The method of  claim 7 , further including a step of allowing the at least one contractual bidder to sell any portion of the single issue in its possession over a secondary offering to investors for the remaining of a period. 
     
     
         9 . The method of  claim 8 , further including a step of paying interest for the period to the investors and/or the at least one contractual bidder for their ownership interest in the single issue at a clearance rate and paying to the contractual bidder an additional fee. 
     
     
         10 . The method of  claim 9 , wherein the additional fee is the difference between an all-sell-rate and the clearance rate for the period.