US 2002O095369A1 (19) United States (12) Patent Application Publication (10) Pub. No.: US 2002/0095369 A1 Kaplan et al. (43) Pub. Date: Jul.18, 2002 (54) ANONYMOUSAUCTIONING OF (52) U.S. Cl. ................................................................ 705/37 STRUCTURED FINANCIAL PRODUCTS OVER A COMPUTER NETWORK (76) Inventors: Harry A. Kaplan, Brooklyn, NY (US); (57) ABSTRACT Patrick F. Downes, Greenwich, CT (US) A method and System for anonymously buying and Selling a Structured financial product over a computer network Correspondence Address: Brian P. Hopkins includes providing a host for receiving information for the Mintz, Levin, Cohn, Ferris, offer for sale of a structured financial product from a first Glovsky and Popeo, P.C. client, anonymously publishing the offer for Sale of the One Financial Center Structured financial product over a computer network by the Boston, MA 02111 (US) host to a plurality of Second clients over the computer network for a predetermined period of time, initiating the (21) Appl. No.: 10/043,899 offer for sale of the product over the network at a prescribed Starting time, providing an opportunity for the plurality of (22) Filed: Jan. 11, 2002 Second clients to bid on the product in real-time during the period of time, automatically publishing to the plurality of Related U.S. Application Data Second clients viewing the Sale of the product each bid in Non-provisional of provisional application No. real-time as each bid is submitted by one of the second (63) clients, wherein a Substantial number of all Submitted bids 60/261,502, filed on Jan. 12, 2001. are displayed together during the offer for Sale, and awarding Publication Classification the Structured financial product to a Second client of the plurality of the second clients submitting the highest bid by (51) Int. Cl." ..................................................... G06F 17/60 the end of the predetermined period of time. ISBNited by second Client on S8. THE SALE OF THE SRUCTURE) NANCIALRODUCT - - - - - - - - | STOREOrMATION TRANACTION RELATINGO AND S18. - - - SAE NAABASE NITATS CANCELATONE ROFOR CRRENTB S7 site — Notify ALL FIRST CLiNS ANSECON CENTS : Moncrime ANFOR pARTICIPATING IN SALE i s NCREASEBBY HAMRANSACfION HAS PREDETERMINED INCREMENT st BEEN COMPLETE OWER CURRENT YS w S16 AWAROSRUCTURED PUSH 8 FINANCAL PRODUCTO Bloor cated AEST BER O3? - YES Y S 3B NO ASSELER ACCETE w CURRENTs so - \ MOw / 16 A HIGHER 8 BEEN SUBMTED HMMEpoRO Y ?ociacREMOWELATEST - - r: FROACTONPBLSECBlf S4 NO No As SALE PERIOS NO \OFTIME ELAPSED s1 2.HAS cancelanon TEPERCENDEDY - 5 FOR AEESBI? YES - ASRSERVE /END SALE, FIRST CLIENy 8EENME >-No-P& RETAINSEERSHIPSCURITY OF A —--------YES Patent Application Publication Jul. 18, 2002. Sheet 1 of 17 US 2002/0095369 A1 CLENTS F. G. Patent Application Publication Jul.18, 2002 Sheet 2 of 17 US 2002/0095369 A1 A. Wartica: a roastax 0 is anssary Expaxerxs fease sister settietis is 3s. As M. Rica is is " ec OS, 2000 05:09:08 PM EST WCreSS co your CMC auction isit &: The saller has defined a dollar price auction for bond FMM99U16 with no reserve defined There is no hedge required for settlement The details of this auction, including complete bond description, SPS and hedge are available below seeice cip 2:28 &: first-estedsis. and cross auction888 2000-12-06-17:07:51.d. ii. 2000-12:06:17:07:350s, . 2006120617:07:10, "it - 2009-12-0617:07:07: . 2000-12-gs 17:05:560 . siggs 2000-206xs (06:419 16.2 Patent Application Publication Jul.18, 2002 Sheet 3 of 17 US 2002/0095369 A1 A la:tfess: er's assiga diarily sessss: ... as a sai : A. NN is 6,200 es:i5:45 pist cross : pig. 5A by is stag : & s A st:eas : reasirise Yrsaty & m & s Y is: X 2 83 deces, 2000 05:10:4s Mist cess M current actiy Acties -: $ Priesiasis Chick symbols to pe. 53 law auctions and Pricewatch transactions currently in progress gif es S sists is is Patent Application Publication Jul.18, 2002 Sheet 4 of 17 US 2002/0095369 A1 i. 8XY A. Yerties f :--six3rgs &e insary f : sixs is: six is c s six R is is Dec (S,200 05:14:48 PM EST t cross c The seller has defined a dollar price auction for bond FNM33?t 6 with no reserve defined Thera is no hedge required for settlement The details of this action, including complete bond description, STIPS and hedge are available below figgin is: is: serie pries states se aii i8: is is 2002-stics 17:07:358. s: si: 888&ts is: We CO act s s : The seller has defined a dollarance auction for bond FHL236 with a reserve price of 97.55g 8 CPR There is no hedge required for settlement The details of this auction, including eomplete bond description, STIPS and hedge are available below essessie settlene a Fe.4B Patent Application Publication Jul.18, 2002 Sheet 5 of 17 US 2002/0095369 A1 ding Rioriticositients Fig. 5A 8 eBidding Room Microsoft internet Episi. Patent Application Publication Jul.18, 2002 Sheet 6 of 17 US 2002/0095369 A1 v CR 05 5.com: Microsoft internet Exitors exiskies . .33 is six live C.O. auction The seller has defined a coa rice auction for bond FH2136 with a reserve price of 9756 g) 8 CPR There is no hedge required for settlement The details of this auction, Including complete bond description, STIPS and hedge are available below description begitates E236 3335s As Patent Application Publication Jul.18, 2002 Sheet 7 of 17 US 2002/0095369 A1 WortOSS c Fic. * . 3. E.g.12:06:200021st 8& - s s* configer is y You havg entered the necessary infarnation to post the following bond fur auction. Piease check this information carefully and click heigw to send yout auction request. Pig. 3 it is isis as:silis 3:cisatists 38 is it: es. gests states 33 sites:s: $2. is 3:38 risis tata::$t: SS Patent Application Publication Jul.18, 2002 Sheet 8 of 17 US 2002/0095369 A1 extestes R. Each you sell CO compete is this erties Thank you. We have received your request to post your hand for auction. Your auction Dis: CMO782 Please check your Exposures to confirm acceptance of this auction request, Orchick below to go directly to your auction. observe section Fic.9A ISOs. It is Isis : 88: s Y 8 8 FE IEE III - t C : & t 8 S. L M Patent Application Publication Jul.18, 2002 Sheet 9 of 17 US 2002/0095369 A1 A Y-ties cross is essary sesses taxi-six :::::: Ex M h NN ecos, 200 05:38:0s F. EST SS bond aer Let us notify you of specific bonds for sale. Use the form below to teilus your buying interests, Bittype E. iSE 8. 8888& : 388. s: - inherii if it wross.com Microsoft interneesider Sasks:S it is it settlement & clearing Iristictions back AK Capital LLC has a fully disclosed clearing agreement with ENY Clearang Services LLC, a Bank of New York company BNY Clearing provides dorrestic and International correspondent services to institutional broker dealers and other financial firms in addition to beingful clearing members of the DTC and NSCC in the United States, the firm also clears in more than 60 countries The Bank of New York is a leading provider of global Securites processing Services it has the experience, resources and advanced technology to meet the evulfig needs of its client base worldwide Through its extensive subcustodian network, regional operations centers, and memberships with multiple depositories, it processes 88 trades in over 9 makes around the Wor 3. The Bank of New York was founded in 1784 by Alexander Hamilton and is the nation's oldest bank it is the principal subsidiary of The Bank of New York Company, Inc one of the largest bank holding companies in the United States The Company provides a complete range of banking and other financial services to Corporations and s individuals worldwide through its basic businesses Securities Servicing and Cash Processing, Corporate Banking, BMY Asset Management and Private Client Services, Retail Banking, and Financia Market Services k All CORPORATE, EQTY AND MUNICPASECURITIES: g: The Depository Trust Company (DTC) Participant iO384 *. 3. ALL CORPORATE, EQUITY AND MUNICIPAL SECURITIES: w w The National Securities Clearing Corporation (NSCC) X Patent Application Publication Jul.18, 2002 Sheet 10 of 17 US 2002/0095369 A1 Customeroger and Authentication Screen J. -o-n scaloreny -- Authenticator Proter N Registration Screen J Sotify Customer Service Notify Customer Service to end assistances 2 to set up account : rade history Adriinistrative Account On S Product display and Trade display Achisative WerificationScreen Trade reportung Screen Reporting Screens \ V y N Verification Proble? Y Gl) Auction Java Window Popup A fie, 2. Patent Application Publication Jul.18, 2002. Sheet 11 of 17 US 2002/0095369 A1 CUSOER AN NETSCAPE or INTERNE EXPLORER 5.04, WEB BROWSER, JRE Plugin Client Facilities. Enternet Correction, Web Browser, Security WCROSS CNAPPCATION HTML Web Pages, Java Appet HNTERNT | EXOUS PrwAEBACK8oNE f PRVATET1 Java Servlets Web Server Application Security 'Custom Application Application Server Application Components Application atabase Storage, CPU, Backup, Web, Application and Database Serve OS Database Clustering and high Avatability volumes Security, routing, High Availability, Web Server Clustering Facilities Web Hosting, letnet Connection, Cabinet Power, WCROSS ProCONAN Administration we hasniews.svarsiwawraa waxaawaararamew FC, 13 Patent Application Publication Jul. 18, 2002 Sheet 12 of 17 US 2002/0095369 A1 easassissi D ME RS E NTERN E FEE OS OWE R F REWA. LS FA FAILOVERLOAD DRECTORS w CUSTERED WEB SERVERS 3. - . REDUNDANTAPPLCATION SERVERS Sigi:s HGHAVAILABILITY DATABASEWOLUMS s: REDUNDAN & DATABASE DISK xt: dNERGENTRACKPOWER SUPPLIES w8ACKUP i GENERATORS s: 2ice.