Computer method and system for intermediated exchanges

Abstract

In a preferred embodiment, this invention includes software processes distributed on one or more computer systems that exchange messages in order to facilitate an intermediated exchange of financial commodities between a plurality of participants. The messages are exchanged according to a preferred protocol that leads to a satisfactory exchange that meets the objectives of the participants, and that substantially maximizes in a fair manner the total amount of financial commodities exchanged. Optionally, the invention employs heuristic rules in association with the preferred protocol that adapt the protocol to the time and exchange requirements of financial commodities. In other embodiments, this invention is equally applicable to the exchange of any tangible or intangible commodities. In a general embodiment, this invention further includes a preferred message-exchange protocol for the construction of computer programs representing exchange participants and an intermediary. These constructed computer programs exchange messages such that a satisfactory intermediated exchange of commodities is substantially certain to be achieved.

Description

1. FIELD OF THE INVENTION [0001] The field of this invention is computerized information systems directed to commercial applications; in particular computer systems that facilitate an automatic exchange of commodities between users of such a computer system according to the users' goals. 2. BACKGROUND [0002] An intermediated exchange involves negotiated trading between two or more participants through a third-party, the intermediary. Specifically, in such an intermediated exchange, the participants do not communicate directly with each other, but rather through the third-party intermediary. Examples of items traded include intangibles, such as securities (stocks, bonds, and options) commodity futures, collateralized mortgage obligations, and pollution rights, as well as tangibles, such as copper or soy beans. All such items involved in an intermediated exchange are herein referred to as “commodities.” In fact, any item that can be traded is a commodity. [0003] In the case of stocks ...

AI Technical Summary

Benefits of technology

"This patent describes a computer system for intermediated exchange of commodities among multiple participants. The system uses a negotiation protocol to determine the best way to meet the goals of each participant. The system includes e-agents and an electronic intermediary, which exchange offers and counter-offer messages to reach a fair agreement. The system can be used for financial commodities like equity securities, and it allows for the simultaneous exchange of multiple commodities. The invention provides a computer program and computer system for intermediated exchange that facilitates the negotiation process and maximizes the aggregate number of units of commodities exchanged in a fair manner."

Problems solved by technology

It is believed that no current network provides such more-complex exchanges.

Currently, computer systems that support existing markets or crossing networks are not able to accommodate the evolving needs of participants, such as investment managers and others, who seek to trade multiple commodities to achieve general portfolio goals.

Currently, no satisfactory solution exists for that problem as applied to the specific situations of intermediated exchanges.

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