WO2001003048A1 - A transaction system - Google Patents
A transaction system Download PDFInfo
- Publication number
- WO2001003048A1 WO2001003048A1 PCT/AU2000/000811 AU0000811W WO0103048A1 WO 2001003048 A1 WO2001003048 A1 WO 2001003048A1 AU 0000811 W AU0000811 W AU 0000811W WO 0103048 A1 WO0103048 A1 WO 0103048A1
- Authority
- WO
- WIPO (PCT)
- Prior art keywords
- party
- coupons
- coupon
- event
- account
- Prior art date
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Classifications
-
- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q30/00—Commerce
- G06Q30/02—Marketing; Price estimation or determination; Fundraising
Definitions
- the present invention relates to a transaction system for event coupons, and a transaction method executed by the system.
- a transaction method including: receiving and communicating an order from a first party for a coupon at a price less than a predetermined value, said coupon having said value if an event occurs and no value if said event does not occur; receiving an acceptance of said order from a second party; issuing said coupon to said first party; decreasing an account of said first party by said price; and decreasing an account of said second party by said value less said price.
- the order may be for a plurality of said coupon.
- the method also includes issuing a counter coupon to said second party, said counter coupon having said value if said event does not occur and having no value if said event occurs.
- the method involves issuing a plurality of said counter coupons corresponding thereto.
- the method includes receiving and communicating an offer from a party to sell at least one coupon at a price.
- the price may be the same or different to that at which the coupon issued, and is determined by said party.
- the method may then include receiving acceptance of said offer from another party, increasing an account of said party by said price, and decreasing an account of said another party by said price.
- the method allows coupons to be traded by parties prior to determination of said event. Parties may therefore trade coupons and/or counter coupons at various prices.
- the present invention also provides a transaction method, including: receiving and communicating a request from a first party for a coupon at a price less than a predetermined value, said coupon having said value if an event occurs and no value if said event does not occur; receiving an acceptance of said request from a second party; transferring said coupon from said second party to said first party; decreasing an account of said first party by said price; and increasing an account of said second party by said price.
- the present invention also provides a transaction method executed on a computer system connected to a communications network, including executing trades of event coupons between parties, said coupons having a predetermined value if an event occurs and no value if the event does not occur, said trades being conducted at prices less than said predetermined value.
- the present invention also provides a transaction system for event coupons, including: a web server for communicating information to parties to trade event coupons, said coupons having a predetermined value if an event occurs and no value if said event does not occur; a transaction engine for executing transactions between said parties to complete trades, such as buying and selling of said coupons at prices less than predetermined value; and a database system for maintaining data on said parties, such as account data.
- Figure 1 is a block diagram of a preferred embodiment of a transaction system connected to a network
- FIG. 2 is a block diagram of the transaction system
- Figure 3 is a flow diagram illustrating a coupon issuing process of the transaction system
- Figure 4 is a block diagram of a coupon sale process of the transaction system
- Figure 5 is a flow diagram of a determination process of the transaction system.
- a transaction system for event coupons is provided by a computer system 2 which includes a database 4, as shown in Figure 1.
- the computer system 2 includes the components shown in Figure 2 and is able to communicate with equipment 10 of members or users of the system over a communications network 6 using standard communications protocols.
- the equipment 10 of the members may be a variety of communications devices, such as a computer, a telephone or an interactive television.
- the communications network 6 may include the Internet, telecommunications networks and/or local area networks.
- the components of the transaction system can be configured in a variety of ways. The components may be implemented entirely in software to be executed on standard computer server hardware, which may comprise one hardware unit or different computer or hardware units distributed over various locations, some of which may require the communications network 6 for communication.
- the computer system 2 includes web server software 12 to allow the computer system 2 to function as a web server which provides access to web pages created and stored on the system 2 for access by members.
- the web pages published by the web server 12 are dynamic and are populated by data provided by a transaction engine 14 of the system 2.
- Alternative methods of providing system displays and information can also be used, for example WAP pages for mobile telephones, and interactive voice response (IVR) systems.
- the transaction engine 14 accesses data from a database server 16 of the system 2 that accesses, maintains and stores data for the transaction system of the database 4.
- the transaction engine 14 also processes data received by the web server 12 and is able to store data on the database 4 using the database server 16.
- the database server 16 maintains data in the database on all of the members of the transaction system, including for each member:
- Coupons held which includes coupons and counter coupons.
- Account information such as an account balance, for the transaction system.
- the computer system further includes a payment system 18 which is able to communicate over the network 6 with institutions, such as banks, to obtain payment from and effect payment to members on the basis of changes in the balances of the accounts maintained by the transaction system.
- the payment system 18 may execute EFTPOS transactions.
- the system ensures the account balances of members are always in credit.
- the web server 12, the database server 16 and the payment system 18 can be established utilising the tools provided by commercially available web server, database server and payment system software.
- the transaction engine 14 communicates with the other components 12, 16 and 18 to execute all of the transactions of the transaction system and provide the dynamic content for the web pages to display the state of the market for the coupons and provide access for members.
- the transaction engine 14 is configured so that the transaction system is able to establish an interactive trading market for the coupons and operate as described hereinafter.
- a coupon is the basic trading unit of the transaction system.
- a coupon has a set value if an event occurs and no value if the event does not occur.
- Another type of coupon is a counter coupon, which corresponds to a standard coupon, and has the set value if the event does not occur and no value if the event does occur.
- coupons are certificates that entitle the owner to a payment, say $ 1 , if it stipulates the correct outcome of an event, and entitles the holder to nothing if it does not.
- the coupons can therefore be considered to represent binary options, i.e. having two possible values.
- Coupons are only created when an order by one member is accepted by another. Once created, the coupons can then be bought and sold through the transaction system at a price, or odds, to be determined by supply and demand. The actual set or face value of the coupon never alters, and is described hereinafter as being $1.
- An operator of the transaction system does not actively participate in the coupon trade, except in particular circumstances as described below, and simply administers the system and charges a percentage commission for each trade.
- the transaction engine 14 generates coupons by executing an order process as shown in Figure 3.
- a member logged on to the system is able to order a coupon for an event at a particular price, and this order is received and processed by the transaction engine at step 20.
- the price will correspond to the odds selected by the ordering member, and Table 1 below shows the prices in cents, as they correspond to the odds for an event.
- the number of coupons ordered for the event and the price for each coupon is then communicated to all members logged on to the system by placing the details concerning the coupon order in a web page for the event with details of the corresponding counter coupons that are now for sale, at step 22.
- step 24 If it is determined at step 24 that account balances permit and the order is to be accepted by buying the corresponding counter coupons, this is processed by the engine at step 26 which causes the displays for the coupon order and the corresponding counter coupon sale to be removed from the page for the event.
- the transaction engine 14 issues a number of new coupons corresponding to the order to the first member and issues the same number of counter coupons to the other member, at step 28. The accounts for the two members are decreased based on the number of issued coupons and counter coupons and their respective prices.
- the coupons can be traded up to determination of an event at any price determined by the members.
- the transaction engine 14 executes a sale process, as shown in Figure 4, which begins at step 30 when the engine 14 receives and processes an order or offer to sell an existing coupon at a price selected by the member holding the coupon.
- the engine 14 places the details of the offer in the web page for the event, at step 32, so that members can obtain a display on their equipment 10 of the best price at which coupons and counter coupons for the event are for sale.
- the engine When the transaction message 14 receives an acceptance message, at step 34, relating to the sale offer from another member, the engine then processes this acceptance at step 36, and at step 38 transfers the coupons between the members' records and adjusts their accounts accordingly, if the account balances of the members permit. The account balance of the purchasing member is decreased and the account balance of the selling member is decreased.
- the transaction engine 14 also executes a determination process, as shown in Figure 5. where for each event the engine 14 polls for a determination message advising that the determination of the event is imminent. The determination message may be entered directly by the system operator or received from an external system via the network 6. On determining that the determination message has been received at step 40, the transaction engine 14 generates messages and changes web pages to close all trading in the coupons for that event at step 42. Following determination of the event, the members' accounts are either increased or decreased based on the coupons and counter coupons that they hold for the event, at step 44. The members are then provided access to pages generated by the transaction engine 14 which communicate determination of the event and can also advise of any new events, at step 46.
- the account balance of a member is divided between cleared funds that are not committed to any existing coupons or counter coupons and funds that are associated with coupons or counter coupons and cannot be used by the member.
- the system may only allow the cleared funds to be visible to a member or both may be visible with a distinction clearly delineated. Funds associated with any coupons or counter coupons are not available for any transactions and are effectively frozen or held awaiting the outcome and determination of the events corresponding thereto.
- the transaction can be completed by one of two ways: (a) If another member already holds Sydney coupons he or she may sell these to the first member at 640. In this case the 640 transfers to the second member and the coupon is then owned by the first member. (b) If a member does not own Sydney coupons he or she may buy the counter
- Sydney coupons at 360 In this case the 640 from the first member and the 360 from the second member are retained by the system to redeem the coupon. On this transaction both a Sydney coupon and counter Sydney coupon are created.
- the first member owns the Sydney coupon and the second member owns the counter Sydney coupon.
- the transaction system therefore acts essentially as a clearing house for coupon transactions.
- the cash account records the amount of money a member has on deposit.
- an amount equal to the price times the number of coupons is debited from the account.
- the member sells a number of coupons an amount equal to the price times the number of coupons are credited to the account.
- coupons are redeemed by the system by depositing funds into the account of the member holding the coupon.
- the coupon account is a list of the member's coupons. Commissions are deducted from members' cash accounts and costs associated with payments into and out of the cash account.
- the system operator does not act as a principal in any transaction, except to create a market as described below.
- the operator simply provides the market and charges a commission for its use.
- the system operator cannot lose money as a result of the outcome of an event. Proper trust management of the member's accounts and the operation of the system ensures the members are properly paid.
- the commission levied on each trade is a small amount per trade, such as one cent per coupon, or a percentage of the total purchase price. Either method may be graduated.
- the commission is payable by both the buyer and the seller.
- the commission could be levied entirely on the vendor, entirely on the purchaser or on both parties. It is well established economic principal that the selection does not matter as prices will adjust to give the same outcome anyway. For this reason, the system charges both parties half the commission to make it appear fairer.
- This stream of trading commissions is the income of the system operator. As the operator does not take a position as bookmaker and doesn't have any risk of default, this money is fully available to cover the costs of running the system and to provide profits.
- the operator may however become involved in the coupon trade if it is necessary to create a market for an event. For instance, if the event is a horse race with 10 runners where only long odds are being offered for 9 of the runners, and none of the corresponding counter coupons are being purchased, the system operator can accept the counter coupons at no risk. This can be achieved by the system operator buying the same number of counter coupons, n, for each horse in the race across the board as long as the prices of each coupon for each horse add up to a total of $1 or more. That way if any of those horses corresponding to the counter coupons do actually win, the operator will need to pay out $1 xn, but the operator has collected greater than or equal to $1 xn.
- the second option is to offer to buy coupons at a lower or equal price than the current best price or to sell coupons at a price higher or equal to the current best price. In this case, the order cannot be executed right away. Instead it is maintained on the system until another member takes it out.
- the best offer for Melbourne coupons is 250. If Jane enters an offer to sell 50 Melbourne coupons at 250, the number of coupons she has to offer will be added to the outstanding total available at this price. If Jack offers to sell 40 Melbourne coupons at 26 ⁇ , they will be added to a transaction queue but they will not be displayed until all the coupons for sale at 260 have been sold. Unfilled orders remain on the system until the member withdraws them or they are taken out.
- Bob calls up the display and decides to buy 100 counter coupons at 750. $75 is deducted from his account, and deposited in trust with the $25 from the seller in the system's trust account. In addition, he is charged a transaction commission of 500, giving him a net cost of $75.50. His cash account is debited with $75.50 and his coupons account is credited with the 100 counter coupons just created. The pair for Bob's counter coupons, 100 coupons have been paid for at 250 per coupon or $25 overall. In addition, the purchaser has paid a transaction commission of 500. Of this $25.50, the system puts $25 into the trust account and retains 50 ⁇ , as a commission.
- the new price table is:
- the orders for 258 coupons at 250 are still active but they will not become the leading order until someone sells 90 coupons to David at 270 or he withdraws this order. David has jumped to the front of a purchasing queue by posting the highest bid price but there is no guarantee that he will be able to buy coupons at this price. If he wanted to guarantee a purchase, he would have had to offer 280.
- She buys 100 coupons at 270 and pays $27.50, taking into account the trading commission. After a few days, the odds have shortened dramatically due to an injury to a Sydney player. She calls up the price table and gets the following:
- the transaction system can be applied to any event.
- the market created by the system is most applicable to situations where there are only two possible winners. This makes it particularly applicable to team sports such as football, rugby, soccer and cricket.
- the trading system described above is easily transferable to any other market provided it meets a few conditions. These are that there must be an easily and objectively identifiable event on which coupons can be created. There must also be a reasonable chance of the event happening and not happening. If the chance of the event happening, or not happening, is too great, there will not be enough traders on one side of the market or the other. Given these restrictions, a whole range of possible markets can be established, as follows:
- Custom betting markets It would be possible for members to set up a market on any event they choose. All that would be required is for a member to be willing to offer/buy coupons and for the event to be such that the result can be independently verified. For example, a member might be willing to buy/sell coupons on the results of their local football team. The market could be set up for them with very little effort.
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- Business, Economics & Management (AREA)
- Engineering & Computer Science (AREA)
- Accounting & Taxation (AREA)
- Development Economics (AREA)
- Strategic Management (AREA)
- Finance (AREA)
- Game Theory and Decision Science (AREA)
- Entrepreneurship & Innovation (AREA)
- Economics (AREA)
- Marketing (AREA)
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- General Business, Economics & Management (AREA)
- General Physics & Mathematics (AREA)
- Theoretical Computer Science (AREA)
- Management, Administration, Business Operations System, And Electronic Commerce (AREA)
Abstract
Description
Claims
Priority Applications (2)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
GB0202537A GB2368946A (en) | 1999-07-06 | 2000-07-05 | A transaction system |
AU56633/00A AU780942B2 (en) | 1999-07-06 | 2000-07-05 | A transaction system |
Applications Claiming Priority (2)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
AUPQ1434A AUPQ143499A0 (en) | 1999-07-06 | 1999-07-06 | A transaction system |
AUPQ1434 | 1999-07-06 |
Publications (1)
Publication Number | Publication Date |
---|---|
WO2001003048A1 true WO2001003048A1 (en) | 2001-01-11 |
Family
ID=3815623
Family Applications (1)
Application Number | Title | Priority Date | Filing Date |
---|---|---|---|
PCT/AU2000/000811 WO2001003048A1 (en) | 1999-07-06 | 2000-07-05 | A transaction system |
Country Status (3)
Country | Link |
---|---|
AU (1) | AUPQ143499A0 (en) |
GB (1) | GB2368946A (en) |
WO (1) | WO2001003048A1 (en) |
Cited By (1)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
CN109213598A (en) * | 2018-07-03 | 2019-01-15 | 努比亚技术有限公司 | A kind of resource allocation methods, device and computer readable storage medium |
Citations (2)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US5464971A (en) * | 1991-03-12 | 1995-11-07 | Sutcliffe; Peter H. | Apparatus and method for receiving and processing a bet |
US5672106A (en) * | 1994-09-13 | 1997-09-30 | Totalizator Agency Board | Combined totalizer and fixed odds betting system and method |
-
1999
- 1999-07-06 AU AUPQ1434A patent/AUPQ143499A0/en not_active Abandoned
-
2000
- 2000-07-05 WO PCT/AU2000/000811 patent/WO2001003048A1/en active IP Right Grant
- 2000-07-05 GB GB0202537A patent/GB2368946A/en not_active Withdrawn
Patent Citations (2)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US5464971A (en) * | 1991-03-12 | 1995-11-07 | Sutcliffe; Peter H. | Apparatus and method for receiving and processing a bet |
US5672106A (en) * | 1994-09-13 | 1997-09-30 | Totalizator Agency Board | Combined totalizer and fixed odds betting system and method |
Cited By (2)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
CN109213598A (en) * | 2018-07-03 | 2019-01-15 | 努比亚技术有限公司 | A kind of resource allocation methods, device and computer readable storage medium |
CN109213598B (en) * | 2018-07-03 | 2022-08-02 | 深圳极联信息技术股份有限公司 | Resource allocation method, device and computer readable storage medium |
Also Published As
Publication number | Publication date |
---|---|
GB0202537D0 (en) | 2002-03-20 |
GB2368946A (en) | 2002-05-15 |
AUPQ143499A0 (en) | 1999-07-29 |
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