WO2001057767A1 - System for letter of credit selector on internet exchange - Google Patents
System for letter of credit selector on internet exchange Download PDFInfo
- Publication number
- WO2001057767A1 WO2001057767A1 PCT/US2001/003261 US0103261W WO0157767A1 WO 2001057767 A1 WO2001057767 A1 WO 2001057767A1 US 0103261 W US0103261 W US 0103261W WO 0157767 A1 WO0157767 A1 WO 0157767A1
- Authority
- WO
- WIPO (PCT)
- Prior art keywords
- website
- bid
- buyer
- seller
- confirmer
- Prior art date
Links
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
- G06Q30/06—Buying, selling or leasing transactions
-
- 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
- G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
- G06Q40/02—Banking, e.g. interest calculation or account maintenance
Definitions
- the present invention relates m general to a business method and computer system relating to an Internet site that permits a buyer to seek offers from a seller, and relates in particular to a secure Internet system that permits a customer to seek offers from participating providers n the ban ⁇ ng industry.
- the present invention comprises a business method and computer system relating to an Internet site that permits a customer to seek offers from participating issuers of Letters of Credit (LC) , and then to select an offered LC commitment with the desired issuer.
- LC Letters of Credit
- the invention brings together sellers, buyers, issuing banks, and confirming banks through their own computers using secure or encrypted information over a global computer network, such as the Internet .
- the present invention allows efficient intermediation of available or new credit sources, while generating new fee streams for banks, utilizing bank trade finance facilities more efficiently, and more cheaply.
- the use of an e-commerce interchange drives costs down, improves balance sheet/cash flow and ROE
- the present invention allows exporters, importers, and banks to select the most efficient conventional Dank letter of credit to handle payments under contrac ua_ mternational sales of goods ana services.
- Exporters can determine tne ful_ oan ⁇ market availaoility for letter of credit confirmations, at the best commission rates.
- Importers can select from a wider source of trade credit than previously known, at the best cost.
- BanKs whicn are actively buying or developing Internet based software products with whicn to offer to, and service, their customers, can use the present invention to enable them to use existing products, find new customers, and utilize used bank-to-bank credit facilities more efficiently from low cost, existing resources.
- the present invention provides a f rst-to-mar ⁇ et advantage with attendant efficiencies that can very profitably interact with and complement all excnanges with an efficient payment model.
- the present invention allows all international banks to use their own products, and trade partners to use existing LC documentation accessed securely through a website.
- business exchange is between exporters, importers and banks in all countries of the world.
- the exchange facilitates world trade through more efficient information exchange as to all available users and/or providers of LC s to complete trade payments under trade contracts and similar documents .
- One embodiment of the present invention involves a plurality of steps.
- the exporter and importer conclude a sales commitment involving a transaction in goods or services between tne importer and exporter in an two or more countries, and information about the transaction is posted on the website of a manager or controller.
- one or more participating opening banks access the website, read the transaction information, and if interested, post a confidential bid that only the importer can read.
- the importer returns to the manager' s website and selects one of the bids.
- one or more confirming banks access the website, read the accessible posted information as released by the exporter about the transaction, and posts a confidential confirming bid for the LC for the exporter to consider.
- the exporter returns to the manager's website and selects one of the oids of the confirming banks to complete the LC transaction.
- a confirmation of the LC transaction is sent and the bank transaction fees are transferred through tne manager's website, with the manager receiving a commission .
- LC Letter of Credit
- the system has five steps or stages and in the drawing, the flow of information for each step is indicated oy a different type of dashed or dotted line, each dashe ⁇ or dotted line for convenience being identified by a color, as follows :
- Step I (Transaction Posted) : a dashed line consisting of a series of groups of two small, fine lines with an indicated color of pink;
- Step II (Issuing Banks Bid) : a dashed line consisting of a series of small, thick dashes with an indicated color of green;
- Step III Importer Selects Issuing Bank: a solid dashe ⁇ , thick line consisting with an indicated color or black;
- Step IV (Confirmation Banks Bid) : a dotte ⁇ line consisting of a series dots with an indicated color of blue; and Step V (Expcrter Selects Confirmation Bank) : a solid, thin line with an indicated color of red.
- the shorthand title of each step is indicated in parenthesis .
- the basic participants are: an Importer Computer System 10 which contains the importer's data for the transaction (IDT); an Exporter Computer System 12 which contains the exporter's data for the transaction (EDT); a central computer system of a L/C Selector Internet Exchange or transaction manager 14 which contains the computer software for a website 15; one or more participating issuing bank computer systems 16, three of which are depicted as Bank A numbered 16a, Bank B numbered 16b and Bank C numbered 16c; and one or more participating confirming bank computer systems 18, three of whicn are depicted as BanK X numbered 18a, Bank Y numbered 18b and BanK Z numbered 18c.
- the software is written in Java and resides on website 15.
- website 15 When a computer system of an authorized user logs onto website 15, the necessary computer program parts are down loaded onto the computer system of the user.
- each participant can be provided with the requisite portions of the software to enable that participant to use the exchange.
- Each computer system (not shown m detail) is conventional ano can includes as a minimum: a general purpose digital computer, such as a microcomputer utilizing a microprocessor; a mass storage system m communication with the computer, such as a hard disk; software stored on the storage system; a data storage area on the storage system; input equipment such as a keyooard and mouse; output equipment such as a monitor, a printer; and communication hardware such as a mooem or in larger systems an entire communications router wfnch are connected to the Internet.
- a general purpose digital computer such as a microcomputer utilizing a microprocessor
- a mass storage system m communication with the computer such as a hard disk
- software stored on the storage system such as a hard disk
- software stored on the storage system such as a hard disk
- data storage area on the storage system such as a keyooard and mouse
- output equipment such as a monitor, a printer
- communication hardware such as a mooem or in larger systems an entire communications router w
- transaction manager computer system 14 includes a data storage or data base 20.
- Data base 20 is either part of website 15 as shown or can be separately stored in another computer system.
- Data base 20 includes a number of folders, each folder being schematically snown as being accessed during a different step of the process. These folders, which are more fully explained below, include for tne importer's side: a plurality of IDTs folders 22; IQCs folders 24; ICQ "pages" folders 26; and I/BDTs folders 28. These folders for the exporter's side include EDTs folders 30; CQCs folders 32; CQC "pages" folders 34; and CBSs folders 36.
- data base 20 includes customer data folders 40; e-mail archive folders 42, accounting and fee payment records m folders ⁇ A , ana IDT/EDT "pages" in folders 46.
- an open space portion which represents an active memory portion 50.
- central computer system stores active information about pending transactions, and calculates and assemblies information.
- These memory portions include an IDT memory portion 52 and an EDT memory portion 54.
- IDT memory portion 52 is used to store importer' s Data Transaction information being received by website 15 during Step 1 transactions and the other two thirds of which are used to receive and assemble bids from issuing banks during Step 2 transactions.
- EDT memory portion 54 is used to store exporter' s Data Transaction information being received by website 15 during Step 3 transactions and the other two thirds of which are used to receive and assemble bids from confirming banks during Step 4 transactions.
- IQC Page Container portion 56 There is also an IQC Page Container portion 56 and a CQCs Page Container portion 58. Each of these container portions are used to assemble and store all valid bids from all bidding importing or confirming banks, respectively. Finally there are fee recordation portions 60 and 62 to calculate and store fees associate ⁇ with the transaction for each of the issuing side and the confirming side of the transaction.
- SSL Secure Socket Layer.
- Each transaction from and to a bank is encrypted and thus is conducted through a secure socket layer. In this way, one bank is unable to see or have access to the transactional information of another bank. This ensures that the Diddmg for the Letter of Credit, whether it is oy an issuing bank or by a confirming bank, is truly- secret.
- the preferred embodiment of the present invention is a blind bid.
- a fully competitive bidding system is supported m which each issuing bank or confirming bank can see the bid of the other bidding issuing banks or confirming banks, respectively, ana thereby decide whether to bid lower or not.
- Step 1 depicted by the "pink” line which is a series of sets of two dots per set, is the posting of a request for a Letter of Credit (LC) by the importer/buyer on the website of a transaction manager;
- Step 2 depicted by the "green" line which is a series cf short, thick dashes, is the posting of an offer or bid by one or more banks for issuing the LC;
- Step 3 depicted by the "black” line which is a thick solid line, is the posting of the issuing bank selected by the importer;
- Step 4 depicted by the "blue” line which is a series of dots is the posting of an offer by the exporter of a request for a proposal for confirming the offered LC;
- Step 5 depicted by the "red" line which is a thin solid line is the posting of the confirming bank selected by the exporter.
- Step 1 begins after an exporter and importer have made a deal involving the sale of goods in one country and the importation of those goods in a second country.
- a system according to the present invention now permits the transaction to go forward by providing a mechanism through which the contracting parties can locate two banks, one in the geographical location of the exporter and one in the geographical location of the importer, who will issue and oversee an LC .
- step 1 begins with the posting of sales commitment information on website 15 ana the solicitation of bids from an issuing bank or other source.
- the typical transaction begins when an exporter or a group of exporters conclude sales commitments to sell goods and/or services to an importer or a group of importers who desire to buy and import into their country tne goods and/or services.
- the sales commitments are usually embodied in a written or oral contract that includes as one of its terms the obtaining of a Letter of Credit (sometimes referred to herein as an "LC") by the importer from an issuing bank which usually deals only with the importer and the obtaining by the exporter of a performance confirmation by a confirming bank which usually deals only with the exporter.
- LC Letter of Credit
- the contract sets the obligations for the payment of the issuing and confirming banks services with the particular parties, although usually the importer is responsiole for obtaining and paying for the LC and the exporter is responsible for obtaining and paying for a confirming bank. Up to this point in the transaction, all actions by the importer and the exporter are conventional.
- the present invention is now used to secure the best terms for each of the parties.
- the exporter or importer logs onto website 15 of transaction manager computer system 14.
- the sale commitment information is then posted on website 15 by the importer and/or exporter.
- This sale commitment information includes t ⁇ e amount of sales commitment by currency; the type ana quantity description of goods/services; the exporter's name and address; the importer's name and address; the terms of the sale which includes the payment terms, and the address of the to and from shipment addresses; the duration of the posting; and any other relevant transaction descriptions which are thought to oe helpful m getting bids to be placed on website 15.
- Step 1 The path of Step 1, indicated by the "pink" lines, begins at Importer Computer System 10 m FIG. 1A, where the IDT information to be posted is encrypted, and proceeds through a secure socket layer SSL as indicated at 64 to website 15 (FIG. IB).
- the IDT Upon logging onto website 15, the IDT is stored in IDTs folders 22 of data base 15.
- the IDT is also made available to any participating issuing bank, called issuing bank candidates in Steps 1 and 2, such as issuing bank candidates 16a, 16b, and 16c, when they log onto weosite 15.
- the IDT is then sent encrypted by wedsite 15 to a requesting bank through a secure socket layer, SSL 66, shown m FIG. 1C. This completes Step 1.
- Step two involves the collection of bids from one or more issuing banks by website 15, checking the bids to ensure that they are legitimate and are from participating banks or other institutions, reformatting the bids so as to present only certain information and present it in a predetermined way, and transmitting tne bids to tne importer.
- the bids are not shown to eitner the exporter or the other issuing or confirming oan ⁇ s.
- each bank candidate 16a, 16b, and 16c places an encrypted bid through respective secure socket layers 67, 68 and 69.
- Each bank making a bid has previously executed a contract with the transaction manager of weosite 15 and thus has qualified as a participating bank.
- the offer to issue an LC nas committed each candidate issuing oan ⁇ to an ope- signt LC at a particular fee charge, usually expressed as a percertage of the request amount of tne LC .
- a candidate issuing bank will usually state other conditions such as deposit requirements and the length of time the bid will be considered active.
- the IQC bids are encrypted and sent to website 15 where they are stored m active IDT memory portion 52 until the time posted for receiving the bids has closed. Thereupon, they are assembled into an IQC "page" at container memory portion 56. At the same time the IQC page container information is being assembled, the IQC data is sent for permanent storage in IQCs and I/BDTs storage subdirectories or folders 24 and 28.
- Step 2 begins at Bank Computer Systems 16a, 16b, and 16c m FIG. 1C, where these computer systems access website 15, fine the requests for bids, select and make a bid.
- Banks A, B, and C make a bid by providing an Issuance (bank) Quote Commitment that is encrypted and sent to website 15 through a secure socket layer as indicated respectively in SSL boxes 67, 68 and 69.
- An IQC commits the bank to an open sight LC at a stated percent fee, and under terms and conditions they separately state.
- the bids from the three bidding banks are posted as either a "market” bid or a "limit” bid.
- a market bid is one that remains until either withdrawn or the importer has selected another LC issuer.
- a limit bid is one that stays open only up to a stated time.
- the bids are retained in IDT memory portion 52 until the time for bids expires, and then they are sent to IQC Page Container portion 56 where the bids are assembled into a page of formatted information and encrypted. From portion 56 the assembled bids are automatically sent in an e-mail to importer computer system 10 through a secure socket layer as indicated by SSL box 70. A copy of the e-mail is retained, as are all e-mail notifications by website 15 of transaction steps, in EMAIL archives 42. This completes Step 2.
- Step 3 the importer makes the desired selection of a bank and enters it into importer computer system 10.
- FIG. 1A by the "black" lines beginning at importer computer system 10 and proceeding as shown to an importer/bank data transaction box 71.
- Transaction box 71 in turn assembles and encrypts the selection as an importer/bank data transaction message, as shown in a message box 72.
- message box 72 From message box 72 the secure information is transmitted to website 15 through a secure socket layer, as shown in an SSL box 74, FIG. 1A, for relay of the acceptance to Bank A computer system 16a.
- a fee message is transmitted from message box 72 to fee recordation portions 60 (FIG. IB) wnere a fee is recorded against the account of the importer for a successfu_ transaction in obtaining an LC from a participating issuer bank.
- the bid from bank A is selected ano this is indicated by the choice in message box 72 and also by the notification path extending from fee recordation portions 60, across the page divide to a fee paid transaction box 76 of Bank A computer system 16a.
- Fee box 76 records a predetermined fee, usually in point, against the issuing bank A as a percentage of the LC anc are paid to the transaction manager for the services of using website 15.
- the fees paid by importer 10 to BanK A for issuing an LC is based on tne bid price and are paid outside of the present system.
- Step 3 exporter computer system 12 is notified of the bid acceptance and issuance of an LC .
- the acceptance notification is also sent from fee recordation portion 60 of website 15 to an importer/bank data transaction portion 78 where the information is stored during the present transaction. From transaction portion 78, the information is reformatted and encrypted and enters a secure socket layer as snown by an SSL box 80 m FIG. 1A. Florf the*- goes to exporter computer system 12. At this point Step 3 is finished.
- Step 4 the process switches to the exporter oDtaimng a confirming bank and involves the posting of a request for bids and the making of such bids by one or more confirming banks.
- the process can proceed only because an LC has been opened. The process will not proceed, and will be delayed at website 15, until the importer and an issuing bank have agreed on the terms of the LC and the bank has agreed to open one.
- the process in STEP 4 begins at exporter computer system 12 where the exporter reviews the accepted LC ano assembles its request to be posted on website 15.
- Exporter Computer System 12 also encrypts the information and sends it to the Internet as shown by the "blue" line, through a secure socket layer, as shown by SSL box 82.
- the flow of the exporter's data transaction 'EDT) proceeds to website 15 and then is stored m EDTs folder 30 and made available on website 15 at EDT memory portion 54.
- the banks X, Y and Z confirming LC bid is posted as either a "market” bid or a "limit” bid, which are the same as described above with respect to the issuing banks bids.
- the received bids are packaged into a page by CQCs Page 58 and from there stored in CQC "pages" folders 34 and sent to exporter' s data transaction computer system 12. Tnis completes step 4 .
- Step 5 the last step in the process, involves the selection of a bid by the exporter.
- the process flow is shown by the "red" line.
- the exporter When the bids are received, as shown by process box 90 in FIG. 1A, the exporter will evaluate them and select one. This decision is effected and submitted by exporter' s computer system 12 to website 15 as shown in process box 90 with Bank x having been selected, m this example, as seen m process box 92.
- Fee box 62 records a predetermined fee, usually in point, against the confirming bank x as a percentage of the LC and are paid to the transaction manager for the services of using website 15.
- the fees paid by the exporter to Bank x for confirming an LC is based on a percentage of the LC and are paid outside of the present system.
Abstract
Description
Claims
Priority Applications (2)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
EP01905313A EP1275065A4 (en) | 2000-02-01 | 2001-02-01 | System for letter of credit selector on internet exchange |
AU2001233207A AU2001233207A1 (en) | 2000-02-01 | 2001-02-01 | System for letter of credit selector on internet exchange |
Applications Claiming Priority (2)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
US17943000P | 2000-02-01 | 2000-02-01 | |
US60/179,430 | 2000-02-01 |
Publications (1)
Publication Number | Publication Date |
---|---|
WO2001057767A1 true WO2001057767A1 (en) | 2001-08-09 |
Family
ID=22656562
Family Applications (1)
Application Number | Title | Priority Date | Filing Date |
---|---|---|---|
PCT/US2001/003261 WO2001057767A1 (en) | 2000-02-01 | 2001-02-01 | System for letter of credit selector on internet exchange |
Country Status (3)
Country | Link |
---|---|
EP (1) | EP1275065A4 (en) |
AU (1) | AU2001233207A1 (en) |
WO (1) | WO2001057767A1 (en) |
Cited By (1)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
CN107146030A (en) * | 2017-05-10 | 2017-09-08 | 成都衔石科技有限公司 | The management system and method for bid business standing are built for evaluation engineering |
Citations (3)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US5297031A (en) * | 1990-03-06 | 1994-03-22 | Chicago Board Of Trade | Method and apparatus for order management by market brokers |
US5809483A (en) * | 1994-05-13 | 1998-09-15 | Broka; S. William | Online transaction processing system for bond trading |
US5826244A (en) * | 1995-08-23 | 1998-10-20 | Xerox Corporation | Method and system for providing a document service over a computer network using an automated brokered auction |
-
2001
- 2001-02-01 AU AU2001233207A patent/AU2001233207A1/en not_active Abandoned
- 2001-02-01 EP EP01905313A patent/EP1275065A4/en not_active Withdrawn
- 2001-02-01 WO PCT/US2001/003261 patent/WO2001057767A1/en not_active Application Discontinuation
Patent Citations (3)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US5297031A (en) * | 1990-03-06 | 1994-03-22 | Chicago Board Of Trade | Method and apparatus for order management by market brokers |
US5809483A (en) * | 1994-05-13 | 1998-09-15 | Broka; S. William | Online transaction processing system for bond trading |
US5826244A (en) * | 1995-08-23 | 1998-10-20 | Xerox Corporation | Method and system for providing a document service over a computer network using an automated brokered auction |
Non-Patent Citations (1)
Title |
---|
See also references of EP1275065A4 * |
Cited By (1)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
CN107146030A (en) * | 2017-05-10 | 2017-09-08 | 成都衔石科技有限公司 | The management system and method for bid business standing are built for evaluation engineering |
Also Published As
Publication number | Publication date |
---|---|
AU2001233207A1 (en) | 2001-08-14 |
EP1275065A1 (en) | 2003-01-15 |
EP1275065A4 (en) | 2003-05-07 |
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