Auction with interest rate bidding

Abstract

A method, apparatus, system and machine-readable medium are provided for declining auctions with interest bidding. According to one embodiment, offers are received from respective bidders in a bid receiving process to transact a financial instrument, the offers being expressed as offered interest rates at which the corresponding respective bidders are willing to transact the financial instrument. The bid receiving process is utilized in a declining auction characterized by a reducing a published interest rate at which the financial instrument is offered for sale. The declining auction is terminated based on a predetermined period of time.

What is claimed is: 
     
         1 . A method, comprising:
 receiving a starting interest rate for an interest-paying item at a computer, the receiving done at least in part using one or more processors;   publishing the interest-paying item for sale at the starting interest rate at the computer, the publishing done at least in part using one or more processors;   initiating a declining auction and receiving one or more bids in the declining auction for the interest-paying item; and   terminating the declining auction based on a predetermined period of time.   
     
     
         2 . The method of  claim 1 , further comprising receiving the one or more bids at the computer. 
     
     
         3 . The method of  claim 1 , wherein the interest-paying item comprises one or more financial instruments. 
     
     
         4 . The method of  claim 3 , wherein the one or more financial instruments comprise at least one of a bond, a certificate of deposit, an interest-bearing checking account, a savings account, and a money market account. 
     
     
         5 . The method of  claim 1 , wherein the predetermined time period is modified after the auction has been initiated. 
     
     
         6 . The method of  claim 5 , wherein the predetermined time period is modified based on a number of buyers reviewing the interest-paying item, a number of bids received for the interest-paying item, and a current interest rate. 
     
     
         7 . The method of  claim 1 , wherein the receiving of the starting interest rate comprises receiving the interest rate from the seller of the interest-paying item. 
     
     
         8 . The method of  claim 1 , wherein the receiving of the starting interest rate comprises automatically setting the interest rate based on at least one of historical information associated with other interest-paying items, buyer input, and a maximum interest rate for the interest-paying item and wherein a maximum interest rate is identified by a seller as a highest interest rate that the seller pays a buyer. 
     
     
         9 . The method of  claim 8 , further comprising:
 identifying one or more bids that respectively include an interest rate that is lower than the maximum interest rate; and   selecting a lowest interest rate bid from the one or more bids as a winning bid.   
     
     
         10 . The method of  claim 1 , further comprising communicating a web page to a client computer, the web page including a drop down menu from which an interest rate for a bid may be selected. 
     
     
         11 . A system, comprising:
 at least one processor; and   a declining auction application that is executable by the at least one processor to receive a starting interest rate for an interest-paying item at a computer, the receiving done at least in part using one or more processors, the declining auction application is further executable by the at least one processor to publish the interest-paying item for sale at the starting interest rate at the computer, the publishing done at least in part using one or more processors, the declining auction application is further executable by the at least one processor to initiate a declining auction and receiving at least one bid in the declining auction for the interest-paying item, the declining auction application is further executable by the at least one processor to terminate the declining auction based on a predetermined period of time.   
     
     
         12 . The system of  claim 11 , wherein the declining auction application is further executable by the at least one processor to receive the one or more bids at the computer. 
     
     
         13 . The system of  claim 10 , wherein the interest-paying item comprises one or more financial instruments. 
     
     
         14 . The system of  claim 13  wherein the one or more financial instruments comprise at least one of a bond, a certificate of deposit, an interest-bearing checking account, a savings account, and a money market account. 
     
     
         15 . The system of  claim 11 , wherein the predetermined time period is modified after the auction has been initiated. 
     
     
         16 . The system of  claim 15 , wherein the predetermined time period is modified based on a number of buyers reviewing the interest-paying item, a number of bids received for the interest-paying item, and a current interest rate. 
     
     
         17 . The system of  claim 11 , wherein the declining auction application is further executable by the at least one processor to receive the interest rate from the seller of the interest-paying item. 
     
     
         18 . The system of  claim 11 , wherein the declining auction application is further executable by the at least one processor to automatically set the interest rate based at least one of historical information associated with other interest-paying items, buyer input, and a maximum interest rate for the interest-paying item. 
     
     
         19 . The system of  claim 18 , wherein the declining auction application is further executable to identify one or more bids that respectively include an interest rate that is lower than the maximum interest rate and to select a lowest interest rate bid from the one or more bids as a winning hid. 
     
     
         20 . The system of  claim 11 , wherein the declining auction application is further executable by the at least one processor to communicate a web page to a client computer, the web page including a drop down menu from which an interest rate for a bid may be selected. 
     
     
         21 . A machine readable medium having stored thereon instructions that when executed by a machine cause the machine to perform the method including:
 receiving a starting interest rate for an interest-paying item at a computer;   publishing the interest-paying item for sale at the starting interest rate at the computer;   initiating a declining auction and receiving at least one bid in the declining auction for the interest-paying item; and   terminating the declining auction based on a predetermined period of time.