BUSINESS METHOD FOR A FINANCIAL INSTRUMENTS LOTTERY IMPLEMENTED IN SOFTWARE OR HARDWARE

Abstract

Aspects of this disclosure relate to the financial industry. A lottery business method based on financial instruments is presented. The lottery hereby is not a game of change because the high win opportunity is realized through sequential or parallel processing of financial instruments or transactions chosen by customers in tickets. Several representations of tickets were shown as well as the complete process of this method. For this method, a technical implementation of the process by a group of internet servers is described. Due to the fact that most people play lottery with physical lottery ticket machines, a lottery ticket machine is described which implements the business method and the technical process.

Claims

1. A business method for processing financial transactions by a retail broker comprising the following steps: the retail customer gets a list or a set or a graphical representation of available financial instruments or transactions, the retail customer selects the financial instruments or accepts the pre-selected or non-changeable selected financial instruments, the retail customer selects the amount of money he wants to spend, the retail broker processes the selected financial instruments sequentially or parallelly so that the selected financial instruments are bought and sold after a specified timeframe or event-based, the processing is finished when all selected instruments are processed or until all money is left.

2. A method of claim 1, comprising the following steps: the set of available financial instruments is represented as a physical or electronic ticket which consists at least of one of the following parts: a two-dimensional matrix of numbers, a two-dimensional matrix of ticker symbols, a two-dimensional matrix of symbols, a two-dimensional matrix of symbols.

3. A group of servers comprising at least of one server and comprising the following technical features: a direct or indirect electronic connection to a market maker, an automated trading system, an exchange or a financial intermediate to buy or sell financial instruments, providing a web service, an API, a Web GUI, a web page or a web service for interacting with customers through a user interface which is similar to a lottery ticket ordering system to obtain a ticket in electronic form, processing the elements of the electronic ticket by sequential or parallel trading of financial instruments.

4. A physical machine with the same user interface as a lottery ticket machine for creating tickets and which is connected to a group of servers with at least one server that is able to process these tickets by sequential or parallel trading of financial instruments or financial transactions with the outcome of the previous transaction used as input for the next transaction.

Description

BRIEF DESCRIPTION OF THE DRAWING FIGURES

[0011] FIG. 1 shows a simplified schematic of a retail customer/retail broker/financial institution interaction.

[0012] FIG. 2 shows the customer experience of a retail customer regarding this invention.

[0013] FIG. 3A-D show four different types of customer interfaces for choosing financial instruments (ordering tickets).

[0014] FIG. 4A-D show the several methods of the processing of a financial ordering ticket.

[0015] FIG. 5 shows the complete business method sequentially processed.

[0016] FIG. 6A shows the complete process.

[0017] FIG. 6B shows the customer interface which is used in FIG. 6A from a retail customers perspective

[0018] FIG. 7 shows the complete technical implementation of an internet server capable of processing and providing the method to customers.

[0019] FIG. 8 shows the method realized with physical ticket machines.

[0020] FIG. 9 shows a technical schematic and the customer interface of the physical ticket machine.

DRAWINGS—REFERENCE NUMBERS

[0021] 100 Retail customer

[0022] 102 Retail broker

[0023] 104 Exchange

[0024] 106 Market maker

[0025] 110 Institutional broker

[0026] 108 Automated trading system

[0027] 114 The customer broker interaction section

[0028] 112 The broker financial markets/industry interaction section

[0029] 200 Marked number

[0030] 202 Unmarked number

[0031] 204 Ticket

[0032] 208 Financial instrument ticker symbol representing number 12

[0033] 210 Financial instrument ticker symbol representing number 15

[0034] 212 View of selected financial instruments

[0035] 214 Two dimensional matrices

[0036] 300 Ticket with number and ticker symbols

[0037] 302 Ticket with ticker symbols only

[0038] 304 Ticket with symbols in this case Mahjong symbols

[0039] 308 Ticket with non-changeable selected financial instruments

[0040] 400 A sequential list of different financial transactions

[0041] 402 A sequential list of different financial transactions with time spans between the transactions

[0042] 406 The returned results of the sequential transactions

[0043] 420 A financial transaction flow chart.

[0044] 422 Modified view of financial instruments

[0045] 424 Flow chart of financial instruments

[0046] 426 Time Span

[0047] 428 Smaller Time Span

[0048] 500 Timeline

[0049] 502 Customer Request for a ticket

[0050] 504 Ticket

[0051] 506 Filled ticket

[0052] 508 First transaction process

[0053] 510 Result of transaction one

[0054] 512 Second transaction process

[0055] 514 Result of transaction two

[0056] 516 Third transaction process

[0057] 518 Result of transaction three

[0058] 520 Fourth transaction process

[0059] 522 Result of transaction four

[0060] 524 Fifth transaction process

[0061] 526 Result of transaction five

[0062] 528 Sixth transaction process

[0063] 530 Result of transaction six

[0064] 540 Seventh transaction process

[0065] 542 Result of transaction seven

[0066] 544 Result of the ticket

[0067] 600 Person

[0068] 602 Internet servers

[0069] 604 Internet connection

[0070] 606 Mobile devices

[0071] 608 Software interface or electronic interface

[0072] 610 GUT which is displayed in the mobile device

[0073] 700 Financial intermediaries

[0074] 704 Technical processes inside the server

[0075] 706 API

[0076] 708 Web service

[0077] 710 Web GUI

[0078] 712 Web page

[0079] 718 Payment gateway

[0080] 720 Step AA customer request of a ticket

[0081] 722 Step BB ticket generation

[0082] 724 Customer filled ticket and starts transactions

[0083] 726 Step XX representing end result

[0084] 728 Step YY customer requests payout

[0085] 730 Step ZZ payout of the result to customer

[0086] 732 Crypto wallet or crypto payment processor

[0087] 734 Crypto webservice

[0088] 750 Transaction processing process/sub routine/machine

[0089] 800 Personal computer

[0090] 802 Ticket machine

[0091] 806 Tablet

[0092] 810 Buyer

[0093] 812 Ticket

[0094] 814 Seller

[0095] 900 Coin insertion device

[0096] 902 Buttons for customer interaction

[0097] 904 Credit card reader

[0098] 906 Mobile payment device

[0099] 908 Cash insertion device

[0100] 910 Cash output device

[0101] 912 Display

[0102] 920 Printer

[0103] 930 Ticket scanner

DETAILED DESCRIPTION OF DRAWINGS

Description of the Business Method Described in FIGS. 1 to 5

[0104] FIG. 1 is explained in the beginning.

[0105] FIG. 2 shows the customer experience of a retail customer regarding this invention: a ticket (204) is showed between the retail broker (102) and the retail customer (100). It looks similar as a lottery ticket. The ticket (204) is divided into two parts—one part with a two-dimensional matrix (214) containing numbers (202) which can be chosen by marking them by a pen (200), the other part is shown on the right side and contains a view of the selected financial instruments (212). There are three fields with different ticker symbols of financial instrument. The financial instrument with number 12 from the selection field of the matrix (214) represents the financial instrument XC000 . . . (208). Number 15 represents next financial instrument SB1PBK (210) and so on. There are three two-dimensional matrix (214) fields and also three view fields for the concrete chosen financial product (212). Therefore, there is the same number of ticker symbols in the corresponding view field on the right side as numbers marked in the corresponding two-dimensional matrix.

[0106] FIG. 3 (A, B, C, D, F) shows five different appearances of Graphical User Interfaces (GUIs) or customer experiences. FIG. 3A shows the ticket described in FIG. 2 (204). FIG. 3B shows another possible two-dimensional matrix in which numbers and ticker symbols are presented in the same selection field (300). FIG. 3C shows tickets with ticker symbol names (302) which are arranged as two-dimensional matrices. FIG. 3D shows a two-dimensional ticket with Mahjong symbols (304). FIG. 3E shows a pre-filled ticket. The numbers on the ticket also represent financial instruments or transactions. This is an example of a ticket with pre-selected and non-changeable financial instruments (308).

[0107] FIG. 4A shows the interactions between a retail broker and a retail customer. The Retail Customer (100) provides a sell/buy list to the retail broker (102) for processing. The retail broker will process this list by doing the trades at an exchange (104) or with other market makers (106).

[0108] FIG. 4B shows a sequential list of financial transactions (400). The first row represents the position of the financial transaction, the second row represents the type of transaction. The letters A, B, C, G are placeholders for financial instruments/transactions.

[0109] FIG. 4C shows the sequential processing of a financial transactions list (402). The table (406) lists the sequential order. The graph on top (402) shows the financial transactions and time spans between those them. For example, between financial transaction A and B, there is a time span of 1 day; between financial transaction D and E, there is a time span of 16 hours. The table shows the results of each individual transaction and the total result of all sequential processed transactions—the end result (unit would be either a real or a virtual currency will be called money units from here on) is listed in column F (end result 4090 Money units). Each column of the table contains the result of all transactions which were done before. Everything starts with 10 money units at first step (1). After transaction A (this means buying a specified financial instrument and holding it for one day and selling it afterwards), the balance is 5 money units. These 5 money units are then used in transaction B for one day and increase the balance to 15 money units. After the complete list of financial transaction is processed, the final result is 4090 money units.

[0110] FIG. 4D shows a flowchart of financial transactions (420). In this flow chart some transactions are processed parallelly. For example, the transactions C, D, F and F are processed parallelly. The GUI would have to be changed as shown in FIG. 4D to provide the control of the sequence to the customer (300). A modified view of selected financial instruments (422) is shown by using a flow chart of the selected financial instruments (424). The flow chart consists of numbers of the financial instruments and time spans (426 and 428) between those transactions. The numbers of the financial instruments can be selected in the two-dimensional matrix (300)—each column will be processed at the same time, sequentially from the left to the right—the customer will see the results of his selections in the graphical transaction details view (422). Ii is also possible to select the time spans between two transactions by arranging the numbers. The distance between two financial transactions represents the duration between them—for example two space units (426) for two days, one space unit (428) for 16 hours.

[0111] FIG. 5 shows a typical customer/broker interaction process (as a sequence diagram). The dashed lines represent the five stakeholders involved (customer (100), broker (102), exchange(104), market maker (106) and ATS (108)). The interaction starts as soon as the customer (100) orders (502) a ticket from the broker (102). The broker provides a ticket to the customer (504). This ticket contains information about which financial transactions or financial instruments are currently available for trading (represented in tickets as shown in the FIGS. 2, 3 and 4). The customer fills-in the ticket by selecting or arranging the symbols, numbers or ticker symbols (506) and sends it to the broker (102). The broker (102) begins to process the ticket by starting the first transaction process (508). Therefore, the broker (102) uses the exchange (104). After the completion of the first transaction, the result (510) is returned to the broker (102) which then starts the next transaction (512). This will be continued until all transaction from the ticket are processed (542). The overall outcome of the ticket is then reported to the customer (544). There is one transaction (516) which is processed by an automated trading system (108)—this means that it is possible to use intelligent orders or transactions. Two other transactions (512 and 528) are done by markets makers.

Operations of FIGS. 1 to 5

[0112] The business method works like this: a retail customer (100)—in this example a single individual person—wants to play with financial instruments, orders or financial transactions. He requests a ticket (204) consisting of a two-dimensional matrix (214) were each element of the matrix is representing an available financial instrument or transaction. These elements could also be arranged as a flow chart (420). It is as well possible to select intelligent transactions (they can be processed by automated trading system or robotic traders—for example buying the stock option of Microsoft with the highest risk at a certain date). Additionally, it is possible to use events instead of time spans between two elements. For example, if an exotic option increases its value tremendously, the next element could be started earlier or later.

[0113] This ticket with all selected financial products is then processed by the retail broker (100) in a sequentially process (402) or a flow process like (420). In most cases the flow process will be divided into sequentially sub processes. The overall result will then be reported or transferred to the customer (544). It is also possible to use pre-selected tickets (920) with symbols representing financial instruments. The retail customer (100) has just to buy such a ticket in order to use financial instruments.

[0114] Description of the technical process described in FIGS. 6 and 7 which implements the Business method described in FIGS. 2 to 5

[0115] FIG. 6A shows a customer (600) who is using a mobile device (606) which is connected by the internet (604) to a server (602). This server is also connected using interfaces (608) or other electronic connection to market makers (106), Automated Trading Systems (108) or exchanges (104). FIG. 6B shows the GUI of the web or mobile app which both can be ran on mobile devices (606). The GUI shows a two-dimensional matrix with numbers on the left side and a view of selected financial instruments or transactions on the right side. The technical implementation is described FIG. 3 and FIG. 4D and works like the processes described above. The GUI can be provided by a server using a web page, an app or software running on the mobile device (606).

[0116] The following definitions are used in FIG. 7:

[0117] API—application programming interface.

[0118] Web Service—A more specified API which is a network-based resource that fulfills a specific task.

[0119] Web GUI—A graphical user Interface (GUI) in which the customer can interact with the system by a Web browser.

[0120] Web Page: A web page is a specified collection of information provided by a webserver and displayed to a customer by a web browser.

[0121] Payment gateway: a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. The payment gateway may be provided by a bank to their customers, but could also be provided by a specialized financial service provider as a separate service, such as a payment service provider.

[0122] Crypto Wallet or Payment processor: digital object, that stores the digital credentials for a customers crypto currency holdings and allows the customers to access them. A crypto currency payment processor facilitates the immediate transfer of crypto currency to fiat currency.

[0123] FIG. 7 shows an internet server (602). This internet server has interfaces (608) to market makers (106), ATs (108), exchanges (104) and financial intermediaries (700). The server (106) provides functionalities to its clients using APIs (706), web services (708), a Web GUI (710) and a web page (712). The server (602) can use a crypto currency service (734), a crypto currency wallet or payment processor (732) and a payment gateway (718) for receiving and sending FIAT money or crypto money. The figure also shows the processes inside the server (602). First, the customer requests a ticket (720). This is done in step BB (722). After the customer filled-in the ticket and sends it back to the server (724), the server starts processing the ticket as described in FIG. 4C, 4D and 5 in a transactional sub-process (750). After the sub-process (750) is finished, the end-result is presented to the customer (726). If the customer request the payout (728), it will be processed using the payment gateway (718), the crypto currency web service (734) or the crypto wallet (732).

Operations of FIGS. 6 to 7

[0124] FIGS. 6 to 7 is the technical implementation of the business method described in the FIGS. 1 to 5. A customer (600) uses a mobile device (606) (or any other device which is connected to the Internet (604)) to interact with the internet server (602). This can be done by opening a web page, by using app, a client software (606) or by using other gateways or interfaces which will be communicating with the internet server. Regardless the type of the communication, the customer will be shown a GUI on his device which contains a two-dimensional matrix of symbols for selecting financial instruments. The financial products and their processing order can be defined within the GUI. After the selection is done, the customer (600) can send the ticket (as binary data) to the internet server (602). The server will start the processing of the ticket once received and validated it. The processing of the ticket is done as described in FIG. 5. The internet server (602) uses therefore its interfaces to market makers (106), ATs (108), exchanges (104) and financial intermediaries (700). After the ticket has been processed, the customer receives the overall result and can request the payout. The internet server (602) uses payment processors to process the payout to the customer. It is also possible to split the operations of the internet server (602) into different servers.

[0125] This means for example that one server creates the web GUI, another one provides the API, one server processes the tickets and uses another server which is communicating with the exchanges and so on.

[0126] Description of the physical machine showed in FIGS. 8 and 9 which implements the technical method described in the FIGS. 6 and 7:

[0127] FIG. 8A shows a customer using a personal computer (800), a mobile device (606) and a tablet PC (806) which are connected to the internet server (602) using the internet.

[0128] FIG. 8B shows a customer (814) who orders a ticket which is issued by a merchant using a ticket machine (802) to get a ticket (812). The ticket machine is connected through a data connection to the server (602).

[0129] FIG. 8C shows a customer using a ticket machine (802) to buy a ticket (812). The ticket machine is connected to the server (602) through a data connection (804).

[0130] FIG. 9 shows a ticket machine (610) for buying or selling tickets (812). Depending on the usage of die machine, not all technical characteristics are necessary. The machine (610) consists of a display (912) showing a two-dimensional matrix for selecting financial instruments or transaction in the same way as filling-in lottery numbers on a sheet of paper. It also consist of buttons/switches (902) or other technical devices for interaction, a credit card reader (904) for processing credit cards, a mobile payment device(906) for other electronic payment methods, a cash insertion device (908) a cash output device (910) for getting the rest of the money back and a printer (920) to get the ticket (812).

Operations of FIGS. 8 to 9

[0131] Due to the fact that most people buy their lottery tickets in a supermarket or somewhere else physically and not online with an app, the ticket machine (802) was developed. There are two principal ways how a customer (810) can obtain a ticket (812). The first option is, that the customer can visit a shop in which a seller (814) uses the ticket machine (802) to create the ticket for him. This means the buyer (810) can fill out a ticket in paper (812) and give that ticket to the seller (814) the seller then uses the ticket scanner (930) to scan the ticket and transfer the data to server. The server then processes the ticket as described in FIGS. 6 to 7. The buyer can also buy a pre-filled ticket with random values selected.

[0132] Another option is that the customer (810) creates the ticket (812) himself by using a ticket machine (802). The ticket machine (802) has a display (912) which is able to show a two-dimensional matrix as described in FIGS. 3 and 4D for selecting financial instruments or transactions. After the customer has selected own values or has accepted the pre-selected symbols (and after paying), the customer can use the primer (920) to print the ticket (812). The ticket machine will then send ticket to the server for processing it. The mechanism for processing the ticket are described in figure six and seven. It is also possible that the server (602) is separated into different servers (a group of servers) which each one implementing a part of the functionality of the described internet server (602).

Conclusion, Ramification and Scope

[0133] The invention described allows the customer to use complex financial instruments or transaction with an interface which is as easy-to-use as the well-known lottery system.

[0134] The main idea on which this invention is based is the experience, that high-risk or speculative financial instruments which can be traded via a retail broker are too abstract for those customers who buy lottery tickets currently. For this reason, a business method has been described in this disclosure which enables financial instruments to be used in the same way as participating in a lottery. An essential part of a lottery is the lottery ticket which either has to be filled-in in by the customer himself or has already been filled-in automatically with random numbers. Most of lotteries use numbers which are arranged in a two-dimensional matrix. However, other characters, images or symbols could also be used. The tickets of this invention look very similar to the old fashioned lottery tickets. Instead of numbers, real financial instruments or transactions are chosen by the customers. They will then be processed by the broker in the real market.

[0135] The invented tickets could also be physical objects (like a paper) which are scanned and digitalized by machines. Furthermore, the invented ticket could contain two-dimensional matrices, numbers, symbols, ticker symbols can be used as symbols for selection. The lot can also be pre-selected. The following financial instruments could be used with this business method: Derivatives, Forex transactions or intelligent financial instruments or instructions for robotic traders.

[0136] A server with a software process was presented which is the technical implementation of this business method. The tasks of this server could also be split into several servers—this is called a server group. This group of servers must consist at least of one server, which is able to communicate with a customer using the internet or other data connection so that the customer is able to select financial instruments. After that, the server processes the selected financial instruments by handing them over to exchanges, market-makers, financial intermediaries or automated trading systems. It is also possible to arrange the symbols in the ticket in a flow chart or diagram to define the desired transaction sequences and delays in-between. The group of servers communicate with the customer by a web page, an API, a web service, a client software or an app. All available internet payment methods could be offered to the customer. Additionally, a physical ticket generation machine was presented, which is able to communicate with the group of servers to create, print and scan tickets for customers. The physical ticket machine works the same way as lottery ticket machines but the printed ticket contains the selected financial instruments or transactions instead of just lucky numbers.