# US 7,610,242 B2 · Systems and methods for improving the liquidity and distribution network for luxury and other illiquid items > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 7,610,242 B2 - Document ID: US7610242B2 - Status: Granted - Kind: B2 - Application number: 11/671,029 - Filed: 2007-02-05 - Published: 2007-06-07 - Granted: 2009-10-27 - Earliest claimed: 2001-12-13 - Assignees: BGC Partners, Inc. - Inventors: Timothy H. Heaton; Howard W. Lutnick - Web page: https://patentgrep.com/patent/US7610242B2 ## CPC - G06Q 30/0205: {based on location or geographical consideration} - G06Q 30/0275: {Auctions} - G06Q 30/0611: {Request for offers or quotes} - G06Q 30/08: Auctions - G06Q 40/00: Finance; Insurance; Tax strategies; Processing of corporate or income taxes - G06Q 40/04: Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange - G06Q 40/06: Asset management; Financial planning or analysis - G06Q 50/16: Real estate - 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 ## Abstract Systems and methods for improving the liquidity and distribution network for luxury and other illiquid items are provided. These systems and methods preferably include the trading of futures and options contracts, which will provide the liquidity and distribution network for luxury items. Possible embodiments of these systems and methods include the trading of futures and options contracts for diamonds and wine. Another embodiment of this invention preferably includes generating indexes for diamond prices, wine prices, luxury item prices, housing values, mortgage prepayments, privately-held companies or for anything with from sufficiently liquid points of value. Another embodiment of this invention preferably includes a centralized data base for retrieving closing and current auction prices for determining the value of, and best method for the auctioning of various items. The data provided by this data base would improve liquidity by creating greater price transparency. ## Claims ### Claim 1 A method comprising: receiving, by a computer system from a first remote device, a first order to trade at least one of a first futures and a first option contract for at least one first luxury item from a first user, wherein the at least one of the first futures and the first option contract specifies that the at least one first luxury item has a plurality of respective first values for each characteristic of a set of characteristics defined by a standard luxury item profile; receiving, by the computer system from a second remote device, a second order to trade at least one of a second futures and a second option contract for at least one second luxury item from a second user, wherein the at least one of the second futures and the second option contract specifies that the at least one second luxury item has a plurality of respective second values for each characteristic of a set of characteristics defined by the standard luxury item profile, in which the second values are different form the first values; communicating, from the computer system, the first and second orders to at least one other user of a third remote device; receiving, by the computer system, a counter-side order to at least one of the first order and the second order from the at least one other user of the third remote device; and executing, by the computer system, a trade in at least one of the first futures contract, the first option contract, the second futures contract, and the second option contract. ### Claim 2 (depends on 1) The method of claim 1, wherein the at least one first and second luxury items comprise only a single first diamond and a single second diamond, respectively. ### Claim 3 (depends on 2) The method of claim 2, wherein the standard luxury item profile comprises at least one of a color, cut, and clarity. ### Claim 4 (depends on 1) The method of claim 1, in which the at least one first and second luxury items each comprise at least one diamond, and wherein the standard luxury item profile comprises a range of values for at least one of a color, a clarity, a proportion of depth, an angle of the table, a characteristic of the girdle, a characteristic of the culet, and a characteristic of the polish. ### Claim 5 (depends on 1) The method of claim 1, in which the first and second values are based on respective certified grading report of each of the first luxury item and the second luxury item, comprising delivering at least one of the first luxury item and the second luxury item at at least one future date to satisfy the at least one of the first futures contract, first options contract, second futures contract, and second options contract, and delivering the respective certified grading report with the at least one of the first luxury item and the second luxury item. ### Claim 6 (depends on 1) The method of claim 1, comprising receiving a request for a listing of at least one of futures and option contracts and communicating the listing to at least one user. ### Claim 7 (depends on 6) The method of claim 6, comprising communicating market data associated with the listing. ### Claim 8 (depends on 7) The method of claim 7, wherein the market data comprises at least one of a symbol for futures or option contracts, a last price, a change in price, a highest bid price, a lowest offer price, an volume, and a value of open interest. ### Claim 9 (depends on 1) The method of claim 1, wherein the first and second luxury items comprise at least one wine. ### Claim 10 (depends on 9) The method of claim 9, wherein the standard luxury item profile comprises at least one of type, region, winery, vintage, and price. ### Claim 11 (depends on 1) The method of claim 1, in which at least one value of the first values has a greater specificity than at least one value of the second values for the same characteristic of the set of characteristics. ### Claim 12 (depends on 11) The method of claim 11, in which the characteristic includes a type of wine, the at least one value of the first values includes a color of wine, and the at least one value of the second value includes a grape variety. ### Claim 13 (depends on 11) The method of claim 11, in which the characteristic includes a geographic region, the at least one value of the first values includes a country, and the at least one value of the second value includes a region of the country. ### Claim 14 (depends on 12) The method of claim 12, in which the trade includes a spread trade based on a spread between a price of the first luxury item and a price of the second luxury item. ### Claim 15 A system comprising a processor and memory that stores a program that when executed enables the processor to perform a method comprising: receiving a first order to trade at least one of a first futures and a first option contract for at least one first luxury item from a first user, wherein the at least one of the first futures and the first option contract specifies that the at least one first luxury item has a plurality of respective first values for each characteristic of a set of characteristics defined by a standard luxury item profile; receiving, by the computer system from a second remote device, a second order to trade at least one of a second futures and a second option contract for at least one second luxury item from a second user, wherein the at least one of the second futures and the second option contract specifies that the at least one second luxury item has a plurality of respective second values for each characteristic of a set of characteristics defined by the standard luxury item profile, in which the second values are different form the first values; communicating the first and second order to at least one other user; receiving a counter-side order to at least one of the first order and the second order from the at least one other user; and executing a trade in at least one of the first futures contract, the first option contract, the second futures contract, and the second option contract. ### Claim 16 (depends on 15) The system of claim 15, wherein the at least one first and second luxury items comprise only a single first diamond and a single second diamond, respectively. ### Claim 17 (depends on 16) The system of claim 16, wherein the standard luxury item profile comprises at least one of a color, cut, and clarity. ### Claim 18 (depends on 15) The system of claim 15, in which the at least one first and second luxury items each comprise at least one diamond, and wherein the standard luxury item profile comprises a range of values for at least one of a color, a clarity, a proportion of depth, an angle of the table, a characteristic of the girdle, a characteristic of the culet, and a characteristic of the polish. ### Claim 19 (depends on 15) The system of claim 15, in which the first and second values are based on respective certified grading report of each of the first luxury item and the second luxury item, the method comprising delivering at least one of the first luxury item and the second luxury item at at least one future date to satisfy the at least one of the first futures contract, first options contract, second futures contract, and second options contract, and delivering the respective certified grading report with the at least one of the first luxury item and the second luxury item. ### Claim 20 (depends on 15) The system of claim 15, the method comprising receiving a request for a listing of at least one of futures and option contracts and communicating the listing to at least one user. ### Claim 21 (depends on 20) The system of claim 20, the method comprising communicating market data associated with the listing. ### Claim 22 (depends on 21) The system of claim 21, wherein the market data comprises at least one of a symbol for futures or option contracts, a last price, a change in price, a highest bid price, a lowest offer price, an volume, and a value of open interest. ### Claim 23 (depends on 15) The system of claim 15, wherein the first and second luxury items comprise at least one wine. ### Claim 24 (depends on 23) The system of claim 23, wherein the standard luxury item profile comprises at least one of type, region, winery, vintage, and price. ### Claim 25 (depends on 15) The system of claim 15, in which at least one value of the first values has a greater specificity than at least one value of the second values for the same characteristic of the set of characteristics. ### Claim 26 (depends on 25) The system of claim 25, in which the characteristic includes a type of wine, the at least one value of the first values includes a color of wine, and the at least one value of the second value includes a grape variety. ### Claim 27 (depends on 25) The system of claim 25, in which the characteristic includes a geographic region, the at least one value of the first values includes a country, and the at least one value of the second value includes a region of the country. ### Claim 28 (depends on 15) The system of claim 15, in which the trade includes a spread trade based on a spread between a price of the first luxury item and a price of the second luxury item.