CBOE files $525 million patent infringement suit against ISE

The Chicago-based stock options exchange claims that its rival’s automated trading system violates three of its patents

The futures industry is at it again. On the heels of CME Group’s lawsuit against the U.S. Commodity Futures Trading Commission comes a multimillion-dollar patent infringement lawsuit courtesy of CBOE Holdings Inc., the parent company of the Chicago Board Options Exchange (CBOE).

The company is suing its rival, electronic stock options market International Securities Exchange (ISE) for allegedly infringing three CBOE patents with its automated trading system. The patents at issue cover quote-risk monitoring and quote-adjustment technology designed to reduce trading risk by automatically adjusting buy and sell prices on options contracts. CBOE is seeking at least $525 million in damages for lost profits and royalties.

Alanna Byrne

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