Archipelago welcomes ruling on Nasdaq lawsuit

Archipelago welcomes ruling on Nasdaq lawsuit

A federal judge in New York has dismissed part of a lawsuit filed against Archipelago by Nasdaq over the trading of the exchange-traded fund that tracks the Nasdaq 100 index, known as QQQ.

In the lawsuit - which was filed in October 2003 against Archipelago and its regulator Pacific Exchange - Nasdaq asked for a ban on Archipelago from trading the QQQ on the ArcEx exchange "without a licence".

Nasdaq also sought an injunction against the use of its "Nasdaq" and "QQQ" trademarks in Archipelago's advertising campaigns, claiming that they violated its trademark rights under the Federal Lanham Act.

The decision, from Judge Denise Cote of the Southern District of New York, dismissed the part of the lawsuit that sought to stop Archipelago from trading the QQQ, but let the complaints over the ECN's advertising of its QQQ business proceed.

In a statement, Archipelago says: "We are pleased with the court's ruling vindicating our position that trading QQQ on ArcaEx is proper and legal, and, further, believe that the ruling is important and beneficial for America's capital markets and investors."

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