Nasdaq has filed a patent infringement lawsuit against rival IEX, extending a long-running battle with the upstart exchange.
The seven patents asserted in the lawsuit - filed in the United States District Court for the District of New Jersey - represent "millions of dollars in investment over decades", says Nasdaq.
The exchange operator accuses IEX of ripping off proprietary technology related to closing auction processes, multi-parallel order processing, matching engine performance, and data feed optimisations.
“In addition to using our technology to power our markets, Nasdaq is a leading technology provider to other market operators across the world,” says Edward Knight, Nasdaq general counsel and chief regulatory officer. “These seven patents cover important innovations that we, and our customers, rely on for reliability, scalability, and transparency.”
In evidence, he cites IEX employment of former Nasdaq staffers familiar with the Exchange's technology systems who have been involved in the development of IEX’s trading platform.
IEX says the suit is just the latest salvo by Nasdaq in a concerted attempt to block a rival competitor. Founded in 2012, IEX fought a bitter battle with Nasdaq for the achievement of regulatory recognition. Having finally got the green light from the SEC in 2016, the startup has since accrued a three percent market share in US trading.