CME recoups $7.5 from Euronext to settle Wagner patent dispute
06 January 2003 | 4190 views | 0
Euronext has agreed to pay the Chicago Mercantile Exchange $7.5 million in resolution of a $15 million settlement struck by the CME with eSpeed over the contentious Wagner patent.
The Wagner Patent deals with automated futures trading systems in which transactions are completed by a computerised matching of bids and offers of futures contracts on an electronic platform. The CME and neighbouring Chicago exchange Cbot paid a total of $30 million to Cantor Fitzgerald subsidiary eSpeed in August to settle the patent claims.
Terry Duffy, CME chairman, says: "Our settlement with Euronext brings final closure to all of the issues relating to the Wagner patent litigation and allows us to reduce substantially the costs of our settlement in that matter."
CME says it will recognise the $7.5 million payment in Q4 2002 and will receive half the payment immediately with the remainder to be paid by year-end 2003.
The exchange also announced that it has expanded its license rights to the electronic trading software owned by Euronext-Paris and incorporated into its Globex electronic trading platform, allowing it to offer trade matching services on Globex to third parties.