Late last week, Nasdaq Inc filed a patent infringement lawsuit against rival IEX Group. The patent lawsuit accuses the newest U.S. exchange operator of copying several core aspects of its electronic trading platform.
The lawsuit is hoping to prevent IEX from continuing to use the technology without a license. The exchange is also seeking compensation for what it said was IEX’s unauthorized use of its intellectual property – a figure for compensation has not yet been released. IEX was founded in 2012 and launched its first trading platform, an alternative trading system, in 2013, touting its market as a fairer place for investors to trade than the existing exchanges. IEX Group operates the Investors Exchange and was featured in author Michael Lewis’s book “Flash Boys: A Wall Street Revolt,”
Nasdaq, founded in 1971, has grown to be one of the world’s largest exchange operators and suppliers of exchange technology. It accused IEX of violating seven of its patents related to four exchange processes, which it said represented millions of dollars in investment.