Dutch court issues verdict in exchange competition case
A district court in the Netherlands has issued a verdict in a case involving competition between two European exchanges competing in the equity derivatives markets. The court found that The Order Machine, a six-year-old exchange that is partly owned by Nasdaq, breached the intellectual property rights of Euronext in its efforts to offer index options that mimic the AEX index options traded on Euronext. The court also ordered TOM to remove “misleading statements” about offering the best prices.
Euronext said the verdict was supportive of “a fair market and level playing field for all investors.” Euronext also noted that the court awarded it compensation for its legal costs and damages, and ordered TOM to stop “systematically copying” Euronext’s products.
TOM issued a statement emphasizing that the court verdict will not prevent TOM from continuing to compete with Euronext in the options market and stressing that the competition has resulted in a significant reduction in trading fees.
