Mixed outcome for index options lawsuit

Amsterdam-based alternative venue The Order Machine can continue offering options based on the NYSE Euronext-owned AEX Index, but must change the ticker symbols, use of which a court found infringed trademark rights.

By None

Amsterdam-based alternative venue The Order Machine (TOM) can continue offering options based on the NYSE Euronext-owned AEX Index, but must change the ticker symbols, use of which a court found infringed trademark rights.

TOM CEO Willem Meijer claimed the result of the lawsuit would lead to greater competition in European derivatives trading. TOM has four weeks to remove reference to the AEX Index from the ticker symbol, beyond which it will be fined €25,000 per day up to €1 million.

“As offering options based on the AEX index is now also approved by the court as well, an important monopoly of the incumbent exchanges is broken,” said Willem Meijer, CEO of TOM.

TOM is owned by Nasdaq OMX, online broker BinckBank NV and ABN AMRO Clearing Bank. It has attracted greater market share of index options since offering options based on the AEX-Index in January.

In a statement, NYSE Euronext said it was pleased the infringement of trademark rights had been recognised and upheld by the court.

“With this verdict it is now firmly stated that the AEX-index and its related symbols are valid trademarks from NYSE Euronext that cannot simply be copied by third parties.”

The firm said the judge had not ruled on a number of related claims but referred them to continued proceedings.

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