Didn’t arrive as a surprise. Euronext Liffe sues The Order Machine (TOM) for trademark infringements with respect to the options introduced on the AEX index. Euronext is the owner of the AEX index, and doesn’t allow other exchanges to introduce derivatives with AEX as underlying value. As of January 2013 the index options on AEX are open for trading on TOM. They have always known a lawsuit would follow. Press release (pdf).
There are a few possibilities. TOM could use some liquid AEX ETF as underlying instrument for their options. Another solution could be some reasonable fee to be paid to the old exchange. Apparently earlier negotiations on the matter between the exchanges didn’t work out, TOM expects better terms to be discussed in court. TOM knows what they’re doing. By the way, yesterday Nasdaq OMX finalized the purchase of the 25% stake in TOM (pdf).
Starting lawsuits are old reflexes from the former monopolist. Speaking of lawsuits, it’s has only been a month since I received some threats from law firms. IMC must have spent more on legal advice than this website’s total advertising revenue is per year (next time, I can guarantee the same result for half of the lawyer fee). As a result some posts and comments have been deleted, and open commenting is gone. A quick registration is required now – although you can remain as anonymous as you want.
Nieuwe Steen Investments Options (NSI)
Options on this troubled real estate company started this Tuesday. To everyone’s surprise, even three trading firms signed for primary market maker in this class. All Options, 323 Trading and Caerus will be the liquidity providers.