Nasdaq Sues ‘Flash Boys’ Exchange IEX for Patent Infringement
- Claims IEX ripped off key parts of Nasdaq exchange technology
- IEX calls Nasdaq claims an attempt to obstruct competition
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Nasdaq Inc. sued IEX Group Inc. for patent infringement, claiming the smaller firm stole aspects of its trading technology.
In a lawsuit filed Thursday, Nasdaq said seven of its patents were violated by IEX, which transformed itself from a private trading venue to a full-fledged stock exchange in 2016. The technology that IEX allegedly ripped off powers Nasdaq’s trading systems, including its end-of-day closing auction, how orders are matched on its exchange and how its data feeds work. The patents represent “millions of dollars in investment over decades,” Nasdaq said.