BOX and ISE Resolve Patent Dispute

BOX Options Exchange and International Securities Exchange said both exchanges have entered an agreement to resolve a patent infringement case filed by BOX against ISE in May 2011.

Under the settlement agreement, ISE has taken a license to BOX’s U.S. Patent No. 7,941,364 entitled “Price Improvement Processor for Electronic Trading of Financial Instruments,” and BOX has taken a license to ISE’s U.S. Patent No. 7,246,093 entitled “Automated Exchange for Trading Derivative Securities.” All other terms of the settlement agreement are confidential, according to the joint statement.

The BOX Options Exchange is an all-electronic equity options market that is jointly owned by the TMX Group and seven broker dealers. The International Securities Exchange (ISE), a wholly owned subsidiary of Eurex, is the first all-electronic options exchange in the U.S., which offers options trading on over 2,000 underlying equity, ETF, index, and FX products.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio