TT sues another group over software
By Jeremy Grant in London
Published: April 15 2005 03:00 | Last updated: April 15 2005 03:00
Man Group, a UK financial services group, yesterday became the latest target of legal action by Trading Technologies as the Chicago-based derivatives software company continued its campaign to force futures exchanges to give it a share in their revenues.
TT claims that about half of global electronic trading in US Treasury bond and note futures is channelled through its MD Trader software, patented last year.
Harris Brumfield, chief executive, has taken out ads in the financial press arguing that the role TT had played in developing the futures industry meant his company was entitled to a share in the four big futures exchanges' trading revenues.
He is seeking a fee of 2.5 cents per trade on each exchange - the Chicago Board of Trade, Chicago Mercantile Exchange, Eurex and Euronext.Liffe.
Mr Brumfield, a former US Treasury bond pit trader at the CBOT, has backed up TT's campaign by threatening to enforce his software patent in the courts.
The exchanges say they are not infringing the patent. They appear to be playing for time as Mr Brumfield's campaign becomes embroiled in the courts.
The advance of electronic trading has led to the proliferation of software developed by brokers and specialist software vendors. TT believes this has laid many open to the charge that they are infringing the MD Trader patent. TT's lawsuit against Man alleges that Man is using MD Trader software without licensing it, thus infringing the patent.
Man said: "Man Financial is confident that none of the software or trading systems we are providing to our clients, all of which is provided by third party vendors, infringe any TT patents."
The action against Man, one of the largest futures brokerages, makes this the third time that TT has backed up its threat with court action. The last came in February, when TT sued Refco. That followed similar action against eSpeed, the Cantor Fitzgerald arm. |
