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Screenshot of a breaking news alert e-mail from Q2 2017
The battle for supremacy among the giant global networks of exchanges and clearing houses continues as Intercontinental Exchange (NYSE:ICE), has today announced today that it has acquired intellectual property rights that relate to computerized trading strategies. The acquired intellectual property rights include U.S. Patent Numbers 7,177,833; 7,251,629; 8,498,923; 8,478,687; 8,660,940; 8,732,048; 8,725,621 and various related pending U.S. Patent Applications. Terms of the transaction were not disclosed.
Merger and acquisition activity has dominated the headlines among many firms recently from exchanges to retail FX brokerages, however this move by ICE is extremely interesting as it pertains to strategies which are owned by their originators, rather than the otherwise commonplace acquisition of other firms, and therefore indicates that ICE is investing in automated trading strategies which are the subject of much regulatory disdain across certain jurisdictions. By purchasing the rights to these strategies, ICE is further demonstrating that North America continues to remain home to the most advanced algorithmic trading operations.
“We believe these intellectual property rights cover important aspects of transacting in today’s markets,” said Intercontinental Exchange Chief Strategy Officer David Goone. “ICE acquired these patents with the goal of preventing third parties from using these intellectual property rights against our customers. ICE intends to make these patents available broadly for license to customers that provide beneficial liquidity in ICE’s and NYSE’s markets.”
The acquired intellectual property rights include patent claims covering the use of an automated trading system to make price and trading decisions based on market price information. The intellectual property rights cover multiple asset classes traded electronically on exchanges, including futures, options and cash equities.