On Friday, S&P Dow Jones Indices LLC (SPDJI) and Chicago Board Options Exchange, Incorporated (CBOE?) announced that the International Securities Exchange (ISE) has not appealed a federal court decision that rejected ISE’s attempt in the New York courts to challenge SPDJI’s rights to control the use of the S&P 500? and the Dow Jones Industrial Average??as the basis of index options. CBOE holds an exclusive license to list options on the S&P 500??index, the Dow Jones Industrial Average, and select other indices calculated and published by SPDJI.
With ISE’s decision not to appeal, it now concludes seven-plus years of challenges to SPDJI’s and CBOE’s rights. This also comes after the?December 18, 2013 ruling by a New York federal judge who dismissed ISE’s lawsuit after finding that previous rulings by the Illinois courts were final and binding on ISE.
ISE’s final deadline to appeal the federal court decision has passed.
Alex Matturri, CEO of S&P Dow Jones Indices, said in a press release,?”Intellectual property rights are the cornerstone of creativity and innovation, not just in the financial markets, but within all industries and businesses throughout the world. As we had made blatantly clear more than seven years ago when this litigation first began, S&P Dow Jones Indices will vigorously and fiercely protect its well-established intellectual property rights from all those that seek to infringe upon them – ensuring that we remain the preeminent index provider in the world.”
CBOE CEO Edward T. Tilly added,?”CBOE is gratified that after seven years, ISE has given up its efforts to pursue this meritless litigation. This is a victory for innovation at CBOE, which continues to shape and lead the index options marketplace by pioneering new product frontiers.”