8-KRegulation FD

Cboe Global Markets, Inc. 8-K Report, Regulation FD Disclosure (Oct 8, 2010)

Filed October 8, 2010For Securities:CBOE

Summary

This 8-K filing from CBOE Holdings, Inc. (CBOE) on October 8, 2010, reports a significant legal development. C2 Options Exchange, Inc. ('C2'), a wholly-owned subsidiary of CBOE, has filed a lawsuit against International Securities Exchange, Inc. ('ISE') in the U.S. District Court for the Northern District of Illinois. The lawsuit seeks a declaratory judgment concerning U.S. Patent No. 6,618,707, which is assigned to ISE and pertains to an automated exchange for trading derivative securities. C2 is proactively asserting its rights and is seeking a ruling that ISE's patent is not infringed, not valid, and not enforceable against C2. This action is a response to ISE's prior assertion of the same patent against CBOE's Hybrid Trading System in a separate, ongoing litigation. C2 believes that rulings in the prior case support its position that its exchange platform does not infringe on ISE's patent.

Key Highlights

  • 1C2 Options Exchange (a CBOE subsidiary) filed a lawsuit against International Securities Exchange (ISE).
  • 2The lawsuit concerns U.S. Patent No. 6,618,707, related to automated derivative trading systems.
  • 3C2 is seeking a declaratory judgment that the ISE patent is not infringed, invalid, and unenforceable against C2.
  • 4This legal action is proactive in asserting C2's rights regarding its trading platform.
  • 5The patent in question is the same one ISE previously asserted against CBOE's Hybrid Trading System.
  • 6C2 believes prior court rulings in the CBOE/ISE litigation support its non-infringement claim.

Frequently Asked Questions

The main purpose is to disclose that C2 Options Exchange, a subsidiary of CBOE Holdings, Inc., has filed a lawsuit against International Securities Exchange, Inc. (ISE) regarding a patent related to automated trading systems.

C2 is filing a lawsuit to proactively protect its rights and to seek a court declaration that ISE's U.S. Patent No. 6,618,707 is not infringed, is invalid, or is unenforceable against C2's trading platform.

No, the patent at issue is the same one that ISE previously asserted against CBOE's Hybrid Trading System in a separate, ongoing legal case. C2 is taking action in light of that existing dispute.

No, C2 strongly believes it does not infringe on ISE's patent, citing various rulings in the prior litigation between CBOE and ISE as support for its position.