Patent Agreement Renews Fight. (Electronic Trading Jeopardy)

By Bisset, Susan | Futures (Cedar Falls, IA), May 2002 | Go to article overview

Patent Agreement Renews Fight. (Electronic Trading Jeopardy)


Bisset, Susan, Futures (Cedar Falls, IA)


To guarantee its use of the electronic trading system it's built around, the IntercontinentalExchange (ICE) is the first to sign a licensing agreement with eSpeed for use of its Wagner patent.

The Wagner patent, granted by the U.S. Patent Office to former CFTC Executive Director Susan Wagner in February 1990, stakes claim to computerized bid/offer matching systems used in almost every electronic trading system. The patent first belonged to the World Energy Exchange, for which Wagner was working at the time of filing for the patent, became property of Electronic Trading Systems Corp. (ETS) in the 1990s and finally was purchased by eSpeed in April 2001.

The patent has been controversial because of the widespread growth of electronic trading in the United States, from the Chicago Mercantile Exchange's (CME) Globex to the Chicago Board of Trade's (CBOT) Project A (now replaced with a/c/e) to the New York Mercantile Exchange's (Nymex) Access. eSpeed contends that U.S. futures exchanges involved in electronic trading are infringing on its patent. The U.S. futures exchanges, and most market participants, balk at that suggestion and argue that the patent is too general and would unfairly apply to electronic trading systems already in use at the time of patent filing.

The ICE is hedging itself, however, and licensing the patent from eSpeed for $2 million per year, plus an additional 10 per order with higher fees for orders more than $50,000 notional value, until the patent expires in February 2007. eSpeed bought the patent from ETS for $1.75 million plus 12% of fees it charges others for use of the patent. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Patent Agreement Renews Fight. (Electronic Trading Jeopardy)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.