Trading Technologies has filed suit against hedge fund manager Man Group, alleging infringement of patents on a program used by traders to buy and sell futures contracts.
The suit is the fifth to be filed by Chicago-based TT, and follows a similar claim lodged against futures commission merchant Refco last month. TT also has a claim outstanding against bond trading network eSpeed. Chicago-based brokers Kingstree Trading LLC and Goldenberg Hehmeyer both agreed an out-of-court settlement with TT within days of being sued by the firm late last year.
The suits have unsettled the electronic futures industry and caused trouble for independent software vendors competing in the same space as TT. UK-based ISV EasyScreen partly blamed its recent poor run of results on the uncertainty caused by TT's litigation. The company, which has agreed to a £14.8 million takeover bid from futures broker Refco, said last month that a major deal with Man Financial had been put on hold indefinitely until outstanding patent issues have been resolved.
In a statement, Man Group CEO Stanley Fink 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."