Miami exchange vows to fight Nasdaq complaint

Miami International Holdings, Inc. (MIH), parent holding company of the MIAX Options Exchange and MIAX PEARL, LLC responded to the filing of a complaint by Nasdaq that it said “generally alleges various claims of patent infringement and trade secret appropriation by MIH and its subsidiaries.”

MIH CEO Thomas Gallagher said: “It has been brought to our attention that NASDAQ has filed a frivolous complaint against MIH …

“While we have not been formally served, we are fully committed to vigorously defending ourselves against these baseless allegations …

“We believe that NASDAQ’s complaint is nothing more than a feeble attempt to stifle innovation by a smaller company that has had tremendous success over the past five years.”

According to reports, Nasdaq has sued the rival exchange operator, accusing MIH of infringing patents and stealing trade secrets with help from former Nasdaq employees.

MIH said the Nasdaq complaint was filed with the District Court of New Jersey against MIH and its wholly-owned subsidiaries Miami International Securities Exchange, LLC, MIAX PEARL and MIAX Technologies, LLC.

Gallagher added: “Many of our employees have been with us for between six to 10 years and we believe that the timing of NASDAQ’s filing is very suspicious.

“It is worth noting that NASDAQ, along with other competitors within our industry, unsuccessfully attempted to recruit the heart of our technology team over the past several years offering millions of dollars in cash and equity-based compensation to no avail …

“Only after we continued our track record of unparalleled performance and strong growth did NASDAQ file a baseless complaint.

“If the bullies at NASDAQ’s New York City headquarters had a legitimate grievance against our company or our employees, why did NASDAQ’s top management try to aggressively recruit these same employees over the past several years?

“We have treasured honest and innovative employees in all aspects of our company, and I am outraged by this frivolous action and we will defend our company and our employees against this unethical and anticompetitive conduct.

“These bullies are losing to us in technological innovation and will lose to us in court as well.

“We fully intend to explore all legal avenues in response to NASDAQ’s unfounded claims.”