In a notice to the New Jersey District Court, filed on August 11, 2017, TradeStream Analytics announces that it voluntarily dismisses its action against Equinix.
An antitrust case launched by financial software solutions and trading platforms provider TradeStream Analytics, Ltd. against Equinix, a leading provider of low latency access and co-location to major trading destinations, was resolved on Friday.
In a notice to the New Jersey District Court, seen by FinanceFeeds, TradeStream dismisses the case against Equinix with prejudice. The brief document, dated August 11, 2017, states:
“Pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(1), Plaintiff, TradeStream Analytics, Ltd., hereby dismisses this action and the Verified Complaint filed herein with prejudice and without costs or fees to any party. This Court shall retain jurisdiction with respect to any disputes regarding the settlement agreement between the parties.”
(The Federal Rule in question concerns voluntary dismissal of actions by the plaintiff without a court order – Ed.)
The Complaint, which is now dismissed, charged Equinix on three counts: Violation of the Sherman Act (Monopolies and Combinations in Restraint of Trade), Intentional Interference with Prospective Economic Advantage, and Conversion.
TradeStream claimed that Equinix maintains a monopoly over low latency access and co-location to major trading destinations. Except for the New York Stock Exchange equities and options, the Complaint stated, Equinix controls 100% low-latency access to all stock and options markets. Also, Equinix was alleged to control 100% of low latency access to non-exchange trading destinations.
A key part of the Complaint concerned a “locked out” issue. In 2014, Equinix and TradeStream entered into an agreement for services at NY4 and TradeStream rented server space within a “cage,” wherein TradeStream would have an exclusive physical space for its servers. In the fall of 2016, TradeStream attempted to upgrade its equipment by installing new servers and cables but Equinix refused the delivery of the cables several times.
By January 9, 2017, Equinix had locked TradeStream out of its cage. Equinix has also indicated that it intends to lock TradeStream out of the NY4 facilities in the immediate future.
TradeStream claimed that due its inability to install the cables, it has suffered substantial financial losses. In addition, the Plaintiff claimed that not being able to use Equinix’ s NY4 facilities would result in a delay of a minimum of 5 to 10 milliseconds in routing and executing trades for TradeStream. This delay would be seen as unacceptable by financial firms that partner with TradeStream or would consider doing business with TradeStream.
TradeStream was seeking awarding compensatory and other damages, as well as enjoining Equinix from interfering with the delivery of goods to TradeStream and enjoining Equinix from interfering with TradeStream’s personnel’s access to the area licensed to TradeStream.
Details of any settlement between the parties and/or the reasons for resolving the matter are not known at this point.