TradeStream Analytics targets Equinix in Antitrust litigation

Maria Nikolova

Equinix is accused of violations of the Sherman act (Monopolies and Combinations in Restraint of Trade), as TradeStream says Equinix misused its alleged monopoly in low latency access and co-location to major trading destinations.


Equinix, a leader in provision of low latency access and co-location to major trading destinations, is now involved in an antitrust litigation in the New Jersey District Court.

The case, brought by financial software solutions and trading platforms provider TradeStream Analytics, Ltd., was filed on June 28, 2017. The Complaint, seen by FinanceFeeds, states three counts: Violation of the Sherman Act (Monopolies and Combinations in Restraint of Trade), Intentional Interference with Prospective Economic Advantage, and Conversion.

  • The Alleged Monopoly

The plaintiff claims that unless one uses Equinix’s services, there is no other low latency access available to the NASDAQ Exchange, Boston Stock Exchange, Philadelphia Stock Exchange , International Securities Exchange Holdings, Inc., BATS Trading, EDGA Exchange and EDGX Exchange, the Chicago Board Options Exchange or the Miami Stock Exchange for stocks and options.

Equinix access to these markets is estimated to account for about 85% of the daily options volume and about 66% of the exchange-listed stock volume.

Except for the New York Stock Exchange equities and options, the complaint states, Equinix actually controls 100% low-latency access to all stock and options markets. Also, Equinix is alleged to control 100% of low latency access to non-exchange trading destinations.

The plaintiff claims that Equinix maintains a monopoly over low latency access and co-location to major trading destinations.

  • TradeStream

Trading platforms connect to TradeStream’s Back Office, an algorithmic trading and smart routing management application that routes via low latency data connections to numerous trading destinations in the financial stock and option markets. In TradeStream’s business, having the lowest latency possible for trades is vital, as a trading platform which is too slow to route to trading destinations, will simply result in customers seeking another platform to make their trades.

  • Locked out

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. TradeStream installed and started operating its own servers within the cage. In the fall of 2016, TradeStream sought to upgrade its equipment by installing new servers and cables. However, 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.

  • The damage

As a result of not being able to install the cables, TradeStream claims to have suffered at least a $25,000 monthly loss of revenue since mid-December. In addition, contracts that would increase revenues an extra $300,000 per month had to be put on hold in early February.

Tradestream estimates that it has lost over $1.2 million in revenue since February.

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 is unacceptable to financial firms that partner with TradeStream or would consider doing business with TradeStream. Monetary damages , the plaintiff says, are insufficient to repair TradeStream’s relationships with its customers, as the current inability to provide a high bandwidth, low latency connection is harming TradeStream’s reputation.

The plaintiff warns that if it is forced to use a provider other than Equinix, TradeStream’s ability to do business will be destroyed.

TradeStream seeks 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 Tradstream. The plaintiff also seeks a judgment enjoining Equinix from violating the Sherman Act by denying TradeStream access to essential facilities.

  • And now?

On Thursday, June 29, 2017, summonses were issued to Equinix, Inc. and Equinix, LLC. Katharine S Hayden is assigned as a judge to the case captioned TradeStream Analytics, Ltd. v. Equinix, Inc. et al (2:17-cv-04765).

Read this next

Institutional FX

Euronext reports double-digit growth in FX volume

Pan-European exchange, Euronext has reported a 10 percent rebound in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.6 billion in January 2022, which is up from December’s $18 billion.

Digital Assets

Voyager subpoenas FTX’s inner circle over Alameda loan

Bankrupt crypto broker Voyager Digital, represented by law firm Kirkland & Ellis, is seeking court approval to subpoena Sam Bankman-Fried’s inner circle, as well as Alameda Research’s former executives.

Retail FX

AvaTrade seals sponsorship deal with F1’s Aston Martin team

Dublin-based forex broker AvaTrade today announced that it has concluded a sponsorship deal with Formula One’s Aston Martin Cognizant team that entails sponsorship rights and other marketing benefits.

Executive Moves

M4Markets onboards Invaxa CEO Marios Antoniou as COO

Seychelles-regulated brokerage firm M4Markets has appointed Marios Antoniou, who has a colorful career within the foreign exchange industry, in the capacity of its Chief Operations Officer.

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”