`TD Ameritrade v. Trading Technologies
`CBM2014-00131
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`Page 1 of 9
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`TDA 1057
`CBM1025-00131
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`I, Christopher Thomas, declare as follows:
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`1.
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`I have been retained by the law firm of Finnegan, Henderson, Farabow,
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`Garrett & Dunner, LLP on behalf of Trading Technologies International, Inc. as an
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`independent expert consultant in the above—referenced proceeding. Although I am
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`being compensated at my usual hourly rate for the time I spend on this matter, no
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`part of my compensation depends on the outcome of this proceeding, and I have no
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`other interest in this proceeding.
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`2.
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`I understand this proceeding involves US. Patent No. 7,533,056
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`(“the ’056 patent”) (Ex. 1001). I understand that the ’056 patent is assigned to Trading
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`Technologies.
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`3.
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`I have significant experience in the relevant technologies, as shown in
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`my attached curriculum vitae (Exhibit A).
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`4.
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`I have been asked to provide expert testimony on certain topics relevant
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`in this case. In particular, I have been informed that my prior opinions set forth in
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`paragraphs 19—31 of Ex. 2201—the “Corrected Expert Report of Christopher
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`Thomas” dated and signed on November 25, 20131—were relied upon in the Patent
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`Owner’s Response in this proceeding.
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`1 Prepared in connection with Civil Action No. 05—C—4811 (N .D. Ill.)
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`2
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`5.
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`I adopt my prior testimony provided in paragraphs 19—31 of EX. 2201, as
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`my testimony in this proceeding.
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`6.
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`I declare under penalty of perjury under the laws of the United States of
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`America that all statements made herein and in EX. 2201 of my knowledge are true,
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`and that all statements made herein and in Ex. 2201 on information and belief are
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`believed to be true, and that these statements were made with the knowledge that
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`willful false statements and the like so made are punishable by fine or imprisonment,
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`or both, under Section 1001 of Title 18 of the United States Code.
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`7.
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`I also understand that I will be subject to cross—examination based on
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`my testimony set forth in EX. 2201.
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`Date: 0311410!9.
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`By: W
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`Christopher Thomas
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`APPENDIX A
`APPENDIX A
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`CHRISTOPHER H. THOMAS
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`1919 West Greenleaf Ave Chicago, IL 60626
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`Tel: (312) 316 9467 Email: cthomas@thomasconsultingservices.com
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`EXPERIENCE:
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`THOMAS CONSULTING SERVICES, Chicago IL (Feb 2007 to Present)
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`Sole Proprietor. Provide Expert Witness Services in Federal Patent Infringement and
`Validity cases in the field of Financial Trading Software. Provided Expert Witness
`report, consulting services and
`testimony at
`trial
`in Trading Technologies,
`International Inc. v. eSpeed, et al. Northern District of Illinois Case No. 04-CV-
`5312.
` Currently retained as an expert witness and consultant
`in Trading
`Technologies, International Inc. v. GL Consultants, Inc., et al. Northern District of
`Illinois Case No. 05-C-4120 and Trading Technologies, International Inc. v. CQG et
`al. Northern District of Illinois Case No. 05-C-4811.
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`MARIDUNUM CAPITAL LLC, Chicago IL (May 2011 to Present)
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`Founder and Partner. Maridunum Capital LLC is a Proprietary Trading Firm
`specializing in Automated Algorithmic trading strategies in the Regulated Futures
`markets. Designed and Developed all algorithms, strategies and software used by the
`company.
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`PEMBROKE TRADING LLC Chicago IL (October 2008 to May 2011)
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`Partner. Pembroke Trading LLC is a Proprietary Trading Firm specializing in the
`Regulated Futures markets. Designed the proprietary trading and backtesting
`platform, database and order management server applications used by the company.
`The name of the company was changed to FT Trading LLC in May 2011.
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`TD SECURITIES (TD OPTIONS LLC), Chicago, IL (March 2002 to October 2008)
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` Positions Held:
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`to October 2008 - Managing Director, ERF Trading Group.
`January 2007
`Responsible for a $50 million Long/Short Equity I Index Futures trading portfolio.
`Developed the trading model for the portfolio, worked with developers to implement
`the trading model, performed backtests of the trading model with historical data,
`obtained internal Bank approvals for this new business initiative, managed a small
`operational staff to run the trading book.
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`August 2003 to December 2006 - Managing Director. Responsible for business
`development
`for TD Options and Global Equity Derivatives at TD Securities.
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`Position included gaining internal approvals for new business initiatives, reviewing
`individual business unit efficiencies, acting as liaison between the business units and
`IT, representing IT for TD Securities Internal audits, responsibility for the TD Options
`Business Resumption Plan in Chicago.
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`October 2002 to August 2003 - Managing Director & Chief Technology Officer.
`Responsible for Technology Strategy and Key Project Management liaison with TD
`Securities Global Technology in Toronto. Scope of work not limited to TD Options
`and included other TD Securities business units in other parts of the world.
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`February 2002 to October 2002 - Managing Director & Chief Technology Officer.
`Responsible for leading an IT staff of approximately 80 people at TD Options in
`Chicago, New York, San Francisco and Philadelphia. This included day to day
`management responsibilities as well as strategic planning, budget planning, and
`the integration of the Stafford Trading and Letco technologies with those of TD
`Securities.
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` STAFFORD TRADING, Chicago, IL (December 1999 - February 2002)
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` Chief Technology Officer
`including software
`technology management,
`Responsible
`for all aspects of
`development, IT operations, network and system engineering, administration, and IT
`budgets and financing for Stafford Trading, at the time one of the world's largest
`proprietary
`trading and options market-making
`firms. Managed a staff of
`approximately 100 IT employees.
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` Accomplishments included:
`Conducted several months of technology presentations, due diligence work and
`contract negotiations in 2001 for the sale of the technology and exchange floor
`operations of Stafford Trading and Ragnarok Systems Inc. to TD Securities, a
`subsidiary of TD Bank Financial Group.
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`Co-founder and CTO of Ragnarok Systems, Inc. a company majority owned by John
`Stafford which developed and supported Financial Instrument Transaction Systems.
`Raganrok was featured on Microsoft’s web site as a case study for Windows 200 Data
`Center Edition and for SQL Server 2000. Ragnarok Systems, Inc. was sold to TD
`Securities in February 2002.
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`Designed a desktop trade execution application named "OptionMan" to replace
`existing Stafford desktop trade execution systems. OptionMan was designed for
`traders to manually execute equities, indexes, options and futures in electronic
`markets, and has since been renamed "TD One" by TD Securities and deployed
`globally.
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`Established formal IT Service Management processes for Incident Management,
`Problem Management, Change Management, and Release to Production based on
`ITIL (IT Infrastructure Library) best practices, and established ITIL training programs
`for all Stafford Trading IT employees.
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` Managed approximately 100 IT employees in the US and Europe and an IT budget in
`excess of $20 Million per year. Implemented budget and cost saving initiatives in IT
`staffing, communications, consulting and market data subscriptions in 2001 that
`resulted in substantial savings to the business.
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` Completed the construction of an additional 2300 sq ft state of the art data center.
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`Established a Corporate Intranet to replace over a dozen client software applications
`that performed trader P&L, difference sheets, edge reports, historical volatilities and
`correlations, HR and several other functions with a fully web based solution.
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` Established a Management Information Systems (MIS) group to perform IT project and
`process management and to administer the corporate Intranet.
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`Replaced the existing IT management team with higher quality staff in the networking,
`IT Operations, hardware and systems administration groups. This resulted in a much
`higher quality of work and greater reliability of the IT Infrastructure to the business.
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`LFG, LLC, Chicago, IL (January 1998 - November 1999)
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`Chief Technologi st - FuturesOnline Division
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`first US web browser based
`the
`implemented
`Designed, developed and
`commodity order entry and risk management trading platform "Futuresonline" that
`allowed
`retail and
`institutional clients of LFG, a Chicago based Futures
`Commission Merchant, to execute orders, view quotes and account balances for
`US commodity futures on the Internet.
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`Accomplishments included:
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`Conducted extensive market research on various non-browser based online trading
`systems to differentiate the application functionality. This process allowed the firm to
`maintain its profit margins in an environment of lower commissions industry-wide.
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`Created a process to private label the FuturesOnline trading platform for Introducing
`Brokers of LFG LLC and two other Futures Commission Merchants.
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`Integration of the Futuresonline web application with the back office IBM AS400
`based Clearing System and real time market data feeds.
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`Oversaw the integration efforts for all Introducing Broker and Futures Commission
`initiatives from the requirements gathering stage to
`Merchants Private Label
`production rollout.
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`FuturesOnline was featured on Microsoft's web site as a case study for the use of
`Microsoft DNA technology.
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`EMERALD MARKET SYSTEMS, INC. Chicago, IL ( July 1997 - December 1997)
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`Chief Technologist
`Designed and implemented a web browser based streaming market quotes product
`for The Chicago Mercantile Exchange for distribution of real time quotes on selected
`markets to the general public over the Internet.
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`COMMODITY TRADING ADVI SOR AND SOFTWARE DEVELOPER , Chicago, IL
`(May 1993 to June 1997)
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`Conducted further research and refinement on a proprietary automated trading
`the National Futures
` Registered Commodity Trading Advisor with
`model.
`Association. Actively traded accounts in the currency futures market specifically
`from the signals generated from the automated trading models. Performed
`development services for selected clients on a consulting basis. Was featured and
`interviewed in the Chicago Mercantile Exchange Educational Video entitled "The
`Currency Opportunity" in February 1995.
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`FX ASSET MANAGEMENT, INC. Chicago, IL (April 1991 to April 1993)
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`Vice President
`Responsible for starting the corporation in Chicago for the parent company in
`England. Performed all NFA and CFTC registration requirements, and acquired
`suitable computer systems. The corporation was set up to market the services of a
`Foreign Exchange trading advisory firm in England. At a later date traded for
`customer accounts, as the relationship with the UK Advisory firm was terminated. In
`this capacity, initiated relationships with banks, Commodity Pool Operators, Fund
`Managers and Brokerage Houses as well as being responsible for overall customer
`trading strategies.
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`INDEPENDENT RESEARCH Bristol, England (May 1990 to March 1991)
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`Conducted full time, self-funded research on Interbank Foreign Exchange Trading
`and computer based trading system development.
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`NATIONAL WESTMI NSTER BANK Bristol, England (October 1989 to May 1990)
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`Registrars Data Management Department - Worked on a contract basis on the
`administration of the privatization of the Water Utility Companies by the UK
`Government, and on administration of UK public corporations employee stock
`incentive plans. All work was undertaken on an IBM mainframe computer and an
`IBM AS400 minicomputer.
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`NATIONAL FINANCIAL MANAGEMENT Bristol, England (July 1987 to
`September 1989)
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`Account Executive
`tax planning and
`insurance, pension,
`Advised
`individual clients on various
`investment plans. Built up a client base of over 200 clients in a two-year period.
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`UNIVERSI TY OF THE WEST OF ENGLAND Bristol, England (1983 - 1987)
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`Bachelor of Science in Applied Biological Sciences - June 1987 Concentrations in
`Molecular Biology and Plant Production Biology.
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`CONTROL TRAI NING LIMITED Bristol, England (1990)
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`Structured Systems Analysis and Design Methodology (SSADM) and
`COBOL programming.
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`EDUCATION:
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`INTERESTS:
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`Competitive Sailing, rugby, biking, music, fitness.
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