DECLARATION OF DAVID B. MARTIN, JR.
`
`I. David B. Martin, In, declare that:
`
`I am personally familiar with the facts set forth herein, and, if called as a witness,
`l.
`I could and would testify thereto of my own personal knowledge.
`
`I received a B.A. from Cornell University in 1990 and an MBA from New York
`2.
`University in 1997. While in business school I worked for Bankers Trust in New York as
`a summer associate. After business school. I moved to Chicago and clerked on the floor
`of the Chicago Board of Options Exchange (“CBOE”) for Letoo.
`
`In 1998, [attempted to trade off the floor via telephone but did not have much
`3.
`success In the spring of 1999, I started trading electronically on the Chicago Mercantile
`Exchange (“CME”) with a Globex terminal. I used the Globex terminal to trade
`electronically until I decided to switch to Trading Technologies’ (”I'I‘”) in around May
`of 2001.
`I continue to professionally trade various products electronically today,
`including products being traded on the CME and the Chicago Board of Trade (“CBOT”).
`I own seats on both the CMB and the CBOT.
`
`4.
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`I currently reside in Chicago, Illinois.
`
`Thefront—end on the Globex terminal displayed the best bid price,:best bid:- .7
`5..
`Quantity and best ask price, best ask quantity side by-side in designated cells. Ifa trader
`tried to hit the bid, there was a very real chance that an order could go in at a different
`price if at that moment the price in the best bid cell changed. Also, the Globex front end
`only displayed prices for which quantities were available in the market.
`
`In 1999 and 2000. I was consistently very successful in electronic trading. Then.
`6.
`in the first half of 2001 I became very unsuccessful.
`I then heard of a new trading screen
`called MD Trader being offered by TT. I called TT and made an appointment to see a
`demonstration. My first impression upon seeing MD Trader was that it was completely
`different than any trading front-end I had ever seen before and it appeared to be a tool
`that was better than the existing systems.
`
`MD Trader was different from the preexisting systems because it displayed the
`7.
`market depth (quantities) relative to a column of prices where the displayed price levels
`normally remained fixed. This allowed for a trader to visually see the market depth move
`up and down as the market moved. It had a one-click recentering feature that allowed at
`trader to quickly bring the market back to near the center of the trading window. Also.
`MD Trader allowed a trader to very easily and quickly enter orders againstthe fixed
`column of prices suchthat there was no risk of sending orders in at unintended prices.
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`Page 1 0f 2
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`TRADING TECH EXHIBIT 2033
`TD Ameritrade v. Trading Technologies
`CBM2014-00133
`
`

`

`After seeing the demonstration, I immediately decided to license 'IT’s X_Trader
`8.
`software so I could begin trading with MD Trader. This was in approximately May of
`2001. My first days of trading using MD Trader required some adjustments to get used
`to the very different interface. However, shortly thereafter I had approximately 90
`consecutive profitable trading days using MD Trader and have been successful ever
`since.
`I believe that my trading success since then has been directly attributable to MD
`Trader and the features described above. After using MD Trader. I realized that it was far
`superior to the preexisting systems of which I was aware. Shortly after Istarted using
`MD Trader, I got rid of my Globex terminal. In fact, in order to use TT’s software, [had
`to switch clearing firms at the time.
`In my opinion, MD Trader was a stroke of genius
`and Ihad not seen anything like it before. MD Trader improved my trading substantially.
`I suspect that the reason for my unsuccessful stretch of trading in 2001 was attributed to
`the fact that other traders were entering orders faster than me by using the recently
`introduced MD Trader.
`
`Electronically traded markets are extremely competitive. Even a small edge in
`9.
`these markets can make the difference between success and failure. The reason why MD
`Trader provides a significant edge to traders is because it is faster and more accurate than
`the preexisting systems. By allowing a trader to visualize movements in the market, it
`allows traders to recognize trading opportunities quicker. This is especially true if a
`trader is spreading one market against another and has MD Trader windows up for both
`of these markets. It is more accurate because it eliminated the risk of sending in orders at
`unintended prices.
`
`10. When I was trading using Globex, I used to always think about ways to make the
`trading interface better. I never thought anything like MD Trader, e.g., displaying the
`market information against a fixed column of prices and allowing for one click order
`entry on cells aligned with the fixed prices.
`
`I declare under penalty of perjury that the foregoing is true and correct. Executed on
`August
`l 3 ,2004.
`
`MQ. m
`
`David B. Martin, Jr.
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