DECLARATION OF DAVID FELTES
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`I, David Feltes, declare that:
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`I am personally familiar with the facts set forth herein, and, if called as a witness,
`1.
`I could. and would testify thel"eto of my own personal knowledge.
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`I joined Marquette Partners, a proprietary trading fum, around 10 years ago as
`2.
`head of IT. Four years ago, I became Managing Director. In this role, 1 am responsible
`for managing the London office of Marquette and help review which Independent
`Software Vendors (lSVs) Marquette uses for its trading software. Marquette was an early
`pioneer in electronic futures trading and now has over SS traders, IT professionals and
`support staff. Marquette is a leading liquidity provider to the world's largest derivatives
`exchanges and has successfully trained individuals who trade on electronic exchanges
`around the wodd, including the Chicago Mercantile Exchange, CBOT, Eurex. Euronext(cid:173)
`Paris, Euronext-LIFFE and Borsa ltalia. l currently reside in London and spend around
`three months a year in Chicago, Dlinois.
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`In November of 2000, I saw a demonstration of Trading Technologies' ('TI'')
`3.
`new product called MD Trader. The design of MD Trader was unlike anything J had
`seen previously. At the time I was aware of a variety of different trading platfonns,
`including IT's previous system, systems offered by GLand Ore and the Globex and
`Project A front-ends. These systems all presented the best bid and best ask prices side by
`side in designated locations such that a trader was required to read and interpret numbers
`to ft.gure out movements in the market. In these previous systems, when a trader went to
`click to send an order the traderran the risk of the price on which he was clicking
`changing at lhat moment and the order being sent in at a different price than intended.
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`4.
`MD Trader provided a much better visualization of the market such that traders
`could easily see the flow of the market as compared with the trading systems avaiJablc at
`the time. This was accomplished by msplaying the market information relative to prices
`which remained static so that the market data could move up and down. MD Trader also
`provided for fast one-click order entry that was accurate in that the trader could be
`confident in the order going in at the intended price. This was done by allowing the
`trader to click to send orders in cells aligned with the static prices. l had never seen these
`features in a trading system before seeing MD Trader.
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`5.
`Due to the differences discussed above, MD Trader proved to be a superior
`trading' tool for most traders and provided a clear competitive advantage to traders. MD
`Treder created a paradigm change in the way that active traders traded. MD Trader was
`superior because it allowed traders to make decisions and enter orders quickly. Speed is
`critical in electronic trading. In my experience, once a trader tries trading with MD
`Trader, he never goes back to using lbe older style screens. Due to ils ease of use, MD
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`TRADING TECH EXHIBIT 2022
`TD Ameritrade v. Trading Technologies
`CBM2014-00136
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`Page 1 of 2
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`Trader also encoumges traders to trade more. In short, MD Trader created a much more
`efficient way to trade.
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`Marquette attempted to roll out the new MD Trader screen to traders soon after
`6.
`the demonstration in November of 2000. At :fin;t, many of the tl'aders did not want to
`change from using the older style screens because they were so used to using those
`screens. A few, however, tried using MD Trader. The benefits became quickly apparent
`and within 15 months almost all of the traders converted to using MD Trader. MD
`Trader, however, does have some negatives. For example, when the market becomes
`vecy wide, such as on the release of economic numbers, the MD Trader format is
`problematic because it may not be able to display the market in one view.
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`After IT released MD trader, competitors of TT realized that Tf created a nex.t
`7.
`generation trading tool and they needed to come out with something similar to compete.
`Most if not all of these competitive ISVs came out with trading tools that closely
`resembled MD Trader over the last several years. Most, if not ali, of them told us at
`Marquette that they were coming out with screens that duplicated the features of MD
`Trader.
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`At some point before TT released MD Trader, Marquette polled its araders
`8.
`(approximately 40) to see what they would want in a trading tool if Marqueue chose to
`invest and create its own software. All of the comments were suggestions for various
`incremental improvements to the typical trading screens in existence at tbe time. No one
`suggested anythiog remotely like MD Trader.
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`I declare under penalty of perjury under the Jaws of the United States of America that the
`foregoing is true and cotTect. Executed on August~. 2004.
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