DECLARATION OF PAUL R.T. JOHNSON, JR.
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`I, Paul R.T. Johnson, Jr., 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 thereto of my own personal knowledge.
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`I have over 20 years experience in the trading world. In 1985, I began an
`2.
`execution group trading and filling institutional customer orders on the Chicago Board of
`Trade ("CBOT") until I sold the business to ING in approximately 1998.
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`In 2001, I became CEO ofBoston Cabot LLC. Boston Cabot is a futures trading
`3.
`firm and a broker/dealer. In 2003, I became CEO ofBC Trading LLC, a hedge fund that
`focuses on trading certain stock index futures and the 1 0 year treasury futures. I am
`currently the CEO and majority shareholder ofboth Boston Cabot and BC Trading. Both
`Boston Cabot and BC Trading are located in Chicago, Illinois.
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`I was formerly on the board of directors of the CBOT and was Chairman of
`4.
`Floors and Chairman of Market and Product Development for the CBOT. In this role, I
`helped create the Dow Jones futures products, rewrote the treasury complex contracts and
`helped launch the Fed Funds futures.
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`I saw an early demonstration ofTT's MD Trader product around the time that the
`5.
`product was launched. I remember that the product looked much different than the
`standard order entry screens in existence at the time. In particular, market information
`was displayed relative to a fixed or static column of prices such that the trader could
`visualize movement of the market. Also, it provided for simple and accurate order entry.
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`I started using TT's MD Trader to trade electronically near the end of2001. Once
`6.
`I started using the product, I saw how much better it was than the preexisting order entry
`screens. In particular, it provided for the ability to enter orders quickly without the same
`error problems that existed in the previous screens. This was so because the prices
`remained fixed and there was no risk of the prices changing while attempting to enter an
`order like there was in the preexisting screens. Also, the static nature of the prices
`allowed the trader to see the flow of the market depth much easier through a more
`intuitive screen. The one-click recentering feature of MD Trader was also very valuable
`because it allowed the trader to quickly bring the display of the market to the center of
`the screen. I had never seen any of these features in preexisting electronic trading tools.
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`Because of the more intuitive trading screen and the improved fast and accurate
`7.
`order entry and management, the MD Trader screen increases the speed in which traders
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`TRADING TECH EXHIBIT 2028
`TD Ameritrade v. Trading Technologies
`CBM2014-00136
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`Page 1 of 2
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`can react to opportunities and enter trades. Such speed is a critical issue for electronic
`traders. Anything that allows a trader to decrease the time it takes to recognize an
`opportunity and send an order to the exchange is invaluable.
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`After TT launched MD Trader, I am aware that competitors ofTT released
`8.
`screens that duplicated the static price, the improved order entry and the recentering
`features of MD Trader. One such competitor, Patsystems, attempted to sell me its
`product by pitching the fact that it had a product (called the Dome screen) that functioned
`like MD Trader.
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`I declare under penalty of peijury that the foregoing is true and correct. Executed on July
`___2B_, 2004.
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