`
`
`
`
`
`
`
`
`
`
`
`DECLARATION OF PATRICK LEONE
`
`I, Patrick Leone, declare as that:
`
`1.
`I am personally familiar with the set of facts set forth herein, and, if called as a
`witness, I could and would testify thereto of my own personal knowledge.
`
`I started my career professionally trading in 1987 on the floor of the Chicago
`2.
`Board of Trade ("CBOT"). In 1991, I started trading for myself. I trade the futures on
`the 2, 5, 10 and 30-year treasuries. I began trading electronically in around 1997 on
`Project A (the CBOTs first electronic trading platfonn). In the fall of 2000 I started
`trading electronically on the CBOT's new A/CfE electronic trading platform using a
`front-end provided by Future Dynamics. In December of 2000, I started using TI' s MD
`Trader to trade electronically and have been using this as my order entry and
`management tool ever since. Prior to seeing MD Trader, I was aware of various front(cid:173)
`ends including the Eurex front-end, the Project A front-end, TI' s previous software and
`software from various other vendors including Future Dynamics. These previous systems
`displayed the best bid and best ask prices in designated locations on the screen so that the
`best bid and ask prices changed when the market changed. Also, to the extent these
`previous systems allowed for single click order entry, a trader had to risk the order being
`sent in at an unintended price because a price on the screen could change at the moment a
`trader clicked to send an order.
`
`MD Trader was much different than front-end trading tools I had seen before.
`3.
`MD Trader allowed a trader to see the bids and offers in a fluid way by displaying the
`bids and offers relative.to a column of fixed prices so that the bids and offers moved up
`and down along the column when the market changed. MD Trader also provided for one
`click order entry in areas along the column of fixed prices. This eliminated the risk of
`orders being sent in at unintended prices without sacrificing speed. ! had never seen.
`these features in a trading tool prior to seeing MD Trader.
`
`Because of these differences, MD Trader provided a great advantage to traders.
`4.
`MD Trader made it easier to execute orders quickly and efficiently. Speed is of primary
`importance in electronic trading and MD Trader made a big difference in increasing the
`speed in which traders could recognize trading opportunities and enter orders. Because
`of its ease of use and speed, MD Trader also causes traders to enter more orders than they
`would have with older style screens.
`
`MD Trader also provided a unique feature in the ability to manually recenter the
`5.
`trading window with a single mouse click. This was important because it allowed a
`trader to easily bring the market back in view if it ran off the screen. Also, it allowed
`
`1
`
`TRADING TECH EXHIBIT 2031
`TD Ameritrade v. Trading Technologies
`CBM2014-00136
`
`Page 1 of 2
`
`

`

`
`
`
`
`
`
`
`
`
`
`
`
`
`
`traders to set a point of reference from which to view market movements. This is
`especially useful when trading multiple products side-by-side.
`
`Based on the benefits described above, in December of 2000 I switched over to
`6.
`TT's MD Trader despite the fact that it was much more expensive than other software
`available at the time. The advantages of MD Trader far outweighed the higher cost.
`
`In the years following TT' s introduction of MD Trader, many companies have
`7.
`released products with similar features. I have seen many demonstrations on the floor of
`the CBOT and in my office over the past several years, including demos from
`Patsystems, Ecco Ware, Yes Trader, and Future Dynamics. The representatives from
`these companies often pitched their company's product as being like TT's MD Trader but
`cheaper. Such pitches were also often made by representatives of Futures Commission
`Merchants ("FCMs") who tried to convince traders to take cheaper software.
`
`~==Jt~~~ty ofpeQury iliM ilie forego/[i; ;;T.L~
`
`Patrick Leone
`
`2
`
`Page 2 of 2
`
`