{Page 20 of
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`-LmwnunvN#¢ Cucxoxmnnsmmnramcuuwurvxczmxthanmm
`
`‘Dre Click Offset field, which is inactive in the above screen shot. and thus greyed out. is
`asafetydevioeusedwiththeClicktradingmodethatwon'tallowatradertosendan
`order that is too far away from the last Traded Price. Effectively. the trader establishes a
`floor or ceiling above or below the last traded price by enabling Click Ofiset. To use the
`Offset feature, atraderwouldsetthe -I-/- valuetozero. Hewouldthenset a figurein the
`Click Offset field. This will halt any orders that are above or below the last traded price
`by at least the number of ticks in the Click Ofiset field. A “tick” is the minimum change
`in a price value that is set by the exchangefor each commodity (for example, $.01, $.05,
`$.10 or any other value).
`
`Without the Click Offset feature, a trader might intend to click on a particular price, but
`between the time he decides to do so and the time he actually clicks (which may be only
`hundxedths of a second) the price may change. He may not be able to stop the downward
`motion of his finger and the order would be sent to market at the wrong price.
`Sometimes the change in price is significant and could cost the trader a lot of money.
`
`Using Click Offset a trader could trade in the market depth, but no order would be sent to
`market that is entered by the trader for a price furtherfmm the last price than the figure
`displayed in the Click Ofl’set field.
`
`Using the following screen shot, the following trading scenario could take place:
`
`....._.....
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`TT0101845
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` -
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`Page l6of41
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`
`
`;.;_._-._-.;:i«.-_.-.—:s»_-,_;;..3:5:;:3;.};;3:;-,;.5;._1;. l,,-. v. -_«_-«» —_.-_-_-,_-,-».--.__-_.- -- -- -._-
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`. ......... ._......-.....--—-.::.~‘-'
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`.-.-:.‘..4..~_.\-..~_.-........'...4..._...,... ..-.-... ...
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`(Page 21 O!
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`90)
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`- l“;‘jI .1-
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`7/3/01
`
`0 Because the Click Offset field is in use, the trader cannot trade more than 2 ticks
`from the Iasttradedprice. In this screen. the lasttradedpriceis 7627sothe trader
`might right click on 7629, which is one row below the inside market ask price.
`This would send a buy orderto the market forhis previously entered quantity (10
`in the screen above) for7627. Because this is within two ticks of the lasttraded
`askprice, theorderwouldgoto themarket. All l0lots wouldbefilledbecause
`thereare836 (815 plus Zlflotsinthemarlcetatleastat thisprice.
`Ifthetraderclickedou7630orhigher,heeouldnot enteratradebecausethc‘
`price is greater than 2 ticks above the last traded-price.
`
`-
`
`- INNOmnoJv#5.- uuca sxrmvc AHGMENTAHON BASED ONA rxasxr vaanwuz
`(cucx +/-)
`
`Trading with Click +l- allows a trader to chase a fast moving market up to a certain
`amount of ticks. A trader would set the number of ticks in the Click -H~ field once. He
`would then be able to send orders to market with a single click in the market depth for a
`price up to (or down to if selling) the price clicked plus (or minus if selling) the number
`of ticks in the Click +/— field. The best available order in the market within the preset
`parameters would be filled.
`
`2
`
`If the market was moving fast and the inside market was rapidly increasing or decreasing
`(or both alternatively), Click +/- will insure that the trader can keep up with the changes.
`Using the traditional electronic trading method. he might not be able to sell or buy large
`quantifies at or near the price he needs beatuse the prices moved before he could enter all
`of the required data. Using Click -I!—, he can trade pre-specified quantities at any chosen
`price plus or minus the ticks chosen. This might insure that his trades get filled before
`the market moves away.
`
`The following screen depicts Click trading with the Click Offset feature disabled and a
`.Cliclc+I-quantitygreaterthanoentered. Tlrisenuywillenable thetradertouadeatany
`price he clicks in the market grid and enter an order for up to (or down to if selling) 5
`ticks above (or below) the clicked price.
`
`1>age17or41 -
`
`000202
`
`TTO101846
`
`000202
`
`

`
`.- ;..~._-.-.._-v .;..._.-.. ._.-..... . . ..._-__....ra....... ._»..;_a..u.4.u_.s_. .. -—.u.
`.
`.
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`.
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`c
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`(Page 22 of
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`90)
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`-:-:..s.t-.; :
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`. ..
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`.
`
`. ...._
`
`.
`
`.-.
`
`.. .- .
`
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`
`-.z..- -.
`
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`
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`
`._._ -...-.
`
`l
`
`--- -- —------
`
`— —
`
`
`
`‘
`
`
`
`In the above semen shot the following trading scenarios might take place:
`
`I The trader seeks to sell 10 lots, so he clicks on the 7623 Bid Price, which is three
`below the insidemarket. This will sendanondertomarket to sell 10 lots foras
`low as 7618 (7623 minus 5 ticks). The best available price will be filled first.
`Thus, in this scenario, all 10 lots will be filled because otfcxs exist in the market
`place in this price range that amount to -many more than 10 lots. Note that
`without Click Offset enabled, this made will go through regardless of how far
`away from the last Price it is.
`0 The trader would buy 10 lots for as much as 7635 by clicking on the 7630 field in
`the Ask Price column. All of these orders will also be filled.
`
`
`
` 5:‘ Equations for vations 4 & 5:
`
` 1
`'IheconceptssetforthinInnovations4&5canbeiedncedtothefollowingforninlas:
` KEY:
`
`
`
`» Ask Price clicked with Click trading button = A
`' Bid Price clicked with Click trading button = B
`LBS! Traded Price = L
`Click Ofiset value = Off
`Click 44- value = C
`
`Quantity = Q
`Bny limit ondersent to the mar'ket=Bo
`
`
`. Sell limit o1dersenttJothemadcet=So
`
`
`
`‘
`
`
`
`
`
`Page 18 of41
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`TT0101847
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`..-,_._...__.._.l...........-....__..._...-._..__.._,,.-..-_..-.-_._-.-_.._—.__..-.._.-_....—-.~-----900203-------------------~~~
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`
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`000203
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`(Page 23 or
`90)
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`
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`‘T IfC>OtbenBo=(A+C)Q
`IfC>0thenSo=('B-C)Q
`
`
`
` '3 IfC=0andifabsolutevalueof(L—A)>Ofi‘thenNOQRDERSENT
` IfC=0andifahsolutevalueof(L-B)50fithenSo:)Q
`
`
`I ll’C=0andifabsolutevalueof(L-B)>OffthenNOORDERSENT
`
`
`
`3' IfC=0andifabsolute valueof(L-A)50ffthenBo=(A)Q
`
`3
`
`o INNOVATION #5: Sum ovzmwz AND PRICE szmrzvc AUGMENTATION uszo
`ONA nuzssr VARIABLE (DIME +/-)
`
`Dime trailing allows traders tojoin the market at a value above or below the best bid or
`.askbyaspecified number. UaingDirne -H- a traderwouldenterorders into the market
`thatwouldnotbefilled tmtilanequalmatchrnettheorderinthernarlcet.'I‘heu'ader
`would select the quantity as he did when Click trading and enter the tick amount in the
`“dime +l-“ field. A setting of zero (“0”) ticks will enter an order for the price cliclced. A
`tick setting of any amount greater than or less than zero (“0") sends an order to the
`market for the price clicked plus (minus if selling) the dime +l— setting. If the trader
`clicked on the Bid order column, a bid would be sent, while a click on the Ask column
`would send an Ask order. This type of trading may be utilized to join the market or to
`move the prevailing prices up or down.
`-
`
`The following screen shot shows an X__TRADER® screen with dime trading enabled:
`
`p Page 19 ot'4l
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`00(l204
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`TTO101848
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`000204
`
`

`
`
`
`
`
`
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` _V_.,__ .. .,_.., ;- , »..,.u,‘..~.’.-:.....-__..-'.._." .'.' . .' - . .' .. --
`
`
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`(Page 24 of
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`90)
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`_..,_ .
`
`,._.,_._ ,-
`
`...__,
`
`-
`
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`
`_
`
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`
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`
`.
`
`._....
`
`.... ..——....
`
`.
`
`.
`
`.
`
`--~--
`
`
`
`Using the above screen shot, the following trading scenarios could take place:
`
`
`9
`§
`
`0
`
`. 0
`
`In this screen. the trader might right click on 7622, which is four rows below the
`inside market bid price. This would send a buy order to the market for his
`previously entered quantity (loin the screen above) for 7624 or better (up to two
`ticks above the clicked price). Nothing would be filled at this point. Rather, the
`orders would be placed in the market as a Bid limit order at 7624 and would only
`be filled if an Ask order entered themarket for 7624 or better.
`IfDime -14- was set at a negative number, for example -3, a right click on 7622 in
`the BidPrc column would enter a Bid limit order for 7619. None of these would
`befilledin the market until the asks meet or beat7619.
`
`-
`
`‘
`
`
`
`AskPric'e clicked with Dime trading button = A
`Bid Price clicked with Dime tmding button = B
`Dime -H- value = D
`Quantity = Q
`Buylimitordersenttothemarket=Bo
`Sell limit order sent to the market = So
`
`. Equatio:
`
`Page 20 of 41
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`TT01 01 849
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`i
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`;
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`3
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`-
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`E
`=
`
`000205
`
`

`
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`
`9 INNOVATION %.' USE OFA IHREE BUTTONMOUSE WflN TRADING INA
`HORIZONTALLYDISPIAYEJ DKPIH OF MARE!‘ WHERE THE MTDDIB MOUSE
`
`BUITON EFFECTS DEE [RADING AND THE RIGHT MOUSE BUTTON EFFECTS‘ CLICK
`IRADING
`
`If using a three-button mouse, the trader would
`the middle mousebutton. Ifthe traderselected a
`
`the market with a single click of
`nmouseintheC1i£:l<'h-ading
`
`
`
`. A trade: would simply
`Properties setup, these radio buttons are inactive ‘
`maneuver the screen cursor above the price in the market depth and click the-middle
`button. A dime trading order would be sent to market in the manner described above
`
`Using the three button mouse, a click on the right mouse button with the cursor
`positioned above a price in the market depth would send a click trade to market as
`described above.
`.
`
`-_INNoVArtoN#7: U53 0174 TWO BurroN uousx WHEN zmnuva INA '
`Ho1z‘1zoNrxLLr1;1sru 730 DEPTH or Mums!‘ WITH rm! ABIIJTY ro rooauz
`(swmca BETWEEN) DIMEAND CLICK mwnva wmmz mrs RJGHTMOUSE Btn'mN
`BFFECIS Bom DIME AND Cuczr manure osrzzvnuva ON WHICH IS zmauzo
`
`Ifusing a two-button mouse,- the dime radio button must be selected before using the
`right mouse button to send the order to market. Ifthe trader’: Click 'I\'ading Properties
`
`7* and a trader must
`designates a 2 button mouse, these radio buttons are active
`manually select Click orDirne trading modes. Once chosen, the trader can send as many
`orders as hedesires. eachwith oneelickoftherigrtmousebutton andeacheitheraclick
`or Dimeorder depending on which mode he chose.
`
`- INNov.u'1oN#8.- ABIIJTY m AUGMBNI‘ Cucx TRADING LOGIC mmmxo anzcx
`
`Traders may also enter or restrict trades based on pre-determined theoretical values. The
`values are derived fi'orn equations, which can be set up in various programs such as Excel
`(a Microsoft pmyam) or other proprietary software other than X_TRADm®.
`'
`X_TRAl_)ER® allows the traderto input the value derived from the equation into a field,
`which wd = y» e: below the following Theoretical Bdgelmplementation field:
`
`-I
`
` The trader's click trades would then be restricted by this value and no
`order would be allowed that was not as good orbetter than the theoretical value. This
`value would be applied regardless of whether the trader attempted to buy or sell. Thus, if
`
`Pag€2l of4l
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`000206
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`TT010185O
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`000206
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`

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`, ..
`
`.
`
`. ‘ ._~
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`.. _.
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`._..4..;._z-...;._a_;_n:....d..4.....u...,--.__-.....-_..-‘..:..,.
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`(Page 26 or
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`713/0 1
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`the theoretical value was 102 and the trader attempted to click trade in the BidPrc column
`at 101, no order would be sent because the clicked value was worse than the theoretical
`value. Clicks on 102, 103, 104 or higher in the BidPrc column would be allowed because
`these would send orders as good as or better than the theoretical value.
`
`To engage the theoretical price feature, the trader would click in the box next to ‘Theo’
`in the screen shot above. The theoretical values would be
`into X_'I'RADER®
`as demonstrated in the following screen shot:
`
`1
`
`o INNovA11oN#9.- A31u17roA0cMz1vr cucx_ mwuvc r.oGIc WIIHB/A
`
`Ifthe trader clicked in the box next to BIA in the screen shot above. a separate theoretical
`value couldbe established foreach bid and ask. Separate bid and asktheoretical values
`wouldbeestablishedforeachrowin themarket depth. Bach attemptedbidorask order
`would be checked against each corresponding theoretical bid or ask value. If the clicked
`price is as good or better than the corresponding Bid or Ask theoretical value, then the
`order will be sent.
`
`-
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`'
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`Page'22 of4l
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`000207
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`TT0101851
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`000207
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`-_g_-,_.:=—;,:.-_-l
`
`-.;._--_; _._._,;;-.;..__. . ..-;;.-
`
`A - - -;_;_-.--__.-'.'_‘.-___-- _-_~_;..~.-.-_:.-.-'.:.~.-~_;-.-.;-‘__----_—_~“_-...‘"-:..:;..;::;_-.__-w-L; _-.;.._—..
`
`._~
`
`~ - --.-.-..-.».::.'_‘.-..-.-.s.-.:._.'--‘~_-.;_+'< .~:..-....»...'.4 -.-. . ..-. . -.
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`(Page 21 of
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`90)
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`. _.-._._.
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`__.._......._.__-... .._-......_...._.- ...... .s.
`
`..
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`..
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`....
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`.
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`7/3/01
`
`- INNOVATION #10: Aamrr ro uonm EDGE FOR mac CHECK
`
`Traders may also edge their trades away from the theoretical values described above.
`When 'I'heo or B/A arecheckcd, a white field appears in the box to the lefi of "Theo" and
`“BIA.” Traders can input a number of ticks here which allows them to enta orders that
`are within the specified number of ticks away from the corresponding theoretical value.
`.Forexample, witha 12.2 theoretical, a l2.6marketbid,and anedge valueof4 ticks, a
`trader's onderto sell thebidwillpass theedgetest. Butifthe bidmovedonclicklower,
`to 12.5. an atternpttosell wouldfail the edge test. becanseonly 3 ticks ofedgewouldbc
`made on the trade.
`'
`
`‘
`
`EdgctradingcanalsobeusedwiththeClick+I-setting,Atraderwhosetsthc+/-value
`to 4 ticks will construct a bid 4 ticks higher than the offer or an offer 4 ticks lower than
`the bid. If this constructed price fails the edge test, the order won't be sent.
`
`.X;JHb&DFHKDflIHC1HIY
`
`‘
`
`As explained above. X_'I'RADER® greatly improves the speed and accuracy of
`electronic trading. However, the display of market depth and the manner in which traders
`trade within the market depth can be effected in different manners, which many traders
`will find materially better, faster and more accurate. Despite the safety feature of Click
`Offset and the innovative Click and Dime trading, which allow traders to keep up with
`fast moving markets. a fluid market can still leave a trader behind. Rapid price fluctualion
`may move the market beyond even the Click Offset and click and Dime trades. In
`addition. some traders may find the display of market depth to be difficult to follow.
`X_TRADER® lists charts the market depth vertically so that both Bid and Ask prices
`descend the grid. In X_'I‘RADER®, the Bid prices descend the market grid as the pdcw
`decrease. However, in a somewhat counter-intuitive manner, Ask prices also descend the
`marketgridastzhwepricesactnallyincrease. Mexcuryremediesthcseissuesinancw,
`innovative and logical manner. Mercury also pmvides an order entry system. market
`grid,fillwindowandsummar-yofmarketordcrsinonesimplewindow. Sucha
`condensed display materially simplifies the trading system by entering a tracking trades
`in an extremely efficicnt manner.
`
`- I1v1vovA2ro1v#11.- Vsmrou.Drsruror mazsrmm uvcwzzzwauaxxsr
`Damn
`
`.
`
`X__'l‘RADER Mercury displays market depth in a logical, vertical fashion or horizontally
`or at some other convenient angle orconfiguration. A vertical field will be shown and
`described for convenience, but the field could be horizontal or at an angle.
`
`In turn, Mercury further increases the speed of tradng and the likelihood of entering
`orders at desired prices with desired quantities. Mercury displays a static vertical column
`
`;
`I
`3
`-
`
`I
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`Page 23 of4l
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`lPage 28 at
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`90)
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`UNM.H
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`__.9
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`in vertical columns to the
`of prices with the bids and asks displayed
`column. An --
`leofthis -- Ia follows
`
`de ofthe price
`
`Bid quantities are in the blue column and ask
`in the red column. In
`quantities are
`example. the inside market
`is 18 (best bid quantity) at 89 (best b
`quantity) at 90 (best ask
`price).
`'
`
`)and 20 (bestask
`i price:
`
`‘s
`
`Fach field is described as follows
`
`Page 24 of41
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`[Page 29 ot
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`90)
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`column: This column (entered/worldng column) displays the current
`l
`status ofthetradefs orders. The‘ status ofeach orderwillbe displayedin the pricerow
`where it was entered.
`'
`-
`S/W: The number next to S indicates the number of the trader‘s ordered lots that
`have been sold at the price in the specific row. The number next to W indicates
`the number of the trader's’ ordered lots that are in the market. but have not been
`filled-—i.e. the program is working on filling the orrbr.
`B/W: The number next to B indicates the number of the trader's ordered lots that
`have been bought at the price in the specific row. The number next to W
`indicates the number of the trader's ordered lots that are in the market, but have
`not been filled-——i.e. the program is working on filling the order.
`
`
`
`- L/R: These fields indicate aquantityvalue. which maybeadded to the
`-
`-
`order quantity entered. This process is explained below.
`
`a Volume: Below theL andkfields, anumberappears which
`2
`~.
`represents the current nmrlcet volume. This is the number of lots that have been traded
`for the chosen contract.
`'
`J
`
`.
`
`in 0:48:44: This is the actual time ofday.
`
`Page'25 of4l '
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`f000210
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`TT0101854
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`000210
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`

`
`:-3%:~—:-r+=-v2;-:...,;;u.z...22;22i.22;==.s2;‘::;..._~:4«:2;-2:::¢;1::ar;'¢3:a»::¢:::
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`‘ ‘*1’
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`‘ ‘
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`(Page 30
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`oz
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`90)
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`- ....4 —— -...........
`
`
`
`
`
`amount—“l0" will incmcase it by
`increase it by 1000.
`
`pearbelaw the Cument
`crease the eunent quantity by the indicated
`10; "lH" will incnzase it by 100: “IK” will
`
` -
`unntity Description: This pull down menu allows the trader to chose a
`Quantity Description.
`#: Chasing a number in this field will set a default buy or sell quantity.
`0&'set: Chasing “o£fset" in this field will enable the IJR buttons.
`NetPos: Choosing “NetPos" will set the current Net Quantity as the trader‘s
`quantity for his next trade.
`
`
`
`._._.._.H....
`
`...n.....__..
`
`TT0101855
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`Page 26 of 41
`
`000211 I
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`000211
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`....-._.-__._..__ ..._ _ ._ .__ ._..... . .._..-....._...-, ........, .
`
`".v--‘~'- A-‘—‘A=-‘4'-'.'-'—'-'-
`
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`
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`
`lPa9e 31 ot
`
`90)
`
`
`
`~- BidQ column: This column represents the current market bid quantities in the
`corresponding rows of each price.
`-
`
`- kQ column: This collmm reptaents the current market ail: quantities in the
`corresponding rows of cash price.
`
`‘
`
`'
`
`’
`
`Page27ot'4l
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`, ...-,,._ __.,..... .,.,..._.._
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`
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`TT0101856
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`(Page 32 of
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`,
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`column: This column represents prices forthe chosen commodity.
`
`.
`
`
`
`_”
`
`l.
`II
`
`
`
`
`I TQ: This column lists the last traded quantity in the comesponding_row of the
`last traded pzioc.
`
`_'
`
`Pagc28of4l'
`
`TT0101857
`
`o..,_ .1.‘-.-.Aa u.- . IV‘: ...-_-...-—.~.
`
`‘_________9_G9‘2_1_3____"_"___._______._____ ‘_ _ “ ._____“_‘ ___
`
`__
`
`‘___ __*_.
`
`‘____ ‘ __ V_
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`,___ _,
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`_
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`_._,.._.... .............o .
`
`
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`000213
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`

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`:Page 33 of
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`7/3/01
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`DWWHMflON#EkTHEDWMMm:KHUNMLn$HMYOFMNUmTMDWnflmU
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`The
`
`themarketincrease
`'
`demarketandmarketdepthasccndanddescendas
`prices 11:
`thesamemarketatalater
`and decrease. For example, the fol]
`.
`owing screen depicts
`interval when: the
`inside xnarkethas risen three ticks:
`
`:
`
`:.._..25.
`
`
`
`.L|l.......:..................x.|l.K..I
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`
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`nflrrtoon.......\:f!.
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`Page 29 of 41
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`000214
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`(Page 34 or
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`90)
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`_
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`0 INNOVATION#14: THEDYNAMC, HORIZONTALDISPL4)’OFMARE?‘MOVEQENT
`the market ascends and descends thevezticalMercurydisplay, themarketwill
`Just
`move left and tight in the hoxizontal Mercury display.
`
`0 INNOVAUON #15.‘ SINGLE CYJCKORDER ENTRYW MERCURY
`
`Using Mercury, a trader would first designate the desired eomodity and quantities, then
`he can trade with single elicks of the right or left mouse button.
`
`Page 30 of4l
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`90)
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`For example, using the above condensed screen shot. a left click on the 18 in the BidQ
`column will send an order to market to sell 17 (qnant:ity# chosen on the Quantity
`Description pull down menu) lots of the commodity at a price of 89 (the corresponding
`price). A leftclick onlhe20intheAskQcolumn will sendan ordetto marketlobuy 17
`lots at a pzice of 90.
`
`Page 31 of4l
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`TTO101860
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`000216
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`

`
`90)
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`._ ....-_-.- 1-.-4.- .
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`7l3lOl
`
`0 INNOVATION #16.‘ SINGLE CH3 ORDER ENTRY WHHPRBSET QUANTITIES AND
`VARIABLES OF QUANTITIES‘
`
`Orders can also be sent to market for quantities that vary according to the quantities in the
`market; quantity variables preset by the trader; and which mouse button the trader clicks.
`Using this feature, a tradetcan buyorsell all ofthebids orasks in the market at orbetter
`than a chosen price with one click. The traderconld also add or subtract a preset quantity
`outstandingin themarket.
`
`Ifthetndercliclésin a tradiug cell——i.e. in the BidQ orAskQ column. he will enter an
`otderinthemarlcet. 'I‘heparametezsoftheorderdependonwhichmousebuttonhe
`‘ clicks and what preset values he set.
`
`Using the right mouse button, an order would be sent to market at the price that
`corresponds to therow clicked for the total quantity of orders in the market that equal or
`betterthechosenpriee plustbequantityin the Rfield. Thus, an'ghtclickintheAslcQ
`colunmabovein the 8’/prioerowwill sendasellorderto matketataprice of87 anda
`quantity of I50. 150 is the stun ofal] the quantities 30, 97. 18 and 5. 30. 97 and 18 are
`‘all quantities in the market that would meet or better the trader's sell order price of 87.
`These quantifies are displayed in the BidQ column because this column represents the
`
`Page 32 of 41
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`(Page 37 of
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`7/3/01
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`orders outstanding in the market to purchase the commodity at each corresponding price.
`The quanitity Sis the quantity pre-set in the R field.
`
`Sirnilarly.an‘ght clickintheBidQ columnatthesame priceof 87 would sendabuy
`ordertotnarketforaquantityofs. 'Ihequantity<isdeterrninedintlresamemanneras
`above. Inthisexample, though,thereareno ordersinthemadcetthatequalorhettertlie
`chosenpfice—thcremenoquanfifiesinureAskQcolunmflrateqmlorbettermispdce.
`So,thesInnoftheequalorbettHquantitiesiszern(“0"). Thetothlord'ererreterdbythe
`traderwillbethevulueintheRfield.whichis5.
`
`An order entered with the left mouse button and the “Ofl‘set" option chosen in the
`quantity description field will be calculated in the same way as above, but he quantity in
`the L field will be added instead of the quantity in the R field. Thus. a left click in the
`BidQcolumnabovein the92pria:row willsendasell oxdertornarlret‘at apriceof92
`anda quantity of 96. 96 is the sum of all the quantities 45, 28, 20 and 3. 45, 28 and 20
`are all quantities in the market that would meet or better the trader's buy orderprzioe of
`
`decrease the total quantity sent to market. In other words, in the example above, if the R
`field was -5, the total quantity sent to market would be 140 (30 + 97 + 18 + (-5)).
`
`If a tradexchose the “NetPos" option in the quantity description field, a right click would
`still work as explained above. A left click would enter an order with a price
`corresponding to the price row clicked and a quantity equal to the current Net position of
`the trader. The net position of the trader is the the trader's current position on the chosen
`contract. In other words, if the trader bought 10 more contracts than he sold, this value
`would be 10. NetPos would not affect the quanitity of an order sent with a right click.
`
`If. the trader chose a number value in the quantity descriptiori, a left click would send an
`order to market forthe current quantity chosen by the trader. The default value of the
`current quantity will be the number entered in the quantity description field, but it could
`be changed by adjusting the figure in the current quantity field.
`
` ' R=ValueinRfield
`
`i L=ValueinLfield
`-Total fallt:iestnBrdQ eolumnatan equalorbetterpncethanP
`’. Q,=Totalofa1lquantitiesinAsl:QcoluInn atanequal orbetzterpricethanl’
`
`
`
`Page 33 of4l
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`TFO101862 '
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`000218
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`_ M3:4:‘-22:2;:7;-2r;<.-;;;a.:s::;;=_>_-=;.~-2=':;=----—~s2-~-._.-~'‘:u;; .: v. __ -
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`(Page 38 of
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`90)
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`
`I N=tetPosin'on
`‘Bo=Buyorderseuttomar1cet
`So: Scllordcrsenttomarkct
`
`
`
`
`I; Bo_= (Q.+ L)P
`
`' S0 = (Q.,+ L)P
`
`B0=QP
`
`I If "number" mode chosen in Quantity Description field then:
`
` So=QP
`I’ If“NetPos" mode chosen in Quantity Description field then:
`
`
`3
`‘In "NetPos" made, all orders using the left mouse button will be limit orders.
`
`
`0 IAWOVATl0N#1-7.‘ DEIBTWVGAIZ ORDERS WORKING UV THE MARE!‘
`SINGIZ H13
`
`Menzuryalsoallowsatmdertodelcteallofhiswofldnglradeswithasingleclickof»
`citherthcxight orleftmouse button anywhemin thelasttradedquantity (LTQ) column.
`'l‘hisallowsatradertoexitthemn1ketimmediately. Tkadetswillusethisfeatmewhcn
`they arelosiug money and want tostnp the losses from pilling up. Tradexs may also use
`this fcauuetoquicldyexitfliemadcetuponmakingadcsiredprofit.
`
`Page34of4l
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`000219
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`....,.,‘....
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`' TT0101863
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`
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`i 0 Any order eutened using right mouse button
`‘
`‘AH orders using the right mouse button will be limit orders.
`
`B0: (Q,~l-R)?
`
`E So=(Q;,+R)P
`
` . 0 Orders uttered using the left mouse button
`
`'1 If “.Offset" mode chosen in Quantity Description field then:
`‘
`*In Oflfret made, all order: using the left mouse button will be limit orders.
`
`000219
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`

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`(Page 39 of
`
`90)
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`7/3/01
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`o INNOVAnozv #18: D8u5'r1NG.4LL ORDERS Wolumva INTHE uA1uurrA1'.4 GIVEN
`Haw uzvzz. WITHA savour cucx
`
`Mcrcuryalsoallows atradertodeleteallofhisordasfromthemaxketatapaxticular
`price level. A click with either mouse button in the Entcxed/Working (EJW) column will
`"delete all working order: in the cell that was clicked Thus, if a uaderbelieves that a
`previously sent orders at a pardcula'r-price that have not been filled would be poor trades,
`hecan delete these orders with a single click.
`
`Page 35 of4l
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`._...,...
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`TT0101864
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`000220
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`[Page 40 of
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`90)
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`7/3/Ol
`
`ClickandDime'I‘rading
`
`Cflck and Dime Trading
`
`.._"..._:
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`‘3“:'.".'»‘¥"-.-'.'
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`. TT0101865
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`000221
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`(Page 41 of
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`90)
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`7/3/01
`
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`Fiowchart of Dime Trade Algorithm
`
`Algorithm for Dime
`Ttade
`
`1
`
`Page 37 of-4]
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`7/3/01
`
`Flowchart for Algdrithm fbr Click Trading
`
`Algorithm [of Click Trade
`
`Onknmcaulb
`mmm
`
`0 ova-mmuw
`nub!
`
`*Note: limit ordcxs may have other restrictions to them (like FOX, GTD, GTC etc.),
`which may funhcr restrict these ondcts.
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`‘
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`Page 38 of 41
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`(Page 43 of
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`90)
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`__.-.-. . “. ... ..-... .,....- . .... -........«__...__..._.-.a_ -'-- --v
`
`7/3/01
`
`Example of Click and Dime trading:
`
`
`
`
`
`.,............................
`
`"'.'E“HY.'
`
`Page 39 of 41 '
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`X_Trader System Architecture at a Glance
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`
`TTO101871
`
`000227
`
`

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`
`
`
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`(Page 47 of
`
`90)
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`APPENDIX C
`
`
`
`VERSION 5.2.3
`
`....
`
`000228
`
`TT0101872
`
`000228
`
`

`
`._-- ._..-.... ._.__ ......,...__._.-y.. ......—......_. ........_.... -.
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`
`(Page 48 01 90)
`
`Market_Depth_ Trader Window
`
`Market Depth Trader Window Overview
`
`'
`
`!
`
`'l‘heMark:atDcpthTradcrvdndowallowsthcuadcrtousconeclickofthcmousembuyorscll
`pIoducts.Thegrid fonnatdynanficaflydisplaysthemarkctdqzdzfotagiveninsmmcngand
`mablcsdzcuadamcntcrordcrsquickly byshnplyclicldngonspedflccdlsinlhcgidlayoux.
`
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`'I11cMDTradc:windowfcann'csinc1udc:
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`0 UnlinfimdnmnbaofopeaMD1hde;'whdom(subjaamflnensninimthatmnwhIdow
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`
`I Colorcodingfnrtextandbackgmnndoolors.
`
`0 Mausewheclcontrol ofthc zoo_m inlout feature.
`
`- Mousawheelcontmlofordcxqnanfity.
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`
`106
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`(Page (9 of
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`90)
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`Market Depth Trader Options Dialog Box
`
`YouuscthcMarl:etDepthTraderOptionsdia1ogboxmsawsmmuadingpmamctasanddzc
`appwmceafmeMarketDepm1hdawindow.Omxthcsehavcbcmaea1cd.th¢ymnbc
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`Whcnchcckndlhepopupexplanationofthotiflebarbumons
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`Zlhdcd 0
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`-Whcxichcckedallowsaaarnpletcswcepofmaxkctonx-Igixb
`click.
`
`Whmchcckcdshowsnlldeletebuunnsinwlndow
`
`When checked shows Trad: Out bunm in window.
`
`When chcckcd shows Oxstomaustdropdown box.
`
`Whenchcckedshov/sIOCd1cc!d>oxinwindow
`
`Ema a quantity number for display of wotfinglcxccuted
`
`Entcrauumbcr farpriceprecisiondzsplay. Maximmnnumbcris
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