DECLARATION OF DAVID B. MARTIN, JR.
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`I, David B. Martin, Jr., declare that:
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`I am personally familiar with the facts set forth herein, and, if called as a witness,
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`I could and would testify thereto of my own personal knowledge.
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`I received a B.A. from Cornell University in 1990 and an MBA from New York
`2.
`University in 1997. While io business school I worked for Bankers Trust in New York as
`a summer associate. After business school, i moved lO Chicago and clerked on the floor
`of the Chicago Board of Options Exchange ("CBOE") for Letco .
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`In 1998, I attempted to trade off the floor via telephone bUl did not have much
`3.
`success. In the spring of 1999, I started trading electronically on the Chicago Mercantile
`Exchange ("CME") wilh a Globex terminal. I used the Globex terminal to trade
`eiectronically until I decided to switch to Trading Technologies' (''TT") 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 ClVIE and the CBOT.
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`4.
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`I currently reside in Chicago, Illinois.
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`The front -:end on the Olobex terminal displayed .. thebes~ bid price,:best bid:·:·:
`5..
`qua.ntlty and best ask price, best ask quantity side by. side in deSignated cells. I(: a l:rader
`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.
`·
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`ln 1999 and 2000, I was consistently very successful in electronic trading. Then,
`6.
`in the first half of 200 I I became very unsuccessful. I then beard 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.
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`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,
`~D :Trader al lowed a trader to: very easily and quickly ent_<:r orders againstthe fixed
`c.oluinn of prices such _that th~e was no risk of s~nding orders in at unintended prices.
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`TRADING TECH EXHIBIT 2048
`CQG & CQGT v. Trading Technologies
`CBM2015-00058
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`After seeing the demonstration, I immediately decided to license IT's X_ Trader
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`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 lo get used
`to the very different interface. However, shottly 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 direcOy attributable to MD
`Trader and the features described above. After using MD Trader, I realized that it was far
`superior to the preex isting systems of which I was aware. Shortly after I started using
`MD Trader, I got rid of my Globex terminal. In fact, in order to use TI's software, I had
`In m y opinion, MD Trader was a stroke of genius
`to s witch clearing firms at the time.
`aod I bad 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.
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`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 trad.ing 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.
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`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., displayjng the
`market information against a fixed column of prices and allowing for one click order
`entry on cells aligned with tne fixed prices.
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`I declare under penalty of perjury that the foregoing is true and correct. Executed on
`August _LL, 2004.
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`nA &.. f&2{j. i
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`David B . Martin, Jr .
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