Exhibit U
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`Page 1 of 3
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`TRADING TECH EXHIBIT 2318
`TRADESTATION v. TRADING TECH
` CBM2015-00179
`
`

`
`From:
`Sent:
`To:
`Cc:
`Subject:
`
`Peter C. Hart <peterhart@measuright.com>
`Tuesday, October 20, 1998 10:16 AM
`Tom Biddulph <bid@skyweyr.com>
`Jeffrey Schneider <JeffreyS@dnai.com>; Rich at Trademan <rich@trademan.com>
`Re: Alternative Trading Board Design
`
`Tom Biddulph wrote:
`
`I've been thinking much more about your proposal. Here are some questions that I need the answer
`to before I can give an initial technical estimate:
`
`1. Are the height of the different stacks related (of the same scale)? In other works, is a stack
`that represents an aggregate quantity of 100 Ill Oth the height of a stack that represents an
`aggregate quantity of 1 000?
`
`I believe we can have a relation that is one to one or logarithmic. One to one is much, much more desirable if
`that is feasible. In discussing this yesterday with Rich, he indicated that order quantities tend to follow
`conventional increments within a manageable range between largest and smallest. No one puts in one unusually
`large order because it has an impact on price that is adverse to the orderer's interests.
`
`It is okay to run order stacks off the screen as long as the trader has the ability to zoom the whole board in and
`out and to scroll. Another way to deal with display real estate is to limit the size of a stack to the available
`screen space or another similar limit and if the stack for a particular price wants to be too tall, create one or
`more others beside it to the left. Adopt for now whatever is easier to code.
`
`1. What is the approximate data model for orders? The they occurring frequently? What type of
`spreads are likely to occur? Will there be a wide variance in prices?
`
`Boy, I really like this question. I think it would be very helpful for the testing of any board design to have a test
`routine or simulation that is driven by the parameters of what we think will be the typical range of trader
`activity in a day or hour for a particular product. It would be wonderful if we could set those parameters. Here
`is my starter list:
`1. Price scale - high, low, median and increments
`2. Order quantity- high, low, average and increments
`3. Number of orders and transactions per hour
`4. Spread- narrow and wide points
`5. Time limit -long, short, average
`
`The simulation should not just propagate orders but also transactions so the board doesn't get unnaturally
`cluttered.
`
`1.
`2. For the graph lines (both the actual PIT data and the indicator data), are these graphs behind
`or in front of the stacks (or should this be user settable )?
`
`They could be user controllable, but that doesn't seem to gain very much. To start, I would place them in front.
`They don't seem to interfere. You might make a particular order stack a user is examining (mouse over or
`selected) go to the front temporarily.
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`CONFIDENTIAL
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`RF0008734
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`Page 2 of 3
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`1.
`2. What are the characteristics of an order (price, quantity, expiration time, market/limit, .... )?
`
`I think Rich indicated that we no longer have market orders in our pits. Orders are either time limited or take
`outs. The rest of your question is the same, I think, as the parameters I would like us to be able to set to run
`demos, tests and experiments.
`
`1.
`
`That's all for now, although I'm sure there will be others. An issue to start thinking about is if you'd
`like me to do a quick mock-up of the display. I actually think I can have the major components of it
`put together and functioning in a day or two. It won't be totally funcitonal at that point, but it would
`give you a good idea of what its going to look like and function. It would be "live", in the sense that
`it would display the trading data being generated by an "autopropagate of orders" and by real input
`orders made by an individual at a screen. Of course, the setting up of "scenarios" and trying to
`come up with a more real "order flow" or "auto order generation algorithm" still needs to
`happen ..... -bid-
`
`I think it would be very helpful for both design and demo purposes of all board designs and pit products to have
`an auto-propagate that is parameter driven and includes both orders and transactions. How much of an effort do
`you think that would be to develop?
`
`Whether you should spend two days to do a mock-up of the alternative design, I'll leave for Rich to decide I'm
`biased. Maybe Rich will give the go ahead when I get a mock-up of the Business Plan done. :-)
`
`Peter C. Hart
`53 Oakdale Avenue
`San Rafael, CA 94901-1353
`
`Tel. (415) 459-6386
`Fax. ( 415) 459-0884
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`CONFIDENTIAL
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`RF0008735
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`Page 3 of 3