Exhibit V
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`Page 1 of 4
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`TRADING TECH EXHIBIT 2319
`TRADESTATION v. TRADING TECH
` CBM2015-00179
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`

`
`From:
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`Sent:
`
`To:
`
`Cc:
`
`Jeffrey Schneider <jeffreys@dnai.com>
`
`Tuesday, October 20, 1998 2: 16 PM
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`peterhart@measuright.com; Tom Biddulph <bid@skyweyr.com>
`
`Rich at Trademan <rich@trademan.com>
`
`Subject:
`
`Re: Alternative Trading Board Design
`
`Now that I've looked at this a bit, my comments.
`It's different and therefore interesting. I'm generally for looking at very different ways of doing things. In
`addition to it's own merits, having another very different way of visualizing the market adds to the pitkit
`concept and toolkit.
`
`Having multiple value scales on the same axis is a challenge, (and a different one from the trading board, where
`the problem relates to the indicators being on a different value system) but could be trainable and usable. I
`would want to try it and see others try it before passing judgement.
`Both this version and the trading board include the "indicator" or outside info on the same graph/space as the
`interactive board section. If the values in the axis are different it raises the question of why bother to overlap
`them, causing confusion when the goal is quick understanding of the information.
`
`You mention the idea of take-out orders. This is one of the fundamental questions that was raised in the testing.
`We don't currently support real take outs, the priority order always gets filled first. I think that is something we
`need to look at.
`
`What I would most like to see is the way this moves and changes with movement in the market. In particular
`how do the bars positions react to changes in the price line. If I understand correctly, the right edge would be
`theoretically zero spread-the last actual price, marked by the horizontal arrow line. If the price is going up, that
`line rises as the stacks above are filled, the stacks below are falling further away and there is an empty space
`forming in the top right. How frequently does the screen redraw to reflect the new price? When do the stacks
`move right to fill the empty space? Presumable some of the traders on the other side adjust their orders so the
`opposite side starts to track up to the new bar.
`When they do all existing order must be shifted left to accommodate new orders at the best price position on the
`right.
`Another way of looking at that is anytime I place a new order at "better" than the best current price I have
`priority and get the right most position Yes? So if I offer to sell at 43.x (something better than the right most
`stack) on your drawing my stack goes to the right of all other sell stacks. Then the other stacks must move left?
`
`I'm visualizing a lot of screen movement, which if true would be a problem, both as UI and for performance. In
`order to see if this is true I'd be inclined to let Tom mock it up. WE could work through what would happen
`logically on paper and do a quick test of user understanding, but we won't get the true picture of how much
`screen movement there is until we have some order flow going through.
`
`At l0: 15 AM -0700 10/20/98, Peter C. Hart wrote:
`
`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
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`stack that represents an aggregate quantity of 100 1/ 10th the height of a stack that
`represents an aggregate quantity of 1000?
`
`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 propogate orders but also transactions so the board doesn't get
`unnaturally cluttered.
`
`l.
`
`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.
`
`l.
`
`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
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`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-
`
`1 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
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`Tel. (415) 459-6386 Fax. (415)459-0884
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