UNITED STATES PATENT AND TRADEMARK OFFICE
`_____________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________________
`
`IBG LLC,
`INTERACTIVE BROKERS LLC,
`TRADESTATION GROUP, INC.,
`TRADESTATION SECURITIES, INC.,
`TRADESTATION TECHNOLOGIES, INC.,
`IBFX, INC.,
`Petitioners
`
`v.
`
`TRADING TECHNOLOGIES INTERNATIONAL, INC.
`Patent Owner
`____________________
`
`Patent 7,676,411
`_____________________
`
`
`
`DECLARATION OF DAVID RHO IN SUPPORT OF PETITION FOR
`COVERED BUSINESS METHOD REVIEW OF U.S. PATENT 7,676,411
`
`
`
`
`IBG 1023
`CBM of U.S. Pat. No. 7,676,411
`
`
`_____________________
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`_____________________
`
`IBG LLC,
`INTERACTIVE BROKERS LLC,
`TRADESTATION GROUP, INC.,
`TRADESTATION SECURITIES, INC.,
`TRADESTATION TECHNOLOGIES, INC.,
`IBFX, INC.,
`Petitioners
`
`v.
`
`TRADING TECHNOLOGIES INTERNATIONAL, INC.
`Patent Owner
`____________________
`
`Patent 7,676,411
`_____________________
`
`
`
`DECLARATION OF DAVID RHO IN SUPPORT OF PETITION FOR
`COVERED BUSINESS METHOD REVIEW OF U.S. PATENT 7,676,411
`
`
`
`
`IBG 1023
`CBM of U.S. Pat. No. 7,676,411
`
`
`
`U.S. Patent No. 7,676,411
`
`I, David Rho declare as follows:
`
`1.
`
`I have been engaged by Sterne, Kessler, Goldstein & Fox P.L.L.C. on
`
`behalf of Petitioners, IBG LLC, Interactive Brokers LLC, TradeStation Group,
`
`Inc., TradeStation Securities, Inc., TradeStation Technologies, Inc., and IBFX,
`
`Inc., for the above-captioned covered business method review proceeding. I
`
`understand that this proceeding involves United States Patent 7,676,411, entitled
`
`“Click based trading with intuitive grid display of market depth,” by Gary Allan
`
`Kemp, II, et al., filed October 25, 2006, issued March 9, 2010, (the “’411 Patent”).
`
`I understand that the ’411 Patent is currently assigned to Trading Technologies
`
`International, Inc. (“TT”).
`
`2.
`
`I understand the ’411 Patent claims benefit from U.S. provisional
`
`application 60/186,322. For purposes of the Covered Business Method Review, I
`
`assume the earliest possible priority date of the ’411 Patent is the March 2, 2000
`
`filing date of U.S. provisional application 60/186,322.
`
`3.
`
`I have reviewed and am familiar with the specification of the ’411
`
`Patent. I understand that the ’411 Patent has been provided as Exhibit 1001. I will
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`cite to the specification using the following format (’411 Patent, 1:1-10). This
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`example citation points to the ’411 Patent specification at column 1, lines 1-10.
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`U.S. Patent No. 7,676,411
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`4.
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`I have reviewed and am familiar with the file history of the ’411 Patent.
`
`I understand that the file history has been provided as Exhibit 1002.
`
`5.
`
`I have also reviewed and am familiar with the following prior art used
`
`in the Petition for Covered Business Method Review of the ’411 Patent:
`
` U.S. Patent No. 5,077,665 to Silverman et al. (“Silverman”), Exhibit
`
`1003;
`
` U.S. Patent No. 5,297,031 to Gutterman et al. (“Gutterman”), Exhibit
`
`1004;
`
` WO 90/11571 to Belden et al. (“Belden”), Exhibit 1009;
`
` U.S. Patent No. 5,375,055 to Togher et al. (“Togher”), Exhibit 1005;
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` A certified translation of “Futures/Option Purchasing System Trading
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`Terminal Operation Guide” (“TSE”); I understand that the original
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`Japanese language document was provided as Exhibit 1006, the
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`certified translation provided as Exhibit 1007, and the certification of
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`translation provided as Exhibit 1008; and
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` U.S. Patent No. 6,408,282 to Buist (“Buist”), Exhibit 1022.
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`U.S. Patent No. 7,676,411
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`6. A complete listing of additional materials considered and relied upon in
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`preparation of my declaration is provided as Exhibit 1025 to this declaration. I
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`have relied on these materials to varying degrees. Citations to these materials that
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`appear below are meant to be exemplary, but not exhaustive.
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`7.
`
`The ’411 Patent describes click based trading with intuitive grid
`
`display of market depth. (’411 Patent, Title.) I am familiar with the technology
`
`described in the ’411 Patent as of the earliest possible priority date of the ’411
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`Patent (March 2, 2000).
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`8.
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`I have been asked to provide my technical review, analysis, insights
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`and opinions regarding the ’411 Patent and the above-noted references that form
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`the basis for the grounds of unpatentability set forth in the petition for Covered
`
`Business Method Review of the ’411 Patent.
`
`I.
`
`QUALIFICATIONS
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`1. See my Curriculum Vitae, attached as Exhibit 1024, for a listing of my
`
`qualifications.
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`2. My expertise qualifies me to do the type of analysis required in this
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`case.
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`U.S. Patent No. 7,676,411
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`3.
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`I graduated from the Massachusetts Institute of Technology (MIT) in
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`1992 with a Bachelor’s Degree in Computer Science with Electrical Engineering.
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`4.
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`In the 1990’s, I worked as a Manager of an Educational Computing
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`Facility at MIT, where I created a website having a graphical user interface
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`(“GUI”) front end and a database backend, for receiving, storing, and displaying
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`data.
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`5.
`
` From November 11, 1999 to March, 2001, I worked at marchFIRST in
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`New York, New York as a Consultant and Manager. At marchFIRST, I worked on
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`trading applications, such as implementing a distributed messaging system for
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`fixed income products for a major market data provider. I have also designed a
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`trading system for a pan-European stock exchange.
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`6. From March 2001, I have been working as a partner at MMG Partners
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`in New York, New York. At MMG Partners, I have engaged in numerous trading
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`related projects. I designed the front and back office system for four independent
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`broker dealers, determined product offering gaps for a trading system and market
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`data firm for a client as opposed the client's competitions, and advised numerous
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`sell-side and buy-side companies of ways to reduce their market data spending.
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`7. While at MMG Partners, I have advised a broker/dealer on which order
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`management system would meet their business requirements.
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`U.S. Patent No. 7,676,411
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`8. Also while at MMG Partners, I have performed due diligence on the
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`NYMEX futures exchange with a large private equity firm and a venture capital
`
`firm. I analyzed the trading system from a functional and technical perspective.
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`9. Also while at MMG Partners, I worked on an IT benchmarking study
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`for Deutsche Bourse. This study involved analyzing benchmarks from Deutsche
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`Bourse, Deutsche Bourse Clearing, CBOT, CBOE, CME, Philadelphia Stock
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`Exchange, Swiss Stock Exchange, OMX, Milan Stock Exchange, CME Clearing
`
`and OCC. As part of this study, I normalized benchmark results across disparate
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`trading system platforms and architectures.
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`10. While at MMG Partners, I have also advised Dr. Moses Ma, who was
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`engaged as an expert witness in a lawsuit involving U.S. Patent No. 6,618,707. The
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`nature of my advisement was research and analysis regarding refuting invalidity
`
`claims and proving infringement.
`
`11. My Curriculum Vitae is attached as Exhibit 1024, which contains
`
`further details on my education, experience, publications, and other qualifications
`
`to render an expert opinion. My work on this case is being billed at a rate of
`
`$500.00 per hour, with reimbursement for actual expenses. My compensation is
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`not contingent upon the outcome of this covered business method review or the
`
`litigation involving the ’411 Patent.
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`U.S. Patent No. 7,676,411
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`II. MY UNDERSTANDING OF CLAIM CONSTRUCTION
`12. I understand that, during a covered business method review, claims are
`
`to be given their broadest reasonable construction in light of the specification as
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`would be read by a person of ordinary skill in the relevant art.
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`I. MY UNDERSTANDING OF OBVIOUSNESS
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`13. I am not a lawyer and will not provide any legal opinions. Although I
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`am not a lawyer, I have been advised of certain legal standards are to be applied by
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`technical experts in forming opinions regarding meaning and validity of patent
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`claims.
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`14. I understand that a patent claim is invalid if the claimed invention
`
`would have been obvious to a person of ordinary skill in the field at the time of the
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`purported invention, which is often considered the time the application was filed.
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`This means that even if all of the requirements of the claim cannot be found in a
`
`single prior art reference that would anticipate the claim, the claim can still be
`
`invalid.
`
`15. As part of this inquiry, I have been asked to consider the level of
`
`ordinary skill in the field that someone would have had at the time the claimed
`
`invention was made. In deciding the level of ordinary skill, I considered the
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`following:
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` the levels of education and experience of persons working in the field;
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`U.S. Patent No. 7,676,411
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` the types of problems encountered in the field; and
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` the sophistication of the technology.
`
`16. To obtain a patent, a claimed invention must have, as of the priority
`
`date, been nonobvious in view of the prior art in the field. I understand that an
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`invention is obvious when the differences between the subject matter sought to be
`
`patented and the prior art are such that the subject matter as a whole would have
`
`been obvious at the time the invention was made to a person having ordinary skill
`
`in the art.
`
`17. I understand that to prove that prior art or a combination of prior art
`
`renders a patent obvious, it is necessary to (1) identify the particular references
`
`that, singly or in combination, make the patent obvious; (2) specifically identify
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`which elements of the patent claim appear in each of the asserted references; and
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`(3) explain how the prior art references could have been combined in order to
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`create the inventions claimed in the asserted claim.
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`18. I understand that certain objective indicia can be important evidence
`
`regarding whether a patent is obvious or nonobvious. Such indicia include:
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`commercial success of products covered by the patent claims; a long-felt need for
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`the invention; failed attempts by others to make the invention; copying of the
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`U.S. Patent No. 7,676,411
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`invention by others in the field; unexpected results achieved by the invention as
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`compared to the closest prior art; praise of the invention by the infringer or others
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`in the field; the taking of licenses under the patent by others; expressions of
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`surprise by experts and those skilled in the art at the making of the invention; and
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`the patentee proceeded contrary to the accepted wisdom of the prior art.
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`III. LEVEL OF ORDINARY SKILL IN THE ART
`19. Based on the considerations I listed above, I conclude that one of
`
`ordinary skill in the art at the time of the alleged invention (i.e., in the March 2,
`
`2000 timeframe) would have had the equivalent of a Bachelor’s degree or higher in
`
`Computer Science or Computer Engineering and at least two years of work
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`experience designing and/or programming graphical user interfaces, and direct or
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`indirect experience with trading or related systems. This description is
`
`approximate, and a higher level of education or skill might make up for less
`
`education and vice versa.
`
`IV. THE ’411 PATENT
`A. Claim Construction
`20. As part of my analysis, I have construed all claim terms in light of the
`
`specification of the ’411 Patent.
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`U.S. Patent No. 7,676,411
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`V.
`
`SILVERMAN, GUTTERMAN, BELDEN, AND TOGHER
`A. Overview
`21. Silverman, like the ’411 Patent, is directed to a “computerized
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`exchange” for “trading various trading instruments.” (Silverman, 4:57-5:3.) FIG. 1
`
`of Silverman (reproduced below) depicts a functional block diagram of a trading
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`system. As illustrated in FIG. 1, Silverman discloses a host or central system 20.
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`The host system executes trades by matching active bids and offers sent from client
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`sites. (Id. at 2:65-68, 5:7-11, 5:32-46.) The keystations 24, located at the client
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`sites and connected to the central system via a network, are used to transmit bids
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`and offers for the various trading instruments to the central system. (Id. at 2:65-
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`3:14, 5:20-32.) A keystation 24 is utilized by a trader. And since the ’411 Patent
`
`states that a commodity includes “anything that can be traded with quantities
`
`and/or prices” (’411 Patent, 1:25-27), a person having ordinary skill in the art at
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`the time of the invention (“PHOSITA”) would have understood Silverman’s
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`“trading instruments” to include commodities.
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`22. The host system 20 also maintains a “host book data base comprising
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`all of the active bids and offers in the system by trading instrument.” (Silverman,
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`2:65-68.) As explained by Silverman, the host book “contains detailed information
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`from each client site on the particulars of each bid or offer.” (Id. at 8:38-40.) Thus,
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`the host book includes the market depth (the current bid and ask prices and
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`quantities in the market) for a commodity. Similarly, each keystation 24 maintains
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`a keystation book for each instrument being actively traded. (Id. at 10:15-25,
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`10:56-61.) The information used in the keystation book is used “to generate
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`displays at the keystations.” (Id. at 8:14-18.) FIG. 5 of Silverman (reproduced
`
`below) illustrates a typical keystation book.
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`U.S. Patent No. 7,676,411
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`23. The keystation book is “a subset of the system or central station or host
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`book .” (Id. at 8:13-14.) Keystation books are initially received from and
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`continuously updated by the central system 20. (Id. at 3:46-4:10; 5:7-19; 5:37-49
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`(“real-time updates”); 7:56-8:61; 10:15-25.) The depth of display for a commodity
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`on a keystation is controlled by the host computer that determines the maximum
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`possible display depth for the keystation book and the keystation which may
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`further control the information displayed. (Id. at 8:21-35.) A PHOSITA would
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`recognize that if the keystation can display a subset of the display depth, by
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`definition, a subset can be the same as the entire set, which would include the
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`entire market depth for a commodity on the display.
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`24. In Silverman, a trader places an order “through data entry using a
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`conventional keyboard, pointing device such as a mouse or any other conventional
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`data entry tool.” (Id. at 5:25-32.) Silverman does not provide any further details on
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`order entry.
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`25. Gutterman provides a GUI displaying order icons representing bids or
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`asks at a specific price level. (Gutterman, FIG. 2b (reproduced below).) “Buy
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`orders [bids] are represented in the deck pane as blue square shapes, and sell orders
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`[asks] are represented as red circles, both of which include indications of the
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`quantities of the orders represented.” (Gutterman, 12:21-24.)
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`
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`26. Each order icon in Gutterman is “active.” That is, when the user selects
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`the order icon, the system performs one or more actions – such as populating an
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`electronic message with an “order’s quantity, price and time stamp.” (Id. at 13:29-
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`31.) A trader may immediately transmit this electronic message to another party by
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`pressing another “active” button – the “SEND” button. (Id. at 13:29-43.) (“In
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`periods of heavy market activity….”)
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`27. A PHOSITA would have been motivated to use the “active” order icons
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`of Gutterman in the keystation display of Silverman to permit a trader to place
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`orders. FIG. A (below) includes my edits of FIG. 1 of Silverman to add the order
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`icon interface of Gutterman to the keystation display of Silverman.
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`U.S. Patent No. 7,676,411
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`FIGURE A
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`
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`28. The combination of Silverman and Gutterman fails to disclose selecting
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`an area of the GUI through a single action “to both set a price for the trade order
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`and send the trade order having a default quantity to the electronic exchange.”
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`Single-action order entry was a well-known concept in the field of GUIs, including
`
`in GUIs for trading commodities, well before the earliest possible priority date of
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`U.S. Patent No. 7,676,411
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`the ’411 Patent. Belden describes such a system and method that is in the same
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`field as Silverman and Gutterman.
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`29. Belden teaches an electronic system for trading commodities that
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`“replicate[s] the action which occurs in real commodity trading pits.” (Belden, p.
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`0007.) Belden’s system includes “a host processor which selectively communicates
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`with a plurality of user terminals, each user terminal including a selectively
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`partitionable display by which information is conveyed to a user and means for
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`entering information by which the user participates in the market,” such as “a
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`keyboard and hand-held mouse.” (Id. at 0011.) The user’s terminal’s “display
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`identifies active traders by displaying a separate symbol or icon for each, e.g.,
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`either a blue square for those bidding to buy contracts or a red oval for those
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`offering to sell.” (Id.) As shown in Belden’s FIG. 2b, “the quantity of each trader’s
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`bid or offer is listed within each icon, as is each trader’s badge acronym.” (Id. at
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`0011, 0026-27.)
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`30. Belden’s user terminals support single-action order entry: “Trading is
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`done by using the mouse to move a cursor onto the icon of a trader and pushing a
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`button, i.e., ‘clicking’ on the icon.” (Id. at 0012.) For example, “[t]o hit a bid or
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`take an offer in MAR89 bonds (abbreviated ‘USH’)” using the mouse, a trader
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`would “enter [an] amount (if less than what icon is showing), point and click on
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`icon with mouse in the appropriate partition.” (Id. at 0033.) Based on Belden’s
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`statement, “if less than what icon is showing,” a PHOSITA would have understood
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`the step of “enter amount” is optional, i.e., a trader could point and click on an icon
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`without entering an amount in order to place an order for the quantity shown in the
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`icon. For example, a trader could point and click on icon 205-2 to purchase 50
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`contracts from DAS at the current offer price of 11. This example illustrates that
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`selecting an area of Belden’s trading arena (order entry region) using a mouse sets
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`a plurality of trade parameters (e.g., price, quantity, trader partner’s name) and
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`sends the trade order.
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`31. A PHOSITA would have been motivated to implement Belden’s single-
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`action order entry techniques in the combination GUI of Silverman and Gutterman
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`to reduce the amount of time needed to place an order and reduce the number of
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`operator actions that are required to place the order, thus reducing the opportunity
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`for operator error.
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`32. The combination of Silverman, Gutterman, and Belden fails to disclose
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`sending the trade order “having a default quantity.” The use of default values and
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`automatic entry of information (e.g., price) was a well-known technique in the field
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`of GUIs well before the earliest possible priority date of the ’411 Patent. Togher
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`U.S. Patent No. 7,676,411
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`describes such a system and method that is in the same field as Silverman,
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`Gutterman, and Belden.
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`33. Togher discloses an “electronic brokerage system having a
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`communication network connecting traders dealing with financial instruments.”
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`(Togher, 1:7-10.) The “electronic brokerage system facilitates the buying and
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`selling of large blocks of foreign currency by traders.” (Id. at 5:4-7.) Togher
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`discloses that a trader can establish default trade values, such as a default trade
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`quantity, before he/she begins trading: “As shown in FIG. 4, each trader can call up
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`a ‘Trader Profile’ screen 70 . . . to establish or modify his personal default values
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`for normal and maximum trading size . . . .” (Id. at 12:7-15, FIG. 4; see also id. at
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`8:65-9:10, 11:20-25.) Establishing the default values allows a trader to “quickly
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`and accurately respond to a new Dealable Bid or offer price by merely activating a
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`Buy button 34 or a Sell button 36, respectively on the screen, assuming that the
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`display is touch sensitive or is provided with a ‘mouse’ or other pointing device.”
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`(Id. at 9:1-6; 11:33-41.) As suggested by Togher, a PHOSITA would be motivated
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`to use defaults in the combination GUI of Silverman, Gutterman, and Belden
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`increase the speed and accuracy of trading.
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`B. Claim 9
`34. Claim 9 recites “dynamically displaying an entered order indicator at a
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`graphical location aligned with a price level of the plurality of price levels,
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`U.S. Patent No. 7,676,411
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`wherein the entered order indicator represents a user’s trade order working at the
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`price level aligned with the entered order indicator.”
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`35. Belden discloses that an order icon “includes a member’s identifying
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`acronym and the number of contracts he/she is offering.” (Belden, p. 0026.)
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`“Figure 2b represents a possible trading screen for a hypothetical Member TCO.”
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`(Id. at 0033.) As shown in FIG. 2b of Belden (which I reproduced below), the GUI
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`displays TCO’s entered orders at graphical locations associated with the trade
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`price. In the display of FIG. 2b, TCO is offering 50 contracts of “USH” at a price
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`of “11,” bidding for 25 contracts of “USM” at a price of “09,” and offering 50
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`contracts of “USH-USM” at a price of “13.” Thus, Belden teaches “dynamically
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`displaying an entered order indicator at a graphical location [associated] with a
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`price level of the plurality of price levels, wherein the entered order indicator
`
`represents a user’s trade order working at the price level [associated] with the
`
`entered order indicator.”
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`(Belden, FIG. 2b.)
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`
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`36. Implementing Belden’s techniques for displaying a trader’s entered
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`orders in the combination GUI of Silverman, Gutterman, Belden, and Togher
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`would result in the entered order indicators (bid/ask order icons) being aligned
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`with the price levels of Gutterman’s price column. Again, Gutterman discloses
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`plotting bid and ask order icons along a price axis. (Gutterman, 12:1-56, FIG. 2b.)
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`Since the combination GUI of Silverman, Gutterman, Belden, and Togher displays
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`market depth (Silverman, 8:19-30 (display depth of keystation book); Gutterman,
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`FIG. 2b), it would be obvious to a PHOSITA to display the entered order
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`indicators disclosed by Belden aligned with the price axis disclosed by Gutterman.
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`A PHOSITA would be motivated to do so in order to indicate on the display which
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`of the outstanding orders were made by the particular trader and the status of those
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`orders so that the trader could easily recognize and track his/her orders. A
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`PHOSITA also would have understood that plotting the trader’s working orders
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`against the price axis would have allowed the trader to quickly observe the prices
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`at which his/her orders were working. Accordingly, the combination GUI of
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`Silverman and Gutterman (as modified by Belden and Togher) renders claim 9
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`obvious.
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`37. As discussed above, the combination GUI of Silverman, Gutterman,
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`Belden, and Togher displays market information to a trader at a workstation, and
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`accepts the trader’s orders that are placed in response to observing the market. In
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`the combination GUI, the order icons would represent the outstanding orders in the
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`overall market for a given commodity, not just the orders in a single broker’s deck.
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`However, it would have been obvious to a PHOSITA to additionally indicate on
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`the display which of the outstanding orders were made by the particular trader and
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`the status of those orders so that the trader could easily recognize and track his/her
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`orders.
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`U.S. Patent No. 7,676,411
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`38. Gutterman supports this position by suggesting that “[o]ne of the skills
`
`of a broker is in knowing his deck [i.e., working orders].”1 (Gutterman, 3:14.)
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`Gutterman appreciated that it was difficult for a trader to remember all of his/her
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`working orders and the status of those orders, especially in times of heavy market
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`activity. (See id. at 3:23-24 (“Occasionally, the decks are as much as an inch thick
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`and require great memory skill and anticipatory planning.”).) Gutterman sought to
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`alleviate this burden by “allow[ing] the broker to manage . . . orders more
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`efficiently” by rapidly organizing and presenting this information on a display in a
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`manner that can be quickly observed and easily understood. (Id. at 6:51-55; see
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`also id. at 6:37-40.) As described above, Gutterman displayed the order
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`information against a price axis to help achieve this goal. (Id. at FIG. 2b.)
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`39. U.S. Patent No. 6,408,282 to Buist (“Buist”), which was filed on April
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`15, 1999, provides further evidence that it would have been obvious to a PHOSITA
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`to additionally indicate on the display which of the outstanding orders were made
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`by the particular trader and the status of those orders. FIG. 6, reproduced below,
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`1 A broker is a type of trader. For a broker, “the deck is a stack of orders that
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`are to be executed by the broker.” (Gutterman, 3:15-16.) In other words, the
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`broker’s deck represents his/her “working orders.”
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`U.S. Patent No. 7,676,411
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`illustrates “a visual quote and order book display.” (Buist, 12:8-10.) The column
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`labeled 684 is a price column. (Id. at 12:51-52.) On either side of the price column
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`has two columns labeled “Your Orders.” These columns are disposed on either side
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`of a price column 684. (Id. at 12:52-54.) “The ‘Limit Qty.’ and ‘AON Qty.’
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`columns list the size of orders at each price level posted into the system by other
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`users.” (Id. at 12:54-56.) And in support of the position taken above, Buist also
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`teaches that the GUI also includes the “Your orders [column showing] the user’s
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`order in the stock.” (Buist, 12:56-59, emphasis added.) Thus, Buist’s GUI displays
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`the individual user’s market positions in addition to the positions in the market that
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`were taken by others. And, Buist displays the individual user’s market positions in
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`relation to the price column.
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`U.S. Patent No. 7,676,411
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`40. Based on Gutterman’s teachings and suggestions and the additional
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`evidence provided by Buist, a PHOSITA would also have appreciated the
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`importance of indicating on the display the trader’s orders and the status of those
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`orders. Additionally, a PHOSITA would have understood that plotting the trader’s
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`working orders against the price axis would have allowed the trader to quickly
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`observe the prices that his/her orders were working at or executed at.
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`C. Claim 10
`41. Belden teaches “canceling the user’s trade order represented by the
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`entered order indicator in response to a single action of the user input device with
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`U.S. Patent No. 7,676,411
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`the cursor of the user input device positioned over the entered order indicator.”
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`For example, “[t]o cancel a bid in MAR89 bonds” using the mouse, “point and
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`click on your bid icon for MAR89 bonds with mouse.” (Belden, p. 0037 (also
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`cancel in JUN89); see also id. at 0038 (describing how to cancel all bids).) Thus,
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`the combination GUI of Silverman and Gutterman (as modified by Belden and
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`Togher) render claim 10 obvious.
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`42. It would have been obvious to a PHOSITA to implement Belden’s
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`order cancel feature in the GUI of Silverman, Gutterman, Belden, and Togher to
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`allow a trader to cancel an outstanding order that is displayed by the GUI.
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`Canceling orders is a well-known concept in the field of commodities trading.
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`Moreover, a PHOSITA would have understood that a trader’s ability to quickly
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`and accurately exit market positions when he/she senses that the market is turning
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`adverse to those positions is of the utmost importance to a high-speed, high-
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`frequency trader.
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`VI. TSE, BELDEN, AND TOGHER.
`A. Overview
`43. TSE is a “Futures/Option Purchase System” that “handles the trades in
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`the” bond futures, bond future option, index futures, index option, and stock option
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`markets with different product characteristics.” (TSE, p. 0035.) As explained by
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`U.S. Patent No. 7,676,411
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`TSE, “[e]ach aforementioned market may have a different price display, and input
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`unit, etc.” (Id.)
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`44. The system of TSE includes a client computer. (Id. at 0006.) The
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`client computer “has a number of functions such as inputs of various orders, resale
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`and buy back/rights, exercises, various inquiries, various work operation
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`instructions, and board information inquiries responding to the information display
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`and the printer control function.” (Id. at 0013.) “The basic operation of the client
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`is almost equal to that of the Windows personal computer.” (Id. at 0026.) The
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`client “can be operated by the ‘keyboard’ or ‘mouse’.” (Id. at 0013.) When using
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`the “mouse,” a “selection can by made by ‘Clicking,’ etc.” (Id. at 0027.)
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`45. TSE displays information graphically on a screen and thus has a GUI
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`for displaying market information. One example of the GUI of TSE is the “Boards
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`& Quotations” Screen. TSE supports many display options and modes for
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`presenting market information on the Boards & Quotations Screen. For example, a
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`user can select from 6 types of display forms that divide the screen to display
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`information for multiple (2, 4 or 6) Issues simultaneously. (Id. at 0103-04.) In
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`addition, quotation information for 11 or 24 Issues can be displayed with divided
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`configurations of 2 Issues (11 or 24 quotations) and 3 Issues (11 quotations).
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`(TSE, p. 0104.) As highlighted below, the “Boards & Quotations” Screen includes
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`Board Screen portion and a Quotation Portion.
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`U.S. Patent No. 7,676,411
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`(Id. at 0103.)
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`
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`46. Below is an example of a Board Screen when the divided in 2 form is
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`selected by the trader. The Board Screen includes the ability to turn on scrolling
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`through the scroll buttons labeled ⑤. A Board Screen “that does not scroll is
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`called a ‘Basic Board Screen.’” (Id. at 0115.) TSE refers to a Board Screen having
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`scrolling enabled as a “Scrolling Screen.” (Id .) For purposes of this proceeding, I
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`refer to the Board Screen as having a Basic Board Screen mode and a Scrolling
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`Screen mode.
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`U.S. Patent No. 7,676,411
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`(Id. at 0107.)
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`
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`47. When in Basic Board Screen mode, “the display of board information is
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`updated so that the ‘Board Display Center Price’ is continuously displayed at the
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`center part of the board.” (Id. at 0115.) When in Scrolling Screen mode, “the price
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`display positions do not change automatically.” (Id.)
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`48. A user can transition the Board Screen to Scrolling Screen mode by
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`“us[ing] the mouse to click the ‘▲’ or ‘▼’ scroll button on the Board Screen.” (Id.
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`at 0116.) When in Scrolling Screen mode, the “H” is displayed in “Red.” (Id.) A
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`U.S. Patent No. 7,676,411
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`user can transition the Board Screen from Scrolling Screen mode to Basic Board
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`Screen mode by “[u]s[ing] the mouse to click the ‘H’ (Home) button on the Board
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`Screen.” (Id.)
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`(Id.)
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`49. As explained in TSE, when the Board Screen is in Scrolling Screen
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`mode, “[u]s[ing] the mouse to click the ‘▲’ or ‘▼’ scroll button on the Board
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`Screen” scrolls the screen “1 Price” at a time each time the mouse is clicked. (Id.)
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`50. The system of TSE allows a trader to customize the Boards &
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`Quotations Screen based on how they prefer to view the market information while
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`they actively trade. For example, TSE provides menus to allow the trader to select
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`the divide form of the Boards & Quotations Screen. (Id. at 0105.) In addition, the
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`U.S. Patent No. 7,676,411
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`trade can select either a “non-compressed” price display method or a “compressed”
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`price display method. In the “non-compressed” price display, “[r]egardless of the
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`existence of the orders, etc. at the corresponding price, it is a method to display all
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`prices on the board.” (Id. at 0068.) In the “compressed” price display, only the
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`price that satisfies a set of requirements is displayed on the board. (Id.)
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`B. Claim 9
`51. Claim 9 recites “dynamically displaying an entered order indicator at a
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`graphical location aligned with a price level of the plurality of price levels,
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`wherein the entered order indicator represents a user’s trade order working at the
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`price level aligned with the entered order indicator.”
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`52. TSE does not explicitly disclose an entered order indicator as recited in
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`claim 9, but it would have been obvious to a PHOSITA to indicate on the display
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`the status of a trader’s orders so that the trader could easily recognize and track
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`his/her orders.
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`53. As explained above, Belden discloses that an order icon “includes a
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`member’s identifying acronym and the number of contracts he/she is offering.”
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`(Belden, p. 0026.) “Figure 2b represents a possible trading screen for a
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`hypothetical Member TCO.” (Id. at 0033.) As shown in FIG. 2b of Belden (which
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`is reproduced above), the GUI displays TCO’s entered orders at graphical locations
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`U.S. Patent No. 7,676,411
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`associated with the trade
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