`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`TRADING TECHNOLOGIES INTERNATIONAL,)
`INC.,
`
`))
`
`))
`
`Plaintiff,
`
`)
`v.
`)
`eSPEED, INC., eSPEED INTERNATIONAL,)
`LTD., ECCO LLC, and ECCOWARE, LTD.,)
`)
`Defendants.
`)
`
`No. 04 C 5312
`
`Chicago, Illinois
`October 1, 2007
`1:45 o'clock p.m.
`
`14-B
`VOLUME
`TRIAL TRANSCRIPT OF PROCEEDINGS
`BEFORE THE HONORABLE JAMES B. MORAN, and a JURY
`
`APPEARANCES:
`Trading Technologies
`International, Inc., by:
`
`and
`
`TRADING TECHNOLOGIES
`INTERNATIONAL, INC.,
`MR. STEVEN F. BORSAND
`222 South Riverside Drive
`Chicago, Illinois 60606
`312-476-1000
`steve.borsand@
`tradingtechnologies.com
`McDONNELL, BOEHNEN, HULBERT &
`BERGHOFF, LTD.
`MR. PAUL H. BERGHOFF
`MR. S. RICHARD CARDEN
`MR. CHRISTOPHER M. CAVAN
`MR. MICHAEL D. GANNON
`MS. JENNIFER M. KURCZ
`MR. MATTHEW J. SAMPSON
`MR. LEIF R. SIGMOND
`300 South Wacker Drive
`Chicago, Illinois 60606
`312-913-0001
`berghoff@mbhb.com
`kurcz@mbhb.com
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`TRADING TECH EXHIBIT 2220
`IBG ET AL. v. TRADING TECH
`CBM2015-00182
`
`Page 1 of 17
`
`
`
`eSpeed, Inc., eSpeed
`International, Inc.,
`Ecco LLC, Eccoware,
`LTD., by:
`
`Rosenthal Collins Group,
`LLC, by:
`
`3003
`
`WINSTON & STRAWN
`MR. GEORGE C. LOMBARDI
`MR. RAYMOND C. PERKINS
`MR. IMRON T. ALY
`MR. KEVIN BANASIK
`MS. ELIZABETH HARTFORD ERICKSON
`MR. ANDREW M. JOHNSTONE
`MS. TRACEY J. ALLEN
`MR. JAMES M. HILMERT
`35 West Wacker Drive
`Chicago, Illinois 60601
`312-558-5600
`glombardi@winston.com
`rperkins@winston.com
`LAW OFFICES OF
`GARY A. ROSEN, P.C.
`MR. GARY A. ROSEN
`1831 Chestnut Street, Suite 802
`Philadelphia, Pennsylvania
`19103
`215-972-0600
`
`DOWELL BAKER
`MR. GEOFFREY A. BAKER
`201 Main Street
`Lafayette, IN 47901
`765-429-4004
`gabaker@dowellbaker.com
`
`Court Reporter:
`
`MS. CAROLYN COX, CSR, RPR, CRR
`Official Court Reporter
`219 S. Dearborn Street, Suite 1854-B
`Chicago, Illinois
`60604
`(312) 435-5639
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`Page 2 of 17
`
`
`
`3021
`
`Mr. Perkins' testimony.
`THE COURT:
`MR. SAMPSON:
`the examination.
`THE COURT:
`
`about.
`
`It is --
`And it's outside the scope of
`
`It's not something he knows
`
`Thank you, your Honor.
`
`MR. SAMPSON:
`BY MR. PERKINS:
`And you don't know if the Trade Pad was shown at
`Q.
`that LIFFE ISV showcase?
`There's no electronic evidence that I have in my
`A.
`possession from the defendants that shows that.
`MR. PERKINS:
`No further questions.
`THE COURT:
`Thank you, sir.
`THE WITNESS:
`Thank you, your Honor.
`(Witness leaves the stand.)
`MS. KURCZ:
`Thank you.
`TT now calls as its
`next witness David Feltes.
`Mr. Feltes was a CEO of
`Marquette Partners, an international proprietary trading
`firm of futures traders.
`Mr. Feltes will describe his reaction upon
`first seeing the MD Trader product in 2000 and the
`reaction of traders also at Marquette in that time frame
`and thereafter.
`(Whereupon the videotape is played:)
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:13:00
`
`14:13:02
`
`14:13:03
`
`14:13:05
`
`14:13:05
`
`14:13:07
`
`14:13:07
`
`14:13:12
`
`14:13:12
`
`14:13:16
`
`14:13:18
`
`14:13:20
`
`14:13:25
`
`14:13:27
`
`14:13:28
`
`14:13:48
`
`14:13:48
`
`14:13:51
`
`14:13:57
`
`14:14:02
`
`14:14:04
`
`14:14:07
`
`14:14:10
`
`14:14:14
`
`14:14:24
`
`Page 3 of 17
`
`
`
`3022
`
`After your graduation from Washington University,
`Q.
`can you just tell me a little bit about your work
`history?
`I worked on the family farm for a while in
`Sure.
`A.
`West Chicago, Illinois, and then in July of 1994 began
`working for MJM Trading, which was associated with
`Marquette Partners.
`I did -- I clerked on the floor and
`then did system trading and programming upstairs
`concurrently.
`In 1995, I began working half my time and half my
`salary was paid for by Marquette Partners in doing -- in
`working with their traders and their IT staff, basically
`doing trader support, as well as trading off the floor
`systems for them.
`In 1996, I went full-time with Marquette in
`Marquette Electronic Brokerage, which was a brokerage
`unit that they had formed.
`At that point I did the IT as well as brokering
`and clearing in the back office, as well as continuing
`doing trader support for Marquette, the main company.
`In 1998, I began doing IT full-time for
`Marquette.
`In September of '98, I came to Europe, to their
`Frankfurt offices, their Paris offices, and their London
`offices for about eight weeks.
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:14:24
`
`14:14:29
`
`14:14:31
`
`14:14:32
`
`14:14:37
`
`14:14:46
`
`14:14:49
`
`14:14:56
`
`14:15:01
`
`14:15:03
`
`14:15:12
`
`14:15:17
`
`14:15:22
`
`14:15:26
`
`14:15:28
`
`14:15:38
`
`14:15:42
`
`14:15:44
`
`14:15:53
`
`14:15:57
`
`14:16:03
`
`14:16:13
`
`14:16:15
`
`14:16:19
`
`14:16:23
`
`Page 4 of 17
`
`
`
`3023
`
`And then it was decided that I would become
`general manager in IT for Marquette London in the
`consolidated offices in February of '99.
`So from
`February of '99 until 2000, I was the general manager.
`Late 2000 I became the managing director in
`charge of IT for London as well as the management of
`London, as well as some other global responsibilities.
`I remained in that role going back and forth to
`Chicago, as well as to Asia, for business development,
`ISVs, and macro business for Marquette.
`In April of 2006, I was named CEO of Marquette
`Partners, and that's my current role today.
`Thank you.
`Q.
`Can you just tell me, briefly, over the period of
`your work experience, what kind of experience, if any,
`you had with trading?
`I was a pit clerk for a top bond trader in the
`A.
`U.S. Treasury bonds.
`And then off the floor we would do
`system trading, which is essentially designing systems
`that would then -- on trade station software --
`writing -- coming up with the idea, writing the code,
`and then when that system would activate, we would then
`get on the phone and either phone to the floor or a
`broker, so basically phone trading.
`There were other discretionary trading that was
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:16:26
`
`14:16:29
`
`14:16:32
`
`14:16:38
`
`14:16:45
`
`14:16:50
`
`14:16:56
`
`14:17:01
`
`14:17:06
`
`14:17:09
`
`14:17:15
`
`14:17:23
`
`14:17:28
`
`14:17:29
`
`14:17:35
`
`14:17:39
`
`14:17:42
`
`14:17:49
`
`14:17:53
`
`14:17:56
`
`14:18:00
`
`14:18:03
`
`14:18:07
`
`14:18:13
`
`14:18:15
`
`Page 5 of 17
`
`
`
`3024
`
`done on behalf of my bosses, with them making the
`decision, but I would be the one who would actually fill
`those orders.
`In my time with Marquette electronic brokerage, I
`would take clients' phone calls and trade on either the
`Eurex front end or any software that we had.
`And I have
`been -- I'm responsible in my risk management duties to
`exit trades when either an individual system goes down
`or if an office goes down.
`Tell me a little bit about Marquette Partners.
`Q.
`What is the business of Marquette Partners?
`Marquette Partners is a proprietary trading firm
`A.
`based in Chicago with now a London office.
`We do not
`trade client money.
`We are primarily electronic
`traders, although our business model has been arbitrage
`between Bund and the LIFFE floor, and on the Eurex
`machine.
`We're members of twelve to thirteen exchanges
`We have multiple entities.
`There's a Hong
`worldwide.
`Kong entity, an energy entity, et cetera.
`Essentially, we have, I think, probably about 60
`people now.
`So we have fluctuated in size over the
`years, but it's a limited partnership based in Chicago.
`And do the traders employed by Marquette, are
`Q.
`they on the floor of an exchange or do they trade
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:18:20
`
`14:18:24
`
`14:18:27
`
`14:18:28
`
`14:18:32
`
`14:18:37
`
`14:18:44
`
`14:18:50
`
`14:18:56
`
`14:18:59
`
`14:19:02
`
`14:19:04
`
`14:19:10
`
`14:19:13
`
`14:19:16
`
`14:19:21
`
`14:19:29
`
`14:19:29
`
`14:19:33
`
`14:19:38
`
`14:19:40
`
`14:19:48
`
`14:19:51
`
`14:19:55
`
`14:20:00
`
`Page 6 of 17
`
`
`
`3025
`
`primarily electronically?
`We're a proprietary
`They trade electronic.
`A.
`trading firm, not necessarily an arcade.
`All the
`traders are sole -- are employees of the firm, so
`there's no independent contractors or whatever.
`I'm just curious whether traders, end users of
`Q.
`the software products, have any role in the
`functionality that's involved in the product.
`Yes, frequently -- and using the word liaison --
`A.
`I would bring in the ISV rep and have them work with the
`various traders and have them sit down, watch them
`And then we
`trade, and they would give suggestions.
`would -- I would be responsible for helping follow up on
`those suggestions to get those ideas either in further
`releases or to tell traders that what they wanted is not
`possible in the current situation.
`And what ISVs has Marquette used since you became
`Q.
`involved in the software selection for electronic
`trading?
`GL, Ecco, Trading Technologies, a limited amount
`A.
`We have traded on
`of Orc, Patsystems, RTS, FfastFill.
`the eSpeed front end, among others.
`Which of the software vendors employ people that
`Q.
`you would consider to be friends?
`TT, PATS, Ecco, collegial with the GL folks, RTS,
`A.
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:20:03
`
`14:20:03
`
`14:20:09
`
`14:20:12
`
`14:20:17
`
`14:20:20
`
`14:20:25
`
`14:20:30
`
`14:20:33
`
`14:20:38
`
`14:20:45
`
`14:20:49
`
`14:20:53
`
`14:20:56
`
`14:20:59
`
`14:21:04
`
`14:21:07
`
`14:21:12
`
`14:21:15
`
`14:21:15
`
`14:21:24
`
`14:21:33
`
`14:21:45
`
`14:21:49
`
`14:21:51
`
`Page 7 of 17
`
`
`
`3026
`
`FfastFill.
`Mr. Feltes, do you recognize that document?
`Q.
`I do.
`A.
`What is it?
`Q.
`This is a declaration that I wrote stating my
`A.
`story regarding the first time I found MD Trader and my
`experiences with MD Trader, among other things.
`If you turn to the second page of that document,
`Q.
`is that your signature at the bottom of the second page?
`That is my signature.
`A.
`And do you recognize this to be a true and
`Q.
`accurate copy of your declaration, excluding the legends
`that -- you know, the footers at the bottom of the
`pages?
`A.
`Q.
`exist?
`I was contacted by someone from TT London to ask
`A.
`if I would tell my story about how I first ran into
`MD Trader.
`In terms of Mr. MacDonnell asking you to prepare
`Q.
`a document like this, why did you do it?
`I have friendly relations with a lot of vendors
`A.
`and good -- and I'm -- as liaison, I try to stay on good
`terms with the various vendors.
`And I didn't
`
`Yes.
`How did this -- how did this document come to
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:22:07
`
`14:22:09
`
`14:22:13
`
`14:22:16
`
`14:22:18
`
`14:22:31
`
`14:22:39
`
`14:22:44
`
`14:22:47
`
`14:22:50
`
`14:22:52
`
`14:22:54
`
`14:23:01
`
`14:23:04
`
`14:23:05
`
`14:23:07
`
`14:23:11
`
`14:23:12
`
`14:23:16
`
`14:23:23
`
`14:23:25
`
`14:23:30
`
`14:23:34
`
`14:23:41
`
`14:23:46
`
`Page 8 of 17
`
`
`
`3027
`
`necessarily see a problem with telling the truth.
`Did you receive any compensation or promise of
`Q.
`any benefit, anything of value, for signing the
`declaration?
`No.
`A.
`Were you threatened -- on the other hand, were
`Q.
`you threatened or pressured in any way to sign the
`declaration?
`I was told I didn't have to do it.
`Not at all.
`A.
`I was just asked if I wanted to do it, and so I did.
`Could you review that for us a little more
`Q.
`carefully, and let me know if you believe it's still
`accurate, the contents of that document, today.
`Do you recall the first time that you saw
`MD Trader?
`I do.
`A.
`And let me take a step back from that, actually.
`Q.
`What is MD Trader?
`MD Trader is a Trading Technologies product that
`A.
`allows a scalping trader, or any trader, access to the
`markets in a very efficient way.
`And can you just generally describe the
`Q.
`interface?
`It's a vertical ladder that has, you know,
`Sure.
`A.
`prices, bids on the -- you can customize it in any way,
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:23:52
`
`14:23:54
`
`14:24:00
`
`14:24:02
`
`14:24:04
`
`14:24:04
`
`14:24:07
`
`14:24:10
`
`14:24:10
`
`14:24:13
`
`14:24:17
`
`14:24:21
`
`14:24:26
`
`14:24:29
`
`14:24:32
`
`14:24:34
`
`14:24:36
`
`14:24:38
`
`14:24:41
`
`14:24:48
`
`14:24:54
`
`14:24:57
`
`14:24:59
`
`14:25:00
`
`14:25:04
`
`Page 9 of 17
`
`
`
`3028
`
`but the bids are in blue, offers are in the red, and
`there's boxes and there's single clicking to put your
`orders in.
`There's a ladder with the various prices.
`That ladder is static, meaning that it doesn't
`move, and so when the bids move up and the offers move
`up, you can visually see the exchange in the -- not only
`in the numbers, but also visually you can see bullish or
`bearish movement in a market.
`When did you first see MD Trader?
`Q.
`I believe it was fourth quarter of 2000.
`A.
`Do you remember the circumstances?
`Q.
`Robbie MacDonnell, who was, I believe, sales --
`A.
`in sales at the time that TT London called me up and
`said, I've got some new software, can you come on by?
`So that afternoon, I went by his office and he
`He was very excited about it,
`showed me the product.
`explained to me what the product was about; and that was
`the first time I saw it.
`What was your initial impression on seeing
`Q.
`MD Trader?
`Robbie was very excited, and he's a very good
`A.
`salesperson and I was excited as well.
`I came back to
`the office that afternoon, and I think I had some
`documents or pictures, and I showed them to my traders.
`And not only with Robbie's enthusiasm, but with
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:25:10
`
`14:25:13
`
`14:25:17
`
`14:25:20
`
`14:25:23
`
`14:25:26
`
`14:25:34
`
`14:25:38
`
`14:25:44
`
`14:25:48
`
`14:25:52
`
`14:25:54
`
`14:26:00
`
`14:26:04
`
`14:26:09
`
`14:26:16
`
`14:26:21
`
`14:26:29
`
`14:26:31
`
`14:26:34
`
`14:26:34
`
`14:26:39
`
`14:26:44
`
`14:26:51
`
`14:26:56
`
`Page 10 of 17
`
`
`
`3029
`
`the potential for single click and visualization, I was
`excited.
`What trading screens were you familiar with
`Q.
`before you saw MD Trader?
`GL, Ecco, TT in its previous form, market grid,
`A.
`if you will; I had seen an Orc screen; I had seen
`exchange-native front ends, such as Eurex, and I had
`seen some other ones, but I was not overly familiar, per
`se.
`
`I guess, my question is:
`
`If you look at your declaration, the third
`Q.
`Could you read that for me?
`sentence of paragraph 4.
`MD Trader also provided for fast one-click-order
`A.
`entry that was accurate and in that the trader could be
`confident that the order was going in at the intended
`price.
`Q.
`what?
`In exchange of the price being 66 bid at 67.
`A.
`Again, I can -- I had a guarantee that if I wanted to
`buy 67s, that I would get 67s.
`There wasn't the chance
`that the column next could change and I would be being
`filled on a worse price.
`So the fact that you could visually see the
`market -- the fact that you had a one-click limit bid
`and you could see your working order right there, gave
`
`Fast as compared to
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:27:04
`
`14:27:09
`
`14:27:09
`
`14:27:12
`
`14:27:17
`
`14:27:36
`
`14:27:41
`
`14:27:47
`
`14:27:52
`
`14:27:52
`
`14:27:55
`
`14:27:57
`
`14:28:00
`
`14:28:03
`
`14:28:05
`
`14:28:08
`
`14:28:10
`
`14:28:11
`
`14:28:15
`
`14:28:18
`
`14:28:23
`
`14:28:28
`
`14:28:30
`
`14:28:39
`
`14:28:47
`
`Page 11 of 17
`
`
`
`3030
`
`more -- gave traders more assurance of what price they
`were attempting and/or getting.
`More assurance compared to what, the prior
`Q.
`screens?
`Some of the prior screens, yes.
`A.
`And the first time that you saw MD Trader, had
`Q.
`you seen the features of static prices and single-click
`order entry in a single order product?
`No.
`A.
`I'm just curious if it struck you as unusual that
`Q.
`TT was showing you a product that was so different from
`what you were aware of?
`While I had seen new
`Yes, it was different.
`A.
`versions of multiple ISV softwares and new versions of
`TT software, this seemed to be a new paradigm or a
`change that we hadn't requested, but it seemed different
`than previous systems that we had seen.
`Were you, at Marquette, motivated to improve the
`Q.
`trading screens that you had?
`Without a doubt.
`A.
`And what efforts did you take at Marquette to try
`Q.
`to improve the trading screens?
`Not only having -- not only with me as the
`A.
`liaison between the various different reps, our Chicago
`ISV reps, as well as our London ISV reps, of -- having
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:28:52
`
`14:28:55
`
`14:29:00
`
`14:29:03
`
`14:29:04
`
`14:29:06
`
`14:29:11
`
`14:29:14
`
`14:29:17
`
`14:29:17
`
`14:29:25
`
`14:29:29
`
`14:29:30
`
`14:29:35
`
`14:29:39
`
`14:29:50
`
`14:29:55
`
`14:29:59
`
`14:30:02
`
`14:30:03
`
`14:30:05
`
`14:30:10
`
`14:30:12
`
`14:30:20
`
`14:30:24
`
`Page 12 of 17
`
`
`
`3031
`
`them interact with the various traders, interact with
`the management.
`We
`We also would regularly -- not regularly.
`would solicit various different ideas for improvements
`or what we call edge, which is opportunity to create
`profits in the markets.
`We also polled our traders and, you know, asked
`them for any discussion suggestions that they may have
`in order to help us -- you know, help us get better
`access to the markets.
`Is that polling of your traders, is that what you
`Q.
`referred to here in paragraph 8 of your declaration that
`we just marked as Exhibit 1?
`Yes.
`A.
`And so tell me a little bit about the results of
`Q.
`the poll.
`The traders -- we asked the traders to come up
`A.
`with various ideas that they had, in terms of what would
`make the better product, what would be more efficient,
`to visually draw a new display or basically come up
`with, you know, your ideal system.
`And I would -- they -- I would say they had some
`marginal suggestions, changes, but we -- I did receive
`from both Chicago and London traders ideas and
`suggestions on ways to improve the software that we used
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:30:29
`
`14:30:32
`
`14:30:33
`
`14:30:40
`
`14:30:45
`
`14:30:50
`
`14:30:54
`
`14:31:01
`
`14:31:05
`
`14:31:11
`
`14:31:12
`
`14:31:15
`
`14:31:18
`
`14:31:21
`
`14:31:21
`
`14:31:23
`
`14:31:25
`
`14:31:33
`
`14:31:37
`
`14:31:41
`
`14:31:47
`
`14:31:50
`
`14:31:58
`
`14:32:04
`
`14:32:09
`
`Page 13 of 17
`
`
`
`3034
`
`immediately on what the price action was, could click to
`try to get it and end up being filled at a worse price.
`I don't want to confuse you by jumping around.
`Q.
`But I'm going to jump back to paragraph 5 and --
`actually, paragraph 4.
`There's a sentence, and we've talked a little bit
`about it already, that says:
`MD Trader also provided
`for a fast one-click-order entry that was accurate and
`that the trader could be confident in the order going in
`at the intended price.
`Where does the confidence come from?
`The fact that you can see, you know, the grid box
`A.
`that you're clicking in.
`You know what -- you know what
`price you're going to get, because it's the -- it is
`horizontal to a static price.
`And does that have any effect on traders'
`Q.
`confidence?
`Because they would -- they know what
`Yes.
`A.
`price -- they have more control over what price they're
`trading at, as opposed to an unknown fill.
`Why, if at all, is confidence important to a
`Q.
`trader?
`Confidence is, in my opinion, the name of the
`A.
`game in trading and that basically traders learn the
`markets, develop confidence.
`That confidence then gives
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:35:59
`
`14:36:04
`
`14:36:09
`
`14:36:13
`
`14:36:19
`
`14:36:21
`
`14:36:24
`
`14:36:27
`
`14:36:32
`
`14:36:34
`
`14:36:35
`
`14:36:37
`
`14:36:42
`
`14:36:52
`
`14:36:56
`
`14:37:01
`
`14:37:04
`
`14:37:05
`
`14:37:07
`
`14:37:09
`
`14:37:14
`
`14:37:17
`
`14:37:18
`
`14:37:24
`
`14:37:31
`
`Page 14 of 17
`
`
`
`3035
`
`And if they don't -- and
`them extra edge and success.
`they can lose their confidence very, very quickly.
`So a trader cannot only have a losing day because
`they made the wrong decisions outside of software, but
`because of exchanges going down or because of, you know,
`getting bad fills.
`Anything can damage the trader's
`confidence.
`And it's -- my job is to try to minimize that
`happening.
`In your experience, do confident traders trade
`Q.
`more?
`Yes, sometimes too much.
`A.
`After you first saw the MD Trader screen at TT's
`Q.
`offices, did you bring it in-house to Marquette, the
`product, the MD Trader product?
`Yes.
`A.
`What was the initial
`So tell me about that.
`Q.
`reaction to MD Trader at Marquette?
`Traders were initially skeptical, because
`A.
`profitable traders are hesitant towards change, because
`change can alter confidence.
`And if you're successfully making money, they're
`skeptical that -- that they would be able to make more
`money elsewhere -- with additional functionality.
`So when I first came back and described
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:37:36
`
`14:37:40
`
`14:37:43
`
`14:37:49
`
`14:37:52
`
`14:37:55
`
`14:37:58
`
`14:37:59
`
`14:38:05
`
`14:38:06
`
`14:38:10
`
`14:38:11
`
`14:38:16
`
`14:38:21
`
`14:38:28
`
`14:38:31
`
`14:38:31
`
`14:38:34
`
`14:38:36
`
`14:38:45
`
`14:38:50
`
`14:38:53
`
`14:38:58
`
`14:39:07
`
`14:39:12
`
`Page 15 of 17
`
`
`
`3036
`
`MD Trader, after initially seeing it, to several of the
`traders, it was interesting.
`Some traders who were debt
`traders thought this would be very good for equity
`markets.
`And equity traders thought it would be very
`good for debt markets.
`But, initially, people were skeptical because
`they don't -- traders don't like change.
`But,
`gradually, over the course of the next six to -- six
`months to a year, more and more traders moved, because
`it took one trader experimenting, finding very good
`success, and then once success is proven, other traders
`will move over.
`So there was a fairly quick takeup on the new
`MD Trader after initial skepticism.
`We still have one
`trader who held out and liked the market grid, because
`their style and stubbornness were, they felt, more
`conducive to the market grid.
`You mentioned kind of an aversion to change among
`Q.
`traders.
`Was the MD Trader-style screen immediately
`recognized as a change?
`Yes.
`A.
`Let me rephrase it.
`Q.
`Are there any negatives associated with the
`MD Trader-style screen?
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:39:17
`
`14:39:20
`
`14:39:27
`
`14:39:30
`
`14:39:33
`
`14:39:35
`
`14:39:42
`
`14:39:47
`
`14:39:50
`
`14:39:56
`
`14:40:07
`
`14:40:09
`
`14:40:10
`
`14:40:14
`
`14:40:20
`
`14:40:24
`
`14:40:35
`
`14:40:37
`
`14:40:40
`
`14:40:41
`
`14:40:44
`
`14:40:47
`
`14:40:47
`
`14:40:49
`
`14:40:51
`
`Page 16 of 17
`
`
`
`3037
`
`I've alluded to
`
`Yes, I think that there are.
`A.
`some in my statement.
`If the market moves very, very quickly and a
`trader does not recenter, and even if they do recenter
`very quickly, it is difficult to sort of chase the
`market.
`So on very, very volatile screens, it's
`difficult to chase.
`Initially, I think the first version of MD Trader
`did not have a condense functionality, which condenses
`market prices.
`And so if the market moved upward very,
`very quickly, you would have to be centering and trying
`to bid or, you know, if it moved down quickly, centering
`trying to offer.
`And if the market got very wide,
`because generally people would have the ladder being 20
`to 25 prices vertically high, if the market got to be
`too wide, you would not be able to see the bid and the
`ask.
`Are there any other negatives with that screen
`Q.
`that you can recall?
`I think that some traders felt that it wasn't an
`A.
`At the time we had
`efficient use of screen real estate.
`to add a lot more dual screen monitors, because a lot of
`people liked the MD Trader, but they would have multiple
`markets up in a grid where you can see multiple products
`that you weren't necessarily trading.
`You can have that
`
`1 2 3 4 5 6 7 8 9
`
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`
`14:40:52
`
`14:40:55
`
`14:40:59
`
`14:41:06
`
`14:41:10
`
`14:41:15
`
`14:41:21
`
`14:41:22
`
`14:41:25
`
`14:41:28
`
`14:41:34
`
`14:41:38
`
`14:41:42
`
`14:41:44
`
`14:41:49
`
`14:41:55
`
`14:41:58
`
`14:42:06
`
`14:42:09
`
`14:42:10
`
`14:42:18
`
`14:42:22
`
`14:42:27
`
`14:42:34
`
`14:42:39
`
`Page 17 of 17
`
`