DECLARATION OF DAVID B. MARTIN, JR.
`
`I, David B. Martin, Jr., declare that:
`
`l.
`I am personally familiar with the facts set forth herein, and, if called as a witness,
`I could and would testify thereto of my own personal knowledge.
`
`I received a B.A. from Cornell University in 1990 and an MBA from New York
`2.
`University in 1997. Whlle in business school I worked for Bankers Trust in New York as
`a summer associate. After business school, I moved to Chicago and clerked on the floor
`of the Chicago Board of Options Exchange ("CBOE") for Letco.
`
`In 1998, I attempted to trade off the floor yja telephone but did not have milch
`3.
`success. In the spring of 1999, I started trading electronically on the Chicago Mercantile
`Exchange ("CME") with a Globex terminal. I used the Globex terminal to trade
`eiectronically until I decided to switch to Trading Technologies' ("TT') in around May
`of2001. 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 CME and the CBOT.
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`4.
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`I currently reside in Chicago, Illinois.
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`. . The front-,eod on tbe .Qlobe~ tenninal displayed. .. the best bid. price,:best bid::::
`5.
`quantity and b·est ask. priCe, best .ask quantity side by-sidein deSignated cells. I(a trader
`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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`In 1999 and 2000. I was consistently very successful in electronic trading. Then,
`6.
`in the first half of2001 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 receotering feature that allowed at
`trader to quickly bling the market back to near the center of the trading_ window. Also,
`~-:rralier allowed a trader t() very easily and quickly. ~nt<:r orders-againsuhe filced
`column of prices such that there wa~ no risk of &~nding orders in· at unintended prices.
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`TI05960
`Confidential
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`2'cl
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`2Blt9l.?2lE
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`11 W~Et=Ol ?002 Et '"~
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`CONFIDENTIAL
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`TT0061557
`TTX00061557
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`TRADING TECH EXHIBIT 2216
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`After seeing the demonstration, I immediately decided to license TI's X_ Trader
`8.
`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 to get used
`to the very different interface. However, shortly 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 directly attributable to MD
`Trader and the features described above. After using MD Trader, I realized that it was far
`superior to the preexisting 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 TT's software, [had
`In my opinion, MD Trader was a stroke of genius
`to switch clearing firms at tbe time.
`and I had not seen anything like it before. MD Trader improved my trading subsmntiaUy.
`I suspect that the reason for my unsuccessful stretch of trading in 200 l was atlributed 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 tbe market, it
`allows traders to recognize trading opportunities quicker. This is especially true if a
`trader is spreading one market against another and has MD Trader windDws 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 tile
`trading interface better. 1 never thought anything like MD Trader. e.g., displaying the
`market information against a fixed column of prices and allowing for one click order
`entry on cells aligned with the fixed prices.
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`I declare under penalty of perjury that the foregoing is true and correct Executed on
`August _l_l_, 2004.
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`M g_ U;;;/J. f..
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`David B. Martin, Jr.
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`2
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`Tf05961
`confidential
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`GBl19l.vGtE
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`ll ~U£1:01 ~002 £1 '"~
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`CONFIDENTIAL
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`TT0061558
`TTX00061558
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`Page 2 of 2
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`TRADING TECH EXHIBIT 2216
`IBG et al. v. TRADING TECH. - CBM2016-00054