DECLARATION OF CHARLES L. MCELVEEN Ill
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`I, Charles L. McElveen ill, declare as that:
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`I am personally familiar with the set of facts set forth herein, and, if called as a
`1.
`witness, I could and would testify thereto of my own personal knowledge. ·
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`I am the founder and owner of Kingstree Trading, LLC, a proprietary trading finn
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`that trades various futures and other financial instruments electronically. Kingstree was
`founded in 2000 and currently has around 55 traders. Kingstree is one of the largest, if
`·not the largest, volume participants in stock index futures trading in the United States.
`Kingstree is located at 1151 N. Clark, Suite 200 in Chicago, lllinois.
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`I began my career trading on the open outcry floor of the Chicago Board ofTrade
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`in 1982. In around 1999, my trading volume began to shift from floor based trading to
`screen based trading.
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`Kingstree licensed and started using IT's MD Trader screen soon after it was
`4.
`launched as a product in around August of2000. IT's MD Trader screen proved to be a
`huge innovation providing a significant advance over the trading screens existing at the
`time. In particular, the MD Trader screen provided major improvements in the speed and
`precision of entering orders. In the MD Trader screen, the prices remained static
`allowing the trader to see market flow much easier through a more intuitive screen .. Also,
`the screen allowed for the ability to quickly enter orders (with a single mouse click) at
`various price levels with confidence because there was no risk of the prices changing
`while the trader was in the process of entering an order using the computer mouse. In
`addition, the one-click recentering feature of MD Trader was very valuable in that it
`allowed the trader to control when he wanted to display the market near the center of the
`trading screen. I had never seen any of these features in trading screens in existence prior
`to TT' s MD Trader screen.
`
`By providing a more intuitive trading screen and by providing the improved fast
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`and reliable order entry, the MD Trader screen allows for traders to react much more
`quickly to fast changing market conditions than the preexisting systems. Speed is
`absolutely critical to electronic traders. Any software that allows a trader to increase the
`speed in which he can recognize an opportunity and send an order to the exchange is
`invaluable. For Kingstree, the competitive advantage that we gain by trading with the
`MD Trader screen has been a determining factor in our success.
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`I am aware that many traders who were l!sed to using older style screens that
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`existed prior to the release ofMD Trader were initially skeptical of the MD Trader screen
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`arid reluctant to use it. However, it did not take long for many electronic futures traders
`to recognize the benefits of MD Trader and start using it.
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`Over the last several years, many competitors ofTT have come out with similar
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`screens to MD Trader utilizing the static price concept, the improved order entry and the
`recentering features. In fact, I am not aware of any competitors of Kingstree that trade
`our style (our style being defined as trading in and out of the market based on order flow
`on a full time basis) that are not using an MD Trader type screen.
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`I declare under penalty of perjury that the foregoing is true and correct. Executed on
`May 18, 2004.
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