Dear NinjaTrader Subscriber:
Earlier this year we communicated to you that we had reached an agreement with Trading Technologies to license their MD Trader family of patents and subsequently we posted this information on our website. You can view this information by clicking on the following web link.
http://www.ninjatrader-support.com/subscribe_TT.htm
The purpose of this note is to update you on how these fees may impact you as a NinjaTrader subscriber when they take effect on January 1, 2006. A subsequent note will be sent to you next week detailing how we are going to charge and collect the TT license fees. Based on the information in that note, please take the appropriate action for your specific situation to insure your ability to execute trades with NinjaTrader starting on January 1, 2006.
Overview
In August of 2004 Trading Technologies was granted patents specific to single click order submission on a static price ladder as part of a Depth-of-Market (DOM) trading interface. Some traders may choose to argue the validity of the TT patents, but when viewed from a legal perspective specific to our subscribers, our partners, and our business, we had to consider the following facts; the patents were granted to TT, the United States Intellectual Property Office stands behind them, and no one has disproved TTâs claims in court. Based on these facts we were left with two options; create a workaround solution or license the patents.
We did investigate many workaround options prior to making the decision to enter into a license agreement with TT. The workaround options that TT deemed non-infringing I deemed unacceptable from my perspective as an active trader. I want to provide our subscribers with the option of using a best in class DOM style trading interface. In my opinion, the static price ladder with single click order action that was awarded to TT is that best in class DOM interface.
For these reasons and with the input of many of our subscribers on their preference, we elected to license the TT patented technology versus implementing an unacceptable workaround solution. The decision to license the technology has also indemnified all our subscribers and partners from any potential TT litigation and this was also an important decision item.
The result of the agreement is that we will have to start charging our subscribers a per transaction fee for all trades executed through a NinjaTrader SuperDOM enabled edition starting January 1, 2006. NinjaTrader, LLC has negotiated the best license fees possible and the rate schedule is posted at the link above.
We will also make available a version of NinjaTrader that has the SuperDOM disabled. TT license fees will not be applicable to subscribers who elect to use this version of NinjaTrader. Subscribers who may opt for this version of NinjaTrader include anyone who solely uses the NinjaTrader Basic Entry window or use NinjaTraderâs Automated Trading Interface. Otherwise if you have a NinjaTrader SuperDOM enabled edition, you will have to pay the TT license fees whether you trade through the SuperDOM or not.
How is NinjaTrader going to collect and bill for the license fees
We are currently finalizing various agreements with our broker and FCM partners on how we are going to count and collection the transaction fees. In some cases the FCM will track and collect the payments for us and in other situations we will have to track and collect the payments ourselves. We will provide you detailed information and instructions next week on what you need to do based on your trading situation. Please read the information and take appropriate action to insure your ability to trade with NinjaTrader when the license fees take effect on January 1, 2006.
We will compile an FAQ that we will release within the next week as we receive your questions.
Best Regards,
Raymond Deux
President & CEO
NinjaTrader, LLC
Earlier this year we communicated to you that we had reached an agreement with Trading Technologies to license their MD Trader family of patents and subsequently we posted this information on our website. You can view this information by clicking on the following web link.
http://www.ninjatrader-support.com/subscribe_TT.htm
The purpose of this note is to update you on how these fees may impact you as a NinjaTrader subscriber when they take effect on January 1, 2006. A subsequent note will be sent to you next week detailing how we are going to charge and collect the TT license fees. Based on the information in that note, please take the appropriate action for your specific situation to insure your ability to execute trades with NinjaTrader starting on January 1, 2006.
Overview
In August of 2004 Trading Technologies was granted patents specific to single click order submission on a static price ladder as part of a Depth-of-Market (DOM) trading interface. Some traders may choose to argue the validity of the TT patents, but when viewed from a legal perspective specific to our subscribers, our partners, and our business, we had to consider the following facts; the patents were granted to TT, the United States Intellectual Property Office stands behind them, and no one has disproved TTâs claims in court. Based on these facts we were left with two options; create a workaround solution or license the patents.
We did investigate many workaround options prior to making the decision to enter into a license agreement with TT. The workaround options that TT deemed non-infringing I deemed unacceptable from my perspective as an active trader. I want to provide our subscribers with the option of using a best in class DOM style trading interface. In my opinion, the static price ladder with single click order action that was awarded to TT is that best in class DOM interface.
For these reasons and with the input of many of our subscribers on their preference, we elected to license the TT patented technology versus implementing an unacceptable workaround solution. The decision to license the technology has also indemnified all our subscribers and partners from any potential TT litigation and this was also an important decision item.
The result of the agreement is that we will have to start charging our subscribers a per transaction fee for all trades executed through a NinjaTrader SuperDOM enabled edition starting January 1, 2006. NinjaTrader, LLC has negotiated the best license fees possible and the rate schedule is posted at the link above.
We will also make available a version of NinjaTrader that has the SuperDOM disabled. TT license fees will not be applicable to subscribers who elect to use this version of NinjaTrader. Subscribers who may opt for this version of NinjaTrader include anyone who solely uses the NinjaTrader Basic Entry window or use NinjaTraderâs Automated Trading Interface. Otherwise if you have a NinjaTrader SuperDOM enabled edition, you will have to pay the TT license fees whether you trade through the SuperDOM or not.
How is NinjaTrader going to collect and bill for the license fees
We are currently finalizing various agreements with our broker and FCM partners on how we are going to count and collection the transaction fees. In some cases the FCM will track and collect the payments for us and in other situations we will have to track and collect the payments ourselves. We will provide you detailed information and instructions next week on what you need to do based on your trading situation. Please read the information and take appropriate action to insure your ability to trade with NinjaTrader when the license fees take effect on January 1, 2006.
We will compile an FAQ that we will release within the next week as we receive your questions.
Best Regards,
Raymond Deux
President & CEO
NinjaTrader, LLC