Algorithmics, Mexican Stock Exchange provide online pricing for Mexican Financial Institutions

Toronto, Canada - August 10, 2000 -

Algorithmics Incorporated today announced Valor de Mercado, a joint venture between Algorithmics and the Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV) to provide prices for all government and corporate bonds, equities and warrants sold in Mexico. The initiative has received government approval, satisfying a new regulatory requirement in Mexico that all market participants use a third party price vendor.

Available on a subscription basis, Valor de Mercado leverages the experience Algorithmics has gained implementing risk management solutions at more than a dozen Mexican institutions including the Banco de Mexico, Consar, Banamex, Bital and Banorte. Building on financial market data provided by the Bolsa, Valor de Mercado has implemented Algorithmics' RiskWatch in a Mark-to-Future framework to compute market prices efficiently.

"Algorithmics has the experience in the local marketplace, and the leading-edge technology that we need to deliver pricing information to clients of Valor de Mercado," says Alvaro Mancera, Chief Operating Officer of the BMV. "We have chosen Algorithmics' Mark-to-Future standard as an implementation framework for Valor de Mercado because pricing and risk management are supported consistently in Mark-to-Future."

Says Ron Dembo, President and CEO of Algorithmics, "As one of the world's most sophisticated exchanges and as the leading exchange in Latin America, the Bolsa needs to deliver advanced pricing analyses to a broad range of customers. We're delighted to provide the framework that enables them to build on their position and market knowledge within the Latin American financial community."

Algorithmics' Mark-to-Future framework makes it possible to deliver risk information on an application service provider (ASP) model because it separates the computationally intensive simulation stage for the post-processing, risk and reward assessment stage. The Mark-to-Future architecture can contain data for a variety of financial products, rather than rely on the data and systems of one corporate user. This is a significant value-add for clients of Valor de Mercado, since they can access price information on many products from a single central source.

About Algorithmics
Algorithmics Incorporated is the leading provider of enterprise risk management solutions that enable financial institutions to effectively understand and manage their financial risk. Algorithmics' clients include more than 150 of the world's leading financial institutions. Its Algo Suite of enterprise risk management solutions are in use in 31 countries by over 50 of the 100 largest financial institutions in the world.

©2000 Algorithmics Incorporated. All rights reserved. ALGORITHMICS, ALGO SUITE, MARK-TO-FUTURE, MtF and the Ai logo are trademarks of Algorithmics Incorporated and/or its affiliates.

Press Contact

Heather Smith
Senior Communications Manager
Tel:  +44 (0)20 7392 5820
Mobile: +44 (0) 7515 974 223
Fax: +44 (0)20 7395 5701
email: Heather.Smith@algorithmics.com