Société Générale Securities Services chooses Algorithmics to help manage risk within its asset servicing offer dedicated to complex derivative products.

Toronto/London - October 18, 2007 -

Société Générale Securities Services (SGSS) has selected Algo Risk Service, a web-based portfolio construction and risk management service hosted by Algorithmics, to assist in managing the risk underlying its new asset servicing offer dedicated to complex derivative products.

SGSS has become the first European player to develop completely in-house expertise in securities services for over the counter and structured products, guaranteeing its clients complete control throughout the processes. The offer meets the needs of operators in the financial markets - fund management companies, private banks, trading rooms, issuers - who wish to delegate the technical and operating processing of complex derivative products covering all asset classes.

Rachid Lassoued and Philippe Rozental, Asset Servicing co-heads at SGSS said, 'For this new offering, we needed a sophisticated risk management and portfolio modeling service with the ability to measure, monitor and manage investments and risks in real-time, at an affordable price. As recommended by most of the European regulatory bodies we wanted to use Value-at-Risk, complemented by the CVar, estimating the maximum loss in extreme circumstances. We also wanted to cover regulatory risk measurement, stress testing and multi-criteria risk attribution. We believe that Algorithmics' Mark-to-Future framework will deliver these through the web, with the software and computing power hosted by Algorithmics, hence reducing our cost of ownership.'

Andrew Aziz, Algorithmics' Executive Vice President of risk solutions, added, 'The complex derivative products being managed by SGSS defy traditional risk analysis. The Algo Risk Service provides an extensive array of simulation-based risk analytics, ranging from probabilistic measures to stress testing measures. It also offers a comprehensive range of analytical sensitivity measures such as multi-dimensional betas, durations, convexities, option greeks and PV01s, spanning systemic and specific risk factors. In addition, clients can make use of the robust portfolio modeling environment to perform extensive "what-if" analyses and for portfolio optimization.

'The scalability of the solution will allow them easily to accommodate new methodologies and investment innovations as their clients' needs evolve and we look forward to working with SGSS in the future.'

Notes to Editors:

Societe Generale Securities Services offers a full range of securities services in:

  • Execution, clearing and settlement
  • Global custody, trustee, transfer agent, fund administration
  • Liquidity management
  • Middle-office outsourcing services
  • Performance, risk, OTC derivatives and structured products pricing
  • Employee share plan and option management

Société Générale Securities Services currently ranks 3rd among securities custodians in Europe and 9th worldwide with EUR 2,580 billion in assets under custody at end June 2007. At the same date it provided valuations for 4,354 funds representing assets under administration of EUR 405 billion. It ranks among the European leaders in stock option management, serving more than 400,000 beneficiaries.

Société Générale Securities Services employed 5,500 people at the end of June and has a presence on more than 30 financial marketplaces across Europe, the Americas, Africa and Asia. Fitch ratings: 'CU2+' Global Custody - Paris, 'TR2+' Trustee - Paris. For additional information visit www.sg-securities-services.com

Algorithmics is the world's leading provider of enterprise risk solutions. Financial organizations from around the world use Algorithmics' software, analytics and advisory services to help them make risk-aware business decisions, maximize shareholder value, and meet regulatory requirements. Supported by a global team of risk experts based in all major financial centers, Algorithmics offers proven, award-winning solutions for market, credit and operational risk, as well as collateral and capital management. Algorithmics is a member of the Fitch Group.

Algo Risk Service provides a fully integrated, flexible platform for assessing future risk across an organization in a single, consistent, rigorous environment covering all investment strategies across all risk factors and asset classes. It covers both traditional assets and sophisticated, structured products. Offered as a managed service, clients access the solution via a web browser. All the Algo Risk Service software and computing power is hosted by Algorithmics, allowing the cost of ownership to be dramatically reduced.

Fitch Group is the parent company of Fitch Ratings, a global rating agency dedicated to providing the world's credit markets with independent and prospective credit opinions, research and data. The Fitch Group also includes Derivative Fitch, an independent provider of a suite of ratings and comprehensive services for the credit derivatives market; Algorithmics, the world's leading provider of enterprise risk solutions; and Fitch Training, which offers high-quality analytical training for financial professionals. The Fitch Group is a majority-owned subsidiary of Fimalac, S.A., headquartered in Paris, France. For additional information, please visit www.fitchratings.com www.algorithmics.com www.fitchtraining.com and www.fimalac.com/

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