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Toronto, London - January 6, 2010 -

Algorithmics' is proud to announce that it has won the award for Most Innovative Financial Services Solution for the Algo Real-Time Credit Engine at the Financial Innovation Awards 2009.

Algo Real-Time Credit Engine, which is the front office component of Algorithmics' counterparty credit risk solution, unifies three often incompatible systems in a bank: end of day batch exposure calculation, pre-deal credit exposure and limits management and credit valuation adjustment (CVA)*. This award is the fifth accolade that this solution has received in the last 12 months and highlights the importance of real-time sophisticated risk management in the front office.

Bob Boettcher, Senior Director, Product Strategy, Algorithmics, said: "It has become common practice in the industry to calculate CVA at deal time when pricing new trades. Using Algorithmics' counterparty credit risk solution, banks can calculate the incremental CVA and exposures at deal time, using the most accurate methodology available and not compromising execution times. Clients gain a clear competitive advantage over their competitors who use simplistic, conservative methods."

Chris Ray, Director of Communications and Alumni Services at the ifs School of Finance, said: "These awards, now in their 12th year, celebrate those financial firms that have made stand out innovations in the field of financial services. The industry has came through a difficult year and we are delighted to see that even in the throes of a recession, companies are continuing to innovate and look at alternative ways to harness resources and talent to rebuild and meet the challenges ahead. This is evidenced in the quality and quantity of this year's entries and the growing reach of the competition into Europe and beyond with entries this year from Spain, Turkey, Poland, Malta and South Africa. Our congratulations therefore go to Algorithmics for their tremendous success in winning this award, a real hallmark of success."

Dr Michael Zerbs, President and COO of Algorithmics, added: "We are honored by this recognition. Innovation in close collaboration with our clients has always been a cornerstone of Algorithmics' success. This product demonstrates the power of new and industry-leading technology to transform our clients' businesses and enable risk-aware value creation. Algo Real-Time Credit Engine is the front office component of our counterparty credit risk solution and brings advanced risk management and decision support to the front-office environment; full multi-step Monte Carlo pre-deal exposure and CVA calculation can now be performed at sub-second speeds - a level of performance unmatched in the industry."

Algorithmics' counterparty credit risk solution provides a real-time view of the credit and settlement exposure of a bank's counterparties. Leading financial institutions now have the opportunity to cost-effectively perform full risk simulations for even their largest counterparties at the transaction, portfolio and counterparty levels with sub-second performance.**

 

Algo Real-Time Credit Engine has received four other awards over the last 12 months:

• Risk Magazine's Software Product of the Year Award 2009
• Credit Magazine's Credit Technology Innovation Award 2009
• Banking Technology's Best Risk Management Technology Achievement Award
• Finextra Innovation Showcase

For more information about Algorithmics' award winning and patented risk management solutions, visit: http://www.algorithmics.com  

* 'Credit Value Adjustment: and the changing environment for pricing and managing counterparty risk' - Algorithmics' latest White Paper http://www.algorithmics.com/EN/media/pdfs/Algo-WP1209-CVASurvey.pdf

** In demanding e-commerce environments real-time credit checks have been measured at less than 10 milli-seconds. This response includes the time it takes to complete the 'full round trip', which begins the moment a trade request is made, and includes the calculation of new credit exposures, the aggregation of exposures within a counterparty hierarchy, a check of all applicable limits, including settlement limits, and the delivery of results back to the trader or e-commerce platform.

For further information please contact:
Heather Smith
Senior Communications Manager, Algorithmics (UK) Ltd
Direct line +44 (0) 20 7392 5820
Mobile +44 (0) 7515 974223
E-mail Heather.smith@algorithmics.com

Notes to Editors:

The Financial Innovation Awards are for financial services organizations that have demonstrated excellence in one of the award categories. The Most Innovative Financial Services Solution category is for the innovative development of a software solution for the financial services industry.

ifs School of Finance is a registered educational charity incorporated by Royal Charter. It has a remit to provide the financial services industry with a skilled, effective and competent workforce whilst also promoting a better understanding of finance amongst consumers.

The ifs is the only educational body with a specific focus on finance that has the power to award its own degrees. Its formal qualifications range from GCSE and A Level equivalents for the 14-19 age group, to Degree and Masters programmes for financial professionals. The ifs also offers professional development, competence maintenance and executive education programmes through its alumni membership services.

For further information, please contact Phil Hall (Head of Media, Public Affairs & ifs ProShare at the ifs School of Finance) on 07813004414 or e-mail phall@ifslearning.ac.uk

Algorithmics is the world's leading provider of 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. www.algorithmics.com

Algo Real-Time Credit Engine enables banks to perform the highest quality exposure calculations and pre-trade credit checks with virtually no compromise in trade execution time. Designed to provide a real-time view of the credit exposure and settlement exposure of a bank's counterparties, Algo Real-Time Credit Engine delivers scalable, real-time pre-deal checking, intraday reporting on the credit status of a counterparty, and real time feeds to trading desks.

Algo Real-Time Credit Engine is a multi-asset system that interfaces directly with a bank's e-commerce platforms and other front office systems to provide real-time pre-trade credit checking across capital markets. Interest rate, equity, foreign exchange, credit, and commodity products are all supported for an extremely broad range of simple and complex products.

Accolades for the Real-Time Credit Engine: http://www.algorithmics.com/EN/news/awards/real-time.cfm  

Fitch Group is the parent company of Fitch Ratings, a global ratings agency committed to providing the world's markets with independent, timely and prospective credit opinions. With 49 offices worldwide, Fitch Ratings' global expertise spans across capital markets in over 150 countries. Fitch Ratings is headquartered in New York and London.

The Fitch Group also includes Fitch Solutions, a distribution channel for Fitch Ratings products and a provider of data, analytics and related services; and Algorithmics, the world's leading provider of enterprise risk solutions.

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  and www.fimalac.com  

© 2010 Algorithmics Software LLC. All rights reserved. ALGO, ALGORITHMICS, Ai & design, ALGORITHMICS & Ai & design, KNOW YOUR RISK, MARK-TO-FUTURE, RISKWATCH, ALGO ALM, ALGO COLLATERAL, ALGO CREDIT ADMINISTRATOR, ALGO CREDIT DATA SERVICES, ALGO CREDIT ECONOMIC CAPITAL, ALGO CREDIT EXPOSURE, ALGO CREDIT LIMITS, ALGO CREDIT REGULATORY CAPITAL, ALGO CREDITVANTAGE, ALGO ETREASURY CREDIT, ALGO FIRST, FIRST 500, ALGO MARKET ANALYTICS, ALGO OPDATA, ALGO OPVAR, ALGO RECONCILIATION, ALGO RISK, ALGO RISK SERVICE, and ALGO SUITE are trademarks of Algorithmics Trademarks LLC.

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