Commerzbank extends commitment with Algorithmics, adds Algo Collateral

Toronto, Canada - December 3, 2003 -

Algorithmics Incorporated, a world leader in enterprise risk management solutions, today announced that Commerzbank, one of the major integrated banks in Germany, has selected Algo Collateral to replace their existing vendor and in-house collateral management system. Commerzbank already uses Algo Market, Algo Liquidity and Algo OpRisk from Algorithmics as core solutions in their enterprise-wide risk management program.

"We are taking a strategic, consolidated, and centralized approach to expand our collateral operation, while utilizing the best solution available," said Neil Andrews, Global Head of Inventory Management at Commerzbank IB. "Our existing vendor solution was unable to meet our requirements so we have chosen a proven solution from Algorithmics. Their depth of resources and collateral experience, along with the input that clients provide on future development, gives us confidence that Algo Collateral can meet our business requirements and scale accordingly."

"Commerzbank is taking a strategic approach to their collateral management operations, ensuring they meet current requirements while building for the future," remarked Michael Zerbs, Chief Operating Officer at Algorithmics. Developed with ongoing input from Algorithmics' growing user base, Algo Collateral provides the functionality and architecture to support efficient implementation time-frames demanded by leading financial service organizations.

Critical to Commerzbank's collateral requirements was a centralized margining framework that would enhance operational efficiencies and provide P&L oriented management of all activities. Algo Collateral provides Commerzbank with the tools necessary to optimize collateral assets, as well as effective operational and forecasting abilities to establish a successful and highly efficient collateral management infrastructure.

Algo Collateral's customizable workflow was a key differentiator to the existing vendor solution. Commerzbank will now be able to consolidate collateral agreement information from multiple business lines and manage associated collateral positions. The workflow accurately defines and guides the critical activities of Commerzbank's global collateral operation from start to finish, and accommodates exposures and market data from both internal and external sources.

Commerzbank will first roll out Algo Collateral to their Frankfurt and New York operations to manage the collateral margining for their global OTC derivative business. As a second step, they will integrate their repo business.

Algo Collateral enables Commerzbank to improve the efficiency of their OTC derivative margining operations, incorporate repo margining within the same infrastructure and retire several in-house applications that had been developed to augment their existing vendor collateral system. Centralizing the repo and OTC derivative business lines on a single platform will facilitate timely, efficient cross-product management reporting capabilities. Commerzbank is also taking advantage of a rich set of additional functionality available within Algo Collateral, including: an automated reconciliation module that facilitates fast and easy resolutions for dispute management and sophisticated rehypothecation functionality that allows Commerzbank to allocate the most appropriate collateral to satisfy margin calls.

About Commerzbank
With consolidated total assets of roughly 400 billion euros, Commerzbank, based in Frankfurt am Main and founded in 1870, is one of Germany's - and Europe's - leading private-sector banks. 33,500 employees, 7,000 of whom are active outside Germany, look after 6 million customers. Apart from the parent bank, Commerzbank AG, the Group consists of numerous subsidiaries in Germany and around the world.

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.

©2003 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
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email: Heather.Smith@algorithmics.com