|To: JakeStraw who wrote (113)||11/21/2002 8:30:02 AM|
|Penson Worldwide Selects SunGard's STN Settlements for Straight-Through Processing of UK and European Clearing Operations|
Wednesday November 20, 4:30 pm ET
Penson also renews contract for Phase3 securities processing system
BEDFORD, Mass.--(BUSINESS WIRE)--Nov. 20, 2002-- SunGard Securities Processing, an operating group of SunGard (NYSE:SDS), announced today that Penson Worldwide, Inc., will use SunGard's STN Settlements for its London-based affiliate, Penson Worldwide Settlements, Ltd. STN Settlements is an automated clearance and settlement service that connects custodians, broker-dealers, banks and futures commission merchants to custodians, depositories and clearing institutions for trade comparison, reconciliation, clearance and settlement. In addition, Penson has renewed its contract for Phase3, which it has used for multi-currency securities processing, clearance and settlement since 1995.
STN Settlements provides post-execution comparison, matching and netting of trades to and from broker-dealers and outside entities for clearance and settlement. The system interfaces directly with Phase3 to provide a straight-through processing environment. Penson, headquartered in Dallas, Texas, is a leading correspondent-clearing firm that provides clearing and settlement services to financial services companies in the U.S., the U.K., and Europe.
"For Penson, London is the gateway into Europe, and we needed a reliable mechanism for communicating with our sub-custodians who are SWIFT-eligible, as well as reducing the risks of cross-border trading," said Mark Fawver, vice president of international clearing and settlement at Penson Financial Services, Inc. "Adopting STN Settlements into our infrastructure gives our clients a straight-through, seamless trading facility by removing redundant and manual tasks, and linking directly with the Phase3 multi-currency system," said Mr. Fawver.
STN Settlements facilitates straight through processing by leveraging SunGard Business Integration's MINT Knowledge family of products, bridging the gaps between a clearing firm's securities processing system and the many clearance and settlement facilities. STN Settlements eliminates the need for brokers to manage multiple connections, and handles exception management to quickly resolve problems and reduce risk.
"With the SWIFT and Euroclear interfaces contained in STN Settlements, we will be able to better handle the many settlement rules in each country, while also taking advantage of STN Settlements' workflow capabilities such as exception management and a range of other capabilities that make reconciliation much more efficient," said Mr. Fawver.
STN Settlements currently offers, from a single point of access, interfaces with the Government Securities Clearing Corporation's (GSCC) Real-Time Trade Matching (RTTM) system, SWIFT Category 5 compliant with the 15022 standards, Euroclear, and the Depository Trust Corporation (DTC) inventory management system. SunGard plans to add several more interfaces to STN Settlements by the first quarter of 2003, including Bank of New York government securities and Mortgage-Backed Securities Clearing Corporation's (MBSCC) RTTM.
About STN Settlements
Based on SunGard Securities Processing's StreamBridge central interface management system and knowledge base, STN Settlements is platform independent and provided in an ASP environment. STN Settlements is built on industry-standard communication and messaging protocols, including ISO 15022 and XML. STN Settlements uses SunGard Business Integration's MINT Knowledge Master and MINT Knowledge Broker integration solutions, which utilize Sun(TM) ONE products, and run on the Sun Microsystems (Nasdaq:SUNW) Solaris(TM) Operating Environment.
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|To: JakeStraw who wrote (114)||1/21/2003 8:14:44 AM|
|SunGard to Acquire Caminus|
Tuesday January 21, 7:13 am ET
Leading Provider of Integrated Software Solutions for the Energy Industry Offers Synergies with SunGard's Risk Solutions
NEW YORK--(BUSINESS WIRE)--Jan. 21, 2003--SunGard Data Systems Inc. (NYSE:SDS) and Caminus Corporation (Nasdaq:CAMZ) announced today that they have reached a definitive agreement for the acquisition by SunGard of all the shares of Caminus for $9.00 per share in cash.
Based on Caminus's 17.7 million fully diluted common shares outstanding, the transaction has an aggregate value of approximately $159 million. The board of directors of each company has approved the transaction. The acquisition is not expected to have a material impact on SunGard's financial results.
Under the terms of the definitive agreement, a wholly owned subsidiary of SunGard will commence a cash tender offer to acquire all of Caminus's outstanding shares at a price of $9.00 per share. Following successful completion of the tender offer, any remaining shares of Caminus will be acquired in a cash merger at the same price. Caminus will be an operating unit within SunGard Trading and Risk Systems, a SunGard operating group, and will be led by John Andrus, currently chief operating officer of Caminus.
Caminus is a global leader of integrated software solutions for the energy industry, with expertise in end-to-end, integrated transaction processing, management and scheduling solutions. The company's 250 customers touch every piece of the energy value chain and include leading power and gas producers, distributors, utilities, municipalities and financial institutions, as well as half of the Fortune 1000's merchant energy companies. With approximately $84 million in calendar 2002 revenue, Caminus is a leader among independent software providers in this market.
"This transaction makes sound business and financial sense for all of Caminus's constituents," said Bill Lyons, Caminus president and chief executive officer. "Caminus in a short period of time has built a leading company serving a demanding, high-visibility market. It is easy to see why SunGard would find us an attractive acquisition. From our point of view, the relationships, resources and geographic reach of SunGard provide a preferred platform from which to quickly achieve further, significant growth." Lawrence Gilson, Caminus's chairman, added, "The transaction reinforces Caminus's mission and product set and enhances the capacity to produce greater benefits for our customers. For employees, for whom I want to express a special debt of gratitude, this transaction substantially expands career opportunities for many and adds muscle in support of the objectives toward which our people have long been working. For shareholders, the transaction provides a compelling opportunity to realize now the value that Caminus has created."
Jim Ashton, group chief executive officer of SunGard Trading and Risk Systems, said, "Our acquisition of Caminus is consistent with our highly disciplined and successful acquisition process and represents an important opportunity for SunGard Trading and Risk Systems in the energy industry. Caminus and SunGard will exploit the synergies that exist between our solutions to meet the new demands of the energy industry, where companies increasingly focus on integrated software solutions to support their physical energy business. Our leading high-end energy risk solutions, such as Panorama, nicely complement Caminus's integrated software solutions. Caminus's established and respected client base can rely on SunGard's resources for continued development and support."
The consummation of the transaction is subject to customary conditions, including the tender of at least a majority of the outstanding shares of Caminus in the tender offer and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Assuming satisfactory results of the tender offer, it is estimated that the transaction will be completed in the first quarter of 2003.
Certain stockholders of Caminus holding in the aggregate stock representing approximately 26% of the total outstanding shares on a fully diluted basis have entered into a definitive agreement with SunGard in which they have agreed to tender their shares.
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|To: JakeStraw who wrote (115)||2/19/2003 8:29:59 AM|
|SunGard Announces Record Revenue and Earnings for 2002|
Tuesday February 18, 5:52 pm ET
Operational Efficiency and Resilience Drive Deeper Client Relationships
WAYNE, Pa.--(BUSINESS WIRE)--Feb. 18, 2003--SunGard (NYSE:SDS), a global leader in integrated IT solutions for financial services and leading provider of information availability services, reported today that GAAP net income for the year ended December 31, 2002 was $326 million, a 32% increase over $246 million for 2001. The related diluted net income per share was $1.12, up 30% over comparable results of $0.86 in 2001.
Excluding merger costs, other one-time items and goodwill amortization, diluted earnings per share for full-year 2002 were $1.15, up 19% over the $0.97 posted in 2001. This is one cent above the top of the range of the company's 2002 outlook of $1.10 to $1.14, which was first announced in February 2002. The related net income was $334 million, up 21% from the $277 million reported in 2001. Further details concerning one-time items are described in the Notes attached to this release.
Cash earnings per share, which exclude after-tax amortization of acquisition-related intangibles, were $1.29 for full-year 2002, up 21% over $1.07 for 2001.
GAAP net income for the quarter ended December 31, 2002 was $96 million, a 46% increase over $66 million reported in the same period in 2001. The related diluted net income per share was $0.33 for the quarter, up 43% over $0.23 reported in 2001.
Excluding merger costs, other one-time items and goodwill amortization, net income and diluted net income per share for the quarter were $96 million and $0.33, increases of 20% and 18%, respectively, over comparable results of $80 million and $0.28 in 2001.
Revenue for full-year 2002 was $2.59 billion, an increase of 31% over the $1.98 billion reported for 2001. Revenue for the quarter was $702 million, an increase of 22% over $576 million reported in the year-ago quarter. Excluding acquired businesses, revenue increased approximately 1% for the year and decreased approximately 1% for the quarter, compared to 2001 results.
"SunGard performed strongly in 2002. We executed on our strategy and realized record revenue and net income," commented Cristobal Conde, president and chief executive officer. "While we operate in the same macro environment as our competitors, we benefit from a large client base that we serve efficiently on shared platforms. This gives us enviable economies of scale. Our focus on operational efficiency and operational resilience matches our clients' priorities. These factors drive clients to deepen their relationships with SunGard."
"In formulating our 2003 outlook, we followed our usual bottoms-up approach and assumed neither a rebound nor a further deterioration in demand. Our outlook for 2003 diluted net income per share, excluding merger costs and other one-time items, is in the range of $1.24 to $1.29, representing growth of between 8% and 12%," added Mr. Conde.
Investment Support Systems (ISS) revenue grew 4% to $1.36 billion for the year. Quarter-over-quarter revenue grew by 2% to $362 million. Excluding acquired businesses, revenue decreased approximately 2% for the year and 4% for the quarter. ISS is broadly diversified both in terms of clients and products.
Availability Services revenue increased 101% to $1.05 billion for the year. Quarter-over-quarter revenue increased 59% to $290 million. Excluding acquired businesses, revenue increased approximately 7% for the year and 4% for the quarter. The integration of both the Guardian iT and Comdisco Availability Solutions businesses continues to proceed well and is ahead of plan.
SunGard has exceptional financial strength and flexibility, enabling it to further invest in its existing businesses and to acquire new ones. Cash balances as of December 31, 2002 were $440 million. During 2002, current and long-term debt decreased $253 million, while approximately $353 million of cash was spent on nine acquisitions and repayment of acquired debt. Following its highly disciplined acquisition methodology, the company continues to identify acquisitions that complement its existing products, expand its presence and have solid growth prospects. During the first quarter of 2003, the company expects to spend approximately $370 million in cash on pending and previously completed acquisitions.
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|To: JakeStraw who wrote (116)||5/12/2003 3:34:22 PM|
|SunGard to Acquire Subsidiaries of London Pacific Group Limited|
Monday May 12, 11:50 am ET
Will Offer Turnkey Solution for Separately Managed Accounts
BIRMINGHAM, Ala.--(BUSINESS WIRE)--May 12, 2003--SunGard Wealth Management Services, an operating unit of SunGard (NYSE: SDS), today announced that it has entered into a definitive agreement to acquire London Pacific Advisory Services, Inc. and London Pacific Securities, Inc. (referred together as "LPA"), subsidiaries of London Pacific Group Limited (LSE: LPG). LPA provides technology and services to financial institutions and registered investment advisors that offer managed-account or separately managed account investment strategies. Closing of the transaction, which is subject to approval by shareholders of London Pacific Group Limited, is expected in June of this year. The transaction is not expected to have a material effect on SunGard's financial results.
SunGard Wealth Management Services and LPA have worked together under an alliance agreement for the past year to integrate their solution sets. LPA has developed a leading Web-based turnkey asset management program technology that walks an asset manager or trusted advisor through the steps to sell and build managed-account investment strategies tailored to each investor. Managed accounts bring together multiple managers to create a single product solution or portfolio with the best-of-breed from each asset class and the right portion of each asset class. Managed accounts include separately managed accounts which provide for direct individual ownership of security positions. In turn, direct ownership facilitates tax-efficient management based upon an investor's individual needs and goals.
Don Birdwell, chief executive officer of SunGard Asset Management Systems, commented, "By combining LPA's capabilities with SunGard's products and services, we have produced an end-to-end solution for the managed-account industry that incorporates consolidated reporting. LPA's offering complements our product line by creating a true open-architecture, private-label solution for managed accounts that can be integrated for all of our customers. SunGard Wealth Management Services will expand the breadth and industry reach of LPA technology solutions in order to better serve the wealth management industry."
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|To: klambet who started this subject||6/5/2003 8:13:32 AM|
|MONY Selects VIP from SunGard to Illustrate Personal Annuities|
Wednesday June 4, 4:30 pm ET
MIAMI--(BUSINESS WIRE)--June 4, 2003--SunGard Insurance Systems, an operating group of SunGard (NYSE:SDS), today announced that MONY Life Insurance Company, the primary insurance subsidiary of The MONY Group Inc. (NYSE: MNY), has signed a contract for the deployment of VIP, SunGard Insurance Systems' enterprise wide illustration system, for its annuity channel. SunGard Insurance Systems has been a leading global provider of financial and insurance software solutions for both the individual and employee benefits industries for more than thirty-five years.
The MONY Group, Inc., a financial services firm, is broadening its presence in the annuity marketplace and has selected SunGard's VIP System to illustrate annuity products. VIP gives MONY the ability to illustrate its annuity products through both the accumulation and payout phases, a feature that is lacking in some other systems. New annuity contracts will be illustrated over the Web, enhancing distribution and market advantages.
"SunGard's proposal system will significantly enhance our distributors' ability to show prospects the range of features of MONY's annuity products," said Rick Connors, senior vice president and head of MONY's annuity business. "The added capability gives us a competitive advantage as consumers look for a more complete picture to make their financial decisions."
The VIP system is designed to allow insurance carriers to meet their illustration needs with one system. From basic ledgers to advanced case modeling, VIP can deploy all illustration concepts simultaneously over the Web and/or on a desktop. VIP illustrates all types of insurance and annuity products, and gives the home office complete design and authoring control of input screens and output presentations, without SunGard's intervention.
According to Howard D. Stern, FSA, senior vice president for SunGard Insurance Systems, "The MONY organization is aiming to be an industry leader and we are looking forward to being a part of its strategy. We believe our systems will provide MONY with solid technology and the needed functionality they are looking for."
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|To: klambet who started this subject||6/10/2003 8:46:26 AM|
|Neovest Selects SunGard for Co-location and Direct Market Data Connectivity|
Monday June 9, 4:30 pm ET
MT LAUREL, N.J.--(BUSINESS WIRE)--June 9, 2003--SunGard Market Data Services, an operating group of SunGard (NYSE: SDS), announced today that Neovest, Inc., a leading provider of front-end direct access trading technology and strategies, has selected SunGard's integrated market data and co-location services to host and feed its applications with SunGard PowerData market data.
Neovest's direct access technology allows the buy- and sell-side communities to leverage a comprehensive, tightly integrated suite of pre-trade analytics and advanced order entry functionality to achieve best execution within today's fast-paced and fragmented electronic markets. By co-locating its applications servers at SunGard Market Data Services' resilient Mt. Laurel, New Jersey data center, Neovest's applications have access to exchange data and market information at the source, reducing data latency as well as networking and bandwidth costs. SunGard Market Data Services' network infrastructure offers multi-redundant delivery paths, helping to achieve full fault tolerance and protection.
"Speed, reliability and stability were key factors in our decision to host with SunGard," commented Bryce Byers, president and chief executive officer of Neovest, Inc. "SunGard's experienced staff and redundant infrastructure support the connectivity we need to help keep our applications running at absolute peak performance. Additionally, SunGard's S*NET connectivity will provide us with access to an increased range of data providers and trading destinations."
SunGard Market Data Services utilizes the SunGard Global Network, which consists of over 25,000 miles of optical fiber extending across North America and Europe, with over 48 points of presence worldwide through which subscribers can connect. One of the network's most innovative new features is S*NET, which enables customers to simplify their access to SunGard solutions and services through a single connection. S*NET offers quick and affordable access to the SunGard Transaction Network (STN), an electronic global network that links financial services firms and allows users to automate the full transaction lifecycle across common security types to achieve straight-through processing. With multiple network "on ramps" from carrier partners like AT&T, ISPs and other financial connectivity providers, S*NET offers flexibility and speed in accessing SunGard's transaction processing services.
"Neovest provides trading technology and strategy that significantly improves the performance of traders and investors," added Rick Snape, president of SunGard Market Data Services. "Their advanced analytics, idea generation and automated, intelligent order generation capabilities, combined with the added security of our resilient network and high-quality data, positions them well as one of the top tier platforms on the market."
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|To: klambet who started this subject||7/29/2003 8:23:14 AM|
|Fortis Bank Selects SunGard's Credient for Global Limits Management|
Monday July 28, 4:35 pm ET
Credient to Help Improve Control of Limits and Exposure Management, Reduce Unfunded Risk and Establish Workflow for Violation Management
NEW YORK--(BUSINESS WIRE)--July 28, 2003-- SunGard Trading and Risk Systems, an operating group of SunGard (NYSE: SDS), today announced that Fortis Bank has selected Credient for real-time global limits and exposure management. Credient will help the Merchant Banking division of Fortis Bank to further refine the management of global limits and risks through the effective use of an advanced infrastructure.
Credient will consolidate Fortis Bank's global credit information to provide an aggregate real-time view of credit limits and exposures. Around 100,000 deals per month will pass through Credient from across Fortis' global trading operation, for pre-deal limit checks, exposure measurement, limit updates, violation management and credit risk reporting. Credient will automate and streamline processes at Fortis Bank, helping it to better manage and control its credit policies while reducing operating costs and minimizing unfunded risk.
Charles Courouble, head of merchant banking risk management at Fortis Bank, said, "We selected Credient because it is the most comprehensive, cost-effective solution for global credit limits and exposure management. Our existing relationship with SunGard for credit limits management has demonstrated the reliability of its service, through which Fortis Bank has experienced in excess of 99% uptime and has averaged under 3 seconds response time on 98% of transactions. Going forward, Credient will help us more effectively manage and control our credit policies and global risks, and increase operating efficiencies."
Steve Husk, president of SunGard's Trading and Risk operating unit, said, "Banks are increasingly focused on credit risk, which can be a beast to manage. Credient provides the seamless workflow environment that banks need to gather and aggregate data with improved efficiency and consistency. In the face of regulatory and economic pressures, banks are also seeking to more efficiently manage and allocate capital. With Credient, banks are equipped with real-time tools and analytics for integrating credit risk intelligence into their spending decisions, such as risk-adjusted deal pricing, profitability measures, and compensation."
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|To: klambet who started this subject||8/7/2003 8:14:57 AM|
|Advantage Futures Goes Live on SunGard's GMI for High Volume Derivatives Processing|
Wednesday August 6, 4:30 pm ET
CHICAGO--(BUSINESS WIRE)--Aug. 6, 2003--SunGard Futures Systems, an operating unit of SunGard (NYSE:SDS), announced today that Chicago-based futures commission merchant (FCM) Advantage Futures LLC has gone live on SunGard's GMI to manage high volume back office processing and accounting of exchange-traded derivatives and futures.
Advantage Futures, a newly formed FCM with a large professional trader client base, needed a scalable and reliable system to manage its derivatives and futures processing in a high-volume environment. In its first month of operation, Advantage Futures processed approximately 10 million contracts on GMI without requiring any infrastructure changes or additional costs. Advantage Futures is seeking to diversify and grow its client base to include both retail individual and institutional trading customers in the near future, for which it anticipates even higher processing volumes.
"The robust nature of GMI allows us to maximize growth rate without having to grow our staff or add expense," said Jim Zellinger, president and chief operating officer Advantage Futures LLC. "We wanted a long-term partner with real staying power in the market, and SunGard has proven its longevity and reputation in the industry. In addition, SunGard's and GMI's prevalence in the global futures arena has made staffing and training effortless, since many qualified professionals already are familiar with the system."
GMI is a powerful back-office clearing and accounting software solution for the global exchange-traded derivatives marketplace. Clearing firms, securities firms, brokerage houses, emerging derivative players and the regionalized investment community rely on GMI every day for acquisition, processing, management, dissemination, integration and booking of all clearing and trade processing activities for any exchange-traded derivative.
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|To: klambet who started this subject||8/18/2003 8:51:53 AM|
|Where's Your Backup System?|
Monday August 18, 8:19 am ET
When the lights went out in Gotham on Thursday afternoon, Jim Simmons got busy. He's the CEO for availability systems at SunGard Data Systems (NYSE:SDS). Headquartered in Wayne, Pa., SunGard helps companies survive disasters. That means providing services ranging from extensive business-continuity planning to specialized data backup and recovery services to wheeling in a mobile command center loaded with tech gear that can jump-start a corporate network and keep operational interruptions to a minimum.
Around the country, SunGard has dozens of business centers with empty seats and data hookups ready and waiting to host employees of stricken companies chased from their offices by disasters natural, man-made, or just plain mysterious -- like the Aug. 14 power meltdown. As of 10 p.m. that night, 34 SunGard customers had called to activate their disaster plans, and an additional 100 put SunGard on notice. It was the biggest demand Simmons had seen since Hurricane Floyd pounded the East Coast in September, 1999.
This time, even with no high winds or crashing waves, not to mention exploding buildings, Simmons says, "We're getting calls from all over and enacting plans in New York, Toronto, Montreal, and Detroit." In all, says Simmons, SunGard has about 7,000 customers in North America.
TOO CLOSE FOR COMFORT. Of course, many companies thought they had already covered business continuity with post-September 11 plans aimed at minimizing disruptions. Turns out some were wrong. Sure, most had backed up their data centers with generators and were ready for all sorts of attacks on their servers. But where to put the people if the air conditioning goes down within a radius of a hundreds of miles? Or the phones don't work on the backup trading floors anywhere between Philly and Boston?
"The information I'm getting from our crisis-management-control centers is clients are saying, 'I need to enact this portion of the plan because my backup was five miles away, and I am having the same problems there as well," says Simmons.
In fact, the timing of the outage was, if nothing else, fortuitous. It hit at around 4:10 pm, just minutes after Wall Street finished trading for the day, giving the financial sector a full night and much of the next morning to recover and get ready for Friday morning's opening bell -- rung by New York Mayor Michael Bloomberg.
DOUBLE BLOW. Perhaps more important, earlier in the week, info-tech staffs had toiled to patch systems either stricken or still vulnerable to the nasty MS Blaster worm that caused PCs running versions of Microsoft's Windows 2000 and XP to shut down without warning. The worm also clogged many corporate intranets with bogus traffic as it tried to replicate itself by seeking to infect other vulnerable machines.
Had the power outage hit at the same time the worm was wreaking havoc on networks, IT staffs would have been doubly unable to get control of the servers that crashed when the power got cut off. What condition those servers would have been in at restart if they crashed while still infected is unknowable, but it seems safe to say it wouldn't have been pretty.
While the blackout clearly could have been worse in those respects, some people see a connection between the mysterious outage and the latest worm. Most power-grid control systems run on specialized hardware and software that don't talk to the Internet, but some utilities use Windows machines to control and monitor those control systems through graphical interfaces. And a digital chain is only as strong as its weakest link.
"WHAT HAPPENED?" So, if a utility network had a Blaster infection, it could have rippled out to other areas. "I have no doubt that many of the systems involved in governing the distribution of power use Windows somewhere," says Russ Cooper, a Windows security expert with security consultancy TruSecure, which has done programming for utilities in Canada. "The whole grid was designed for a really hot day," he says. "Today wasn't even as hot as it was earlier this week. What happened?"
As of Friday morning, no one had an answer to that question. Everyone from President Bush to Mayor Bloomberg swore the blackout had nothing to do with terrorism. That's probably true.
However, several sobering lessons seem clear. Spreading backup systems around geographically for security purposes needs to be done across hundreds if not thousands of miles. Building a backup facility across the river just doesn't cut it. Companies will need to rethink what it means to create truly redundant business operations.
STILL AT RISK. While security analysts have painted a fearful picture of what would happen if terrorists combined a major attack with a well-timed and well-executed cyber-assault, a similarly nasty one-two may be just as likely to occur without any human intervention at all.
Finally, the outage underscored a year-old warning from the National Research Council that the North American power grid remains at risk and that severe outages could result from relatively minor attacks. Just looked what happened when no attack at all was involved.
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|To: klambet who started this subject||9/5/2003 8:11:15 AM|
|Bank of Bermuda Selects SunGard's Reech FastVal for Independent Portfolio Valuation of OTC Derivatives|
Thursday September 4, 4:30 pm ET
Reech FastVal to Support Global OTC Business via an ASP Delivery Framework
NEW YORK--(BUSINESS WIRE)--Sept. 4, 2003-- SunGard Trading and Risk Systems, an operating group of SunGard (NYSE: SDS), today announced that Bank of Bermuda (NASDAQ: BBDA; BSX: BOB) has selected Reech FastVal for its Global Fund Services division ("GFS"), which provides fund administration services to the alternative funds industry. Reech FastVal will be used to provide independent valuation or validation of Bank of Bermuda GFS' clients' OTC contracts, supporting the complete range of OTC instrument types across equity, fixed income, FX and credit asset classes. Bank of Bermuda GFS has chosen Reech to be part of its alliance partner program because of its ability to deliver services in the areas of valuation and risk.
The fund administration industry increasingly confronts pressure for independent valuation from regulators and investors who seek transparency in pricing and processes. As volumes and product complexity in the alternative investment industry grows, the ability to provide independent valuations becomes both more challenging and more important. Traditional manual methods of valuing OTC derivative portfolios have become too time-consuming and inefficient. Reech FastVal enables fund administrators to provide independent, accurate and speedy computations of the fair value and first order 'Greeks' of portfolios containing any product from cash equities to complex exotics.
Chris Wilcockson, head of client services, Bank of Bermuda GFS, said, "Generating timely and independent valuations for the 2,800 funds under our administration globally requires a reliable, comprehensive service. Demonstrating independence is also important for investor and regulatory confidence. Reech FastVal is unique because it conducts independent pricing for a wide range of instruments and has the flexibility to easily add new instrument types. The ASP model best suited our needs, as it enables costs to be scaled to our growth. Its full service capability also helps us reduce operating risk and improve efficiencies while providing full process independence for our clients."
Christophe Reech, president of SunGard's Reech operating unit, said, "Correctly valuing OTC derivative portfolios can be difficult, requiring substantial infrastructure investment. The need for independent valuations is driven both by investors, and increasingly regulators, seeking to reduce the risks of loss caused by incorrect valuations. Accurate valuations require a system to describe and book the instruments, and the flexibility to add new products and tools to combine complex analytics with the market data for valuations. Reech FastVal provides all of the above in a secure, fully resilient ASP-based environment. Reech FastVal also offers unmatched processing efficiency using grid computing on Linux servers, which can execute three billion computational steps in 80 seconds to calculate the value of complex derivatives."
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