| Online Risk Management Vendors’ Summary | ||||||||||
| Item | Question | Algo Suite 4.0 | Cygnifi | Derivatives.com | Deutsche Bank RiskOffice | eTreasury.com | FinCad.net | NetRisk: CrystalBox | Netrisk: RiskOps | Measurisk:InterSight |
| 1 | How long have you been in business? | Since 1989 | Nine months | Since 1993 | The product was first offered in 1995 | The founding firms have been supplying treasury technology for more than 20 years | Over 10 years | Four years | Since 1997 | Two years |
| 2 | Are you targeting a particular category of customer? | Financial services, energy & commodity players | Market-makers and end-users of plain-vanilla through exotic derivative instruments including banks, corporates, insurers, supranationals, agencies, asset managers, hedge funds | Financial institutions, hedge | Mainly asset managers, hedge funds, pension funds, insurers and corporate treasuries | More than half the Global 2000 and half the Fortune 100 companies plus many of the largest financial institutions and government agencies 50 | N/A | Investment management industry – asset managers, hedge funds, plan sponsors, etc | Leading financial institutions globally | Corporates, fund managers, individual investors, insurance companies, plan sponsors, retail |
| 3 | How many clients do you have? | 120 | Six | 20 clients piloting the system | More than 20 | Used by more than 2,400 organizations | One asset manager, 80 money owners | 12 | 17 | |
| 4 | Are any major clients willing to be identified? | They include AIG and Morgan Stanley | PricewaterhouseCoopers | No | Microsoft, World Bank Group | Chase, Dell, Ford Motor Cargill, Foster’s, KLM, Philip Morris, Nestlé, Bristol-Myers Squibb, Wal-Mart | See www.financialcad.com, | They include CDC | Include Erste Bank CIBC and Swiss Re | Check with us for names of five |
| 5 | How do you charge for use of the system? | Annual, renewing licence fee plus support & maintenance | Usage basis, number of trades, complexity | When finalized should be $3,000 to $10,000 per month plus monthly licence/support fee | Charges based on frequency of risk reports, number of accounts and type of account | Organizations installing eTreasury in-house pay one-time licence fee of about 1.5% to 2% | Pricing options range from per desk licences and royalty-based per desk fees to monthly subscription fees | Annual subscription – small fixed cost plus marginal user fee | Software licence fee and maintenance programme | Fees are based on portfolio complexity and frequency of reporting |
| 6 | Does your system use proprietary analytics, licensed analytics, or both? | Uses proprietary analytics but supports third-party analytics | Both | Proprietary analytics | Both | Both | Proprietary analytics | “Open” proprietary analytics | Proprietary analytics | Both |
| 7 | What is the intended scope or purpose of your system? | Enterprise-wide risk management | Full front-office and middle-office functionality for derivatives including, valuation, portfolio management, life cycle management, market risk, collateral management and reporting | Full front-middle-back office | To provide market risk reporting – VAR exposures and what-if scenarios for institutional investors on a service bureau basis. We are an ASP. We support vs risk reporting (tracking error) and vs pension/life insurance liability reporting (surplus at risk). | Supports wide range of currency, commodity,and interest-rate instrument trading and risk management. Integrates ASP. Support vs benchmark compliance) and administration within a single environment. In concert with the eTreasury eXchange, provides secure, real-time link between clients/subscribers and financial institutions and other treasury service providers offering online integration of trades, rates, prices, etc. and straight-through processing via internet messaging | Open web services for the creation and delivery of financial applications over the internet full query and interactive | Comprehensive and integrated return, risk and exposure measurement, reporting and web “two way”, providing users with analytics. Analytics encompass backward (eg, Sharpe ratio) and forward (eg, VaR) looking measures | Measurement and management of operational risk | To provide sophisticated analytics via advanced technologies that enable informed investment decisions |
| 8 | What is the ownership structure of your company? | Algorithmics is a privately held company whose equity investors include Morgan Stanley, AIG, CIBC Capital Markets and Royal Bank Capital Markets. | Cygnifi is a private, independent company spun off from JP Morgan. JP Morgan has a minority interest (less than 50%). Other strategic investors include NumeriX, Sybase, Bridge, and Gamma Investors | Imagine Software was started in 1993 by four partners. The first release of the Imagine Trading System came later that year. | Deutsche Bank Group is parent company of DB RiskOffice. | SunGard Treasury Systems is an operating unit of SunGard, a global leader in integrated IT solutions and eProcessing for financial services. | FinCad is privately held. | NetRisk is a private company owned by its founders and employees. | Measurisk is privately owned. The investors are Morgan Stanley Dean Witter, Bank of Bermuda, XL Capital. | |
| 9 | What is the size of your company? | Estimated revenue for 2000 is $80 million, with 450 employees at th end of 2000 | Cygnifi has 100 employees and is located in New York, London, and Tokyo. | Imagine Software has over 160 employees in three offices | About 20 employees. | About 425 employees. Revenues for fiscal year 1999 were over $1.4 billion. | 45 employees | 34 employees of NetRisk with 10 dedicated to CrystalBox | The RiskOps division has about 15 employees | 60 employees |
| 10 | How long has the product been commercially available? | Algo Suite 3.0 for ASP available since July 2000. Earlier versions for strictly a client-server environment date back to 1994.Algo Suite 4.0 will be generally available in March 2001. | Product is currently being deployed to several clients. | The Imagine Trading System first released in 1993. Additional modules have been released yearly. In 2000, Imagine Software launched www.derivatives.com | Since 1995 | eTreasury was announced in May 1999. First sale was to Philip Morris in September 1999. | Software toolkit products: fincad XL eight years and fincad Developer six years.The Perfect Hedge (end user FAS 133 Service) since November. | The product has been commercially available since October 2000. | RiskOps was initially released in December 1998, and announced its first customer in February 1999. | The full-fledged service is two months old. |
