Industry Research Paper Predicts the Move toward Standardization and Regulations...

Industry Research Paper Predicts the Move toward Standardization and Regulations in Hedge Fund Portfolio Pricing

NEW YORK & SAN FRANCISCO & LONDON--(Business Wire)--
Paladyne Systems, Inc., a leading solutions provider for the hedge
fund industry, Thomson Reuters, the world's leading source of
intelligent information for businesses and professionals, and NumeriX,
the leading independent provider of advanced analytics for the
derivative and structured products market, today released a research
paper exploring trends in the pricing and valuation of complex
portfolios and predicting an industry shift towards standardization of
pricing and valuations methodologies.

In its paper titled, "Hedge Fund Portfolio Pricing Best
Practices," Paladyne Systems said that the industry lacks consistently
applied pricing standards and methodologies that are needed to improve
transparency of hedge fund pricing and valuation. The paper calls on
the industry to come together in a constructive and helpful manner to
define consistent pricing and valuation standards that the industry
can embrace and regulators will, ultimately, enforce.

"For today's hedge fund, there are no standard pricing
methodologies that are consistent across the industry. As such, two
different hedge funds could price the exact same portfolio
differently--both considered correct and fair," said Sameer Shalaby,
CEO of Paladyne Systems. "The challenge for hedge funds and the
industry at large is to establish standard pricing methodologies
across all asset classes, first-generation pricing policies, and
robust infrastructure and operational processes."

"The President's Working Group in April made significant and
timely recommendations for hedge funds to bring their business
practices up to par in all areas including valuations but ultimately
placing that responsibility on the managers," Gerard Buggy, Global
Head of Hedge Funds, Thomson Reuters. "However, truly responsible
pricing and valuation can only be achieved through the collaborative
efforts, process and policies of not only the hedge fund managers but
also fund administrators, prime brokers, analytics and data vendors,
and technology solutions providers - all of whom have a role to play
in an industry-wide solution."

"The industry is at a juncture where regulation is anticipated,"
said Steven O'Hanlon, President and COO of NumeriX. "The first step
toward resolving inconsistent pricing and valuation is for the
industry to take on the task of defining consistent pricing policies
and methodologies that would have universal application and, in
effect, become law. These standards should be led by the industry and
come as a result to regulation."

The paper, released today and available at www.paladyne.com,
covers the following areas: The Pricing Challenge; The Need for
Operational Transparency; Case Study: The $100 Million Hedge Fund; The
Role of Fund Administrators; The Role of Prime Brokers/Counterparties;
The Role of Data Vendors; The Role of Analytics Software Vendors;
Technology as an Enabler; and The Move Toward an Industry Standard.

About Paladyne Systems

Paladyne Systems, Inc. (www.paladynesys.com), a leading solutions
provider for the hedge fund industry, develops and distributes
technology designed to streamline hedge fund operations while
providing business efficiency and cost savings throughout the
organization. Paladyne offers a fully-hosted technology platform known
as the PALADYNE(TM) suite which is capable of supporting the front- to
back-office requirements of today's most comprehensive hedge funds.
The PALADYNE(TM) suite is an integrated set of applications including:
order management, portfolio management, portfolio accounting, global
security master, analytics toolset, comprehensive portfolio pricing,
custom reporting, and customer relationship management. Paladyne was
formed through an acquisition of its technology platform from a large
US-based multi-strategy hedge fund.

About Thomson Reuters

Thomson Reuters is the world's leading source of intelligent
information for businesses and professionals. We combine industry
expertise with innovative technology to deliver critical information
to leading decision makers in the financial, legal, tax and
accounting, scientific, healthcare and media markets, powered by the
world's most trusted news organization. With headquarters in New York
and major operations in London, Thomson Reuters employs more than
50,000 people in 93 countries. Thomson Reuters shares are listed on
the New York Stock Exchange (NYSE: TRI); Toronto Stock Exchange (TSX:
TRI); London Stock Exchange (LSE: TRIL); and Nasdaq (Nasdaq: TRIN).
For more information, go to www.thomsonreuters.com.

About NumeriX

NumeriX is the award-winning, independent leader in pricing and
risk analytics for fixed income, credit, foreign exchange, hybrids,
cross currency, commodities, inflation rate and equity derivatives.
NumeriX has a financial engineering and quantitative team composed
largely of PhDs on the same scale as the very largest of financial
institutions. More than 275 clients across 25 countries rely on
NumeriX for speed and accuracy in valuing their structured products
and derivatives. Trading and risk platform vendors leverage NumeriX
analytics to gain a time-to-market advantage by embedding the power of
NumeriX into their systems. Founded in 1996, the company is privately
held and has offices in New York, Chicago, Santa Fe, Toronto, London,
Paris, Singapore and, Tokyo. For more information visit
www.numerix.com.

Paladyne Systems - Sales
US: Scott Alderson, 212-616-4306
salderson@paladynesys.com
or
Europe: David Simmonds, +44 20 7153 4958
dsimmonds@paladynesys.com
or
Paladyne Systems - Media
Lisa Jane O'Neil, 212-786-7629 or 917-361-8303
lisajane@ljoassociates.com
or
Patty Buchanan, 973 670 1203
patty@ljoassociates.com
or
Thomson Reuters
Jolie Hunt, +646 223 8354
Thomson Reuters Media Relations
Jolie.Hunt@thomsonreuters.com
or
Penrose Financial
Nick Bone, +44 207 786 4878
Mobile: +44 7909 521 293
nickb@penrose.co.uk
or
NumeriX
Media:
James Jockle, 646-512-5824
jjockle@numerix.com
or
Dan Gaffney, 617-226-8840
numerix@lewispr.com

Copyright Business Wire 2008