Paladyne Launches Next Generation Multi-Asset Class Trading and Portfolio Management Solution

Paladyne Adds Ten (10) New Clients on Paladyne Portfolio Master(TM) in Second Quarter


NEW YORK, NY and SAN FRANCISCO, CA and LONDON--(Marketwire - June 16, 2009) - Paladyne Systems, Inc., a leading global solutions provider to the hedge fund industry, today announced the release of Paladyne Portfolio Master™ Version 6.0, a multi-asset class trading, real-time P&L, and portfolio management solution designed specifically for global hedge fund managers. Paladyne Portfolio Master is a unique combination of front-office trading tools and comprehensive middle- and back-office portfolio management functionality, which is available either as a fully hosted solution as part of Paladyne's ASP platform or as a local installation at a client site. Paladyne Portfolio Master has been implemented by ten (10) new clients in North America and Europe in the second quarter of this year.

Paladyne has added new and enhanced functionality across all areas of Paladyne Portfolio Master in this latest release including order generation and trade modeling, real-time P&L and model-based pricing, pre- and post-trade compliance, real-time market data integration, expanded OTC product coverage, automated global corporate actions processing, and NAV reporting.

"Given recent market conditions, our customers are demanding a single solution for trading and portfolio management that is cost-effective and minimizes their need for complex technology infrastructure," said Sameer Shalaby, Chief Executive Officer of Paladyne Systems. "We expect the demands on fund administrators for middle- and back-office support to continue to rise in the US, similar to the European operating model. As a result, we anticipate an increased demand in the US for integrated trading and portfolio management systems."

Some of the released features in Paladyne Portfolio Master include:

Front-Office Support:

--  Multi-Asset Class Coverage -- Complete support of all global listed
    security types as well as Fixed Income, FX Forwards, MBS/ABS, Repos, and
    extended OTC coverage, including: CDS/CDX, CFD's, and Swaps (TRS, IRS, and
    Variance).
--  Enhanced Order Generation -- Flexible tools for order creation, trade
    modeling, rebalancing, and order routing to brokers, algorithms, and
    Execution Management Systems.
--  Real-time Model-Based Pricing -- Integrated model-based pricing tools
    through Paladyne's partnership with Numerix™, enable traders to model-
    price positions in real-time and perform what-if scenarios by manipulating
    model inputs, yield and credit curves and volatility surfaces.
--  Position Explorer -- Comprehensive real-time portfolio analysis and
    P&L viewer with integrated market data, OTC valuation models, and user-
    level reporting and customization.
--  Compliance Manager -- Rules-based pre- and post-trade compliance
    engine with flexible rules-building and real-time alerting and violation
    reporting.
--  Market Data Manager -- Seamless integration with leading market data
    vendors enables clients to join real-time market data fields with portfolio
    data for valuation, modeling, and risk analysis.
--  Pricing Rules Designer -- Customizable pricing tool for designing
    complex real-time pricing rules across listed and OTC security types.
    

Middle- and Back-Office Support:

--  Allocation Manager -- Rules-based trade allocation engine for
    designing complex allocation schemes across funds, strategies, and
    counterparties.
--  Portfolio Tasks Manager -- Automated processing of global corporate
    actions and portfolio events.
--  Commission and Fee Builder -- Rules-based commission and fee
    calculation engine.
--  Automated Reconciliation Tools -- Complete library of transaction and
    position reconciliation templates with prime brokers, custodians, and fund
    administrators.
--  Custom Report Writer -- Powerful reporting tools for dynamic real-time
    reporting and customized management reporting.
--  NAV reporting -- Full support for real-time NAV reporting.
    

"This new release of Paladyne Portfolio Master is available as part of our full-service hosted ASP platform which provides a turn-key infrastructure solution for both start-up managers as well as global multi-strategy funds," concluded Mr. Shalaby. "We are constantly enhancing our products to stay ahead of our clients' business requirements with a focus on cost cutting, increased productivity and mitigation of operational risk. We are very encouraged by the industry's immediate positive response to this revolutionary new product release."

Paladyne has recently released version 6.0 of the entire Paladyne Suite including Paladyne Portfolio Master™, Paladyne Security Master™, Paladyne Analytics Master™, and Paladyne Price Master™, all of which are available either as an ASP solution or as a local installation at a client site.

About Paladyne Systems

Paladyne Systems, Inc. (www.paladyne.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™ Suite which is capable of supporting the front- to back-office requirements of today's most comprehensive hedge funds. The PALADYNE™ 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.

Contact Information: For further information, please contact: Paladyne Systems United States: Scott Alderson Phone: 212-616-4306 Email: Europe: David Simmonds Phone: +44 20 7153 4958 Email: Paladyne Systems - Media Lisa Jane O'Neil Phone: 212-786-7629 or 917-361-8303 Email: