NEW YORK, NY (September 10, 2000) – StructuredMarkets today announced the completion of the first installment of its analytics library. In conjunction with SciComp Inc., a leading provider of automated derivative pricing technology, and Planatech Solutions Ltd, technology specialists primarily servicing the financial markets, StructuredMarkets has developed a suite of online option pricing models designed to facilitate the pricing and analysis of OTC equity derivatives. The suite of pricing models now available includes:

The models allow users to generate theoretical option premiums and the relevant "greek" risk parameters. An implied volatility calculator is also available for puts, calls, and straddles. The models incorporate volatility skews for collars, spreads, and strangles and also accommodate situations in which the option hedge is complicated by a difficult stock borrow. Users may specify a continuous dividend yield or may build a customized dividend schedule comprised of discrete dividend payments.

The zero cost collar model allows users to compute the call strike for which the call premium offsets the put premium. The barrier option models, down & out, up & out, down & in, and up & in, accommodate rebates that are payable upon hit or at maturity. Specialized greeks are available that allow users to assess the impact of changes in the level of the barrier and the size of the rebate.

StructuredMarkets plans to continually update its analytics library. Future targeted enhancements will include additional models such as pre-paid forwards, basket options, and variance swaps. Registered users are encouraged to log in to the site www.structuredmarkets.com in order to utilize the pricing resources now available.

Dean Curnutt, President of StructuredMarkets stated, "We are pleased to add this valuable functionality to the existing set of tools available on our online platform. We’ve worked closely with Scicomp and Planatech to build a user-friendly yet robust interface that addresses the real-world complications facing a user of equity derivatives. Our ultimate aim is the seamless integration of these models and real time market data into our electronic Request for Pricing engine. This promises to dramatically increase the transaction efficiency for OTC equity derivative products."

Elaine Kant, President of SciComp, Inc. stated, "We value our relationship with StructuredMarkets. It fits extremely well into our overall goal of automating the pricing of derivative products and providing quick turnaround time for model development. Our software synthesis technology, which enables some of the world’s largest investment banks to rapidly prototype and build models, was used in developing these new analytics. We will continue to build relationships and products that enhance productivity for the buy-side and sell-side in the growing derivatives marketplace."

Bruce Belson, Managing Director of Planatech Solutions stated, "The StructuredMarkets site offered us an opportunity to use all our core skills. With our latest generation of development tools, we were able to rapidly generate error-free code entirely from XML specifications. It was an exciting project to work on and we enjoyed a useful working relationship with the StructuredMarkets team."

About StructuredMarkets, Inc.

StructuredMarkets (www.structuredmarkets.com) is an online marketplace that streamlines the distribution, structuring, and execution process for over-the-counter (OTC) equity derivative transactions. StructuredMarkets links end-users of OTC equity derivatives with the providers (dealers) of these products and enhances key aspects of the structuring process including idea generation, product analysis, price discovery, and documentation management.

About SciComp, Inc.

As the recognized leader in software synthesis, SciComp provides automated pricing technology to the financial services industry. SciComp’s products are used by some of the world’s largest investment banks to decrease the turnaround time for derivative model development. Visit www.scicomp.com or call 512-451-1050 for more information.

About Planatech Solutions Ltd.

Planatech provides software development and consulting for the financial services industry. Core skills include language/technology interfaces, automated code generation and internet/intranet technical design. Planatech’s products are used by global financial institutions to manage stable technical solutions to complex trade support problems. Visit www.as-ltd.co.uk or send mail to sales@as-ltd.co.uk for more information.

Contact:

StructuredMarkets, Inc.
Samir Bhatia
sbhatia@structuredmarkets.com
Tel : (212) 704-9923
Fax: (212) 704-9913
1501 Broadway, Suite 1900
New York, NY 10036
info@structuredmarkets.com