ETG Capital, LLC Selects SunGard's Kiodex for Cross-Commodity Trading and Risk Management
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New York, May 29, 2007 - SunGard (http://www.sungard.com) today announced that ETG Capital, LLC has selected SunGard's Kiodex as its trading, position keeping, risk management and operations solution when it launches on June 1. Houston-based ETG Capital is a cross-commodity, relative value hedge fund with exposure to commodities such as power, natural gas, crude, and refined products. Kiodex Risk Workbench is a Web-based commodities risk management solution that integrates deal capture, valuation models, risk measurement, financial reporting, and independent market data. The market data includes representative prices, volatilities, volatility skews and correlations across the spectrum of commodity markets (http://www.sungard.com/kiodex).
Kiodex provides hedge funds like ETG Capital with independent valuation, sensitivity and VaR, as well as the requisite underlying reference and market data to help support both internal and investor reporting. ETG Capital will leverage the Kiodex Software-as-a-Service (SaaS) platform, combining the centralized, Web-based Kiodex service with downloadable Kiodex desktop applications that can be easily customized for user-specific functions. For example, ETG will tailor downloadable applications like Trade Manager and Scenario Analysis to fit its specific requirements for trade capture, position keeping, and stress testing of mark-to-market valuation and greeks.
Don Addison, managing director at ETG Capital, LLC, said, "Because of ETG's portfolio approach and focus on building a cross-commodity platform, SunGard's Kiodex was a natural fit. I used Kiodex in my prior commodity trading position, so I am very comfortable that the solution will help ETG Capital to meet its commodity trading needs. Kiodex is easy-to-use, and because of its delivery model it will not require a lot of resources on our part. A critical requirement of ours that Kiodex fulfills is the ability to support the multiple commodity asset classes we will trade when we launch, as well as the ability to easily and reliably help us to add strategies as we grow."
Mr. Addison continued, "In addition to scenario analysis and VaR by strategy, there is a nice feature that I had used in my previous position and will use at ETG Capital- the risk reports include a 'Front Month Equivalent' approximation of my risk for each commodity market, rolled up into a single number. Before I leave for the night, I review this report for an added quick check on my position, whether in power, oil, or gas."
Ben Jackson, chief operating officer of SunGard's Kiodex business unit, said, "Two of the investors we talked with as they did their due diligence on ETG Capital expressed that they knew the fund was serious about risk because it would be launching with Kiodex. The Kiodex Software-as-a-Service platform can be customized to meet the needs of ETG Capital and its investors, without requiring a large team or a lot of time to implement and support, regardless of the commodities added. Kiodex helps cross-commodity hedge funds to reduce their time-to-market without having to sacrifice rigorous risk management, flexibility or scalability across the commodity complex."
About Kiodex
A Web-based trading and risk management solution for commodities traders, Kiodex integrates deal capture and risk management capabilities with valuation models and independent market data. Banks, FCMs, hedge funds and corporations with exposure to commodity prices use Kiodex to help measure risk, design optimal trading strategies, improve price execution, manage positions, process trades and comply with financial reporting and regulatory best practices. Visit SunGard's Kiodex at www.sungard.com/kiodex.
About SunGard
With annual revenue exceeding $4 billion, SunGard is a global leader in software and processing solutions for financial services, higher education and the public sector. SunGard also helps information-dependent enterprises of all types to ensure the continuity of their business. SunGard serves more than 25,000 customers in more than 50 countries, including the world's 50 largest financial services companies. Visit SunGard at www.sungard.com.
For more information please contact:
Adriana Senior
SunGard
Tel: 914 953 5398
Fax: 212 223 0220
Adriana.Senior@sungard.com
Don Addison
ETG Capital, LLC
Tel: 832 251 4270
daddison@etgcapital.com
