Kestrel Releases Upgrade to Fixed-Income e-Trading System

New York / May 10, 2004. Today Kestrel Technologies, a leading solutions provider to the financial markets, formally announced the release of the latest version of its RAPTr fixed-income trading system. Currently called "RAPTr eT", this product was point-designed to handle the data update rates of the world’s most active e-trading firms. Now in production at large international dealers such as ABN Amro and Mizuho Securities that routinely publish live, executable markets to clients via ECN’s such as TradeWeb and Bloomberg, RAPTr eT is uniquely capable of solving the "Unemployment Day Problem". This refers to the massive volume of market and trade data that is generated immediately after the release of an important economic number. For example, it is not uncommon for 75% of an average day’s trading volume to occur within 15 minutes of a critical news release, which can overwhelm all but the most powerful trading systems.

The latest version of RAPTr represents the culmination of over five years of
advanced systems engineering by Kestrel’s programming staff. Working
hand-in-hand with traders, ECN’s, middleware manufacturers, and component
technology vendors such as BEA Systems and IBM, the company has been able to
create a fixed-income matrix pricing system that is as flexible as it is
powerful. For example, in addition to sheer speed, RAPTr eT provides a wide
variety of live benchmarking modes, including futures basis (net and gross),
yield spread to key issues, spread to interpolated or smoothed curves,
spread to asset swap curves, and OAS.

"Nothing currently on the market approaches the level of functionality or
performance of this product," said Ed Bishop, Kestrel’s president and CEO.
"Many are the bulge bracket firms that have spent over nine figures trying
to build similar technology with less effect," he added.

In Bishop’s view, it is only a matter of time before major Wall Street firms
begin to outsource more of their technology spending because off-the-shelf
products such as RAPTr, which are more powerful and scalable, can now be
purchased and supported for up to two orders of magnitude less money than in-house solutions commonly cost.

Kestrel Technologies is a full service financial software firm that sells a
wide range of front-office trading systems, connectivity tools, and data to
both the buyside and the sellside of the market. The company has offices in
New York City, Burlington, Vermont, and Quincy, California.

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