Archipelago Holdings Selects Shadow Financial's ShadoSuite as Back Office Clearing Solution for its Broker Dealer Subsidiary

-Archipelago Subsidiary to Leverage Shadow Financial's Industry Knowledge, Scalable Product Design and Field-Proven Capabilities-

EDISON, N.J. / CHICAGO, IL (November 16, 2004) - - Shadow Financial Services Corp., developers of the ShadoSuite global securities processing system, today announced that Archipelago Holdings, Inc. (PCX: AX), the owner and operator of the Archipelago Exchange (ArcaEx), through its wholly owned subsidiary, Archipelago Securities, L.L.C has selected ShadoSuite as the back office clearing solution for Archipelago Securities' clearing business.

"Our vendor selection process was quite rigorous. Shadow Financial Services was already a proven entity in self-clearing and we knew their product design and scalability would enable us to meet our high volume requirements," said Pamela Zielezinski, Managing Director of Securities Operations at Archipelago.

Archipelago Securities has now licensed ShadoSuite for use in its clearing process. As Archipelago Securities transitions to self clearing status, ShadoSuite is being used by Archipelago Securities as the middle office solution for reporting as well as reconciling trades and positions with the external clearing firm. Prior to the final implementation, ShadoSuite's functionality was customized for Archipelago Securities by the Shadow professional services team to include NSCC reporting capabilities.

Donald Marino, Chief Executive Officer of Shadow Financial Services, said, "We're thrilled to welcome Archipelago Securities to our growing roster of clients. Their use of ShadoSuite exemplifies how our product supports high-volume situations and can be tailored to meet specific requirements unique to each organization."

Designed as a global securities transaction system, ShadoSuite handles the complex transactions of Institutional Investors and well as the volume of retail brokerage firms. A true multi-currency trade processing, clearing and accounting system, ShadoSuite manages all combinations of currencies, products and types of trades. From initial entry to liquidation, ShadoSuite maintains every position in its originally traded currency.

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