Headstrong Launches 'STRIDE CROSS' Analysis

The Securities Industry's First-Ever ROI Measurement for Internal Crossing

NEW YORK, NOVEMBER 02, 2005 – Headstrong, Inc., a global consultancy and leading provider of crossing technology to the securities industry, today announced the availability of STRIDE CROSS Analysis, a powerful new component-based service that enables buy-side and sell-side institutions to measure the potential savings from using an internal crossing engine.

"Disparate order routing systems have created a fragmented, inefficient market," said Greg Johnston, Director, Headstrong Financial Products. "As a result, firms are embracing the internal marketplace to consolidate and extract additional value from order flow. STRIDE CROSS Analysis is the only service available that identifies opportunities and calculates the resultant cost savings from crossing order flow internally. It provides tangible justification for firms considering internal crossing as a means to lower
execution costs and the implicit and explicit costs of trading."

"This new service is testimony to Headstrong’s leadership in the emerging Internal Markets segment of the industry," said Sandeep Sahai, Managing Director at Headstrong. "We are committed to building deep domain expertise in the financial services industry and will continue to invest in building tools,
components and products that help customers solve business problems."

STRIDE CROSS Analysis uses the STRIDE Crossing Engine and historical order, trade and market data, to simulate an internal crossing environment. It identifies the number of shares a firm can cross naturally and assesses the potential crossing rate of order flow coming from each trading group ("silo") in order to determine the optimal interaction among order flow silos. It also supplies exact crossing details including the potential price-improvement for each internally crossed order.

By providing a quantitative measure of a broker’s crossing rates, related savings, execution quality and return on investment, STRIDE CROSS Analysis enables management to understand the firm’s true execution costs and the potential savings that could be realized from implementing an internal crossing
system.

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