IBM and Algorithmics will deliver and implement a new portfolio construction and risk management solution at Guotai Junan Securities for security trading and fund management. Guotai Junan Securities is one of the top five securities firms in China and the first in Mainland China to trade advanced financial products such as derivatives.

The project will leverage IBM’s Risk Management Framework services – including how to optimally set limits for traders, trade index options, and trading operations structures – with Algorithmics’ Algo Risk software solution to assist Guotai Junan Securities in forecasting risks, as well as conducting sophisticated stress and scenario testing, to help ensure risks are managed in a controlled and informed manner.

IBM and Algorithmics are also forming an alliance in China to continue developing end-to-end enterprise wide solutions covering market risk, counterparty risk and collateral management. Together they will provide the Chinese market with management consulting, the Algorithmics software solution and integration of systems technology.

Guotai Junan is one of the largest-scale securities house with three subsidiaries, five branches, 23 regional marketing headquarters, and 113 business offices covering entire China. According to Shanghai Stock Exchange in December 2006, among all the 112 securities houses GTJA ranked No. 1 in business income, No. 2 in business profit, and No. 3 in net profit. Company now has a registered capital of 4.7 billion yuan, and its three largest shareholders are Shanghai State-owned Asset Management Co., Ltd. Central Huijin Investment Co., Let. And Shenzhen Investment Holding Corporation.