NYFIX Announces Strategic Partnership with Paladyne Systems to Provide FIX Connectivity to Hedge Funds

NEW YORK, October 4, 2006 – NYFIX Inc. (Pink Sheets: NYFX) today announced an agreement with Paladyne Systems, LLC., a leading provider of integrated and hosted front-to- back-office technology suite to the hedge fund industry, to provide FIX connectivity under its “Powered by NYFIX™” hosted solutions platform.

As a result of the agreement, Paladyne will extend its offering by providing its ASP clients with access to FIX connectivity for electronic trading and order routing over the NYFIX Network, one of the industry’s largest FIX networks with over 450 trading counterparties. In addition, as part of the agreement, Paladyne clients will also have fully integrated access to NYFIX Millennium®, a leading provider of dark pool liquidity, and NEXAS™, a suite of algorithmic trading solutions offered by NYFIX Transaction Services.

Paladyne clients will also be able to take advantage of NYFIX Natural™, which buy-side firms use to communicate Indications of Interest (IOIs) to each other. Additionally, Paladyne’s clients will have access to Millennium advertised trades, as well as integrated broker natural IOIs, via the NYFIX IOI package.

“The “Powered by NYFIX” offering enables users to seamlessly integrate the NYFIX Network with their proprietary technology,” said Barry Smith, Senior Vice President for Business Development at NYFIX. “By leveraging Paladyne’s hosted ASP solution, we expect to reach a large number of hedge funds that want a turn-key electronic trading and order routing solution.”

“When we considered all the capabilities NYFIX could offer our clients, they were a logical choice as a technology and connectivity partner,” said Sameer Shalaby, Chief Executive Officer for Paladyne. “By integrating NYFIX into the PALADYNE™ suite, we now extend our front-to-back-office solution to include comprehensive order routing and execution capabilities.”

About NYFIX, Inc.

NYFIX, Inc. is an established provider to the domestic and international financial markets of trading workstations, trade automation and communication technologies, and through its registered broker-dealer subsidiaries, execution services. Our NYFIX Network is one of the industry’s largest FIX networks, connecting broker-dealers, institutions and exchanges. We maintain our principal office on Wall Street in New York City, with other offices in Stamford, CT, London’s Financial District and San Francisco. We operate redundant data centers in the metropolitan New York City area, with additional data center hubs in London, Amsterdam, Hong Kong and Tokyo. For more information, please visit www.nyfix.com.

About Paladyne Systems

Paladyne Systems, a Broadridge Company, is the leading provider of next generation investment management solutions. Paladyne offers its integrated front-, middle- and back-office platform, known as the Paladyne Suite™, to hedge funds, asset managers, fund administrators and prime brokers. The modular Paladyne Suite™ includes order management, portfolio management, reference data management, data warehouse reporting and reconciliation and is complemented by the Paladyne Network™, which comprises a select group of preferred strategic partnerships with leading software and market data firms. The solution can be delivered onsite or via Paladyne's industry-leading application service provider solution, Paladyne ASP™. Paladyne was established in 2005 and now serves over 180 clients worldwide. The firm has approximately 165 employees, and is headquartered in New York, with regional offices in New Jersey, London, Russia and Hong Kong.

The Paladyne® Suite includes the following modules:

  • Paladyne Portfolio Master™ — provides electronic trading, order management and allocation, portfolio management, real-time P&L, and strategy-based performance tracking.
  • Paladyne Credit Master™ — provides loan processing and administration to fully support loan trading, analysis, reporting, and management.
  • Paladyne Analytics Master™ — provides portfolio analytics, data aggregation, and custom reporting tools.
  • Paladyne Security Master™ — provides a centralized terms and conditions repository and distribution engine with real-time updates and corporate action alerts.
  • Paladyne Price Master™ — provides automated collection, storage, and time series analysis of prices and market data from any third-party sources.

About Broadridge

Broadridge is a technology services company focused on global capital markets. Broadridge is the market leader enabling secure and accurate processing of information for communications and securities transactions among issuers, investors and financial intermediaries. Broadridge builds the infrastructure that underpins proxy services for over 90% of public companies and mutual funds in North America; processes more than $4 trillion in fixed income and equity trades per day; and saves companies billions annually through its technology solutions. For more information about Broadridge, please visit www.broadridge.com.