CDO2 Unlocks The Power of Sun(TM) Grid for Faster Financial Risk Simulation

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Running CDO2 Pricing and Risk Simulation Software on Sun(TM) Grid Compute Utility Cuts Transaction Time from Days to Under an Hour; CDO2 Opens Sun

     Grid Demonstration in London

    SANTA CLARA, Calif., Aug. 24 - Sun Microsystems, Inc. (Nasdaq: SUNW), today announced that CDO2, a provider of innovative pricing and risk technology for organizations trading structured credit products, has successfully completed a trial deployment of its financial services software on the Sun(TM) Grid Compute Utility. Sun Grid helps customers and partners derive immediate benefits from an open, grid-based computing infrastructure on a utility basis by giving them more choice and control over how they purchase and leverage IT. When powered by Sun Grid, the time required for complex financial risk simulations using CDO2 technology is reduced from days to under an hour, allowing CDO2 to reach an expanded set of customers for whom such simulations were previously too time-intensive and costly.

    Sun also announced that CDO2 and Sun are developing a demo center in Sun's UK-based Customer Briefing Center in Guillemont Park, allowing potential customers to 'try' CDOSheet on the Sun Grid using their own data. Extended trials can also be booked on Sun Grid running in Scotland.

    "Since we have dramatically reduced time to market and costs by using Sun Grid, we can now give our customers access to a level of computing power they have never had before," said Gary Kendall, director, CDO2. "Until recently, only large banks could take advantage of advanced pricing models and enterprise technology. Now, with Sun Grid's ability to optimize for exactly the amount of computing resources each customer needs on a utility basis, we've eliminated these barriers."

    "With Sun Grid, our partners can deliver applications faster to their customers through the simplicity of the grid," said Stuart Wells, executive vice president, utility computing, Sun Microsystems. "CDO2's deployment reveals the opportunities created, particularly for smaller ISVs, to reach broad audiences; and for their smaller business customers to tap the computing resources and software previously available only to larger institutions."

    CDO2 specializes in providing the latest pricing algorithms and risk methodology for structured credit derivatives. Until recently, these algorithms were only available in-house at large investment banks. With the company's CDOSheet application, users are able to price and risk manage structured credit products (CDO and CDO squared tranches) from a spreadsheet. All trade and market data is stored centrally so that it is easy for users to share information, and calculations are performed across a grid of networked computers.

    The CDO2 proof of concept (POC) demonstrates the benefits and scalability of running CDOSheet on Sun Grid. The POC ran CDOSheet on a 128 node (256 CPU) Sun Grid using the Solaris(TM) 10 operating system (OS). Written using Java(TM) 2 Standard Edition (J2SE) 5 software, CDOSheet also leverages the Java dynamic networking capabilities of Jini(TM) network technology to accommodate the dynamic addition and subtraction of computing resources. This enables the application to scale dynamically, as needed to achieve the desired levels of performance running on the Sun Grid. The system was installed on the grid in less than one week and run remotely via London from a data center in Scotland. To measure scalability, a complex financial simulation of a CDO squared portfolio which would normally require days to run on a single PC was initiated. With the power of the Sun Grid, the simulation was completed in less than an hour.

    About Sun Grid

    Sun Grid helps customers and partners to derive immediate benefits from an open, grid-based computing infrastructure on a utility basis by giving them more choice and control over how they purchase and leverage IT. The Sun Grid offerings include the Sun Grid compute utility, a $1 (USD) per CPU per hour pay-per-use offering ($1/cpu-hr), and the Sun Grid storage utility, a $1 (USD) per gigabyte per month offering ($1/GB-mo).

    About CDO2

    CDO2 is a provider of innovative pricing and risk technology for organizations trading structured credit products. The company was founded on the belief that all financial organizations should have access to the latest pricing models and enterprise technology, irrespective of their size or trading volume. CDOSheet allows users to harness the power of grid computing to price and risk manage CDO and CDO squared tranches using simple spreadsheet functions. More information on CDO2 and CDOSheet can be found at

    About Sun Microsystems, Inc.

    A singular vision -- "The Network Is The Computer" -- guides Sun in the development of technologies that power the world's most important markets. Sun's philosophy of sharing innovation and building communities is at the forefront of the next wave of computing: the Participation Age. Sun can be found in more than 100 countries and on the Web at .


     Brett Smith

     Sun Microsystems, Inc.


     Shoshana Deutschkron

     Bite Communications


     Gary Kendall



    NOTE: Sun, Sun Microsystems, the Sun logo, Java, StarOffice, Solaris, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

    CDO2 and CDOSheet are trademarks or registered trademarks of CDO2 Limited.
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