TMC Signs Exclusive Distribution Deal for TKG's 'Bond Trader Sentinel' — Cutting Edge Best Execution, Compliance & Trade Surveillance Tools

NEW YORK, Nov. 8, 2010 /PRNewswire/ -- TheMuniCenter (TMC) announced today signing an exclusive distribution deal with The Karn Group, Inc. (TKG). TKG offers a suite of advanced tools and Fair Market Value pricing algorithms for fixed income compliance — representing a quantum leap over incumbent technologies. TKG has implemented Best Execution solutions for two of the Top 5 online discount brokers, a leading clearing services provider, and one of the largest U.S. financial advisory firms. Currently, TKG processes over 20,000 fixed income trades per day via its real-time engine.

TMC has been named TKG's exclusive partner for the Bond Trader Sentinel tool set offered through an Alternative Trading System. This exclusive distribution deal via TMC's leading execution platform facilitates "Best Execution" by automatically reviewing prices at the point-of-trade. According to James Wangsness, TMC's Chief Operating Officer, "we partnered with Ted Karn based upon his pre-eminent industry reputation and TKG's ability to seamlessly complement our existing suite of compliance applications. By partnering with TKG, TMC can offer an industry-leading set of tools to service our clients' pre-trade, point-of-trade, and post-trade analysis needs. TKG's value propositions are numerous including the ability to process asset classes (e.g., Secondary CDs, Treasuries) not currently reportable by FINRA or the MSRB. Sentinel's real-time Fair Market Value (FMV) algorithms include sophisticated statistical forecasting based on both historical trade reports and automated comparables selection methodologies. Its FMV models factor in trade size, customer versus dealer transactions, and incorporates TRACE, MSRB and proprietary TMC market data. Overall, these superior capabilities are offered at a price significantly lower than current competitor compliance and trade surveillance offerings."

Ted Karn, TKG's President noted, "I'm pleased with the rapid adoption of our Bond Trader Sentinel platform. Our partnership with TMC has made it possible for us to integrate our two innovative solutions. This will create an even broader market for our unique capabilities by offering a comprehensive and turnkey solution to our joint clients. TMC's outstanding leadership team was focused on providing the industry's best tools without being biased by a 'build-from-within' mentality. Both TKG and TMC have worked diligently over the past year implementing seamless connectivity before formally announcing this partnership — so we are ready to add value to our joint clients. I have found TMC to be an eager partner committed to delivering cutting edge capabilities for our mutual clients and prospects. Today represents a key step forward in developing the industry's next standard for fixed income transparency and impartial analysis."

About TMC

TMC is a leading fixed income marketplace that recently celebrated its 10 year anniversary. Based on the most recent MSRB statistics(1), TMC is responsible for 20% of all inter-dealer municipal transactions. Beyond Municipals, the firm offers extensive Taxable market executions for Agencies, Build America Bonds, CDs, CMOs, Corporates, MTNs, Structured Products, and Treasuries. TMC is majority owned by Assured Guaranty, Bank of America Merrill Lynch, Citi Global Markets and Morgan Stanley. For more information on TMC, please visit our website at www.tmcbonds.com.

About The Karn Group, Inc. (TKG)

TKG is privately held and based in Chicago. Its suite of services, including Bond Trader Sentinel, offer comprehensive Web based tools to assess the Best Execution of fixed income transactions and to keep firms prepared for examinations in an increasingly regulated environment. TKG's goals are to offer the most cost effective automated solutions with superior analytics — battle tested in multiple asset classes — and adapt them to the unique nuances of the fixed income marketplace. Prior to starting TKG, its principal Ted Karn founded Market Systems Inc. (MSI) — the market standard for best execution technology services for Regulation NMS (Rules 605 and 606) for equities. MSI was extensively used by brokerage firms, market makers, and exchanges and it was acquired by Thomson Financial in 2006. For more information on TKG, please visit its website at www.tkganalysis.com.

(1) Monthly data from 3Q 2010

SOURCE TheMuniCenter