Mutual Funds Address Fair Value Pricing With Analytics From ITG

NEW YORK, NY, March 18, 2003 - Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology based equity trading services and transaction analytics, today announced that Northwestern Mutual is the newest licensee of their Fair Value Model.

The ITG Fair Value Model provides mutual funds with international holdings a method to assist in the valuing of foreign securities when significant events occur that affect securities prices after the foreign market closes.

The SEC has issued guidance on the responsibility of mutual fund companies to ensure that security prices reflect significant events occurring after closing prices are determined but before net asset value (NAV) is calculated. "This is important for fund companies with international holdings in time zones outside North America," stated Richard Leibovitch, Head of Global Trading at Putnam Investments. "ITG's Fair Value Model helps us comply with SEC guidance." Putnam Investments was the first licensee of ITG's Fair Value product.

"We developed this product in conjunction with input from clients who asked for a reliable method for assisting in the computation of the fair value of foreign securities whose market closes, perhaps many hours, before the NAV is calculated. Quite often, significant changes in value can occur after the foreign market close and this needs to be considered in determining a fair price for a foreign security." stated Ananth Madhavan, Director of Research for ITG. "This product is a direct result of ITG's strategy to provide clients with the most sophisticated technologies and analytics."

About ITG

ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, Hong Kong, London, Melbourne, Sydney, Tel Aviv and Toronto. As a leading provider of technology-based equity-trading services and transaction research to institutional investors and brokers, ITG's services help clients to access liquidity, execute trades more efficiently, and make better trading decisions. ITG generates superior trading results for its clients through three lines of business. POSIT®, the world's largest equity matching system, allows clients to trade confidentially. The Electronic Trading Desk is recognized as one of the leading program trading operations in the U.S. ITG's leading-edge Client Site Trading Products allow users to implement their own trading strategies by providing direct electronic access to most sources of market liquidity. For additional information, visit

Statements made today may include forward-looking information subject to risks, uncertainties and other factors that could materially affect actual results. For further information please see ITG's reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website (

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