Open Market Securities terms of use

Responsibility for Assuring Proper Use of Data.
Subscriber acknowledges and agrees that the pricing estimates and other data provided by SST
a) do not constitute investment advice or recommendations of any kind,
b) do not constitute a bid by SST or any other person for any security,
c) may not constitute prices at which securities could be or could have been purchased or sold in any market or to or from any person,
d) have not been confirmed by actual trades and may not take into account liquidity or the size of a position, and
e) are to be used solely for evaluative purposes and not without further analysis for trading or official evaluation of open end mutual fund NAVs.

In addition, Subscriber acknowledges that a statement of SST' current methodology has been made available to Subscriber. Moreover, Subscriber assumes sole responsibility for determining the suitability of SST' pricing methodology or SST' data for Subscriber's purposes and the conformity of such methodology and data to the requirements of any law, rule, regulation, policy, procedure, guideline or organizational document applicable to Subscriber or any person or entity for which Subscriber provides investment advice, investment management or any other service.

   
   PRICING METHODOLOGY
   
   THE PRICING ESTIMATES AND OTHER DATA THAT SST PROVIDES IN THE SERVICE ARE
   DERIVED FROM MATRIX PRICING. THE NUMBER AND TYPE OF TRADER INPUTS USED IN
   THE MATRIX VARY ON A PRODUCT BY PRODUCT BASIS. FOR CMO'S, WE DIVIDE VARI-
   OUS TRANCHES INTO  PREDETERMINED CATEGORIES AND  PRICE EACH TRANCHE USING
   STATIC CASH FLOW YIELD SPREADS TO THE ACTIVELY TRADED TREASURIES OR OTHER
   ISSUES CORRESPONDING TO ITS AVERAGE LIFE.  WHERE PREPAYMENTS CAN BE VARI-
   ABLE, SUCH AS IN CMO'S, PREPAYMENT SPEED ASSUMPTIONS  REFLECT AN ESTIMATE
   OF MARKET CONSENSUS  AS OBSERVED IN  NEW ISSUE PRICING, HISTORIC, CURRENT
   AND/OR  PROJECTED PREPAYMENT SPEEDS  AND/OR  DISCUSSIONS WITH TRADERS AND
   OTHER MARKET PARTICIPANTS. BASED ON A SINGLE PREPAYMENT SPEED FOR A GIVEN
   WAC, CMO TRANCHE TYPE, AND ORIGINAL MORTGAGE TERM, A TRANCHE IS AMORTIZED
   TO DETERMINE ITS AVERAGE LIFE.  THE TRANCHE IS THEN COMPARED TO A NEW IS-
   SUE TRANCHE WITH  SIMILAR CHARACTERISTICS  OR IF NO SIMILAR  NEW ISSUE IS
   CURRENTLY AVAILABLE, TO A SECONDARY MARKET OFFERING. TO THE EXTENT WE DE-
   TERMINE APPROPRIATE,  PRICE ADJUSTMENTS MAY MADE TO THE TRANCHE.  FACTORS
   SUCH AS TRANCHE TYPE, EFFECTIVE PAC BAND,  PAC WINDOW  (WHEN APPLICABLE),
   PREMIUM  OR DISCOUNT  DOLLAR PRICE,  CASH FLOW PRIORITY AND  AVERAGE LIFE
   SENSITIVITY MAY BE CONSIDERED WHEN MAKING THESE ADJUSTMENTS. BECAUSE MANY
   OF THESE  FACTORS ARE COMPLEX  AND OFTEN  EXTREMELY  SUBJECTIVE, A MATRIX
   PRICING APPROACH CANNOT ALWAYS IDENTIFY AND INCORPORATE EVERY NUANCE OF A
   TRADER'S LOGIC PROCESS IN ARRIVING AT A PRICE, AND THERE MAY BE DIFFEREN-
   CES BASED ON JUDGMENT, AS DESCRIBED BELOW.

   PRICE AND OTHER DATA  PROVIDED  IN THE SERVICE  REGARDING  SOME  SECURITY
   TYPES, PARTICULARLY  INVERSE FLOATER SECURITIES, MAY ALSO REFLECT  OPTION
   ADJUSTED PRICING METHODS.

   MATRIX PRICING  DOES NOT REFLECT A NUMBER OF FACTORS  THAT MAY AFFECT THE
   ACTUAL MARKET VALUE OF SECURITIES INCLUDING BUT NOT LIMITED TO  FOLLOWING
   FACTORS: LIQUIDITY, THE SHAPE OF THE YIELD CURVE, VOLATIILITY  OF  FUTURE
   INTEREST RATES,THE RELATIONSHIP BETWEEN INTEREST RATE CHANGES AND PREPAY-
   MENT SPEEDS, OPTIONALITY(THE OPTION THAT EACH MORTGAGOR HAS TO PREPAY HIS
   MORTGAGE AT ANY TIME), PREPAYMENT VOLATILITY,  FUTURE INTEREST RATES  AND
   JUDGMENTS RELATED TO CAPITAL COMMITMENTS  AND CHANGING MARKET CONDITIONS.