Dr. Simon H. Babbs has joined OCC as 1st Vice President, Quantitative Risk Management. He will manage the entire quantitative risk management area and its staff and also lead the further development of the STANS system.

The STANS system is a Monte Carlo-based risk management methodology for determining the amount of margin deposits required of OCC Clearing Members. This methodology - called "STANS," for System for Theoretical Analysis and Numerical Simulations - is used to measure the exposure of portfolios of options, futures and cash instruments cleared and carried by OCC on behalf of its Clearing Members.

Mr. Babbs has almost 30 years experience in finance. He comes to OCC from Delaware Street Capital where he served as director. Previously Mr. Babbs held several roles over 10 years at Bank One and its predecessor companies, including managing an international research team as Head of Quantitative Enterprise Development (QED). QED supported the bank's capital markets businesses and credit portfolio managers, was responsible for quantitative risk management methodologies, and played a major role in developing economic capital models. Earlier, he developed complex interest rate derivatives for HSBC Markets, based on an interest rate model from his PhD thesis. Mr. Babbs' extensive banking career began at the Bank of England as a member of their Mathematical Techniques Group and subsequently of the Banking Supervision Department.

Mr. Babbs earned first class honours MA in Mathematics from Oxford University, UK, a postgraduate diploma in Business Studies from City Polytechnic, and a PhD in Finance from Imperial College, London University. He holds an associate fellowship at Warwick Business School. Mr. Babbs has authored numerous papers in refereed academic finance journals and contributed to various books.

"Simon's professional experience in quantitative research and interest rate derivatives is an outstanding addition to our risk management staff," said Michael Cahill, OCC President and COO. "We are extremely pleased to have Simon join our ranks."