September 15, 2006 - Recognia Applauds SEC Recognition of Technical Analysis Exam

In March 2005, rule changes came into effect with the Securities Exchange Commission to recognize the Chartered Market Technician (CMT) program as an alternative examination to qualify research analysts. These rule changes acknowledge the validity of technical analysis as a research approach, distinct from fundamental analysis.

The Self-Regulatory Organizations (SRO) - consisting of the New York Stock Exchange (NYSE) and NASD - require that research analysts pass examinations in order to demonstrate their competence, as part of measures taken to insulate analysts from investment banking to improve their independence.

The qualification process requires research analysts to pass two exams: (1) Series 86 - which primarily tests fundamental analysis and equity valuation; (2) Series 87 - which tests relevant industry and federal rules and regulations. Prior to the rule changes, a research analyst could be exempt from the Series 86 Exam if they passed Levels I and II of the Chartered Financial Analyst (CFA) examination. However there was no alternative examination for those specializing in technical analysis. Then in March 2005, the SRO filed changes with Securities Exchange Commission (SEC) to Rule 344 allowing exemption from the Series 86 Exam for those that passed Levels I and II of the CMT.

For more information, view the attached legal update from Dechert's Financial Services Group.

 View "DechertOnPoint" Article

About Recognia Inc.

Recognia Inc., a privately held company founded in 2000, provides automated Technical Event® identification and chart pattern recognition to financial web sites, online brokerages and other trading institutions. Recognia has developed patented technology for chart pattern recognition and the identification of other types of technical formations. Recognia's technology is capable of recognizing patterns and other formations in the price charts of any publicly traded financial instrument including stocks, bonds, funds, commodities, currencies and indexes.

Recognia also provides a range of delivery methods that allow brokers, and other organizations, to deliver this information to their clients and account-holders.

Recognia also maintains an unrivaled historical database of information relating to chart patterns and other technical information, providing historical context and past performance information.

Contacts:

Rick Escher
President & Founder
Recognia Inc.
Ottawa, ON
(613) 789-2267 ext 225
rescher@recognia.com