424B3 1 0001.txt 424B3 Rule 424(b)(3) SEC File No. 333-37004 Prospectus Supplement dated November 2, 2000 to Prospectus dated July 25, 2000 RATEXCHANGE CORPORATION Common Stock This Prospectus Supplement should be read in conjunction with the Prospectus dated July 25, 2000, as previously supplemented (the "Prospectus"). The information on pages 11-16 of the Prospectus setting forth information concerning the selling stockholders is superceded by the following table:

Shares Maximum Shares Beneficially Beneficially Number of Owned after Owned Shares to be Offering (assuming Percentage of Common Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering ------------------------------------------------ -------------- -------------- -------------------- --------------------- ACDC Bookfront & Co. ........................... 246,900 246,900 0 * (AIM Equity Funds, Inc. on behalf of its portfolio, AIM Capital Development Fund) Altar Rock Fund, LP ............................ 836 836 0 * American Masters Fund (Hilspen Series) ......... 8,400 8,400 0 * Apodaca Investment Offshore Ltd. ............... 75,000 75,000 0 * Apodaca Investment Partners, L.P. .............. 50,000 50,000 0 * Bald Eagle Fund, Ltd. .......................... 2,250 2,250 0 * Band and Co., Nominee for Firstar .............. 62,499 62,499 0 * Barr, Alison A. ................................ 18,750 18,750 0 * Betje Partners, LP ............................. 24,125 24,125 0 * Bi Coastal Consulting Corp. .................... 25,000 25,000 0 * Cannell, Carlo J. .............................. 33,750 33,750 0 * Cohanzick Partners, LP ......................... 12,500 12,500 0 * Cole, Douglas .................................. 868,151 100,000 768,151 3.77% Consultant and Former Director and Executive Officer of RateXchange Corporation Columbus Avenue Advisors ....................... 45,000 45,000 0 * Counterpoint Master L.L.C. ..................... 237,500 237,500 0 * Andrew Brown shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Cypress VI Partners ............................ 12,500 12,500 0 * Leonard Eber, as Managing Partner for the Eber Family Living Trust and the Eber Family Trusts Numbered One through Four, shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Donaghy Sales, Inc. ............................ 23,000 21,000 2,000 * Gruber & McBain Capital Management L.L.C. shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus

1

Shares Maximum Shares Beneficially Beneficially Number of Owned after Owned Shares to be Offering (assuming Percentage of Common Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering ---------------------------------------------- -------------- -------------- -------------------- --------------------- Edward O. Thorp & Associates, L.P. ........... 12,500 12,500 0 * Elbaz, Elliott S. ............................ 11,250 11,250 0 * Ellis, Ian P. ................................ 6,250 6,250 0 * First Security Van Kasper .................... 564,020 564,020 0 * Placement Agent for RateXchange I, Inc. January 2, 2000 Bridge Loan; Co-Underwriter for RateXchange Corporation March 2000 Private Placement; D. Jonathan Merriman, Former Senior Managing Director of First Security Van Kasper, is a Director and President and Chief Executive Officer of RateXchange Corporation Five Points Fund, L.P. ....................... 75,000 75,000 0 * Five Points Offshore Fund, Ltd. .............. 50,000 50,000 0 * Forsythe McArthur Associates, Inc. ........... 69,500 69,500 0 * Lessor of RateXchange Gerard, Klauer, Mattison & Co., Inc. ......... 3,975 3,975 0 * Placement Agent for RateXchange I, Inc. January 2, 2000 Bridge Loan Germanotta, Joe .............................. 2,852 2,852 0 * Former Consultant to RateXchange Gilston Corporation, Ltd. .................... 31,250 31,250 0 * Golby, Wesley ................................ 4,500 4,500 0 * Grange, Richard C. ........................... 84,404 84,404 0 * Former Director of predecessor of RateXchange I, Inc. Gruber Family Foundation ..................... 11,418 11,418 0 * Gruber & McBain Capital Management L.L.C. shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Gruber-McBaine International ................. 121,282 112,782 8,500 * Gruber & McBain Capital Management L.L.C. shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Grunewald, Brad K. ........................... 73,601 73,601 0 * Guarantee & Trust Company TTEE FBO, .......... 12,500 12,500 0 * Paul Dwork Sep IRA Hare & Co. 651653 (Hamilton College) ......... 17,351 17,351 0 * Gruber & McBain Capital Management L.L.C. shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus

2

Shares Maximum Shares Beneficially Beneficially Number of Owned after Owned Shares to be Offering (assuming Percentage of Common Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering ------------------------------------------------ -------------- -------------- -------------------- --------------------- Hare & Co. 705286 (L-3 Communications Corp.) ........................................ 7,784 5,784 2,000 * Gruber & McBain Capital Management L.L.C. shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Hart, Patti S. and Milledge A. ................. 12,500 12,500 0 * Hicks, Ian and Anna ............................ 20,000 10,000 10,000 * Hilspen Capital Partners ....................... 4,350 4,350 0 * Hilspen Capital Partners, II ................... 24,750 24,750 0 * Intercoastal Financial Services Corp. .......... 100,000 100,000 0 * Irvine Capital Partners, II LP ................. 25,000 25,000 0 * The Kaufmann Fund .............................. 62,500 62,500 0 * Kensington Partners, L.P. ...................... 9,687 9,687 0 * Kensington Partners II, L.P. ................... 563 563 0 * Kingdon Associates ............................. 37,500 37,500 0 * Kingdon Family Partnership, L.P. ............... 9,375 9,375 0 * Kingdon Partners ............................... 23,750 23,750 0 * Lagunitas Partners, L.P. ....................... 238,882 225,882 13,000 * Gruber & McBain Capital Management L.L.C. shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Liberty-Stein Roe Small Company Growth ......... 12,500 12,500 0 * Fund Maroon Bells Capital Partners .................. 1,800,844 453,375 1,302,469 6.42% Significant Stockholder and Party to Financial Advisory Agreement with RateXchange Corporation Mayfield, Ross ................................. 230,738 16,675 214,063 1.04% Former Executive Officer of RateXchange Corporation Mehra, Raj ..................................... 1,250 1,250 0 * Metzman, Mitch A. .............................. 12,500 12,500 0 * MJE Partners ................................... 6,250 6,250 0 * M. Kingdon Offshore, N.V. ...................... 179,375 179,375 0 * Mooney, Edward ................................. 576,667 100,000 476,667 2.34% Former Executive Officer and Director of RateXchange Corporation, Currently a consultant to RateXchange; Party to Severance Agreement with RateXchange New-Day Investment Partnership, L.P. ........... 12,500 12,500 0 * North Olmsted Partners, LP ..................... 12,500 12,500 0 * Omni Resources, LLC ............................ 12,500 12,500 0 * Ozada, Erinch R. ............................... 6,250 6,250 0 * Park Avenue Cons. Group ........................ 116,522 116,522 0 *

3

Shares Maximum Shares Beneficially Beneficially Number of Owned after Owned Shares to be Offering (assuming Percentage of Common Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering ----------------------------------------------------- -------------- -------------- -------------------- --------------------- Pequot Scout Fund, L.P. ............................. 250,001 250,001 0 * Pequot Capital Management, Inc., as investment advisor to this stockholder, shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Phaeton, B.V.I. ..................................... 49,625 49,625 0 * Phoenix Partners, L.P. .............................. 51,250 51,250 0 * Pilgrim Baxter Hybrid Partners I, L.P. .............. 112,500 112,500 0 * Pilgrim Baxter & Assoc., Ltd., as investment advisor to this stockholder, shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Pilgrim Baxter Hybrid Partners II, L.P. ............. 12,501 12,501 0 * Pilgrim Baxter & Assoc., Ltd., as investment advisor to this stockholder, shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Poe, Fred W. ........................................ 25,000 25,000 0 * Prism Partners I, L.P. .............................. 75,000 52,500 22,500 * Prism Partners II Offshore Fund ..................... 75,000 15,000 60,000 * Prism Partners Offshore Fund ........................ 75,000 7,500 67,500 * Quantum Partners LDC ................................ 500,000 500,000 0 * Soros Fund Management LLC, as Principal Investment Manager to this stockholder, shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Raptor Global Portfolio Ltd. ........................ 186,665 186,665 0 * Rawitser, Michael ................................... 12,500 12,500 0 * Retirement Plan of Space Systems/Loral Inc. ......... 5,784 5,784 0 * --Kane & Co. P51455 Gruber & McBain Capital Management L.L.C. shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Rice, Philip ........................................ 27,500 12,500 15,000 * Executive Officer of RateXchange Corporation Robb, Larry F. ...................................... 215,625 93,750 121,875 * Rogers, Malcolm ..................................... 808,000 43,000 765,000 3.75% Significant Stockholder Janet L. Rogers shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Scheele, Michael J. ................................. 381,313 121,313 260,000 1.27% Consultant to RateXchange Corporation

4

Shares Maximum Shares Beneficially Beneficially Number of Owned after Owned Shares to be Offering (assuming Percentage of Common Name of Selling Stockholder and Material Prior to Sold in all shares offered Stock Beneficially Relationship, if any, with RateXchange Offering Offering are actually sold) Owned after Offering -------------------------------------------------- -------------- -------------- -------------------- --------------------- Schottenfeld Associates, LP ...................... 62,500 62,500 0 * Schow Family Trust ............................... 119,250 119,250 0 * Sidana, Annupreet ................................ 11,250 11,250 0 * Smith, Raymond M.; IRA Rollover Custodian ........ 31,250 31,250 0 * Special Situations Cayman Fund, L.P. ............. 81,250 81,250 0 * Special Situations Fund III, L.P. ................ 275,000 275,000 0 * Special Situations Private Equity Fund, L.P. ..... 81,250 81,250 0 * Special Situations Technology Fund, L.P. ......... 62,500 62,500 0 * Spirit Fund, Ltd. ................................ 25,000 25,000 0 * Stein Roe Variable Investment Trust Small ........ 37,500 37,500 0 * Company Growth, Var Series Suyama, Roger, Pacific Century ................... 12,500 12,500 0 * Swindells, Theodore .............................. 1,900,844 45,000 1,402,469 6.92% The Timken Living Trust U/A/D 9/14/99 ............ 62,500 62,500 0 * Tirman Family Limited Partnership ................ 18,750 18,750 0 * Geoffrey Tirman, General Partner of Tirman Family Limited Partnership, shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Tonga Partners, LP ............................... 31,250 31,250 0 * Cannell Capital Management shares voting and disposition power over the securities held by this stockholder and offered pursuant to this prospectus Trinity Fund, Ltd. ............................... 100,000 100,000 0 * VICD Bipod & Co. ................................. 3,099 3,099 0 * (AIM Variable Insurance Funds, Inc. on behalf of its portfolio, AIM Capital Development Fund) Warren, Robin .................................... 17,342 17,342 0 * Wescott, Jr, Paul A. ............................. 82,250 6,250 76,000 * Former Executive Officer of RateXchange Corporation Whelan, Sean ..................................... 129,024 129,024 0 * Founder and Former President of RateXchange I, Inc., a subsidiary of RateXchange Corporation Windy Hill Investments NAMI, LLC ................. 12,500 12,500 0 * WPG Institutional Networking Fund, L.P. .......... 3,750 3,750 0 * WPG Institutional Software Fund, L.P. ............ 56,576 56,576 0 * WPG Networking Fund, L.P. ........................ 30,912 30,912 0 * WPG Raytheon Networking Fund, L.P. ............... 89,088 89,088 0 * WPG Raytheon Software Fund, L.P. ................. 43,113 43,113 0 * WPG Software Fund, L.P. .......................... 25,311 25,311 0 *

------------ * The shares represent less than 1% of the outstanding shares of common stock. 5