Wall Street & Technology

The End of Labor Arbitrage

June 23, 2007 | By Penny Crosman

The age of outsourcing to India for the cheaper labor costs is over, according to S. Premkumar, corporate officer and global head-financial services at Indian outsourcing firm HCL Technologies. Where once a function performed by 100 U.S. employees could be handed over to 100 Indian employees who could do it for significantly less, the diminishing value of the dollar combined with the strengthening of the rupee and increasing salary levels in India have wiped out the benefits of such labor arbitrage, he points out. Captives, too, have lost their luster, Premkumar says - they don't grow well because they're too focused on cutting costs and they're not good at sharing people and resources.

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NYSE Euronext Develops Dark Pool for Crossing Portfolios

June 12, 2007 | By Ivy Schmerken

With dark pools gaining traction among institutions seeking leak-proof matches, one of the worldis largest liquidity pools is venturing into the crossing network space. By the end of this summer, NYSE Euronext is expected to launch NYSE MatchPoint n a point-in-time benchmark crossing-network geared to large index funds and mutual funds looking to matching portfolios of stocks.

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CME Group Picks StreamBase’s CEP Platform for Options Pricing June 23, 2009
Derivatives exchange initially will tap the complex event processing platform to develop models for settlement pricing of options on futures with plans to expand CEP's use into risk management and compliance.

Emerging Technologies That Will Change the Data Center June 22, 2009
Three emerging technologies that will make Wall Street data centers more efficient in the coming year.

The Urgency and High Price of New Cost Basis Reporting Law June 22, 2009
Even while many firms are unaware of new cost basis reporting requirements, the deadline for compliance is fast approaching -- and the cost to comply won't be cheap.

’Kill the Comatose Servers,’ Says IT Guru Ken Brill June 19, 2009
Kenneth Brill, technology industry icon and executive director of the Uptime Institute, offers his secrets to an efficient data center in this exclusive Q&A.

Energy Stars: Wall Street Firms’ Sustainable IT Efforts June 17, 2009
Strained budgets combined with advances in virtualization technology and energy-efficient equipment are driving Wall Street firms' efforts to make their data centers and broader IT infrastructures more sustainable.

RBC Capital Markets Taps Open Source Platform for Fixed Income Applications June 17, 2009
RBC Capital Markets taps open source development platform Eclipse to integrate multiple fixed-income applications through a single user interface.

5 Tips to Achieving an Energy-Efficient Data Center June 16, 2009
Independent technology consultant Neal Nelson offers guidelines for reducing data center power consumption by as much as 50 percent.

Wall Street Firms Form Enterprise Clouds June 16, 2009
A number of Wall Street firms -- including Citi, Merrill and AQR Capital -- are adopting cloud computing concepts internally to ease IT management and save money.

7 Tips for Doing Business in China June 10, 2009
Those doing business in China must remember that the country is steeped in strict cultural and social traditions, so we've compiled some tips on what you really need to know to succeed.

20 of the Top Chinese Fund Management Companies June 09, 2009
The Chinese mutual fund industry is currently 1/10th of the size of the U.S. industry, but is growing fast. Here are 20 of the top Chinese fund management companies, which also include joint ventures with some big Western banks.

Primary Technology Vendors in China June 09, 2009
Many vendors are already at work providing services in China. Here are some of the key Chinese financial technology vendors, as well as a short list of some of the Western technology providers with operations in China.

China’s Mutual Fund Industry Goes International June 09, 2009
China is opening its notoriously closed mutual fund industry to international investing, injecting more than 1 billion potential investors into the global markets. Meanwhile Western fund managers and technology providers hope to provide much-needed expertise to Chinese investment firms.

Citi’s Green Data Centers Provide Environmental and Business Benefits May 20, 2009
Citi has completed three LEED-certified energy-efficient data centers and is sticking to its $50 billion commitment to environmental efforts, which it says make good business sense.

Mitigating New Risks: Q&A With Catalina Partners’ Patty Watters May 14, 2009
Patty Watters, cofounder of Catalina Partners, a risk advisory business launched in March, discusses the new risk challenges facing institutional investors and advisers as they try to win back investor confidence.

Wall Street Opens Doors to Open Source Technologies May 11, 2009
The recession combined with access to a worldwide community of developers is driving capital markets firms to adopt open source technologies in increasing numbers.

Extreme Makeover: Broker Workstation Edition April 27, 2009
A quest for increased adviser productivity and a forthcoming cost-basis reporting law are driving wealth management technology integrations and upgrades at Canada's largest brokerage, RBC Dominion Securities, and U.S. advisory firm Silver Bridge as well as others.

Citi Taps CEP for Analyzing Equity Data April 16, 2009
Global financial giant uses Coral8 software to perform complex pattern matching on equity data in real time.

Mashups Slowly Gain Traction on Wall Street March 27, 2009
While adoption of mashups by capital markets firms has been slow, the technology promises to empower business users, improve information sharing, boost productivity and strengthen customer relationships -- if security concerns can be overcome.

E*Trade Accelerates Mobile Trading March 25, 2009
Upgrading from a basic WAP app to a thick client helped drive a 139 percent increase in daily average revenue trades.

Divining the Future of Professional Media in a Web 2.0 World March 20, 2009
What does the disintermediation of professional media mean for an industry focused on high-speed, accurate and intelligent information?

Media Information Void March 19, 2009
As Web. 2.0 technologies and social networking tools begin to play a role in how people distribute and consume information, financial services executives are trying to figure out what it all means.

How BGC Partners Stays on Top of the Flood of Trade Data March 18, 2009
BGC Partners, a global inter-dealer broker, uses Sybase's IQ column-based database to store and analyze the escalating tsunami of trade data.

WeSeed Looks to Provide Wall Street With a Cash Infusion March 13, 2009

Wall Street Accelerates Options Analysis With GPU Technology March 11, 2009
Wall Street firms turn to NVIDIA's graphics processing units to speed up options analytics and derivatives pricing.

Adapting Legacy Applications to Multicore Servers March 09, 2009
Even as chip makers roll out ever-more-powerful servers to meet Wall Street's demand for low-latency, high-speed performance, legacy applications and new multicore servers tend to be a poor fit. But firms are finding ways to adapt aging programs to take advantage of multiple cores.

Smart Algo Routers Target Complex Market Structure March 04, 2009
Louis Capital Markets launches Alpharithms to help buy-side firms pick the best-performing algo strategies.

Retail Financial Services Firms Must Adapt to Changing Landscape February 23, 2009
With investors' trust shaken, firms need new approaches to working with wealth management clients, says Accenture's Mark Halverson.

Wikis and Wall Street: A Perfect Match? February 20, 2009
The key to leveraging wikis on Wall Street is picking and choosing the business problems that wikis are well-suited to solve, and which skirt around the security and compliance issues that have hampered previous SaaS deployments.

Risk Management Evolves for Risky Times February 18, 2009
Real-time risk management systems and a culture of accountability are necessary to help financial firms avoid the pitfalls that caused the financial crisis in the first place.

Behavioral Finance Helps Fund Managers Spot Losers February 17, 2009
All fund managers rely on gut instincts in their pursuit of superior returns. Cabot Research uses behavioral finance to help them identify persistent bad tendencies when buying and selling stocks.

Citi/Morgan Brokerage Merger Presents Disruption and Opportunity. Will It Work? February 05, 2009
Though the integration process is bound to be slow and painful, and the likely layoffs have earned it the moniker 'Citi Morgue,' Citi and Morgan Stanley's retail brokerage joint venture has an opportunity to forge a best-of-both-worlds wealth management platform.

European MTFs Hook Up With Reliance Globalcom’s Financial Extranet to Minimize Latency February 03, 2009
Anticipating a data explosion in Europe, Chi-X Europe, BATS Europe and Nasdaq OMX Europe are tapping Reliance Globalcom's extranet for low-latency connectivity to serve high-frequency and algo traders.

MacDougall, MacDougall and MacTier Invests in New Wealth Management Platform February 02, 2009
Canada's oldest stock brokerage, MacDougall, MacDougall and MacTier, is turning to new wealth management software to handle a wave of new clients.

Cloud Computing Gives E-Discovery a Lift January 23, 2009
Firms are looking to cloud computing's utility model as a way to rein in the infrastructure costs required to support e-discovery capabilities and improve their regulatory response.

Tools for the Modern IT Organization January 21, 2009
As technology executives' mandate shifts from supporting business growth to managing technology efficiently, CIOs increasingly are pursuing IT flexibility through tools such as cloud computing, virtualization, software as a service and outsourcing.

Virtualization Is Virtually Everywhere on Wall Street January 15, 2009
Firms are expanding their use of virtualization to save money, rapidly deploy new servers and extend the life of legacy applications.

Retail Brokerage TradeKing Dives Head-First Into Social Networking January 15, 2009
Recognizing that social networking technology would allow retail brokerage customers to learn from each other, online brokerage TradeKing developed an online trading community for self-directed investors that has become a centerpiece of the company's commitment to transparency. In an exclusive Q&A with Wall Street & Technology, TradeKing CEO Don Montanaro explains how the fast-growing firm, which launched in December 2005, embraced social networking technology from the beginning and is turning it into a competitive advantage.

Mini-Primes Offer Hedge Funds Turnkey Service to Diversify Counterparty Risk January 14, 2009
In response to counterparty risk concerns, mini-prime brokers are offering smaller hedge funds the hosted technology to manage multiple prime relationships.

Outsourcing’s Appeal Grows During Volatile Times January 13, 2009
Amid the economic downturn, more and more Wall Street firms are considering outsourcing to cut costs as well as gain access to technology and expertise. But the shaky economy requires firms to do more outsourcing due diligence than ever before.

Exclusive: 2009 IT Spending to Drop Only 5% January 12, 2009
Despite all the doom and gloom in the economy, a recent study from Aite Group says overall IT spending will only drop five percent and that risk management and compliance were two of the highest priorities. Business intelligence, document management and wealth management are areas that will see less resources in 2009.

E-Discovery Requirements Are About to Hit Canadian Firms January 08, 2009
As Canadian firms prepare for new e-discovery rules, they can look to their U.S. counterparts for technology lessons.

Cloud Computing Begins to Gain Traction on Wall Street January 06, 2009
While Wall Street organizations such as Morgan Stanley, Merrill Lynch and Nasdaq have begun using cloud computing for its pay-as-you-go model, questions about control and security remain.

Wall Street & Technology’s 2009 Capital Markets Outlook December 22, 2008
WS&T's editors look at the year ahead and present visions for 11 areas where change may come in 2009.

Low Latency Spending Moves Full Speed Ahead December 22, 2008
Trading firms still need to focus on reducing data latency to keep up with the competition. With spending cuts and reduced IT spending forecasts, CIOs will still find the funds to invest in technology that speeds up the trading process.

Canadian Banking System Could Provide Insight Into Future Regulatory Planning December 22, 2008
Canada's banks have survived the worst of the global crisis; perhaps their model can provide a framework for a healthy world banking system.

2009 CIO Challenges: Other IT Priorities December 22, 2008

Consolidation, Client Reporting to Lead 2009 Wealth Management Projects December 19, 2008
Amid the market turmoil, wealth management offers a ray of hope. Firms invested heavily in wealth management this past year, and in 2009 they'll be digesting those purchases, consolidating their many platforms and improving client reporting.

Risk Management Is Wall Street’s Top Priority for 2009 December 19, 2008
Poor risk management is at the heart of the current financial crisis. Firms will have to implement new risk management practices and governance to shore up their performance, satisfy regulators and win back investors' trust.

2009 CIO Challenges: Role of the CIO December 19, 2008
Industry experts outline the potentially shifting responsibilities and focuses of CIOs in 2009.

Hedge Funds Diversify Away from Single Prime After Financial Turmoil Leads to Collapse of Major Brokers December 19, 2008
The crisis in the financial markets that led to the collapse of two of the top brokers, Bear Stearns and Lehman Brothers, has caused hedge funds and long-only asset managers to reevaluate their prime brokerage relationships.

Collateral Automation to Be A Trend in 2009 December 19, 2008
Market turmoil placed a spotlight on counterparty risk, and collateral management is critical to mitigating counterparty credit exposure. Solutions that help value and manage collateral on a near-real-time basis will be one of the few areas of IT investment in 2009.

Agency Brokers Are Predicted to Gain Market Share Away From Bulge-Bracket Firms December 19, 2008
After witnessing two of the bulge-bracket brokers fail, the buy side is looking for more-financially-stable trading partners. Agency brokers are seizing the opportunity to lure institutional clients away from the troubled bulge-bracket firms.

Regulators Push Central Clearinghouse On Dealers to Eliminate Counterparty Risk In Credit Default Swaps December 19, 2008
In light of the current financial crisis, regulators are pressing top dealers in credit derivatives to develop a central clearinghouse that would eliminate counterparty risk and protect members in the event of a default.

Wall Street Recruiters and Employees Increasingly Use Social Networking for Career Management December 19, 2008
In today's economy, employees need to make sure they are ready for the next job, which means keeping up with contacts as well as with developments in their fields. Recruiters also need to make sure they use the latest tools available to find the best candidates.

Regulators Set to Tighten Grip, Focus on Accountability and Transparency in 2009 December 19, 2008
The current financial meltdown has been partially blamed on a lack of regulation. To correct the problems that contributed to the crisis, regulators should target specific problem areas while making sure they don't overregulate and asphyxiate the markets.

Be an IT Hero With a Focus on Cost-Conscious Technology Decisions December 19, 2008
Cutting costs will be a priority in 2009. Rationalization, modernization and vendor negotiation will be among the top cost-conscious IT strategies. IT managers who can cut costs without axing people will be golden in 2009.

2009 CIO Challenges: Low-Latency Technology December 19, 2008
Industry experts examine the focus on low-latency, and whether Wall Street CIOs will continue to go faster in 2009.

Financial Firms Turn to Social Media to Attract New Gen X, Y Clients December 19, 2008
Retail brokerages and banks have increasingly been using social networking to attract and retain clients. But with social networking tools and sites proliferating, firms need to ensure that they connect with their target audience and provide content quality controls.

CIO Challenges 2009: Derivatives Processing December 18, 2008
Industry experts discuss why and how derivatives processing will be an important topic for CIOs in 2009.

2009 CIO Challenges: Regulation December 18, 2008
Industry experts look at the impact of regulation in 2009, and how CIOs can deal with the requirements of new regulations.

Growth No Longer CIOs’ No. 1 Priority December 17, 2008
Industry experts discuss the challenges facing Wall Street CIOs in 2009.

2009 CIO Challenges: Risk Management December 17, 2008
Industry experts discuss risk management and how CIOs will approach the topic in 2009.

2009 CIO Challenges: Wealth Management December 17, 2008
Industry experts discuss trends in wealth management for 2009.

Case Study: Loomis Sayles Implements Multifactor Authentication November 19, 2008
Loomis Sayles deploys Imprivata technology to enable authentication via password, fingerprint and token.

E-Discovery Requests Loom Large for Financial Services Firms November 18, 2008
As the turmoil on Wall Street continues, a growing tide of litigation -- and e-discovery requests -- could engulf financial firms.

Kleinwort Benson Embraces Business Process Management November 18, 2008
Kleinwort Benson untangles decades of merger-driven redundancies by embracing business process management.

Lessons from Rogue Trading and the Credit Crunch: How to Uncover the Next Unknown Risk November 18, 2008
Firms need to plan effectively to reduce information technology and other enterprisewide risks that are within their control.

Wall Street Taking A Closer Look at Collateral Management November 17, 2008
The quiet backwater of collateral management has been stirred up by Bear Stearns' collapse, Lehman's bankruptcy, AIG's near-death and ongoing turmoil in the credit markets.

State of the Engineer: Immigration--The Reactionary Side Of Engineering November 17, 2008
Fifteen of the 16 major broker-dealers have been quietly working to build an automated framework for collateral management. The group plans to roll out a messaging system for margin calls early next year.

Bloomberg Partners with Sermo Online Medical Community to Build Healthcare Marketplace for Investors November 14, 2008
Bloomberg partners with online medical community to provide professional investors with access to thousands of practicing physicians.

UMAs Continue to Grow in Turbulent Financial Markets October 28, 2008
Amid the worst market turmoil in a generation, high-net-worth investors are increasingly entrusting their long-term wealth to unified managed accounts.

Wall Street Firms Using CEP to Measure and Manage Risk October 27, 2008
New complex event processing applications promise to help firms get a better handle on their risk exposure, but can CEP erase Wall Street's risk management woes?

TransMarket May Use CEP to Create Quick Custom Algos October 27, 2008

Fidelity Blurs the Line Between Desktop and Mobile Apps October 24, 2008
Fidelity's mobile application improvements include intuitive navigations and shortcuts for investors who can only use one hand.

Is This Crisis Different? Not Really October 23, 2008
Despite popular sentiment that the financial meltdown of 2007-08 is unique in history, we can glean lessons from earlier crises to make a better, more stable financial system, says John Chen, CEO of Sybase.

New Web Site Consolidates Real-Time Market Data Peaks Across U.S. Equities and Options Venues October 22, 2008
Market data pros turn to a new Web site to track surging message rates in real time amid the turmoil.

Merrill Lynch’s Makeover: BofA Will Lower Risk Profile, According to TowerGroup’s Hegarty September 17, 2008
Bank gets wealth management technology and position in electronic trading space.

More Features Archive

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Electronic Trading Resource Center

As markets move faster and trading in all types of investment classes continues to migrate to electronic trading, the technology that supports trading strategies is evolving at a rapid pace. Reducing latency and building systems that can match orders in hundredths of a second will be required if firms want to continue to compete in many markets.

Events

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August 30, 2007 Fouth live event title tata

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Whitepapers

Respond to financial market conditions and clients -- on demand: IBM software solutions for the financial markets industry
This solution sheet addresses the challenges & opportunities that exist today for midsized financial services/markets firms by explaining how these firms can achieve end-to-end business integration with industry-leading solutions from IBM and IBM Business Partners.

MiFID - How to Deal With Four Critical Reference Data Issues
As a result of emerging regulatory framework, the extensive changes surrounding the way data is gathered, managed, shared and retained will have significant impact for both buy side and sell side firms. This paper sheds light on some of the data issues stirred up by the MiFID revolution and suggests four pragmatic ways of addressing those needs.

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Market Place

Unexpected Surge in Trading Volumes and Volatility Raises Infrastructure Concerns for Hedge Funds

Experts Share Basic Ways To Reduce Power Consumption In Data Centers

These Servers Are Really Cool

Don't Panic, but the Grid's Going Down

What's a Green Data Center?

Wells Fargo Taps Web 2.0

Career Center

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Greg MacSweeny Columns

Greg MacSweeney
Media Information Void
As Web. 2.0 technologies and social networking tools begin to play a role in how people di...

Tools for the Modern IT Organization

Low Latency Spending Moves Full Speed Ahead

Canadian Banking System Could Provide Insight Into Future Regulatory Planning

Larry Tabb Columns

Larry Tabb
Divining the Future of Professional Media in a Web 2.0 World
What does the disintermediation of professional media mean for an industry focused on high...

Be Careful of The Transparent OTC Market

Today’s Money Managers Are Leveraging Funds Into Alternative Investment Products