July 2004

COVER STORY Is VoIP Ready for the Mass Market? Financial executives say yes. FEATURE What's So Great About Grid? You wouldn't allow your employees to remain idle 70 percent of the time. And you shouldn't stand for it with your lazy computers, either. BUSINESS LINES Algorithmic Alliances Broker-dealers are making their algorithmic-trading strategies accessible to the buy side via partnerships with order-management systems. Separate but Equal? The complexity of separately managed accounts presents technology challenges, but their integration into investment offerings is inevitable. Lehman Moves In With AIGT The investment bank outsources its mainframe operations and rents space for its distributed environment from the service provider. Learning to Like Compliance Speakers at InformationWeek Media Network's compliance forum are achieving compliance without disrupting their businesses. INTERVIEW Interview A Conversation With Robert Gartland Managing Director, Morgan Stanley INDUSTRY VOICE How Low Can You Go? Reg NMS' proposed formula for allocating market-data revenues among exchanges isn't getting a warm welcome on the Street.

FROM THE EDITOR Toward Innovation UP FRONT The Trust Factor We're at a point where we trust the technology and we trust the operations, but we don't trust the human beings and the corporations they work for. Information Nation Do you want to know the keys to information management compliance? Algo-Trading Meets Direct Access As buy-side firms take more control over executing orders, there is an increasing interest in algorithmic-trading strategies combined with direct-access trading platforms. Dear CIO... Question: "Are cost controls passe now that firms are making money again?" Best Execution Drives Buy-Side OMS Suppliers Buy-side order-management systems are being impacted by demand for electronic trading, continuous compliance and new requirements to handle complex derivative instruments Spending Stats At a recent TowerGroup conference in Boston, Rob Hegarty, vice president of TowerGroup's securities and investments practice, revealed updated spending forecasts. FOCUS ON Taking AML to the Next Level Investment-management firms are beginning to leverage AML technology for more than anti-money laundering. CIO CHALLENGE Maintenance Costs On average, IT maintenance eats up more than $6 out of every $10 in the IT budget. PRODUCT WATCH Innovative Technologies & Services Legato Preps Firms for Subpoenas; Enigmatec Manages Infrastructure; Fidelity Offers Corp. Actions ASP; BT Syntegra Opens Trading Floor; Linedata's Holistic View; ZipLip Gets Proactive SHIFTING GEARS People & Careers FPL Taps Houstoun to Co-chair GTC; NYSE Hires Merrill To Catch Violators; Citigroup Promotes Rosengarten; Keeping Tabs PERSPECTIVES Providing Service in an Increasingly Electronic World In early May, the NYSE announced that its program trading volume had broken the 52 percent level.