December 2004

COVER STORY Learning How to Share Banc of America Securities (BAS) has made major cost-cutting strides by creating a central hub to aggregate and validate reference data so a single source can feed front-, middle- and back-office applications. SPECIAL REPORT Software's Next Step Services-oriented architectures are being embraced by business-technology specialists charged with creating more efficient IT infrastructures. FOCUS ON OUTSOURCING Riga to Manila to Mumbai More firms are considering offshore outsourcing than ever before - and their choices are growing by the minute. CIO CHALLENGE CIO Challenge As hedge funds soar, winning their order flow has become more vital than ever. To compete for that business, brokers and other providers need to offer hedge fund managers wider access to markets and trading products, and break down silos to improve integration. INDUSTRY VOICE PPM: A Master Plan for Agility Imagine you are the CIO of a financial-services company that is merging with a competitor. After some investigation, you uncover an inventory of thousands of homegrown applications. PERSPECTIVES What's the Value of Data? Selling data these days is like selling ice to the Eskimos.

FROM THE EDITOR Long Live Long Term UP FRONT --Insourcing Isn't In --Not All Risks Are Created Equal --COSO Tackles ERM --JPMorgan Ramps Up Analytic Team Dear CIO... Question: With so many new technologies, how do you weigh the decision between being an early adopter, which may provide a competitive advantage, against waiting for someone else to work out the bugs? BUSINESS LINES The Perfect Partner Technology strategies play a key role in selecting independent investment advice providers for 401(k) managed-accounts programs. A.G. Edwards' Grand Plan Deal with Thomson could raise costs in the short term, but it's all part of a long-term technology plan to simplify its infrastructure. Preparing for Real Time As municipal dealers attempt to meet MSRB's December deadline, Lehman Brothers offers a model solution. Want an Algorithm With That? Major brokerage houses are franchising their algorithmic trading strategies to smaller firms that are feeling pressure to offer the service. Eurex and CCorp Forge Link Derivatives exchange and Clearing Corp. tout transatlantic clearing link as they await regulatory approval of phase two of the project. PRODUCT WATCH Innovative Technologies & Services --IBM Boosts Storage Flexibility --Schwab Targets Advisers --Obian Taps COSO Framework SHIFTING GEARS People & Careers --Witney to Head IT at Barclays Capital --SunGard Names Cinquina SVP --Morris Joins Penson From Pershing --Keeping Tabs