January 2005

COVER STORY I PERSONALLY DON'T ANTICIPATE THAT THIS IS A BRIDGE TO AN ALL-ELECTRONIC MARKETPLACE," SAYS ROBERT MCSWEENEY, SENIOR VICE PRESIDENT FOR COMPETITIVE POSITION, NYSE. Hybrid Markets: A Migration to the Screen The NYSE and other exchanges are planning to transform themselves into hybrid markets in response to Reg NMS. But is this a permanent move or a temporary step that will eventually evolve into screen-based trading? FOCUS ON CORPORATE PERFORMANCE MANAGEMENT Firing On All Cylinders Having the proper infrastructure in place is critical to measuring enterprisewide performance. CIO CHALLENGE CIO Challenge As markets make the seemingly inevitable transition to automated trading, former floor-based traders need to relearn their craft. To familiarize themselves with electronic trading technologies, many traders are going back to school. INDUSTRY VOICE Combating Blended Threats One of the most significant computing events of 2004 occurred in January, when the Internet was hit by the MyDoom worm. According to analyst group Computer Economics, the worldwide cost of MyDoom reached an estimated $4 billion. PERSPECTIVES Light Speed and The Buttonwood Tree The history of the financial markets has revolved around community. The Buttonwood Tree, the Stock Exchange, the delivery zone and the talent pool - all were very New York, Lower Manhattan-centric.

FROM THE EDITOR Making a Choice UP FRONT --No Bank Is Spared From Basel II --Data Insecurities --Mutual Funds Out of Favor? --VoIP Can Save You Up to $28,000 Per Site --Phishing: You Ain't Seen Nothing Yet --Channel Surfing Without the Remote Control Dear CIO... Question: How will Reg NMS impact broker-dealers? BUSINESS LINES To Linux or Not to Linux Though gaining popularity among financial-services firms, the open source platform may not be the OS of the future. Brokers Bang on OMS Doors Brokers want OMS vendors to create interfaces to their algorithms, but the lack of a standard FIX message is problematic. The Alternative Fix As alternative investments take on the marketplace, firms search for the right tools to support the trend. Data First With straight-through processing again on financial institutions' agendas, the focus has turned to data management as a first step. The Cost of Compliance Increased regulations are forcing hedge-fund managers to invest in technology that they once thought they could do without. PRODUCT WATCH Innovative Technologies & Services --IST Streams Data to BlackBerry --NetAPP Embraces Grid --TradePRO Offers Instant Delivery SHIFTING GEARS People & Careers --Senator D'Amato Joins COESfx --Nasdaq Names SVP of Market Data --Former Nasdaq Exec Runs Research Firm --Keeping Tabs