October 2006

COVER STORY The Quiet Market Explosion While most of the industry has been focusing on exotic investment products and emerging markets, the securities lending market has boomed into a $16 trillion business. But with rapid growth comes substantial risk. BUSINESS LINES Selling the Strategy: The Sell Side Finds an Edge in the Algorithm Marketplace by Being Quick and Collaborative Sell side firms jockeying for position and order flow with algorithmic products are finding that high-end customization and first-mover advantage are playing considerable roles in their clients' decision-making process. Financial Firms Are Struggling to Manage, Archive and Monitor the Exponentially Growing Volume of Corporate E-mail Morgan Stanley, Merrill Lynch, Raymond James, and other financial firms have all been bitten by e-mail compliance woes. Learn how to get control of e-mail before you become the next victim of the e-mail beast. A Hard Act to Follow Amid dwindling commissions and a resurgence in the use of soft dollars, commission recapture is becoming harder to quantify. VOIP Provides Efficient and Cost Effective Communications for Smaller Investment Managers and Hedge Funds Verity Wealth Advisors opted for a VOIP outsourced telephone service when its existing phone system would no longer be supported. INDUSTRY VOICE Reducing Market Spend As the global economy has expanded, the information requirements of the financial services industry and related markets have continued to grow. PERSPECTIVES Who Said Technology Isn't Important? While the front office is eminently more glamorous and lucrative, switching front-office providers is easy. Switching a clearing, custody or depository relationship, however, is very hard.

FROM THE EDITOR Jack Be Nimble Sometimes, smaller is better. That's not to say there aren't advantages to being part of the Citigroups or Fidelities of the world, where vast sums of capital are available. CIO CHALLENGE Patent Processing The Challenge: Given the abundance of technology solutions created in the securities industry, once-ignored intellectual property issues have been forced to the forefront as firms increasingly are settling infringement claims in court. But a flood of new patents could curb innovation. PRODUCT WATCH Cross-Asset STP CRM for Investment Managers Tying Up Employee Loose Ends SHIFTING GEARS Stephen Andress Hired by Northern Trust JPMorgan WSS Makes Serenita CDO JPMorgan's Kerry Williams Leaves for SwapsWire Keeping Tabs UP FRONT Enterprise Data Security Solutions: Variety Is the Spice of Life The Golden Years EMS Spending Spree Venues Fight for Market Share Registration's Lingering Effects Ask The Experts: Mark Madoff, Codirector of Trading at Bernard L. Madoff Investment Securities