June 2007

COVER STORY Wall Street Firms Turn to Best Practices Models to Speed Up Software Delivery Demand for new applications delivered quickly has never been greater at investment banks. Firms like Merrill Lynch, Mellon and HSBC are using best practices models like CMMI, ITIL and agile software development. Sidebar: ABCs of Development Methods A quick primer on some common development methods and practices. FEATURE Data Latency Playing An Ever Increasing Role In Effective Trading Wall Street’s quest to process data at the speed of light relies on the physical proximity of servers to overcome the technical barriers of data latency. Sidebar: Technololgy Can't Beat Inherent Data Latency, TABB Group Report Says the inherent latency in routers, switches and other equipment accounts for most latency in networks, not the cables. FOCUS ON Indentity Theft-Related Data Breaches Inceasingly Stemming From Laptop Theft More than half of identity theft-related data breaches steam from the theft or loss of a laptop or storage device, according to Semantec. BUSINESS LINES Latest Market Data Dispute Over NYSE's Plan to Charge for Depth-of-Book Data Pits NSX Against Other U.S. Exchanges The National Stock Exchange filed a comment letter with the SEC supporting a review of the Commision's approval of the NYSE's fee proposal, as well as a review of the current market data revenue-sharing formula under Reg NMS. Brokerage Firms Are Starting to Use Digital Rights Technology to Protect Their Research Plagiarism by online content vendors and the need to sell research profitably are driving the top brokerage firms to guard their reports with digital rights management tools. U.S. Institutes Risk-Based Portfolio Margining Risk-based portfolio margining rules in the U.S. will likely produce significantly lower margin requirements for many investors.

FROM THE EDITOR Messaging Delays A Major Worry For Traders, Brokerages Most brokers have stated that exchanges have had problems at various times either processing the number of orders received or handling the various messages that are sent back and forth between market participants. UP FRONT Surge In Fixed Income Trading Drives Need For A Single Data Management Platform Recent surge in trading volume products in the U.S. has spurred a need for a single platform that can manage data across asset classes, instruments, and region, Aite Group report says. Market for Wealth Management Compliance Systems Set to Jump 15% by 2011 Investment advisors are expected to spend the most as they are among the fastest growing but most regulated group of advisors. But hedge funds are also likely to increase spending. Barclays Risks ABN AMRO Acquisition To Move More Than 10,000 Positions Offshore Barclays says it would also cut outright 12,800 staff positions if its plan is approved by ABN Amro shareholders. AIIM Industry Watch Survey Shows Records Management Problems Prevail Senior executives tent to be "overly optimistic" about the competence of records management and IT staff Early Financial Services SOA Adopters Face High Costs BearingPoint says financial services firms are finding SOA services are costly, less reliable, hard to maintain. INDUSTRY VOICE Savvy Financial Services Firms Tap Employee Intelligence For Strategic Decision Making The challenge for most capital markets firms is not a lack of raw data, but a lack of context and insight based on that information. PERSPECTIVES Is Multi-Asset Trading Dead on Arrival? Multi-asset trading shouldn't be written off so quickly. More products are electronically traded, and investors are changing the investment dynamic. PRODUCT WATCH • Questar Asset Management Releases New Investor Advisor Platform • Eagle Investment Management Solutions Suite Version 8.0 Launched • Symark Software Releases PowerBroker 5.0 SHIFTING GEARS •DTCC Hires Citigroup Risk Veteran Douglas George •Northern Names Geographic-Specific Transition Management Leadership •20 Year Wall Street Data Veteran Roseann Palmieri Joins Merrill Lynch