No Recommendation For Instinet's Stock
When asked how she felt about Instinet's performance - the day its President and Chief Executive Officer Doug Atkins resigned - Diane Glossman, managing director, Financials Group Equity Research, UBS Warburg, would only say, "We are not recommending Instinet or Island until there is further consolidation among electronic-communication networks." Atkins reportedly resigned because Reuters - an 85 percent owner of Instinet - said it would continue to try to find a buyer for the hybrid brokerage and electronic-communications network. Atkins said he resigned to pursue other business interests.
Industry Spending Dominated by Largest Asset Managers
Celent Communications forecasts that $4.1 billion will be spent on information technology to support investment management during 2002. At the institutional level, IT spending remains dominated by the largest asset managers. According to Celent, the five largest IT spenders among investment managers account for almost one-third of industry IT spending. See chart below.
Majority of Technology Managers Promoted From Within
Often, the path to advancement in the technology field begins close to home, according to a survey by Menlo Park, Calif.-based RHI Consulting. Chief information officers polled said more than half (53 percent) of their leadership positions are filled by candidates working for their firm. https://www.wallstreetandtech.com
Regs will Force Better Risk Management
Financial institutions will have to make major technology enhancements to their risk-management systems in order to comply with the impending regulatory requirements proposed by the Bank for International Settlements, according to a recent Meridien Report. Systems will have to support both their operational- and credit-risk initiatives. "We believe that, in order to be in a position to comply with changes in regulation, financial institutions will have to start investing now in changes to the processes and technologies that support risk management," said Debbie Williams, research director and co-founder of Meridien Research. "Significant efforts, especially in data identification and aggregation, will be needed to meet new validation and verification requirements for credit-risk management."