May 2004


From the Editor
Fears Unfounded?
With outsourcing on the rise in the financial-services industry, there has been widespread discussion about the security of sensitive data.

Cover Story
Offshore Outsourcing: Is Your Data Safe?
Financial-services firms are taking extra security measures at their offshore outsourcing facilities. Are security-related fears valid, or are they hype?

Special Report
Integration: The Wheel That Makes STP Spin
Before firms can hope to achieve straight-through processing or one-day settlement of trades, they have to get their systems and data to speak to each other.

Integrating All That Data
To reduce the costs of processing trades - and eliminate errors - Swiss American is attacking data integration.

Integrating Disparate Databases
Prebon Yamane manages data globally with a little help from BEA and Sonic Software.

The Beat on the Street
Conflicting Priorities
Though it is well known that technology projects should be driven by business priorities, a new study by Framingham, Mass.-based Financial Insights finds that the buy side is having a tough time with this concept.

Security: Focus on Fundamentals
Jon Gossels, president of SystemEXPERTS, a security consulting firm, says his clients are getting back to basics.

Expansive Training Essential To AML Program Success
Just because you have the right technology in place to combat money laundering doesn't mean your AML program will be successful.

Expansive Training Essential To AML Program Success
Just because you have the right technology in place to combat money laundering doesn't mean your AML program will be successful.

BCP Spending to Plateau
Although spending on business-continuity planning (BCP) in the securities industry rose considerably from 2001 to 2003, reaching $2.5 billion, a 57 percent increase, spending is expected to rise only marginally in 2005 and then decline in 2006, according to a recent TowerGroup report.

Product Watch



Interview
An Interview with Merrill Lynch's John Killeen
Merrill Lynch's John Killeen has been under close scrutiny in the wealth-management industry ever since the sudden exit of his predecessor, Byron Vielehr.

Trading & Exchanges
Hedging the Risk of Instant Messaging
While hedge funds enjoy the simplicity of trading via IM networks, compliance and reliability concerns have them seeking IM products with built-in archival systems.

Does Bloomberg Have What It Takes?
Portfolio managers say Bloomberg should be a bigger force in electronic bond trading. But can it compete against the dealer-owned systems?

Investment Technology
Credit Where Credit Is Due
After years of standing in the shadow of the sell side, Wall Street's buy-side firms are reaping rewards by realizing risk.

Risk Management
SEC Sets Back SOX
Sarbanes-Oxley deadlines are delayed, but firms find little solace in the regulation's extension.

Focus On: CRM
More than Managing Names and Numbers
Successful CRM requires more than information. It requires tools to use that information effectively and add value to the customer relationship.

IT Challenge
Blades
The need to jam more computing power into less space has firms scrambling to manage their data centers.

Newsmakers
Angstadt Promoted at Archipelago; JPMorgan Investor Services Appoints New CTO; DTCC Stresses Security with Carey; People on the Move

Perspectives
Finding Value in an Ever-Efficient World
I recently attended a conference at which a presenter discussed a new view of operational management.