December 31, 2008

SPECIAL REPORT

WST 2009 Capital Markets Outlook
Wall Street & Technology's 2009 Capital Markets Outlook
WS&T's editors look at the year ahead and present visions for 11 areas where change may come in 2009.

RISK MANAGEMENT
Risk Management Is Wall Street's Top Priority for 2009

Poor risk management is at the heart of the current financial crisis. Firms will have to implement new risk management practices and governance to shore up their performance, satisfy regulators and win back investors' trust.

COST-CONSCIOUS IT
Be an IT Hero With a Focus on Cost-Conscious Technology Decisions

Cutting costs will be a priority in 2009. Rationalization, modernization and vendor negotiation will be among the top cost-conscious IT strategies. IT managers who can cut costs without axing people will be golden in 2009.

REGULATION
Regulators Set to Tighten Grip, Focus on Accountability and Transparency in 2009

The current financial meltdown has been partially blamed on a lack of regulation. To correct the problems that contributed to the crisis, regulators should target specific problem areas while making sure they don't overregulate and asphyxiate the markets.

WEALTH MANAGEMENT
Consolidation, Client Reporting to Lead 2009 Wealth Management Projects

Amid the market turmoil, wealth management offers a ray of hope. Firms invested heavily in wealth management this past year, and in 2009 they'll be digesting those purchases, consolidating their many platforms and improving client reporting.

CAREER MANAGEMENT
Wall Street Recruiters and Employees Increasingly Use Social Networking for Career Management

In today's economy, employees need to make sure they are ready for the next job, which means keeping up with contacts as well as with developments in their fields. Recruiters also need to make sure they use the latest tools available to find the best candidates.

CREDIT DERIVATIVES CLEARING
Regulators Push Central Clearinghouse on Dealers to Eliminate Counterparty Risk in Credit Default Swaps

Regulators are pressing top dealers in credit derivatives to develop a central clearinghouse that would eliminate counterparty risk and protect members in the event of a default.

AGENCY BROKERS
Agency Brokers Are Predicted to Gain Market Share Away From Bulge-Bracket Firms

Agency brokers are seizing the opportunity to lure institutional clients away from the troubled bulge-bracket firms.

COLLATERAL MANAGEMENT
Collateral Automation to Be a Trend in 2009

Technology that helps value and manage collateral on a close-to-real-time basis will be one of the few areas of IT investment on Wall Street this year.

PRIME BROKERAGE
Hedge Funds Diversify Away from Single Prime After Financial Turmoil Leads to Collapse of Major Brokers

The crisis in the financial markets that led to the collapse of two of the top brokers, Bear Stearns and Lehman Brothers, has caused hedge funds and long-only asset managers to reevaluate their prime brokerage relationships.

LOW LATENCY
Low Latency Spending Moves Full Speed Ahead

Trading firms still need to focus on reducing data latency to keep up with the competition. With spending cuts and reduced IT spending forecasts, CIOs will still find the funds to invest in technology that speeds up the trading process.

SOCIAL NETWORKING
Financial Firms Turn to Social Media to Attract New Gen X, Y Clients

Retail brokerages and banks have increasingly been using social networking to attract and retain clients. But with social networking tools and sites proliferating, firms need to ensure that they connect with their target audience and provide content quality controls.

FROM THE EDITOR

Canadian Banking System Could Provide Insight Into Future Regulatory Planning
Canada's banks have survived the worst of the global crisis; perhaps their model can provide a framework for a healthy world banking system.

UP FRONT

5 Tips to Cut Data Center Energy Use
Most data centers waste enormous amounts of electricity using inefficient cooling designs and systems. Gartner gives some tips which could save millions of kilowatt hours annually.

IT Spending to Continue to Nosedive in 2009
Celent's David Easthope sees spending falling until markets begin to recover in mid-2010, counterparty risk to be a top focus of future spending.

Asset Managers Seek More Efficient Distrib Strategies
While many expansion plans have been put on hold, distribution executives are considering alternatives to maintain adviser coverage, according to a new report from kasina.

Market Volatility is Forcing U.S. Equity Traders to Change Their Execution Strategies
According to a new TABB Group report, equity traders are changing the way they use capital, transact trades in blocks, embrace algorithms and crossing networks and view their relationships with brokers.

Towergroup: Increasing Risk in Offshore Outsourcing
Report finds political risk returns as key factor in offshore outsourcing decisions.

U.S. to Have Competition in Clearing Business for First Time in 40 Years
The potential competitors are a mix of horizontal and vertical models and ownership structures that includes existing utilities, exchanges, clearing entities or quite possibly a combination of two or all three, according to TABB Group partner Robert Iati.

Wealth Managers Focus on Reassuring Clients During Economic Downturn
Amid the current economic crisis, firms are placing more emphasis on communicating with clients more frequently to review their financial situations, confirm the wisdom of their asset allocations and current holdings, and convince them to get back into the market.

INDUSTRY VOICE

IT Spending to Focus on Middle-Office Functions in 2009
More talk than walk in the past, risk management will become an IT spending priority next year along with other middle-office functions, such as reporting.

PERSPECTIVES

Banking Bailout: Is Bigger Truly Better?
Should we provide a safety net for firms that jeopardize the global financial system through their stupidity?

PRODUCT WATCH

FIX Flyer Releases 3.0 Build of FIX Engine
Latest High Speed Transformation Engine also makes debut.

Kaplan Streamlines Complaint Tracking for Broker-Dealers
The solution allows broker-dealer firms to initiate and manage complaint response from a single interface.

Tideway Foundation 7.2 Maps Data Center Energy Use to Business Applications
New features calculate power consumption by application, pinpoint aging software to improve data center operations.

SHIFTING GEARS

Fidelity Names Former Schwab Executive to Lead New Institutional Brokerage Platform Business
Schwab Institutional's Charles Goldman has jumped to Fidelity to run institutional platforms for Fidelity Institutional Product Group.

Bank of New York Mellon Appoints New CEO
The Bank of New York Mellon Names Eric Kamback to Head Treasury Services.

Duthu Leads Wealth Management at Whitney
Mark Duthu, formerly of Wachovia Trust, has joined Whitney National Bank to oversee the expansion of Whitney's trust, brokerage and investment management resources.

Keeping Tabs