March 2004

From the Editor
NYSE a Fast Market?
It's humorous to think that the New York Stock Exchange could be classified as a "fast market."

Cover Story

Changing of the Guard
The NYSE's new Chief Executive John Thain is moving quickly to increase automatic execution on the floor. Will there still be a role for specialists? Will he dismantle the auction model? How far will John Thain go?

The Beat on the Street
Institutions Find it Tough to Meet Sarbox Deadline
As the first deadline for Sarbanes-Oxley compliance of June 15 nears, financial-institutions are finding that complying is more difficult than they had anticipated.

Cost of Exceptions Drops
The cost of exceptions has dropped 30% in the last 12 months, according to a recent study by SunGard eProcess Intelligence.

Web Services Coming of Age?
According to the EAI Industry Consortium this is the year that Web Services will come of age.

Getting the Most out of Performance Attribution
Although performance attribution has been around for years, portfolio managers are looking to get more from their performance-attribution systems.

Compliance Issues Overwhelm the Industry
Financial-services firms grapple with the multitude of compliance issues facing the industry. Is there an end in sight?

Barclays Invests in Compliance
In a post-Sept. 11 world, financial institutions know better than to take compliance lightly.

Patriot Act Compliance Isn't Easy
Financial institutions are finding that compliance with the USA Patriot Act is much more challenging than simply verifying a customer's address or watching for large wire transfers from mysterious foreign accounts.

Getting Management on Board With Compliance
Compliance and litigation readiness have blasted up the priority list of top management.

Product Watch
InfoStep Stands Up to Sox
Still stumped by Sarbanes Oxley? InfoStep, has released eLustroHarmony, a risk-management and compliance tool to help get firms on track with SOX.

Barring Bad Credit
Credit-risk identification is the goal of Berkeley, Calif.-based Barra's new Barra Credit product.

Creditex Sets Standard in FpML
Creditex clients can now get their credit-default-swap broker confirms in Financial products Markup Language.

Trading & Exchanges
Survival of the Fittest Trading Models
A hedge fund run by Harvard Ph.D.s is building trading models drawing on evolutionary concepts, like survival of the fittest.

Market Data
Borne Identities
Adding Market Indentifier Codes may be the next step in simplifying symbology, but complete unique-instrument identification remains flights away.

Investment Technology
Give Me a Break
Breakpoints may give investors a break, but Wall Street's CIOs are working overtime to comply with regulators' wishes.

Risk Management
Brown Brothers Settles on CLS
By accessing the CLS Bank through a member bank, Brown Brothers has not only mitigated risk, but has changed its FX processes.

Focus On: Disaster Recovery
Putting an End to the Spend
Having a fail-proof disaster-recovery plan is important, but so is a cost-conscious budget. Can financial-services firms have both?

IT Challenge
IT Challenge: Spam
The Challenge: Junk e-mail is becoming a big problem, as spammers clog inboxes with dubious offerings from weight-loss remedies to cheap Viagra.

Industry Voice
Web-Privacy Management Increases in Importance
An organization's reputation is increasingly at risk online.

Durkin Designated CBOT's COO
The Chicago Board of Trade has promoted Bryan Durkin to executive vice president and chief operating officer.

FIX Protocol Focuses on Foreign Exchange
Foreign exchange is taking a front seat at FIX Protocol Ltd, where Steven Donovan and Jack Lemonik have been named co-chairs of the FIX Foreign Exchange Working Group.

Leman Leaves Citigroup
Citigroup's global corporate and investment banking business is saying goodbye to Jim Leman after 22 years of service.

People on the Move

A1/C1 Risk: Taking Archival Seriously
Many firms are still using tapes and are backing them up with off-site storage.