April 2005
Cover Story

Family Matters
Northern Trust's virtual family office is working to change the way affluent families manage their money.

Black-Box Trading Raises Risk
As hedge funds increase their use of direct-access trading, prime brokers may be assuming more intraday risk.

Don't Believe the Hype
When it comes to President Bush's plan to privatize Social Security, the potential gains aren't as great as you might think.

The Evolution of Outsourcing
As investment operations outsourcing begins to take hold in the U.S. financial services industry, the service model is changing.

Operations Newsflashes: Omgeo Promotes Ball-Toncic, and more
Omgeo Promotes Ball-Toncic; LaSalle Bank Expands Xcitek's XSP License for Corporate Actions; FMCNet Joins SWIFT Network for Securities Messaging; Lupus alpha Picks ADP Wilco's SWIFT Service Bureau

Different Sides of Compliance
Compliance experts from both the buy side and sell side share their firms' top priorities for 2005 and technology's role in achieving them.

Focus On
Two Worlds Come Together
As voice and data converge, Wall Street sees opportunities for Voice over Internet Protocol, but the technology is no slam dunk.

IT Challenge
Internal Auditors
Traditionally, internal auditors have been feared by IT organizations. But, rather than view auditors as foes, technology executives must learn to embrace auditors' expertise.

Industry Voice
Making the CIO's Role Viable
Managing hundreds of IT projects is no easy task, but strategies such as project portfolio management (PPM) can ease the burden on CIOs.

Taking Risks
Credit risk management hasn't been a hot topic in the securities industry since the fall of Enron.

IT Budgets Looking Up
For U.S. securities and investment firms, 2005 marks the end of cost cutting and tight IT budgets, according to a report by the new Boston-based research firm Aite Group.

Baby Boomers Provide Retirement Planning Advice For Themselves
A recent survey by Chicago-based financial services firm Northern Trust reveals that, while baby boomers are planning for retirement, many are doing the planning without the assistance of professional advisers.

FX Market Adopts E-Trading Platforms
Sixty percent of the $621 billion inter-dealer market for global spot foreign exchange is traded electronically and that figure will increase to 90 percent in 2007, according to Celent Communications.

Dear CIO...
Is data latency as big an issue for institutional traders as it has been made out to be? What is Lehman Brothers doing to avoid data latency issues?

Product Watch
--Interacting With Algorithms
--CRM Meets Wealth Management
--Keeping Up With Options Data

Shifting Gears -- People & Careers
--Gibson to Head Tech, Ops at NYLIM
--FISD Makes Exec Appointments
--Deutsche Bank Reorganizes

Patent Litigation: Legalized Blood Sport
Am I nuts, or are today's patent litigation issues totally out of control? Since when does our industry allow technology vendors to take out method patents that curtail innovation and hold both firms and the global financial markets hostage?