Finance Gets the Message - Page 2


Filtering technology can also be used to create an "auditorium mode channel" in which mass messages can be sent to a defined list of users.

One application is called "FX Buzz" and is for foreign exchange specialists. "They look at international information on the FX chat channel, and they can push that information to external chat channels," said Jones in New York.

In another implementation, UBS sends out the latest research on equities by its analysts via IM blasts. "You want to get those ideas out to encourage trading," said Freeborn.

One-to-one meetings are also important. "Chat made it possible to build a meeting. If a customer wants to talk to a salesman, they can use the chat function," said Freeborn.

The move to MindAlign 6.2 will include the implementation of presence technology, which lets one user know if another is actually present. Jones said she may integrate the customizable features with e-mail in the future.

Compliance is critical

Thanks in part to its genesis at a financial services company, Parlanos MindAlign software includes features such as a compliance server designed to meet the stringent regulatory requirements of finance. With precedent well-established that e-mail and IM archives must be produced upon demand by regulators, financial services companies have scrambled to put in place airtight message monitoring and archiving systems.

"Someone has to monitor the chat channels. This has a monitoring facility," said Freeborn. In addition, MindAlign lets an administrator see real user names along with screen IDs, which is critical in making sure only authorized users are on the system, he added.

/zimages/3/28571.gifFaceTime combats IM threats. Click here to read more.

At Roth Capital Partners, CIO Fajardo also depends heavily on the archiving features of his implementation—from Akonix Systems Inc.s Akonix software—for compliance purposes. With 200 employees located mainly in several West Coast cities, Roth has 50 users on an IM system from Akonix.

Unlike UBS, which uses IM mainly for internal communications, Roth uses IM mainly to allow its brokers to communicate with customers. "You can use any client, basically. Our clients are on IM, and we wanted to have a secure way of communicating and be compliant," said Fajardo. Communications are primarily concerned with indications of interest in stocks, orders and order follow-up.

Whats next

Federation capabilities—the ability to interoperate seamlessly on a sophisticated level with other IM systems—will be available in Parlanos MindAlign 6.3, which was recently announced. For now, however, Freeborn is kicking the tires of the new release.

"Were intrigued by [federation]. But it poses certain challenges," Freeborn said. "We would want to avoid complete and open federation because there would be regulatory problems and it would be too intrusive on our desktops."

Freeborn said, however, that a controlled approach would hold promise. "We would expect to see limited federation in two to three years," he said. "The new [MindAlign] client is multidomain. Users will log in to one client but have access to multiple domains, such as AOL. We would be interested in pursuing trusted gateways with certain providers of chat."

Similarly, Freeborn is not planning to integrate VOIP (voice over IP) right away. "Its still immature, and we have to worry about security," he said. "We have a reputation to maintain, not just save money."

So far, MindAlign has been used by the investment bank at UBS, but the companys wealth management and global asset management units have strong interest as well.

"Many of our very sophisticated clients want to deal directly with investment products and chat with the trading desk. Federation capabilities, when deployed, should make IM a popular tool among wealth management clients. However, said Freeborn, wealth management advisers will also want to talk to trading desks to learn about products. "You can chat online to a person in Tokyo about Japanese equities," he said.

All these uses translate to continued proliferation of MindAlign technology at UBS. Freeborn said he expects the number of IM clients to increase to 45,000 over the next three years. But the rapid growth wont break the bank. "The infrastructure is not that expensive. The cost of the licenses is the big cost. How much the people use it is the value derived," said Freeborn. And at UBS, use it they do.

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