UPTICK p. 4

All the Data, All the Time

NEWS DESK p. 6

S.E.C. Targets Sponsored Access

OPERATIONS p. 10 Tracking Systemic Risk

LAST WORD p. 22
Kaufman: Fast Technology & Fast Bucks

A S.I.N.vestigation
Equinix Gets
More Locales
Closer to
Exchanges

By Alexa Jaworski DATA CENTER SERVICES provider Equinix’s announced plans to acquire competitor Switch & Data Facilities Company is a move that will add 34 additional data center sites

ANALYSIS

Illustration: F. Laurore

PAGE 16

First detailed look at how the supreme swindler made basket cases of his customers’ accounts.

Over the Web and Under the Radar

in 22 markets across North America to the collection of the Foster City, Calif.-based co-location facilities giant.

While financial services is only one of several industries Equinix and Switch & Data serve, the acquisition could provide the trading community across the country more ways to get closer to exchanges by setting up servers in any one of these Equinix

CONTINUED ON PAGE 8

Brokers are saying too much and firms are capturing too little

By Carol E. Curtis WHILE THE USE OF EMAIL continues to grow, newer forms of messaging and interaction

are expanding far faster. Instant messaging, texting, and social networking sites such as Facebook or LinkedIn are

securitiesindustry.com • A SourceMedia brand

rapidly multiplying the ways individuals connect. In the securities industry, they are also providing new ways to interact with customers—and therein lies a problem.

The new communication technologies “will challenge your ability to ensure compliance with regulatory requirements,” Rick Ketchum, chairman and CEO of the Financial Industry Regulatory Authority (FINRA), told an October 27 meeting of industry execu-

tives. “They raise new regulatory challenges.”

For the brokerage industry, ever the early adapter, instant messages “have supplanted email as the primary electronic communication,” declares Jeffrey Plotkin, a partner in the New York office of law firm Day Pitney who represents broker-dealers involved in enforcement actions brought by the Securities and Exchange Commis-