BACK OFFICE STEPS UP
Why smart firms will start
to profit from middle- and
back-office operations.
MONDAY MONITOR
Only on securitiesindustry.com
HOW WALL STREET OPERATES
Volume 21 number 6 • March 22, 2010
UPTICK p. 3
Let the Real-Time Revolution Begin
MARKETS p. 12
Tech Listings Tilt Toward NYSE
OPERATIONS p. 16
How to Customize Target-Date Funds
RULES p. 19
Institutions Start to Drive Change
‘Superspend’ on Financial
Data Centers ‘Dysfunctional’
By Tom Steinert-Threlkeld
Can it be?
trading firms and market-
place operators are wasting
money on the big “monolithic”
data centers they’re building,
as electronic networks pro-
liferate, market data explodes
and volumes surge?
that’s the contention of
Ronald H. bowman Jr., author
of “The Green Guide to Power:
Thinking Outside the Grid”
and “Business Continuity Planning for Data Centers and Systems: A Strategic Implementation
Guide.”
Barometer of Wall Street’s Health
Fin5oindex
1066.81
; 53.83
March 4-18, 2010
See Page 22
T 5.3%
at a March 11 meeting of
the Wall Street technology
association, he said the finan-
cial thinking and planning—
and, remember, this is amer-
ica’s finance industry—can be
“remarkably dysfunctional.”
Where should the new cap-
ital be?
Maybe iceland.
Here’s the thinking.
the biggest two costs that
need to be managed are energy and sales tax. Pick the
right city and your charge per
kilowatt hour can be 4 cents.
Pick the wrong one, 14 cents.
Go to alabama and your sales
tax can be 4 cents on the dollar. Pick California and it goes
past 8 cents. before adding in
municipal sales taxes.
CONTINUED ON PAGE 4
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SPECIAL REPORT REPORTINg BEgINS ON PAgE 6
SEEKINg THE
SUPERgENIUS
THE LIFE OF
A HIGH-FREQUENCY TRADER
Q&A
With Igor Tulchinsky,
founder, WorldQuant
PLUS:
Market Making or
Card Counting?
Proving a ‘Beneficial’ Shareholder Is,
In Fact, a Shareholder
By Chris Kentouris
about 80 PeRCent of u.S.
shares held by individuals and
institutions are recorded as
electronic entries on the books
of multiple financial intermediaries.
one of these has to be a participant in the Depository trust
Company, the u.S. central securities depository that settles
millions of trades each year.
but just what does it take for
an investor to prove ownership
of shares, in order to submit a
shareholder proposal? the answer isn’t simple. it depends
on just how many financial intermediaries stand in between
a company and a “beneficial
shareholder,” who the intermediaries are and whether an investor meets the right deadline
to file the correct paperwork.
Judge Lee Rosenthal of
the u.S. District Court for the
Southern District of texas
in Houston ruled on March
10 that apache Corporation,
a Houston-based oil and gas
company, was entitled to exclude from its proxy materials and ballot a proposal submitted by John Chevedden,
a shareholder activist, that
CONTINUED ON PAGE 14
