The Comprehensive Electronic Communications Compliance System for Archipelago

Industry Leaders Give Electronic Stock Exchange Provider Automated E-mail and Instant Messaging Compliance for SEC and NASD Regulations

By: Sarbanes-Oxley Compliance Journal
12 October 2005

Archipelago Holdings, which owns and operates the world’s  largest fully-electronic stock exchange, is using an integrated system  from IMlogic and EMC Corporation to comply with strict federal  regulations regarding electronic message archival in a Microsoft  Exchange environment. IMlogic IM Manager™ and EMC EmailXtender® e-mail  archiving software work together with EMC Centera™ content addressed  storage (CAS) system to ensure e-mail and instant messages (IM)  containing financial information are appropriately and securely stored  in Archipelago’s database for easy retrieval and review. Automating  compliance helps Archipelago adhere to Securities and Exchange  Commission (SEC) and National Association of Securities Dealers (NASD)  regulations.

Chicago-based Archipelago owns and operates the  Archipelago Exchange (ArcaEx), which levels the playing field for  institutions and individuals alike for fast, fair execution of trades.  ArcaEx is the country’s first totally open all-electronic stock  exchange. Its clients use instant messaging to obtain information from  ArcaEx’s trade support staff. The company chose a joint system featuring  IMlogic IM Manager, EMC EmailXtender and EMC Centera that will provide  the reliability, ease of use and trusted compliance the company demands.

“When the SEC and NASD announced new policies about electronic  message storage, Archipelago evaluated several platforms to comply with  the new regulations,” said Archipelago Chief Technology Officer Steve  Rubinow. “The combination of IMlogic IM Manager, EMC EmailXtender and  EMC Centera gives us the confidence that we are storing all of the  necessary messages we need to in an easily searchable database. That  peace of mind is significant as more of our clients are using instant  messaging to communicate with us.”

IMlogic IM Manager provides  the flexibility to capture instant messages from a variety of different  IM networks used by Archipelago’s traders. It then saves those messages  as e-mails that it exports to EMC EmailXtender, which fully indexes the  messages and stores them within the archive to EMC Centera. Should the  need arise, Archipelago managers can easily search and find instant  messages and e-mails using a variety of different criteria.

Archipelago is the latest in a line of financial services  companies that have deployed IMlogic IM Manager to securely manage  instant messaging and comply with federal regulations. With more than  one million licensed seats, IMlogic IM Manager meets the most rigorous  IT requirements of the Fortune 1000 across the finance, energy,  healthcare, technology, government and manufacturing sectors, bringing  centralized management, security and compliance-level archiving to  traditionally unmonitored and uncontrolled enterprise IM usage.

EMC EmailXtender is an industry-leading message archiving  solution that improves storage utilization, enables regulatory  compliance and reduces the costs and risks of legal discovery. Unlike  products that are departmentally focused or limited to a single  platform, EMC EmailXtender is a highly scalable solution supporting all  major messaging environments including Microsoft Exchange and IBM Lotus  Domino, and provides the broadest business value by managing e-mail as a  record of business across the organization. The solution enables  enterprise-wide deployment with a consolidated and centrally managed  archive providing the maximum scalability and fastest discovery results  – all at the lowest cost of ownership.

Recently selected as the  Most Valuable Product (MVP) in the Compliance and Retention category for  a second consecutive year at Storage World Conference 2005, EMC Centera  is the first storage solution designed from the ground up to solve the  challenges associated with managing, storing and retrieving unchanging  data such as document images, e-mail, x-rays and medical records. Since  its introduction in 2002, EMC Centera has become EMC’s fastest-growing  storage platform and has earned industry-wide recognition as an online  archival storage medium capable of delivering content authenticity and  scaling to hundreds of terabytes without requiring additional management  overhead.

“Breaking new ground in the financial industry means  ensuring the safe and compliant usage of both e-mail and instant  messaging,” said Jon Sakoda, IMlogic’s chief technology officer and vice  president of products. “Combining IMlogic IM Manager with EMC  EmailXtender and EMC Centera gives Archipelago the ability to automate  compliance for all real-time communications and electronic collaboration  without the concern of increased regulatory cost and risk.”

IMlogic, Inc., headquartered in Waltham, Mass., is the market  leader in enterprise software for instant messaging, the world’s fastest  growing communications medium of all time. The largest Fortune 1000  companies across the financial services, energy, healthcare, government,  media, telecommunications, technology, and manufacturing industries  depend on IMlogic solutions to secure, deploy, and leverage IM and  presence technology for real-time business communications.

The  company’s flagship product, IMlogic IM Manager, enables enterprises to  manage, control and secure corporate IM usage, while satisfying  compliance requirements associated with real-time electronic  communications. IMlogic is backed by leading venture capital firms  Venrock Associates, General Catalyst Partners, Kodiak Venture Partners,  Crosslink Capital, and Goldman Sachs.