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.