Capital Markets Firms Need to Prepare for Upcoming Instant Messaging Regulations, According to Financial Insights

FRAMINGHAM, MA – JULY 31, 2003 – Capital Markets need to prepare for upcoming instant messaging (IM) regulations according to a new report by leading independent research and advisory firm Financial Insights. IM is quickly becoming an integral part of traders' daily communications with clients, colleagues, and counterparts says Financial Insights. But to date, IM uptake has been haphazard at best, with many traders using commercial IM platforms that do not permit their firms to capture and archive the communications.

The report, titled "Instant Messaging on Wall Street," takes a close look at what securities firms should do to control their traders' IM communications while still leaving this channel open to customers. Financial Insights also examines how securities firms should prepare for upcoming regulations regarding IM, the technology needed to support these new regulations, and the current leading providers.

"IM is becoming as common as email, but firms cannot permit their staff to just sign up for AOL or Yahoo! Messenger and be done with it," explains Damon Kovelsky, analyst in the Capital Markets Trading Group at Financial Insights. "As with any technology that facilitates the daily operations of a securities firm, a firm must be aware of two things: the regulations affecting its use of IM, and the technology needed to ensure that these regulations are being followed."

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About Financial Insights, an IDC Company

Financial Insights provides independent research services to users and providers of financial industry technology. The company was formed in November 2002 by combining Meridien Research and the IDC Financial Services Advisory group. The Retail Financial Services practice offers four areas of focus: Payments, Channels, Customer Strategies and Wealth Management. The Capital Markets practice offers Trading Technologies and all aspects of Risk Management. The Corporate Banking practice covers cash management, wholesale payments, trade finance, and small business banking. Each practice delivers reports detailing new issues and challenges and uses its knowledge to advise clients on technology related decisions. Financial Insights is an IDC Company, headquartered in Framingham, MA. Visit for more information.

IDC is a division of IDG, the world's leading IT media, research, and exposition company.

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