SEC May Have Nasdaq Fix Their Code and Upgrade–CEO Blames The Tech Department & CIO - IBM Might Land A Big New Project
Posted Jun 29 2012 12:24am
What happens when you have a CEO that doesn’t know or have his hand in at least a little technology, this maybe. IT Departments are an easy target for just about anything and sometimes they are at fault an sometimes not. End users usually hate them as they can’t give them everything they want and some still think it’s Burger King where you can have it your way.
One thing though I wish these folks would all talk the same language so consumers can learn. It drives me nuts to hear algorithms called “circuit breakers’, call it what it is. This is not a big pull switch on the wall that someone goes to pull when things get bad, it’s another algorithm stopping the processing of another bunch of algorithms in motion. One thing consumers do know about upgrades is that some things can be rocky afterwards and may not work exactly like they did before and that in itself gives the IT folks a bad time as they are trying to improve things. Most of the time though they go off without a hitch. Healthcare software has “glitches” too and these are systems that go through some rigid certification processes to work, so you never know when some code comes up that needs work. When you upgrade though you have new code and it has to be tested as well so not knowing all the details it’s hard to say whether or not an upgrade is the answer but all do upgrade at some point. BD
In addition the OMX Director’s Desk had their security breach last year and I don’t know where that stands as last we heard the FBI was in on it and nobody took any data and used it, and perhaps just used it as “inside information” possibly. The machines make it possible for the hackers but it still takes a human to act on it. All we can do is just be prepared for the rocky roads when they hit and do our best and get the software certified, in other words have other do some outside debugging too as they may find items missed by the original programmers. BD
As part of the deepening inquiry, regulators are weighing demanding that Nasdaq agree to revamp its processes for developing, changing, testing and implementing the computer code used in initial public offerings and other exchange functions, according to people familiar with the investigation. The SEC hasn't decided yet whether to take any enforcement action against the company.
Nasdaq's board, which includes Mr. Greifeld, first discussed potential ways to restructure its operations and technology unit, including possibly replacing Ms. Ewing as the supervisor over both areas, more than four weeks ago, said one person with direct knowledge of the discussions.
Retaining IBM to review Nasdaq's practices and then beefing up its technology could double the exchange company's spending on system maintenance and upgrades over the next few quarters, according to Matthew Heinz, analyst for Stifel Nicolaus & Co. He estimated Nasdaq now spends about $10 million a quarter on technology upkeep.