SHARE

NASD’s IM Order Could Boost Storage Firms

In a move that could boost the fortunes of storage firms, NASD, the financial services industry’s self-regulatory body, yesterday ordered securities brokers and dealers to save instant messages (IMs) sent to clients and employees for at least three years. “NASD recognizes that instant messaging is becoming increasingly popular as a real-time method of communicating and […]

Written By

Paul Shread

Jun 19, 2003

Datamation content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

In a move that could boost the fortunes of storage firms, NASD, the financial services industry’s self-regulatory body, yesterday ordered securities brokers and dealers to save instant messages (IMs) sent to clients and employees for at least three years.

“NASD recognizes that instant messaging is becoming increasingly popular as a real-time method of communicating and we want to be clear about our expectations for its use,” NASD vice chairman Mary Schapiro said in a statement. “Firms have to remember that regardless of the informality of instant messaging, it is still subject to the same requirements as e-mail communications.”

NASD’s IM requirement is yet another among many recent regulations — such as the Sarbanes-Oxley Act and HIPAA — that “have very positive implications for the storage segment,” says Mike Karp, senior analyst at Enterprise Management Associates.

The first beneficiaries are likely disk drive companies, according to Karp. “More data means more media sales,” he says. “Computers come and go, computer users come and go, even computer companies come and go, but data accumulates.”

Cheaper media, such as ATA-based arrays, could benefit the most, adds Karp.

Second to benefit could be the array builders, as soon as the added drives surpass available cabinet space. SRM vendors will also benefit when “companies find out just how hard it is to manage all that extra storage without improved management techniques,” Karp concludes.

Many firms have determined that they cannot adequately supervise instant messaging communications and have banned the use of instant messaging for communication with the public, reports NASD, which adds that clear rules about IM could lead more firms to use the technology.

Storage vendors have already begun offering IM solutions to cope with all the new archiving and retention requirements. Iron Mountain, for example, is one company that offers an IM records archiving and retention solution.

The Washington Post recently reported major Wall Street firms generally already save instant messages or prohibit employees from using them. Several firms banned instant messaging after they were fined by NASD for not saving e-mail, according to the paper.

NASD’s instant messaging Notice to Members, which clarifies the applicable NASD and SEC rules and guidelines, is currently available at http://www.nasdr.com/pdf-text/0333ntm.pdf.

Back to Enterprise Storage Forum

Ethics and Artificial Intelligence: Driving Greater Equality

FEATURE | By James Maguire,
December 16, 2020
AI vs. Machine Learning vs. Deep Learning

FEATURE | By Cynthia Harvey,
December 11, 2020
Huawei’s AI Update: Things Are Moving Faster Than We Think

FEATURE | By Rob Enderle,
December 04, 2020
Keeping Machine Learning Algorithms Honest in the ‘Ethics-First’ Era

ARTIFICIAL INTELLIGENCE | By Guest Author,
November 18, 2020
Key Trends in Chatbots and RPA

FEATURE | By Guest Author,
November 10, 2020
Top 10 AIOps Companies

FEATURE | By Samuel Greengard,
November 05, 2020
What is Text Analysis?

ARTIFICIAL INTELLIGENCE | By Guest Author,
November 02, 2020
How Intel’s Work With Autonomous Cars Could Redefine General Purpose AI

ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 29, 2020
Dell Technologies World: Weaving Together Human And Machine Interaction For AI And Robotics

ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 23, 2020
The Super Moderator, or How IBM Project Debater Could Save Social Media

FEATURE | By Rob Enderle,
October 16, 2020
Top 10 Chatbot Platforms

FEATURE | By Cynthia Harvey,
October 07, 2020
Finding a Career Path in AI

ARTIFICIAL INTELLIGENCE | By Guest Author,
October 05, 2020
CIOs Discuss the Promise of AI and Data Science

FEATURE | By Guest Author,
September 25, 2020
Microsoft Is Building An AI Product That Could Predict The Future

FEATURE | By Rob Enderle,
September 25, 2020
Top 10 Machine Learning Companies 2021

FEATURE | By Cynthia Harvey,
September 22, 2020
NVIDIA and ARM: Massively Changing The AI Landscape

ARTIFICIAL INTELLIGENCE | By Rob Enderle,
September 18, 2020
Continuous Intelligence: Expert Discussion [Video and Podcast]

ARTIFICIAL INTELLIGENCE | By James Maguire,
September 14, 2020
Artificial Intelligence: Governance and Ethics [Video]

ARTIFICIAL INTELLIGENCE | By James Maguire,
September 13, 2020
IBM Watson At The US Open: Showcasing The Power Of A Mature Enterprise-Class AI

FEATURE | By Rob Enderle,
September 11, 2020
Artificial Intelligence: Perception vs. Reality

FEATURE | By James Maguire,
September 09, 2020

SEE ALL
ARTICLES

Paul Shread

Paul Shread has covered nearly every aspect of enterprise technology in his 20+ years in IT journalism, including an award-winning series on software-defined data centers. He wrote a column on small business technology for Time.com, and covered financial markets for 10 years, from the dot-com boom and bust to the 2007-2009 financial crisis. He holds a market analyst certification.