Boston Stock Exchange Gets CIOBoston Stock Exchange Gets CIO

Companies without a CIO to plan and implement computer systems and networks typically fall into the category of IT laggard. But the Boston Stock Exchange, which hired Michael Curran as its first CIO late last month, is an unusual example of a business that's delivered leading-edge technologies despite a lack of formal IT leadership. "Boston is probably on the forefront of technology," says Art Hogan, an institutional equities trader for Jefferies & Co.

Stock traders do most of their business on the New York Stock Exchange, the American Stock Exchange, and Nasdaq, so Boston and other regional trading exchanges--including Chicago, Cincinnati, and Philadelphia--face the challenge of spurring growth. Boston's volume for its fiscal year ended in September was 6.3 billion shares, about 16% more than the previous year. Revenue this year is expected to grow about 7% to $25 million.

But despite a generally dismal year for the financial-services sector, the Boston exchange has gained accolades for its Beacon trading system, which Hogan and other traders say does a more-thorough job of automating the sale of trades than other exchanges' systems. This year, the Boston exchange became the first in the country to offer remote trading: The Beacon Remote system lets traders known as specialists conduct business at an off-site location. Curran says the exchange may extend the capability to other types of traders.

Curran's 25 years of experience, including time spent managing trading and communications systems and telecommunications networks, made him right for the job, says Ken Leibler, the Boston exchange's CEO and chairman. Curran's resumé includes stints as chief operating officer for international business at Zurich Scudder Investments and as a partner in IT consulting at Coopers & Lybrand. "I've been on the front line of businesses," Curran says. "As I talk to the various member firms on the floor, I know their businesses and appreciate the pressures and competitive marketplace they face."

The first test of Curran's IT leadership will come later this month, when the exchange plans to initiate Nasdaq trading on its floor. Exchange members are able to trade on exchanges such as NYSE and Amex. In addition to setting up new systems that can connect to Nasdaq, Curran will help train clients for electronic trading of Nasdaq stocks and ensure system stability and compliance with regulatory issues.

Curran also is charged with developing a second generation of the Beacon system and enhancing the exchanges' security following the Sept. 11 terrorist attacks, including rebuilding the firewall and adding a workstation on the trading floor for remote clients who've lost access due to an outage.