Storing data is nothing new for securities firms. In many operations, every action of every executive and staffer, from business transactions to phone calls to emails, is recorded and stored electronically. In the digital era, it's become common practice, a sign of good business management.
But, with the onslaught of high-profile media cases and new regulations handed down from the Securities and Exchange Commission and other government agencies, the issue is not keeping that data "somewhere."
The real issue is retrieving the data, when needed. From the cloud. From servers. From cassettes. Even from cabinets.
"With the regulatory and compliance initiatives coming up now increasingly, financial firms and a lot of corporations have the mindset that they have to keep everything and store it. However, when you do that, you're not necessarily thinking about how you're going to get it out later,'' said Katey Wood, an analyst who covers the process called e-discovery for research firm 451 Group. "You just want to make sure it's there if you need it."
For example, any time there's a lawsuit your securities firm is going to have to produce all of its relevant electronically-stored information that's related to the case. "There are really tight timeframes around that and tough sanctions if you don't comply with them," Wood says. "Therefore, companies want to be able to gather up their information quickly and determine what's relevant."
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By: Alexa Jaworski