Linux Supplement:

WALL STREET MOVES TO LINUX AND IBM

IBM announced that the Securities Industry Automation Corporation (SIAC) and its subsidiary, Sector Inc, are in the process of moving key applications to Linux on an IBM eServer zSeries mainframe to achieve the world class scalability and cost efficiencies of Linux.

SIAC is the technology partner of the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX), with responsibility for the design, development, implementation, and operation of the exchanges' computer systems and communications networks. Sector is a leading communications, data networks, data distribution, and managed services provider for the financial services industry that is responsible for making SIAC's technological facilities available to outside organizations.

"It is significant that the financial services industry is realizing the cost benefits of server consolidation on a mainframe running Linux," said Bill Claybrook, Research Director for Linux and Open Source Software, Aberdeen Group. "I expect to see more of these customers take advantage of Linux in the future."

SIAC/Sector has moved its ARTMAIL application to Linux. ARTMAIL is responsible for a number of operations, including the delivery of daily activity reports to Wall Street brokers and member firms on their respective buy/sell transactions. ARTMAIL, which includes IBM software, was converted from Sun SPARC servers to an IBM mainframe environment running Linux "virtual servers" on the IBM VM operating system exploiting VM's unique advanced virtual technology.

"All US stock exchanges and markets depend on SIAC to process their trades, which total approximately 4 to 5 billion shares per day, resulting in 15 to 20 million buy/sell side transactions that have to be processed, examined and reported," said Steve Romano, senior vice president, SIAC. "For these trading organizations, downtime cannot be tolerated. By leveraging Linux technology on IBM's mainframe, SIAC will improve availability while reducing server and maintenance costs for the organization and our clients."

SIAC is a wholly owned subsidiary of the NYSE and AMEX. SIAC runs the computer systems and communications networks that power the two exchanges and disseminate US market data worldwide. In addition, SIAC's computers are kept running 24 hours a day, processing on behalf of the Depository Trust & Clearing Corporation (DTCC) and its affiliates, nearly 100 percent of the equities and fixed income securities traded in the US each day.

"Linux security is critical to customers, particularly in the financial sector. It is no coincidence that as Linux matures and becomes more secure, the financial sector is beginning to adopt the platform for critical transactions and IT infrastructure, said Steve Solazzo, vice president, Linux, IBM. "As we have done with today's security enhancement announcement, IBM will continue to provide our customers key products and solutions to push Linux deeper into the enterprise, just as we are using Linux more and more to secure IBM's information technology infrastructure."

SIAC ported its ARTMAIL application to Linux onto an IBM eServer zSeries mainframe environment in only two-and-a-half days. The application enables dealer/brokers to receive information on the buy/sell orders SIAC processed on its systems via SendMail e-mail attachments.

The ARTMAIL porting was so smooth that SIAC is now considering additional Linux applications, including an internal management system, server consolidation, Web hosting, and file serving.

Details of the ARTMAIL application include:

• Source data from the IBM mainframe is transferred to virtual Linux for zSeries servers.
• SendMail open source software running on virtual Linux for zSeries is used to transmit the e-mail message containing buy/sell update information.
• The application was begun as a pilot six months ago, and went into production within the last 30 days, with 100 percent availability.

SIAC has future plans to port its internal management reporting system, an application that evaluates trade data against statistical norms, from Access database on Windows to IBM's DB2 Universal Database on Linux for eServer zSeries mainframe using VM virtual technology.

About SIAC

Founded in 1972, the Securities Industry Automation Corporation (SIAC) is a technology company that fulfills three critical roles in the financial industry.

• SIAC is the technology partner of the NYSE and AMEX, with responsibility for the design, development, implementation and operation of the exchanges' computer systems and communications networks.
• SIAC is the company behind the "stock ticker." SIAC developed and operates the Consolidated Tape System (CTS) and the Consolidated Quote System (CQS). These systems collect and integrate trade and quote data, which SIAC distributes to vendors and members of the news media for worldwide dissemination.
• SIAC processes, on behalf of the DTCC and its affiliates, nearly 100 percent of the equities and fixed income securities traded in the US each day.
• SIAC is a wholly owned subsidiary of the New York and American Stock Exchanges. For more information, visit www.siac.com.

About Sector Inc

Sector Inc is a subsidiary of the Securities Industry Automation Corporation (SIAC), is responsible for making SIAC's technological facilities available to outside organizations. Sector offers a wide range of high value communications, networking, and managed services, which include outsourcing, facilities management, E-solutions, enterprise services, network and data distribution services. Headquartered in New York City, Sector Inc has offices in Chicago and San Francisco. For more information, visit www.sectorinc.com.

About IBM

IBM is a leading server company and information technology provider, with 80 years of leadership in helping businesses innovate. IBM helps customers, business partners and developers in a wide range of industries that leverage the power of the Internet for e-business. For more information, visit www.ibm.com.

Contact Stacy Simpson, IBM, 914-744-4123, stacysim@us.ibm.com.