eTrade 2000 Annual Report Download - page 28

degree of automation for all our transactions. The automated processor is designed to rapidly read data, process
transactions and transmit information to multiple locations. Because of this, we process over 95% of our transactions
without any manual intervention. Dual facilities that run independently share load balancing and provide redundancy
and backup, as well as scalability. The proprietary nature of the system, along with user ID and password protection
at the application level, provide security for the automated processor. Internet access to the processor is through our
Web site, which restricts access through the use of secured network servers and routers.
Banking Technology
Our core banking system is a Unix-based, client server and relational database product operating in a high availability environment.
This system manages all the core banking interfaces with the Federal Reserve for automated clearing house processing, a third party
ATM/Debit card processor for real-time communication, and the voice response unit system, which enables customers to access their
accounts via the telephone. The system also supports an interface for customer account access through Yahoo!, and interfaces to the
Internet banking platform and an on-line bill-pay provider. Banking operations are also supported by a number of custom applications
which allow for efficient customer fulfillment, service, and reporting.
The Bank Web environment is based on an NT operating system, supports online applications processes, and provides Web
applications and tools such as the ATM locator, alerts, and rate calculators. The Bank’ s Internet banking platform is provided by S1
Corporation, which also hosts the Bank’ s Internet applications on their site in Georgia. The Bank’ s Web site is an NT based, hosted
application that provides the user interface and functionality
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to support all Internet-based banking operations including bill payment, account transfers, transaction reporting, and account
statements.
Global Technology
Having evolved our domestic Stateless Architecture into a high availability, high scalability architecture for international use,
E*TRADE International launched services in four new countries during fiscal 2000: E*TRADE Japan, Korea, Norway and Denmark.
Labeled IIP, for International Investment Product (patent pending), the U.S. architecture was modified to provide for multi-currency
and multi-language support. Prior to a launch in a new country, IIP is customized for local regulatory, cultural and language services.
In addition, services common in the target country are identified and engineered into the IIP platform.
The front-end systems, engineered on SUN platforms, supporting content, information and portfolios for each country, are centrally
located for regional support. During mid-year, E*TRADE International opened the EROC in London, UK with the supporting
Operational Control Center and staff located in Dublin, Ireland. The EROC supports the E*TRADE Sweden and Norway front-end
systems and provides operational support for E*TRADE UK, Denmark and South Africa. E*TRADE Australia, Japan and Canada’ s
front-end systems are hosted in the E*TRADE U.S. Regional Operation Centers. We plan to open an Asian data center in fiscal 2001
to support E*TRADE Asian and Pacific Rim countries.
Transaction execution, clearing and settlement, and customer books and records maintenance, are functions provided by the
back-office systems within each country. Transaction orders are passed from the front-end systems via global networks to the
respective country back-office systems for execution and processing.
European Regional Operations Center (EROC)
EROC’ s centralized technology brings ‘24 by 7’ dedicated technical support to ensure Web site availability and performance of all
E*TRADE Internet sites in the EMEA area. The EROC is a key component of E*TRADE’ s fully electronic global cross border
trading network, providing the hub through which all European cross border communications move. The network, which is inherently
scalable and cost-efficient, is ultimately expected to link twenty of the top international equities markets.
EROC’ s multi-tiered system, which is engineered for fault-tolerance and high-scalability, manages session and state for large volume
transactions. All information services, quotes and content are provided within this infrastructure, with trade orders and functionality
being passed to back-office trading systems in each country through well-defined interfaces. Customer books and records are also
maintained by the back office to ensure country privacy laws are adhered to. The EROC architecture allows for flexibility in additions
and upgrades to hardware and software components enabling the addition of new distribution channels such as personal digital
assistants, interactive TV and mobile phones with minimal redesign.
Based in London, the EROC currently supports E*TRADE Sweden and Norway while operations in the UK, Denmark and South
2002. EDGAR Online, Inc.