Open Source in High-Performance Trading Systems

Anthony Gold

VP & GM

Unisys Corporation

Michael Wheeler

Partner, Finance Officer

Redmayne-Bentley

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Open Source Impact

Gartner/Dataquest (May, 2006)

$87b

Total SW Revenue (includes Prof Srvcs)

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Lots of Innovation – Very little organization

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Strategic Fit Enterprise Support

Two main inhibitors to more rapid adoption

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Red Hat Novell SourceForge

Linux. Wall Street.

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Wikipedia

Mass Collaboration is changing the world.

Goldcorp Linux

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The Architecture of Participation2000 - Web 1.0 2007- Web 2.0

Source: O’Reilly and Unisys Research

DoubleClick

Ofoto

Akamai

MP3.com

Britannica Online

Personal Websites

Evite

Net2Phone

Page Views

Screen Scraping

Publishing

Content Mgmnt Systems

Directories (taxonomy)

Stickiness

Google AdSense

Flickr

BitTorrent, LImewire

iTunes (audio & video)

Wikipedia

Blogging

Upcoming.org and EVDB

Skype

Cost per Click

Web Services

Participation (MySpace, YouTube)

Wikis

Tagging (“folksonomy”)

Personalized Syndication (RSS)

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Conscious unconsciousness Pay attention to “Gorilla Markets”

Sustained Inattentional Blindness forDynamic Events

http://viscog.beckman.uiuc.edu/grafs/demos/15.html

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70% of IT budget spent on Maintenance IT Budgets declining How to innovate?

Open Source in Financial Services=== Challenges ===

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Lowering costs Modernizing applications Improving organizational efficiencies

Open Source in Financial Services=== What Open Source Offers ===

Enterprise/Application Modernization

Service-Oriented Infrastructure

Service-Oriented Middleware

VirtualizationAutomation

Consolidation

Sensors

Web 2.0 Internet

Self-Service Apps

Enterprise Apps

Service-Oriented Presentation

Software as a ServiceApplication Hosting and Outsourcing

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Customer Experience is “Portalized” Multi-channel Portals are mainstream in the Web 2.0

Portals: the critical interaction point for the enterprise

Access to all enterprise applications/DBs From all operating systems To all channels – Brick, Web, Mobile

Portals have created a user interaction model for SOA

Standardized security Standardized user interface

Portals are windows into services on the network and back-office applications

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The bad/ugly: LZW The good:

ES7000 – Linux (DP, MPIO, 5 9’s, 4x-32x, Guinness)

JBoss and others (OASIS, App Defender) Systems Integration (migration, modernization,

SOA)

What has Unisys been doing with Open Source?

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Avg. Fortune 500 company has over 48 different financial systems.*

Integrate business processes with IT services

Reference Article at ESJ

Services Oriented Architecture (SOA)

*Bloor Research, March 2006

Page 15

Application Modernization Discovery is the First Step

• Identify assets

• Map to business processes

• Build models

• Determine SOA opportunities

Next Gen Messaging Solution

Other network

components(integration

points)

Content

Provisioning

Postpaidbilling

Prepaidbilling

CustomerCare

OAM

Call Control Layer

Presentation Layer

Application Layer

Data Access Layer

Storage Layer

Directory Server

Messaging Server

Unisys Messaging Application Server

Unified Messaging

ProvisioningBilling

Cust. Care /Provisioning

Media Server

Notification Server

TTS ASR

SMTP / IMAP4 LDAP

VoiceXML HTML

SOAP

NAS

SMPP

Web Server

JavaBeans

MM7

MRCP

NotificationDistributor

HTTP

Video Messaging

VideoServer

Message Queue

Outdial

Network Access Layer

GSM/GPRS Internet

Fax Gateway

SS7 Gateway

Video Gateway

SMSCMMSCWAP

Gateway

SS7 SIP, H.323

SIP/RTP

HTTP

Disk MySQL

RedHat / JBOSS / Spring /

Hibernate

Struts Sitemesh

NIST (SIP)

JGroups

Apache

JMS / JBPM

RDBMS Server

SQL

MX4J

EMC

Voice Genie / DCL BrookTrout

DCLDCL

TietoEnator

Partners

Open SourceRadvision

Scansoft / Telisma

HPOV / NetIQ

Cisco

Nokia

Open Solutions Alliance

Non-Profit (501c6 – same as Eclipse) Interoperability Standards Reference Architectures and Case

Studies Community Awareness Complete Transparency

http://www.opensolutionsalliance.org

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Largest non-bank financial services in Hong Kong

New securities trading system

Order mgmnt, trade mgmnt, clearing, settlement, risk management, etc.

Sun Hung Kai FS

Redmayne-Bentley

Michael Wheeler

Partner/ Finance Officer

www.redmayne.co.uk

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Background

Founded in 1875 Organisation Business – modernised traditional

Franchise operation – organic growth

Our approach (personal touch, relationships, quality of service …)

All Rights Reserved to Redmayne-Bentley Stockbrokers. Created 2007. Authorized and Regulated by the Financial Services Authority.

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Locations

LEEDS – Head OfficeLondon (3 locations)Bromley GlasgowHenleyYorkMiddlesbroughBrightonTorquayShrewsburyPerth and 22 others

All Rights Reserved to Redmayne-Bentley Stockbrokers. Created 2007. Authorized and Regulated by the Financial Services Authority.

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Third party Users

Same system used by:

Pilling & Co. (Manchester) M D Barnard (London) Ramsey Crookall (Isle of Man)

Supported by Unisys and our COBOL team

All Rights Reserved to Redmayne-Bentley Stockbrokers. Created 2007. Authorized and Regulated by the Financial Services Authority.

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Key drivers:

For the business (e.g. FSA, in-house COBOL development, legacy code)

For change ( Hardware replacement cycle & end of SCO Unixware support )

Risk mitigation: Unisys support for SLES 9+

Business critical application

~ NO system = NO business!

Failover Clustering / Business continuity

All Rights Reserved to Redmayne-Bentley Stockbrokers. Created 2007. Authorized and Regulated by the Financial Services Authority.

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Outline of the project

New Hardware installed (ES7000 in 3 locations) Application moved and re-configured

Some changes required to external interface code

Parallel operation ‘Legacy’ compatibility issues solved

Strong testing pre and post

Switch over: Point of no Return

All Rights Reserved to Redmayne-Bentley Stockbrokers. Created 2007. Authorized and Regulated by the Financial Services Authority.

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It Works!

All Rights Reserved to Redmayne-Bentley Stockbrokers. Created 2007. Authorized and Regulated by the Financial Services Authority.

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Business Impact / Benefits (1)

Business depends on the application

Interoperability with other software

Maintain high SLA (in-house & external) 10-fold performance improvement

Overnight processing from 13 hours to 1.5 Clustering: modern, reliable and open source

Contd…

All Rights Reserved to Redmayne-Bentley Stockbrokers. Created 2007. Authorized and Regulated by the Financial Services Authority.

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Business Impact / Benefits (2)

Valuations available at start of business day

Growth – improve the service

Extensions to the system: XML exports SQL Functionality Document management

Cope with Future changes Business continuity: an extra layer

All Rights Reserved to Redmayne-Bentley Stockbrokers. Created 2007. Authorized and Regulated by the Financial Services Authority.

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Any questions?

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Blog: http://AnthonyGold.blogspot.com

SOA article: http://www.esj.com/news/print.aspx?editorialsId=2515

For copies, send an email to: Lynda.Foster@unisys.com

Thank You!