Software Engineering

G22.2440-001

Session 7 - Sub-Topic 2

Sample Enterprise Application Design

Dr. Jean-Claude Franchitti

New York University

Computer Science Department Courant Institute of Mathematical Sciences

Best Practices in Technical

Architectures for Fixed Income

Market Participants

Dr. Jean-Claude Franchitti

2

Presentation Agenda

• Observations of a Former Trader

• Fixed Income Technical Architectures

– Architecture Development Methodology

– Fixed Income Business Process Maps

– Fixed Income Solution Capabilities Matrix

– Deriving a Conceptual Technology Vision

– From the Conceptual Technology Vision to a Logical Infrastructure

– From the Logical Infrastructure to a Physical Solution

– Physical Solution Implementation Steps

• Conclusion

Observations of a Former Trader

4

Trading Environment Characteristics

Anonymity

Liquidity

Transparency

5

Brokers’ Broker Were They Efficient?

• Human factor

• Limited network of contacts

• Largest firms control the inventory

• Regional broker/dealers not well serviced

• Difficult to unwind odd-lot positions

• Phantom trades

• Buy-side firms are not a part of the equation

6

Where Are We Now? Automated Trading Systems (ATS)

• Eliminates the Human Factor

• Buy-side is involved

• More regional bank and foreign institution participation

• Internet – A border-less enterprise

All of which creates better Liquidity and more Transparency in an

Anonymous environment.

7

Six Drivers for Change

• Institutional and Retail customers

• Brick and mortar sell-side institutions

• Traditional buy-side firms

• Broker’s brokers

• Regulatory

• Entrepreneurs

8

Challenges

• Existing legacy systems and newer ATS’s will need to handle anticipated

increases in trade volume implied by the development of STP.

• Fixed Income securities can have complex structures. Trading systems will

need to incorporate proper analytics to calculate various essential data.

• There are many types of Fixed Income securities which trade in different

ways. Standardized trading methodologies will need to be applied.

• Security information repositories will need to be large enough to hold data

on millions of securities.

• Present front-end interfaces are no more than client/server versions of

legacy systems.

• Back-office systems are antiquated. It may not be feasible to integrate them

if they cannot support the new economy business.

• The new Fixed Income market of tomorrow may require an Application

Program Interface (API) to a single Fixed Income exchange.

• T+1 must be incorporated into new technology.

Architecture Development

Methodology

10

Architecture Vision

The eHub Securities Framework

PersonalBlotter and

Services

MessageHandlers

ExecutionEngines

ContinuousNet

SettlementSystems

LedgerOperations

InformationEngines

SecurityMaster

SystemBlotter and

Services

Browser/streaming interfaceDirect systems interfaces

Client Sites

Distributed Hubs

Processing Centers

Adapters, connectors,

Message brokers, linkagesDistributed rules processors

Valuations and

Market data feeds

PriceSubscriptions

Personalization Rules

VerificationValidation

Rules Execution

Order and NOE

Rules and Routing

ECN’s, Exchanges

Direct Clients

Clearing and Settlement

Rules Execution

Portfolio, Trust, Asset

Ledger Rules

Risk, Forecast

CRM, Budgets and Rules

Transfer Agency, Custody Rules

Assets/Institutions/Prices

Portal and

Service Interfaces

OrderTrading and

Management

ServiceManager

PriceManager

11

Vision and

Objectives

Process

Model

Solution

Architecture

Mapping Vision to Solution

12

WORK STREAMS

Customer facing

IT analysis and design

Business processes

Regulatory analysis

Accounting and

fiscal analysis

Competitive

analysis

Business case

JV and partner-

ship analysis

Go-to-market

strategy

OUTPUT

Preliminary Future State Model

– Preliminary IT Architecture Design

– Preliminary Business Process Design

• Interviews • Demographic research

• Current IT state assessment • Architecture design/collaboration

• Current business process assessment • Operating model design/ collaboration

• Deal structure assessment • Regional regulatory analysis for operating

model

• Tax assessment • Global analysis of tax implications for

operating model

• Regional competitive assessment (including Web site evaluation)

• Demographic research

• Documentation of revenue and cost driver • Financial model development

• Document findings from due diligence conversations

• Develop general terms and conditions of JV/partnership

• Document integration plan for all work streams

• Strategic plan

Extraction of Capabilities

Refinements

Validation

Final Future State Model

– Future State IT Architecture Design

– Future State Business Process Design

Constraints

Itera

tive

FUTURE STATE REALIZATION PROCESS

Fulfilling the Objectives to Support the Vision

13

Architecture Design Methodology

Business Constraints

Application Model

Content Model

Web Interface

Data Model

Logical Data

Principles

Assumptions

Constraints

Presentation

Navigation

Look and Feel

Business model

Organization

Location

Process

Logical Application Model

Execution &

Market

Systems

EFI

Execution

Systems

FX

Execution

Systems

Market

Systems

Core Components

Services

Events

Externalization

Licensing

Messaging

Naming

Persistence

TransactionSecurity

Common Facilities

Backup /Recovery

Channels

ErrorHandling

XML POP

Help XML MOM

Monitoring

PerformanceTuning

Query / Search

Reporting

SystemAdmin

Domain Specific

Client API

EFI ExecutionInterface

FX ExecutionInterface

MarketInstrument

Reference data

Markets

Portalinterfaces

Client Handler

Client to Core

components

Handler

Global Front End

System

Client

Interface

Components

Technology Infrastructure Model

Execution &

Market

Systems

Instrument

Repository

Foreign

Exchange

Market

Systems

Euro Fixed

Income

Core ComponentsClient Handler

Preferences and

Operating

Constraints

Su

n E

22

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ng

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Web Server

Servlets & JSP

Streaming

Server

(https & http)

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er S

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Global Front End

System

Client Services

Administrator

XML, SWIFT, FIX,

Email, Fax

Client

Workstation

System Admin

& Support

Sun E420/Solaris 2.6200GB raid5 Disk ArrayiPlanet Enterprise SvrWebtrends

Admin/Reporting

Server

Database Server

Su

n E

45

00

/So

laris

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GB

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rray

Syb

ase

11

.9.2

Security &

Entitlements Srv

Su

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42

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ola

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om

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rrayApplication

Server

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ries

14

For every 1M

visitors, 40%

don’t return

due to

incomplete

content; lost

cost of their

lifetime

value is

$2.8M

$1.5M-$2.1M

wasted on

site

redesigns

that don’t fix

the right

problem

Right to Left Thinking...

Architecture Development Map

Customer &

Business Models

Infr

astr

uctu

re

Ap

pli

cati

on

Abstract Concrete

Domain

Independent

Domain

Dependent

Domain

Client Preferences

Application

Patterns

Analysis

Analysis

Application Model - Data Model - Business Model - Content Model

Technical Solution Development

Technical

Solution

Development

Technical

Solution

Development

Architectural Styles

Domain

Models

Questions ?

Questions ?

Application: - Data

- Business Logic

- Content (Screens)

KITS

Frameworks

Concrete Costs Initial Costs

Abstract Costs

Concrete Costs

Logical Infrastructure

- Win XP/ UNIX

- Broadvision

- SAP

- Application Server - Transaction Processing

- Persistence

- OSA Abstract Costs

Technology

& Software

Proposal End Point

Technical

Solution

Development

Application Production

(Approach/ Assembly/ Delivery)

Domain Analysis

Customer Information

Gathering

Information

Not Specific to Domain

Domain

Specific

Information

As information is collected, work effort,

estimates and solution becomes concrete

15

Architecture Design Approach

Object-Oriented Analysis and Design

• UML models and diagrams

Design Assumptions

• Architectural capabilities are based on a limited set of

business and technical requirements

• Simplicity, elegance, intelligibility, well-defined levels of

abstraction, and clear separation between interface and

implementation at all levels

Architecture Object Model

• Application architecture model

• Application infrastructure

– Application Framework

• Technology infrastructure model

– Physical architecture instance(s)

16

Architecture Design Approach (continued)

Logical View Implementation View

Process View Deployment View

Use Case

View

Use Case

View

“4+1” Architecture View Model

17

“4+1” Architecture View Model

Describes the Architectural Vision

Model helps represent the various constraints on the architecture

Provides multiple perspectives to represent the system

• Logical view

– Static and dynamic aspects

• Implementation view

– Organization of modules within the development environment

• Process view

– Decomposition in terms of execution flows, and flow synchronization

• Deployment view

– Describes hardware resources and associated software deployment

• Use case view

– Motivates and justifies the architectural choices (i.e., “the glue”)

“4+1” Architecture View Model

18

Application Architecture Overview

Enterprise Application Suite

• Channels

– Web Portal

• Web Interface

– Web View

– Web Controller

• Enterprise Services

– Application Enterprise Services

• Business Controller

– Client Interface

– Client Handler

– Component Manager

• Business Object Model

• Infrastructure

– Services

– Common Facilities

– Domain Specific Facilities

19

Architecture Design Summary

Driving Forces:

• Functional Requirements document

• Internal design guidelines

• Technology Preferences

• Software Architecture = Elements + Patterns + Motivations

• “4 + 1” View Model

• Model View Controller (MVC) Concept

Fixed Income Business Process

Hierarchies and Maps

21

Sales / Marketing Order Room

Customer Acquisition Place Orders

Product Determination

Product Promotion

Campaign Strategy

Purchase & Sales New Accounts Stock Record

Reconcilement

Confirm GTC Orders

Organize Pending Orders

Customer Confirmation

Booking

Clearing & Settlement

Figuration

Recording

Brokerage

Open Accounts

Account Maintenance

Process Thread - does not currently exist

Legend:

Process Thread

Primary Process Group

Intermediate Group

Account Numbering

Audit

Security Movements

Margin

Account Maintenance

Sales Support

Clear Issuance of Checks

Items Due

Extensions

Close Outs

Delivery of Securities

Accounting Proxy & Capital Reorg Cash / Securities Inventory Dividend

Proxy Voting

Annual Reports, etc. Daily Cash Record

Adjusted Trial Balance

Bookkeeping

Profit & Loss Statement

Trial Balance

Establish Accounts

Bank Loan

Vaulting

Receive & Deliver

Stock Loan/Borrow

Transfer

Reorganization

Cash Dividends

Stock Splits

Due Bills

Bond Interest

Generic Trading Business Model

22

Average Present Day Solution Fixed Income Trading Process Map

Client

OTC

Market

Submits

Order

Validate Order at Sales Desk

Valid

"Not a valid

order"

NO

Route to

Trading

Desk

"Electronic

pass

through"

Electronic

submission

execution

Non

Automated

Execution

No

Monitor Execution

Confirm

Execution

(price Qty, Etc.) Record

Order

Update

customer account

yes Front/Back

Office

Electronic

Execution?

Yes

Client Client Places Order Confirmation

Mailed to the

customer

Sales Desk Calls

Client

23

Sales / Marketing Order Room

Customer Acquisition Place Orders

Product Determination

Product Promotion

Campaign Strategy

Purchase & Sales New Accounts Stock Record

Reconcilement

Confirm GTC Orders

Organize Pending Orders

Customer Confirmation

Booking

Clearing & Settlement

Figuration

Recording

Brokerage

Open Accounts

Account Maintenance

Account Numbering

Audit

Security Movements

Margin

Account Maintenance

Sales Support

Clear Issuance of Checks

Items Due

Extensions

Close Outs

Delivery of Securities

Accounting Proxy & Capital Reorg Cash / Securities Inventory Dividend

Proxy Voting

Annual Reports, etc. Daily Cash Record

Adjusted Trial Balance

Bookkeeping

Profit & Loss Statement

Trial Balance

Establish Accounts

Bank Loan

Vaulting

Receive & Deliver

Stock Loan/Borrow

Transfer

Reorganization

Cash Dividends

Stock Splits

Due Bills

Bond Interest

* * * *

* * *

* * *

Process Thread - does not currently exist

Legend:

Process Thread

Primary Process Group

Intermediate Group

* impacted by BSCHBroker solution

*

Sample Target Business Process Hierarchy

24

Resulting Solution Fixed Income Trading Process Map

Client

OTC

Market

Client logs in

"Personalized

" Web Page Submits

Order

Validate Order

Valid

"Not a valid

order"

NO

Manual Review Needed

Yes Is this a product in your

inventory or available on

ECN.

No

Route to

Trading

Desk

Yes

Electronic Trading

Available

No Yes

"Electronic

pass

through"

Electronic

submission

execution

Non

Automated

Execution

No

Monitor Execution

E-mail Confirmation

Confirm

Execution (price Qty,

Etc..)

Update

customer account

"Real-time

alert"

Is it Domestic yes

Trigger FX

No

FX Process

Front/Back

Office

Electronic

Execution?

Yes

*

Client Client Calls

in Order

Sales Desk

Contacts

Client Record

Order

25

Typical Fixed Income Legacy Systems

System FunctionalityOrder Process OPICS Order routing system

Clearing/Settlement INDEVAL The central clearing system forMexican Securities

Custody OPICS Performs Custody role for retailfixed income products

System FunctionalityOrder Process Rossi (OPICS)

S.A.M.SIOPEL

Used for accounting purposes Order routing system System that shows the market

Clearing/Settlement CRYL

EUROCLEAR

CEDEL

The central clearing system forArgentina fixed income products

A clearing vehicle for internationaltrades

A clearing vehicle for internationaltrades

Custody Rossi Performs Custody role for retailfixed income products

Fixed Income Solution

Capabilities Matrix

27

Drivers

Technical Competitive Customer

Customization / Personalization

Customer Relationship Management

Efficient cross- and inter-enterprise communicationFast, cost-efficient data links with partners

True integration

Continuously available hardware platform (24 x 7)

Flexibility

Global portal (multi brand, multi channel)

Localization

Open, extensible, flexible architecture

Global eTrading business application support

Best-of-breed global e-trading solution

Secure transactions

Collaboration (online chat)

Real-time quotes, financial news, research

Online help and training

Alerts

Analytics (“what if” scenarios)

Cap

ab

ilit

ies

Online operation (order status, billing & pricing,accounting, portfolio management, etc.)

Preliminary Capabilities Matrix

Deriving a Conceptual

Technology Vision

29

Security Personali-

zation Community

Content

Management Catalogs Commerce

Information

Access

Enterprise Application Frameworks /Servers

Other Application Frameworks /Servers

Hardware/Operating Software

Hosting Services

Systems Management

Application Suites

Bu

sin

ess

Pro

cesses

Ap

plicati

on

Infr

astr

uctu

re

Op

era

tio

ns

Using an Architecture Framework

30 Legend: VPN: Virtual Private Network I/Fs: Interfaces ECNs: Electronic Communication Networks

Integrated

Value Chain

Support System

—Users— — Functions —

Customer Support

Customer Profiling

Analytics

Customer

Relationship

Management

Country management

Online Trading

Research

Community/Chat

Education

Central Office

FI E-Trading

Customers

Marketing/

Sales

Global Front-

End

System

Web / IVR / Fax back

Country

Offices

Accounting

IT

Management

Call Center

IT

Country

CEO

Global Account Mgmt

Administration

Development

Support

CEO

Vision & Strategy

Legal

Technical

Support

Retail

Clients /

Advisors

Web / VPN / Phone

Web / VPN /

Phone

Web / VPN /

Phone

— Connectivity —

VPN / Phone

Web / VPN /

Phone

Web / Email / Chat / Phone / PDAs / VPN

— Front Office I/Fs — — Enterprise Services —

— Data Repositories —

Integrated

Trading

Data Warehouse

3rd Party

Services

Local Databases

Local Back-Office

Systems

Exchanges

ECNs

Data Providers, etc.

— 3rd Party System I/Fs

— 3rd Party Broker Systems

Remote E-Brokers Web / VPN / Phone

A/C Open

Kiosks

Branch

Support VPN / Phone

Order Mgmt Trading Web / VPN / Phone

Marketing/Sales Country

Campaigns

Settlement,

Operations &

Accounting

Customer &

“Street-Side”

operations &

accounting

VPN / Phone

VPN / Phone

Operations & Technology Support Vision Technology support should support a vision that will guarantee a unique experience for

e-Trading customers anywhere in the world.

31

Order Confirmation

Local Office Staff

Main Office Staff

Order Routing

Order Placement

Local Office Staff

Retail Client Internet

M

e

s

s

a

g

e

B

r

o

k

e

r

Internet

Technology

Legend: Global Front End

System

Integrated Value Chain

Support Systems

Local Back-Office

System

Third Party

Services

Order gets routed

locally

Sample Trading Process

From a Conceptual Technology

Vision to a Logical Infrastructure

33

Main Office Staff

(office / virtual)

Office

Customer

Retail or Institutional

Clients/Advisors

Management

Operations

IT

Online Trading

Research

Community/Chat

Education

Business

FunctionsUsers

Win

NT

Win

98

IVR

Office

Intranet

Internet

PBX-Based Service

Connectivity

Front Office Interfaces

Call Forwarding,

Teleconferencing, etc.

Front Office Apps

Ft Off. & Web Apps

Remote Access

Maintenance AppsMainOffice only

Web-Enabled

Applications

E-Trading Customer

Interfaces

Telephony-Based

Services

Web-Enabled

Applications

"Lights Out" Svcs

XML, SWIFT, FIX, Email, Fax

BS

CH

Glo

ba

l C

om

mu

nic

atio

n N

etw

ork

(L

AN

s &

WA

N)

(Eth

ern

et,

TC

P/I

P)

Remote Office

LANs

Web & Enterprise

Integration Portal

Internet

Web Server Subnet

Relationship Commerce Application Server(distributed n-tier architecture)

Enterprise Application

Integration (EAI) Server

DataWarehouse-Driven Decision Processing

Application Package

Content Management System

Integrated Value Chain

Support System

In-CountryTrading & Back Office Support Systems

Data Repositories

Integrated Data Architecture Layer

(Aggregated & Detailed Data)Enterprise Services & Back Office Applications

Desktop

Filesystems

(BSCH LAO office(s))

Customer Information Database

(Integrated Customer View)

In Memory Database

Local Data

Replicas

Third Party Data

Legacy Operational Data

Legacy Operational Systems

Front Office Apps

Customer Profile

User type

Customer Activity

Best Practice Info,

Svc. Level KPIs

Market Trends

etc.

Data Mining

Clearing / Settlement

Risk Management

Financial Applications(Main and Country Offices)

Communication(Incoming Call Monitoring Agent)

Business Intelligence(Customer Analysis, Supply Chain Planning)

Customer Care Services(Call Center Support: Financial & Systems)

Personalization Interface

Content Mgmt. Interface(Browsers, PDAs, WAPs)

Remote Training Interface

B

u

s

i

n

e

s

s

I

n

f

o

r

m

a

t

i

o

n

W

a

r

e

h

o

u

s

e

Customer Calls Handling(ACD, Flex-Routing, Call Center Mgmt.)

CSR Assisted Services(Product Support, Issue Resolution, Proactive

Account Mgmt.)

EmailSWIFT,

FIX, XML

EnginesFax

Internet-Based Services(XML/SWIFT/FIX, Email, Browser)

Collaborative Applications(Forums, etc.)

Real Time Services(Financial Web Channels, Chat, TV Events, etc.)

Collaborative Applications(Same as for BSCH Customer below)

Security(Firewall / Proxy Server)

Internet Services(web, ftp, email & news servers)

Voice/Data IntegrationTeleweb / Web Integration Services

(Consolidated Messaging, Telephone-Based Web

Services, Video Conf., etc.)

Search Engine

Transaction

Service

Messaging

Service

Analytical Applications(Performance Reports, Performance Measurement Analysis, Trend Analysis and Forecasts, etc.)

DataWarehouse Information Template

Document Mgmt.Image/Graphics

Mgmt.Video Server

(future)

Process Automation &

Dynamic Content Mgmt.

Session/State Mgmt.

Personalization Server Customer Care Services(Cust. Service, Help Desk, Sales Automation, QA)

T1

, 6

4K

, e

tc.

Financial Apps Logic(e.g., order book mgmt.)

Site Development Svc.(Updates Staging Server)

Integrated Trading

Data Warehouse

Server

Metadata Repository

OLAP & Staging Engines

Op

era

tio

na

l D

ata

Sto

re (

de

taile

d b

usin

ess d

ata

)

Vir

tua

l D

ata

Cu

be

(a

gg

reg

ate

d b

usin

ess d

ata

fo

r B

I a

pp

lica

tio

ns)

Me

taD

ata

Re

po

sito

ry

(via VPN)

Software / Global Content

Monitoring / Backup

PBX-Based Services

Country

Offices Staff

(office / virtual)

Branch Support

Call Center

Marketing/Sales

IT

Settlement, Operations

& Accounting

Country CEO

FaxbackIVR

Telephony Svcs

Win

NT

Win

98

Office

Intranet

Front Office Apps

Ft Off. & Web Apps

"Lights Out" Services

Telephony Svcs

PDA/WAP Applications

Win

98Web Applications Financial Applications

(Market Facing Applications)

Internet

Naming

Service

Data Integr.

Service

DataWarehouse Interface

XML Parsing & Translation

Custody Management

Corporate Actions Mgmt.(Corporate Mail, etc.)

Research Mgmt.

Legacy Integration Middleware(straight through processing support software)

Trading & 3rd Party Interfaces(local exchanges, OTC, ECNs)

Global order book data

Global accounts data

Global stock symbols

Research info indexes

Time critical information

Third party research

News

etc.

Content-Mgmt Repository

XML-based presentation

oriented publishing

templates

Local order book data

Local accounts data

etc.

Regulatory Management

Order Fulfillment(FI, Equity, Funds, Others)

Order Management & Accounting

Self Care Services(tutorials, online help)

Implemented

Unimplemented

Legend:

Logical Architecture Diagram

34

PBX-Based Service

Front Office Interfaces

Call Forwarding,

Teleconferencing, etc.

Remote Access

Maintenance AppsBSCH LAO Office only

Web-Enabled

Applications

E-Trading Customer

Interfaces

Telephony-Based

Services

Web-Enabled

Applications

"Lights Out" Svcs

Web & Enterprise

Integration Portal

Web Server Subnet

Relationship Commerce Application Server(distributed n-tier architecture)

Enterprise Application

Integration (EAI) Server

DataWarehouse-Driven Decision Processing

Application Package

Content Management System

Integrated Value Chain

Support System

Trading & Back Office Support Systems

Enterprise Services & Back Office Applications

Legacy Operational Systems

Front Office Apps

Data Mining

Clearing / Settlement

Risk Management

Financial Applications(Main and Country Offices)

Communication(Incoming Call Monitoring Agent)

Business Intelligence(Customer Analysis, Supply Chain Planning)

Customer Care Services(Call Center Support: Financial & Systems)

Personalization Interface

Content Mgmt. Interface(Browsers, PDAs, WAPs)

Remote Training Interface

Customer Calls Handling(ACD, Flex-Routing, Call Center Mgmt.)

CSR Assisted Services(Product Support, Issue Resolution, Proactive

Account Mgmt.)

EmailSWIFT,

FIX, XMLFax

Internet-Based Services(XML/SWIFT/FIX, Email, Browser)

Collaborative Applications(Forums, etc.)

Real Time Services(Financial Web Channels, Chat, TV Events, etc.)

Collaborative Applications(Same as for BSCH Customer below)

Security(Firewall / Proxy Server)

Internet Services(web, ftp, email & news servers)

Voice/Data IntegrationTeleweb / Web Integration Services

(Consolidated Messaging, Telephone-Based Web

Services, Video Conf., etc.)

Search Engine

Transaction

Service

Messaging

Service

Analytical Applications(Performance Reports, Performance Measurement Analysis, Trend Analysis and Forecasts, etc.)

DataWarehouse Information Template

Document Mgmt.Image/Graphics

Mgmt.Video Server

(future)

Process Automation &

Dynamic Content Mgmt.

Session/State Mgmt.

Personalization Server Customer Care Services(Cust. Service, Help Desk, Sales Automation, QA)

Financial Apps Logic(e.g., order book mgmt.)

Site Development Svc.(Updates Staging Server)

Integrated Trading

Data Warehouse

Server

Metadata Repository

OLAP & Staging Engines

Software / Global Content

Monitoring / Backup

Financial Applications(Market Facing Applications)

Naming

Service

Data Integr.

Service

DataWarehouse Interface

XML Parsing & Translation

Custody Management

Corporate Actions Mgmt.(Corporate Mail, etc.)

Research Mgmt.

Legacy Integration Middleware(straight through processing support software)

Trading & 3rd Party Interfaces(local exchanges, OTC, ECNs)

Regulatory Management

Order Fulfillment(FI, Equity, Funds, Others)

Order Management & Accounting

Self Care Services

Customer Relationship

Mgmt

Global eTrading,

Account Mgmt, Order

Mgmt, Portfolio Mgmt,

Financial Planning,

Financial Statements

News & Information, Research, PDF-

formatted reports and

statements

Localization and

Customization

Global eTrading

Localization and

Customization

Community

Secure Online Transactions Voice/Data Integration

Account Mgmt, Order Mgmt, Portfolio Mgmt

System and Application

Maintenance & Support

Community

24x7 Services

Account Mgmt.,

Customer Relationship Mgmt

Alerts

Content Mgmt, Research, News &

Information

Alerts

Education, Games

24x7 Services

Business Applications

Support

Global eTrading

Research, News &

Information

News & Information

Archives

Content Mgmt

Secure Session & State Mgmt.

System and Application

Maintenance & Support

Help, Tutorials, etc.

Architecture Enabled Capabilities

35

Architecture Scalability Features

• “Statelessness”

• Subject-based distributed queues (EAI)

• Load distribution

• Fault-tolerance

– Notification: Primary/Secondary failover

– Recovery

– Verification against state signature

– True Hot Standby

36

Architecture Support for Fixed Income Market Inventory

• Role-based market views

• Pre and post-trade workflow supported

• All Fixed Income instruments supported

37

Architecture Support for Client Access

• Local, specialized user interfaces

• API’s

• Internet access

• Legacy order streams

38

Architecture Security Features

• Encryption standards: 128 bit RSA: RVDS

• X.509 compliant certificates: TIBCA

• Level 5 firewall architecture

39

Architecture Support for Legacy Order Stream

• Legacy messaging interfaces seen as a user of the system

• Interoperates with existing users

• Can act as a bridge between deployed hubs

From a Logical Infrastructure to

a Physical Solution

41

Custom Integration and/or Integrated Applications (SAP, Baan, Lotus Notes, PeopleSoft)

Security:

Firewalls–Axent,

Cybercop,

Firewall-1

Encryption–

Security

Dynamics/RSA,

Verisign

Certificates–

Entrust,

GTE/Cybertrust,

Thawte Verisign

LDAP–Microsoft,

Netscape Other–

Netegrity/SiteMinder

, Platinum/Security

Personalization:

Accipter,

Andromedia, Aptex,

ATG, BroadVison,

DoubleClick,

Engage, Netgravity,

Net Perceptions,

Vignette/StoryServer

Community:

Acuity/iChat, AT&T,

Brightware, eshare,

General Interactive,

Lexis-Nexis,

Lotus/Domino,

Microsoft/NetMeeti

ng,

Netscape/Collabra,

Podium,

Revnet/UnityMail,

Siebel, Vantive

Content

Management:

ATG, BroadVsion,

Documentum,

FactPoint,

FutureTense, H-

P/OpenPix,

Inso/Dynabase,

Interwoven, Lotus

Notes, Open Text,

RealNetworks/Real

Audio-Video,

Vignette

Catalog:

Aspect, ATG,

BroadVision, iCat,

OpenMarket/LiveC

ommerce,

Saqquara

Commerce: ATG,

Atlantic Transaction

Services, Ariba,

BroadVision,

ComerceOne,

ConnectInc,

CyberCash,

ECCubed,

H-P/VeriFone,

IBM/net.commerce,

InterWorld,

Microsoft/SiteServe

r Commerce

Edition, MOAI,

Netscape/*Xperts,

Open

Market/Transact,

OpenSite, Sterling,

Tradex,Tradiant,

Tradium,

TradingDynamics,

Transpoint

Information Access:

ATG, BroadVision,

CrossWorlds,

Fulcrum, H-

P/ChangeEngine,

Inktomi, Microsoft/

SearchServer,

Objectspace, Verity

Inter-Enterprise:

data exchange

(XML/EDI):

CardoNet,

EpiCenter, Extricity,

MBA, OnDisplay,

Sterling,

WebMethods

Web Application Frameworks–Allaire/ColdFusion,

Apple/WebObjects, ATG/Dynamo, Bluestone/Sapphire

Web, BroadVision, HAHT/HAHTSite, IBM/WebSphere,

Microsoft/Site Server (Enterprise Edition),

NetObjects/Fusion, Pramati Technologies/Proton,

SilverStream, Vignette

Business Application Frameworks–CSC/M-Lynx, BEA

WebLogic, Inprise, IONA/Orbix, Microsoft/MTS,

Netscape Application Server, Oracle Application

Server, Pervasive Software/Tango Enterprise,

Sun/NetDynamics

Database–Informix, MS-

SQL, Oracle, Sybase

Systems Management–BMC/Patrol, HeadsUp,

Hewlett-Packard/HPOpenView, Manage.com, Sun,

SystemHealth

Testing–RadView/WebLoad, RSW/e-test, LoadRunner, Usage Reporting–Andromedia, WebTrends,

WindDance

NT/Intel - Compaq, Data General, Dell, GateWay,

H-P

Network - ArrowPoint, 3Com, Cisco UNIX - Hewlett-Packard/HPUX, IBM/AIX,

RedHat/Linix, Sparc/Solaris

Hosting - Digex, EMC, Exodus, GlobalCenter.com, GTE Internetworking, HostPro, MCI, Navisite, PSInet, UUnet

Co

mp

on

en

ts

Applications

Frameworks

Platforms

Systems

Management

Hardware/

Software

Hosting

Typically read as Vendor/Product Name

Considering Mainstream Tools

42

Evaluation Criteria (1) Web Enabled

Legacy (2) Combined

Vendor Packages (3) Component

Web

Speed to Business

Long-Term Viability

Cost of Ownership

Alignment with Vision

Business Risk

Simplicity/Ease of Use

Overall Rating

Worst Good

Best

Evaluating Alternatives

43

Physical Architecture (Example 1)

Markets

Client Interfaces - Office

Component Manager

Client Handler

TIB

/RV

Firewall

Database Server

Application

Server

LA

N (

dual)

LA

N (

dual)

Firewall

Firewall

Router

Router

Streaming

Server (http)

Streaming

Server (https)

Firewall with IIOP

Tape SiloVeritas Network

Backup (shared service)

CSC Management Firewall

CSC Systems & Network Management Environment

Intrusion

Detection

Connects to

all devices below

Security &

Entitlements Srv

Intrusion

Detection

Intrusion Detection

TIC Cache

Internet

JPM IntranetClient Services

Administrator

System Admin

& Support

Market

Data

HSRP

Su

n E

22

0/S

ola

ris 2

.6n

Cip

he

r SS

L a

cce

lera

tor

We

bsp

he

re:

- HT

TP

svr

- se

rvle

t en

gin

e- js

p e

ng

ine

Alteon AC3

Sun E220/Solaris 2.6Checkpoint Firewall-1StonebeatIONA Wonderwall

Su

n E

22

0/S

ola

ris 2

.6C

he

ckp

oin

t Fire

wa

ll-1S

ton

eb

ea

t

Su

n E

42

0/S

ola

ris 2

.6W

eb

sp

he

reM

Qse

ries

Su

n E

45

00

/So

laris

2.6

50

GB

Dis

k A

rray

Syb

ase

11

.9.2

Su

n E

42

0/S

ola

ris 2

.6e

nC

om

me

rce

Ge

tAcce

ss

50

GB

Dis

k A

rray

Execution Systems

Market Systems

Execution Systems

Login, Authentication,

Non-Repudiation

Flowbiz RDS (Instrument data

and Dictionary Interface)

Flowbiz Market Instrument Hub

(MIH)

Foreign Exchange

Euro Fixed Income

ECN's

Exchanges

Market & Price Data

Third Pary Services (e.g. News)

Web-EnabledApplications

Flowbiz Client &

System

Administration

Interfaces

Client Interfaces - Clients

Client Services

Administrator

Web-EnabledApplications

Flowbiz Client

Interface

XML, SWIFT, FIX,

Email, Fax

Internet Based

Services

Personalization

Interface

Channels Interface

Sun E420/Solaris 2.6200GB raid5 Disk ArrayiPlanet Enterprise SvrWebtrends

Admin/Reporting

Server

Load

Balancers

Web Server

Servlets & JSP

Su

n E

22

0/S

ola

ris 2

.6T

IBC

O S

trea

min

g S

vr

nC

iph

er S

SL

acce

lera

tor

Intrusion Detection

Sun E220/Solaris 2.6Checkpoint Firewall-1Stonebeat

NF

R F

ligh

t Re

co

rde

rR

em

ote

-1N

FR

Flig

ht R

eco

rde

rR

em

ote

-1

Support Services

XML Core Services

Session/State/EOD Mgmt

Process Automation

Dynamic Content Mgmt

Site Development Service

Financial Apps Logic

Blotter

Price

Order

Message Broker

Client & System Admin

Entitlement & Security

Connectors

FX, Euro, FI, MIH,

RDS(MQ)

Client Handler

Client Handler Servlets:- session handler- price request handler- profile handler- order handler- personalization handler- news handler- account handler- XML MOM/POP handler

NFR Flight RecorderRemote-1

Client

Workstation

44

Web Server Farm

Mainframe

(OS 390)

Mainframe

SystemSCLV

Exchange

Custody

Mainframe

(OS 390)

RETO

Funds Broker

(DEC Alpha)

Institutional

Funds

Net Asset

Values, Customer

Info

Orders

Portfolio Mgmt

Private

Funds

MQ Series

SVB (Broker Dealer)

Research

Management

Stratus

Web Server(Sun E5500)

MQ Series

CGI Applications(trading, research,

funds scoring, etc.)

SNA (LU0)

HTML Templates

Informix DB

(session

and user

info)

Web Browser

ACD, CDI, etc.

Existing Web

Solution

Web Browser

PDA

Web Server

(JWS)(Sun E6500)

WAP Server(Sun E4500)

Proposed

Architecture

Web Server

Server Farm

(data mining, content

mgmt, EAI)

App ServerWebsphere

(Sun E5500)

Database ServerOracle

(Sun E5500)

Personalization

Server(Sun E5500)

Web Browser

Branch Offices

Servlets,

EJBs,

JSP

Future Web

Solution

Call Center

EAI Server(Sun E5500)

EA

I M

essa

ge

Tra

nsp

ort

Back office

Sample Fixed Income Architecture

DM

Z

Physical Architecture (Example 2)

45

Inte

rnet

Screening Router

Outs

ide N

etw

ork

Private

Netw

ork

Bastion Host

Inside

Bastion Host

Inte

rnal N

etw

ork

Proxy Server

Firewall

Web Server

Local Director

Local Director

Web Server

Firewall

Development Server Farm

EAI

Server

Database

Server

Application

Server

Production Server Farm

EAI

Server

Application

Server

Database

Server

Staging &

Contingency

Server

Admin

Server

Production

Support

Server

Existing BSCH Systems

IBM Mainframe UNIX-based NT-basedDMZ

Technology Infrastructure

Physical Solution

Implementation Steps

47

Pra

cti

ce A

rea

s

Stages Discover Design Develop Deploy

Business System

Development

Management and

Quality

Business Modeling

User Experience

Content Development

Application Architecture and Development

Technical Architecture and Development

Testing

Performance Engineering

Program/Project Management

Configuration Management

Blo

cks

Development Methodology

48

Location

Data

Technology

Organization Business Process

Application

• Implementation team

• Training team

• Projects creation and update

• Projects approval

• KPI creation

• Project information retrieval

• System administration

• Data conversion

• Supplied volume

data

• Hardware

• Standard system software

• Reporting software

• Ad-hoc spreadsheet functions

• Security and performance

• Site navigation design

• Site content design

• Reusable components

• Security workflow

• Help

• Office hosting development

Identifying Domains of Change

49

Requirements

Analysis

Development is an iterative process,

where for each subset of requirements,

components must be analyzed,

designed, developed and deployed

Design

Develop

Deploy

Design

Develop

Deploy

Discover

Discover Design

Develop

Deploy

Discover Release 1

Release 2

Release 3 ...

Proposed Project Lifecycle

Adding Iterations

Conclusion

51

Feature Summary

• Ubiquitous Client Access

• Pushes Status in Real-time

• Framework Inter-operates with Legacy

• Support for Current and Emerging Standards

• Scales in Capacity and Function

• Optimization of Integrated Services

• Secure, Mission-Critical Infrastructure

52

Addressing the Challenges

Existing legacy systems and newer ATS’s will still need to handle

anticipated increases in trade volume implied by the development of STP.

Fixed Income securities can have complex structures. Trading systems can

plug and play analytics to calculate various essential data.

There are many types of Fixed Income securities which trade in different

ways. Standardized trading methodologies will need to be applied.

Security information repositories will need to be large enough to hold data

on millions of securities.

Present front-end interfaces are no more than client/server versions of

legacy systems.

Back-office systems are antiquated. It may not be feasible to integrate them

if they cannot support the new economy business.

The new Fixed Income market of tomorrow may require an Application

Program Interface ( API ) to a single Fixed Income exchange.

T+1 must be incorporated into new technology.