your old stack is slowing you down - oracle...your old stack is slowing you down more than 80% of...

Ajay Patel,

Vice President, Fusion Middleware

Your Old Stack is Slowing You Down

MORE THAN 80% OF THE

TRADING APPLICATIONS IN

INVESTMENT BANKS ARE WRITTEN IN

JAVA

AND THEY ONLY CARE ABOUT PERFORMANCE !

In a recent survey…..

71.6 percent of respondents rated latency as crucially important Of those, 13.8 percent need the lowest possible latency The other 57.8 percent indicated they don’t necessarily need to be the very fastest, but being slower does impact negatively on trading profits.

Source : 2011 Automated Trader Algorithmic Trading Survey

What Problems are they trying to Solve?

• Performance

• Latency (managed trade-off with throughput)

• Determinism

• Time to Market

• Algo Profitability Window

• Fast Application Development

• Fast Deployment

• Changes through re-use not re-write

• Sustainability

• Number of moving parts

• Integration

• Heterogeneous APIs

• Less Interfaces and Abstractions

• Patching and Support

• Optimization and Re-Optimization to achieve low latency, performance & scalability

• Skillset availability & specialization

• Difficult to instrument all moving parts and interfaces, and difficult to assess impact of performance

modifications

How fast do you need to go?

Sell-side Brokers Traditional buy-side Trading Firms

Weeks

100s mSec

10 mSec

mSec

µSec

• Workstations • Workstations

• Risk Management • Syndication and Origination • Interest Rate Derivatives • Other structured products

• FX and Fixed Income Pricing • Agency Brokerage • Block Trading • Risk Trading

• Workstations

• Portfolio Valuations • Pension Funds • Corporate Treasuries • Wealth Management

• Algorithmic Trading using Sell-side EMS (Insurance Funds, Mutual Funds , Pension Funds & Investment Management)

• Direct Market Access • Alternative Execution Services • Algorithmic Trading • Option Pricing • Dark Pools • Prime Brokerage services

• Hedge Funds

• Algorithmic Trading using own OMS to reduce market impact (Insurance Funds & Mutual Funds)

• Proprietary Trading • Sponsored Access • Alternative Execution Services • Option Pricing • Prime Brokerage services

• FX Arbitrage • Fixed Income Arbitrage

• Cash Equity & Derivative Market Making

• Futures Index Arbitrage • Options Trading • Statistical Arbitrage

Source : Citihub

6 Copyright © 2011, Oracle and/or its affiliates. All rights

reserved.

STORED

DATA

Electronic Trading in Context

Me

ss

ag

ing

In

fra

str

uctu

re

Reference

Policies

Positions

Pricing

History

Venues and Counterparties

Orders & Indications Market Data

TICK

CAPTURE

FEED HANDLERS

RISK &

ANALYTICS

SETTLEMENT

MARKET

AGGREGATION &

FILTERING

ALGORITHMIC

TRADING

OMS

EMS

SMART ORDER

ROUTING

FIX

CONNECTIVITY


reserved.

Your Old Stack …

Is Slowing you down!!!

• Takes ages to procure & deploy

• Has multiple APIs and Interfaces which

add latency

• Has duplicated functionality between

components

• Still has component lock-in because of

dedicated code

• Costs a fortune to support and is risky

in terms of patches & problem solving

• Takes multiple rounds of tuning to eek

out the best performance

Was designed for flexibility

• Component abstraction

• Limited dependencies

• Best of breed components to maintain

ultimate performance

• Specialized resources integrating

components

• Rip & Replace capability


reserved.

Build your own? • Complex, long and costly • Bits from different suppliers. • Need lots of expertise to put it

together • … and not necessarily the fastest

performing solution

Or get it straight from the factory? • Tuned to perfection • Every thing working in harmony • Perfectly architected • One dealer to buy from, service, maintain..... • Puts focus back on the Trading Applications

Oracle Exalogic Elastic Cloud

• Extreme performance for Java

applications

• Full-featured, ready-to-deploy,

high performance infrastructure for

Trading Applications

• Engineered System with best ROI

Fundamental Value of Engineered Systems Easy, predictable

100’s of Components 1 Machine

1000’s of Hours 1 Day

Copyright © 2011 Oracle Corporation - Proprietary and Confidential


reserved.

Oracle Extreme Java Trading Platform What is it?

Engineered Infrastructure for

capital markets Applications

• Platform to build applications; not an

application

• Exalogic EECS, Coherence, OCEP,

TimesTen, JRockit Real-Time

1. Faster Java + Faster Messaging = Lower Latency

2. Engineered system for Java Applications = better time to market

3. Engineered system with uniform patching & maintenance = sustainable platform

EL X2-2

Oracle Linux and/or Solaris

Exalogic Elastic Cloud Software

Java SE Suite - JRockit and HotSpot

Exalogic Hardware

Optimized for Exalogic,

Installed on demand

Factory Assembled

and Tested

COHERENCE TIMESTEN OCEP

Oracle Extreme Java Trading Platform Exalogic Engineered System


reserved.

Accelerating Java Trading Apps Exalogic Engineered System

EL X2-2

• Shared storage for applications

• Clustered for HA

• 40 TB SAS disk

• 4 TB read / 72 GB write cache

Integrated Storage

• 40 Gb/sec links; 1.2 µSec latency (MPI Ping)

• 10 GigE external connectivity

InfiniBand I/O Fabric and 10GbE/GbE

• 30 compute nodes; 360 cores (2.93 GHz)

• 2.8 TB DRAM

• 960 GB SSD

Compute Nodes

Fully Redundant

Flash Accelerated

Balanced for Performance


reserved.

Why Infiniband Networking for Trading Apps? Low Latency Features

• RDMA & Kernel Bypass – Applications move messages, not streams of data

– Applications read/write directly to virtual memory addresses of remote applications

– Zero buffer copies between OS layers

– Zero Context switches

• 100% Deterministic Network Messaging – unlike Ethernet

– Flow control: Unlike TCP/IP’s ‘lossy’ f/c, in IB the link layer will not send out data until it’s sure that

there is a place for the data to land - No need to wait for an ACK

– Large Packet Sizes (64K not 4K)

• Fewer Processor Interrupts – Most of the work is done on the NIC (HCA)

– Processors freed from processing network traffic & interrupts

– NIC does not place bytes into an OS buffer and OS does not copy bytes into application buffers and

interrupt applications

• Up to 12x Performance Improvement

16

Exalogic Elastic Cloud Software Low Latency, High Performance, and Simple Management

Copyright © 2011 Oracle Corporation

Ente

rpris

e M

anager

Exalogic Elastic Cloud Software 2.0

Exalogic Elastic Cloud X2-2 Hardware

FMW and Business Applications

Coherence WebLogic Tuxedo

Exabus Exalogic

Control Traffic Director

Virtu

al A

sse

mb

ly B

uild

er

Exabus Java API Exabus RDMA API Exabus SDP API

Oracle VM

17 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.

Application Buffer

Copy TCP IP Transport

Kernel

Application Buffer

Standard Hardware I/O

Application Application

Exabus

20% Buffer Copies

40% Transport Processing

40 % Kernel Context Switches

Zero Buffer Copy

Direct Memory Access

Kernel Bypass

Application Application

4X Throughput, 6X Lower Latency

Exabus - High Speed Network Virtualization Direct Memory I/O for Java and C++

18

New Exabus Java and C++ APIs Next-generation of Exalogic performance optimization

New C++ and Java

APIs for maximum

application I/O

performance

Messagebus API

accelerates

Coherence

RDMA API

accelerates Tuxedo

SDP API accelerates

WebLogic

New for EECS 2.0 Exalogic EECS 1.0

Exabus RDMA (C++ API)

Exabus Java APIs

Messagebus Exalogic SDP

Coherence WebLogic

Tuxedo

Exabus InfiniBand Core

Hardware and Firmware

Eo

IB

Any

Linux

or

Solaris

App.

TCP/IP

IPo

IB

19

Oracle VM 3.0 for Exalogic Native Exabus Integration with SR-IOV

Secure segregation of traffic for

specific VM guests

Optimized I/O performance

1. Inbound traffic is sent to

correct guest VM

2. Guest VM is configured to use

selected dedicated virtual

function on HCA

3. Subsequent traffic flows

directly between guest VM and

physical HCA port

Exalogic

HCA

Guest

VM Guest

VM

Guest

VM

Virtual Switch

Device Driver

Virtual Function

Physical Function

Virtual Function

OVM

Server

Device Driver

Physical I/O Port

Device Driver

Device Driver

1

2

3


Exalogic Elastic Cloud 2.0 Performance

Even Better Performance

3.5X

Web Requests/Sec.

Standard Hardware Exalogic

10X

78,840

836,520

Enterprise Java Operations/Sec.


5X

9,560

49,460

JMS Messages/sec.


5X

401,070

1,979,940


reserved.

Best performance at each layer of the stack 1

Modular construction; Protection of existing technology investments

2

All components designed to work together - Integrated into a comprehensive pre-optimized Engineered Solution

3

Exalogic: Oracle’s Extreme Java Trading Platform

Vertical integration – hard for customers to replicate!

4


Java SE – Design Objectives

• Write Once Run Anywhere

• Optimize Java for New Application Models & New Hardware

• Enhance Productivity for Java Developers

• Enable Flexible and Smaller Deployment Through Modularization

• Improve Performance, Monitoring & Diagnostics

• Enhance Java Platform for Multiple Languages


JDK Roadmap

2011 2012 2013

JDK 7u2 • JRE 7 on java.com

• JavaFX 2.0 co-install

JDK 8 • Windows, Linux, Solaris,

OSX, Embedded Platforms

• Jigsaw

• Lambda

• JavaFX 3.0

• Complete Oracle JVM

Convergence

• JavaScript Interop

• more

Last Public

JDK 6 Update

JDK 7u6 • OSX JRE Port

(for end-users)

• Improved OS

integration,

auto-update

JDK 7

JDK 7u4 • OSX JDK Port

(for developers)

2014

NetBeans 7 • Java SE 7

Support

• more

NetBeans.next • Java SE 8 Support

• JavaFX 3.0 Support

• more

NetBeans 7.1 • JavaFX 2.0 Support

Mac OSX • JDK 7 Developer Preview

• Java FX 2.0 Dev Preview

Extreme Java Platform for Trading

Advantages

Performance In The Box: pre-integrated, pre-

optimized, pre-tested solution

Sustainability

(reduced risk and lower TCO)

Faster application Time To Market

(reduced integration and testing efforts)

1

2

3

Exalogic Elastic Cloud Software - ‘The Secret Sauce’

your old stack is slowing you down - oracle...your old stack is slowing you down more than 80% of...

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