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
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 2
Observations of a Former Trader
Trading Environment Characteristics Anonymity Liquidity Transparency 4
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 5
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. 6
Six Drivers for Change Institutional and Retail customers Brick and mortar sell-side institutions Traditional buy-side firms Broker s brokers Regulatory Entrepreneurs 7
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. 8
Architecture Development Methodology
Client Sites Direct systems interfaces System Blotter and Services Architecture Vision Personal Blotter and Services Browser/streaming interface Distributed Hubs Portal and Service Interfaces Message Handlers Adapters, connectors, Message brokers, linkages Distributed rules processors Order and NOE Rules and Routing Execution Engines Trading and Order Management ECN s, Exchanges Direct Clients Verification Validation Rules Execution Service Manager Price Subscriptions Personalization Rules Price Manager Valuations and Market data feeds Continuous Net Settlement Systems Ledger Operations Information Engines Security Master Processing Centers Clearing and Settlement Rules Execution Portfolio, Trust, Asset Ledger Rules Risk, Forecast Transfer Agency, Custody Rules CRM, Budgets and Rules Assets/Institutions/Prices The ehub Securities Framework 10
Mapping Vision to Solution Vision and Objectives Process Model Solution Architecture 11
Fulfilling the Objectives to Support the Vision WORK STREAMS OUTPUT FUTURE STATE REALIZATION PROCESS Customer facing Interviews Demographic research Extraction of Capabilities IT analysis and design Business processes Current IT state assessment Architecture design/collaboration Current business process assessment Operating model design/ collaboration Preliminary Future State Model Preliminary IT Architecture Design Preliminary Business Process Design Competitive analysis Regulatory analysis Accounting and fiscal analysis Regional competitive assessment (including Web site evaluation) Demographic research Deal structure assessment Regional regulatory analysis for operating model Tax assessment Global analysis of tax implications for operating model Refinements Constraints Iterative Business case Documentation of revenue and cost driver Financial model development Validation JV and partnership analysis Document findings from due diligence conversations Develop general terms and conditions of JV/partnership Final Future State Model Future State IT Architecture Design Go-to-market strategy Document integration plan for all work streams Strategic plan Future State Business Process Design 12
Architecture Design Methodology Application Model Business model Organization Location Process Data Model Logical Data Principles Assumptions Constraints Content Model Web Interface Presentation Navigation Look and Feel Business Constraints Logical Application Model Global Front End System Client Interface Components Client Handler Client to Core components Handler Events Messaging Licensing Reporting Persistence Services Externalization Naming Core Components Security Common Facilities XML POP Monitoring Transaction Channels Domain Specific Client API EFI Execution Interface FX Execution Interface Market Instrument Reference data Execution & Market Systems EFI Execution Systems FX Execution Systems Market Systems Error Handling Help Backup / Recovery XML MOM Performance Tuning Query / Search System Admin Markets Portal interfaces Preferences and Operating Constraints Technology Infrastructure Model Global Front End System Client Workstation Client Services Administrator XML, SWIFT, FIX, Email, Fax System Admin & Support Client Handler Web Server Servlets & JSP Streaming Server (https & http) Sun E220/Solaris 2.6 ncipher SSL accelerator Websphere: - HTTP svr - servlet engine - jsp engine Sun E220/Solaris 2.6 TIBCO Streaming Svr ncipher SSL accelerator Sun E420/Solaris 2.6 Websphere MQseries Application Server Database Server Sun E4500/Solaris 2.6 50GB Disk Array Sybase 11.9.2 Core Components Security & Entitlements Srv Admin/Reporting Server Sun E420/Solaris 2.6 encommerce GetAccess 50GB Disk Array Sun E420/Solaris 2.6 200GB raid5 Disk Array iplanet Enterprise Svr Webtrends Execution & Market Systems Instrument Repository Foreign Exchange Euro Fixed Income Market Systems 13
Application Infrastructure Right to Left Thinking... Architecture Development Map Domain Independent As information is collected, work effort, estimates and solution becomes concrete Client Preferences Technology & Software Information Not Specific to Domain Analysis Concrete Costs Frameworks - Win XP/ UNIX - Broadvision - SAP - Application Server Technical Solution Development Questions? Abstract Costs Architectural Styles - Transaction Processing - Persistence - OSA Logical Infrastructure Domain Domain Dependent Application For every 1M visitors, 40% don t return due to KITS incomplete Concrete Costs content; lost cost of their lifetime value is $2.8M Technical Solution Development Concrete Application Production (Approach/ Assembly/ Delivery) Application: - Data - Business Logic - Content (Screens) Proposal End Point Technical Solution Development Patterns Questions? Technical Solution Development Abstract Costs Application Model - Data Model - Business Model - Content Model Domain Analysis $1.5M-$2.1M wasted on Analysis site Domain redesigns Models that don t Initial Costs fix the right problem Abstract Customer Information Gathering Domain Specific Information Customer & Business Models 14
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) 15
Architecture Design Approach (continued) Logical View Implementation View Use Case Use Case View Process View Deployment View 4+1 Architecture View Model 16
4+1 Architecture View Model 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 ) 17
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 18
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 19
Fixed Income Business Process Hierarchies and Maps
Generic Trading Business Model Brokerage Sales / Marketing Order Room Purchase & Sales New Accounts Stock Record Customer Acquisition Place Orders Clearing & Settlement Open Accounts Account Numbering Product Determination Reconcilement Customer Confirmation Account Maintenance Audit Product Promotion Confirm GTC Orders Booking Security Movements Campaign Strategy Organize Pending Orders Figuration Recording Margin Accounting Proxy & Capital Reorg Cash / Securities Inventory Dividend Account Maintenance Bookkeeping Proxy Voting Receive & Deliver Cash Dividends Sales Support Daily Cash Record Annual Reports, etc. Bank Loan Stock Splits Clear Issuance of Checks Adjusted Trial Balance Vaulting Due Bills Items Due Profit & Loss Statement Stock Loan/Borrow Bond Interest Extensions Trial Balance Transfer Close Outs Establish Accounts Reorganization Delivery of Securities Legend: Primary Process Group Intermediate Group Process Thread Process Thread - does not currently exist 21
Average Present Day Solution Fixed Income Trading Process Map Client Client Places Order Client Confirmation Mailed to the customer Submits Order "Not a valid order" Sales Desk Calls Client Validate Order at Sales Desk NO Update customer account Front/Back Office Valid yes Record Order Route to Trading Desk Confirm Execution (price Qty, Etc.) "Electronic pass through" Electronic Execution? Monitor Execution Yes No OTC Market Electronic submission execution Non Automated Execution 22
Sample Target Business Process Hierarchy Brokerage * * * * Sales / Marketing Customer Acquisition Product Determination Product Promotion Campaign Strategy Order Room Purchase & Sales New Accounts Stock Record * Place Orders Clearing & Settlement * * Open Accounts Account Numbering Reconcilement Customer Confirmation Account Maintenance Audit * Confirm GTC Orders Organize Pending Orders * Booking Figuration Recording * Security Movements Margin Account Maintenance Sales Support * Accounting Proxy & Capital Reorg Cash / Securities Inventory Dividend Bookkeeping Proxy Voting Receive & Deliver Cash Dividends Daily Cash Record Annual Reports, etc. Bank Loan Stock Splits Clear Issuance of Checks Adjusted Trial Balance Vaulting Due Bills Items Due Profit & Loss Statement Stock Loan/Borrow Bond Interest Extensions Trial Balance Transfer Close Outs Establish Accounts Reorganization Delivery of Securities Legend: Primary Process Group Intermediate Group Process Thread * Process Thread - does not currently exist impacted by BSCHBroker solution 23
Resulting Solution Fixed Income Trading Process Map Client Client logs in Client Calls in Order Client "Personalized " Web Page Submits Order "Not a valid order" "Real-time alert" Sales Desk Contacts Client Validate Order * NO Record Order No Manual Review Needed Yes Update customer account Front/Back Office Valid yes Is it Domestic No Yes Trigger FX Is this a product in your inventory or available on ECN. Yes Electronic Trading Available No Route to Trading Desk Confirm Execution (price Qty, Etc..) E-mail Confirmation FX Process "Electronic pass through" Electronic Execution? Monitor Execution Yes No OTC Market Electronic submission execution Non Automated Execution 24
Typical Fixed Income Legacy Systems Order Process Clearing/Settlement System Rossi (OPICS) S.A.M. SIOPEL CRYL EUROCLEAR CEDEL Functionality Used for accounting purposes Order routing system System that shows the market The central clearing system for Argentina fixed income products A clearing vehicle for international trades A clearing vehicle for international trades Custody Rossi Performs Custody role for retail fixed income products System Functionality Order Process OPICS Order routing system Clearing/Settlement INDEVAL The central clearing system for Mexican Securities Custody OPICS Performs Custody role for retail fixed income products 25
Fixed Income Solution Capabilities Matrix
Capabilities Preliminary Capabilities Matrix Drivers Technical Competitive Customer Customization / Personalization Customer Relationship Management Efficient cross- and inter-enterprise communication Fast, 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) Online operation (order status, billing & pricing, accounting, portfolio management, etc.) 27
Deriving a Conceptual Technology Vision
Operations Application Infrastructure Business Processes Using an Architecture Framework Application Suites Security Personalization Community Content Management Catalogs Commerce Information Access Enterprise Application Frameworks /Servers Other Application Frameworks /Servers Systems Management Hardware/Operating Software Hosting Services 29
Operations & Technology Support Vision Technology support should support a vision that will guarantee a unique experience for e-trading customers anywhere in the world. Central Office Users Functions Management CEO Vision & Strategy Legal Connectivity Web / VPN / Phone Front Office I/Fs Enterprise Services 3rd Party System I/Fs 3rd Party Broker Systems Remote E-Brokers Country Offices Trading Accounting Marketing/ Sales IT Branch Support Order Mgmt Global Account Mgmt Web / VPN / Phone Customer Support Customer Profiling Analytics Administration Development Support A/C Open Kiosks Web / VPN / Phone Web / VPN / Phone Web / VPN / Phone VPN / Phone Global Front- End System Integrated Value Chain Support System Data Repositories Integrated Trading FI E-Trading Customers Legend: Customer Call Center Relationship Management Marketing/Sales Country Campaigns IT Settlement, Operations & Accounting Country CEO Retail Clients / Advisors Research Community/Chat Education Web / IVR / Fax back Web / VPN / Phone Technical Support VPN / Phone Customer & Street-Side operations & VPN / Phone accounting Country management VPN / Phone Online Trading Web / Email / Chat / Phone / PDAs / VPN VPN: Virtual Private Network I/Fs: Interfaces ECNs: Electronic Communication Networks Local Back-Office Systems 3rd Party Services Data Warehouse Local Databases Exchanges ECNs Data Providers, etc. 30
Sample Trading Process Technology M e Order gets routed locally Local Office Staff Main Office Staff Order Routing Order Confirmation s s a g e B r Internet Local Office Staff Order Placement o k e r Retail Client Internet Legend: Global Front End System Integrated Value Chain Support Systems Local Back-Office System Third Party Services 31
From a Conceptual Technology Vision to a Logical Infrastructure
T1, 64K, etc. Operational Data Store (detailed business data) Virtual DataCube (aggregated business data for BI applications) MetaData Repository BSCH Global Communication Network (LANs & WAN) (Ethernet, TCP/IP) Logical Architecture Diagram Business Functions Users Connectivity Web & Enterprise Integration Portal Enterprise Services & Back Office Applications Integrated Data Architecture Layer (Aggregated & Detailed Data) Office Front Office Interfaces Integrated Value Chain Support System Data Repositories PBX-Based Services PBX-Based Service Call Forwarding, Teleconferencing, etc. Internet Internet Services (web, ftp, email & news servers) Web Server Subnet Search Engine Security (Firewall / Proxy Server) Desktop Filesystems (BSCH LAO office(s)) Management Operations IT Branch Support Call Center Marketing/Sales IT Settlement, Operations & Accounting Country CEO Online Trading Research Community/Chat Education Legend: Main Office Staff (office / virtual) Country Offices Staff (office / virtual) Customer Retail or Institutional Clients/Advisors Implemented Unimplemented IVR Win NT Win 98 XML, SWIFT, FIX, Email, Fax Faxback Win NT Win 98 IVR Win 98 Front Office Apps Office Intranet Ft Off. & Web Apps (via VPN) Telephony Svcs Front Office Apps Office Intranet Ft Off. & Web Apps "Lights Out" Services Telephony Svcs Web Applications Internet PDA/WAP Applications Remote Access Front Office Apps Financial Applications (Main and Country Offices) Maintenance Apps MainOffice only Data Mining Software / Global Content Web-Enabled Applications Communication (Incoming Call Monitoring Agent) Business Intelligence (Customer Analysis, Supply Chain Planning) Customer Care Services (Call Center Support: Financial & Systems) Collaborative Applications (Same as for BSCH Customer below) "Lights Out" Svcs Email Monitoring / Backup SWIFT, FIX, XML Engines E-Trading Customer Interfaces Telephony-Based Services Customer Calls Handling (ACD, Flex-Routing, Call Center Mgmt.) CSR Assisted Services (Product Support, Issue Resolution, Proactive Account Mgmt.) Web-Enabled Applications Financial Applications (Market Facing Applications) Fax Internet-Based Services (XML/SWIFT/FIX, Email, Browser) Personalization Interface Content Mgmt. Interface (Browsers, PDAs, WAPs) Self Care Services (tutorials, online help) Remote Training Interface Collaborative Applications (Forums, etc.) Real Time Services (Financial Web Channels, Chat, TV Events, etc.) Voice/Data Integration Teleweb / Web Integration Services (Consolidated Messaging, Telephone-Based Web Services, Video Conf., etc.) Remote Office LANs Internet Enterprise Application Integration (EAI) Server XML Parsing & Translation Transaction Service Messaging Service Relationship Commerce Application Server (distributed n-tier architecture) Personalization Server Process Automation & Dynamic Content Mgmt. Session/State Mgmt. Document Mgmt. Naming Service Data Integr. Service Content Management System DataWarehouse-Driven Decision Processing Application Package DataWarehouse Information Template In-CountryTrading & Back Office Support Systems Legacy Operational Systems Clearing / Settlement Image/Graphics Mgmt. Analytical Applications Integrated Trading Data Warehouse Server Metadata Repository OLAP & Staging Engines Customer Care Services (Cust. Service, Help Desk, Sales Automation, QA) Financial Apps Logic (e.g., order book mgmt.) Site Development Svc. (Updates Staging Server) Video Server (future) (Performance Reports, Performance Measurement Analysis, Trend Analysis and Forecasts, etc.) Research Mgmt. DataWarehouse Interface Regulatory Management Order Management & Accounting Order Fulfillment (FI, Equity, Funds, Others) Legacy Integration Middleware (straight through processing support software) Trading & 3rd Party Interfaces (local exchanges, OTC, ECNs) Risk Management Custody Management Corporate Actions Mgmt. (Corporate Mail, etc.) Customer Profile User type Customer Activity Best Practice Info, Svc. Level KPIs Market Trends etc. Customer Information Database (Integrated Customer View) Third party research News etc. Third Party Data Global order book data Global accounts data Global stock symbols Local Data Replicas Research info indexes Time critical information In Memory Database Local order book data Local accounts data etc. Legacy Operational Data XML-based presentation oriented publishing templates Content-Mgmt Repository 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 33
Architecture Enabled Capabilities Web & Enterprise Integration Portal Enterprise Services & Back Office Applications Voice/Data Integration Front Office Interfaces 24x7 Services Integrated Value Chain Support System Secure Online Transactions PBX-Based Service Web Server Subnet Account Mgmt, Order Mgmt, Portfolio Mgmt System and Application Maintenance & Support Community Call Forwarding, Teleconferencing, etc. Remote Access Front Office Apps Financial Applications (Main and Country Offices) Maintenance Apps BSCH LAO Office only Data Mining Software / Global Content Monitoring / Backup Web-Enabled Applications Communication (Incoming Call Monitoring Agent) Business Intelligence (Customer Analysis, Supply Chain Planning) Customer Care Services (Call Center Support: Financial & Systems) Collaborative Applications (Same as for BSCH Customer below) Business Applications Support Localization and Customization Content Mgmt Secure Session & State Mgmt. Internet Services (web, ftp, email & news servers) Enterprise Application Integration (EAI) Server XML Parsing & Translation Transaction Service Messaging Service Relationship Commerce Application Server (distributed n-tier architecture) Document Mgmt. Naming Service Data Integr. Service Personalization Server Process Automation & Dynamic Content Mgmt. Session/State Mgmt. Search Engine Content Management System Image/Graphics Mgmt. Security (Firewall / Proxy Server) Integrated Trading Data Warehouse Server Metadata Repository OLAP & Staging Engines Customer Care Services (Cust. Service, Help Desk, Sales Automation, QA) Financial Apps Logic (e.g., order book mgmt.) Site Development Svc. (Updates Staging Server) Video Server (future) Research, News & Information Global etrading Global etrading System and Application Maintenance & Support 24x7 Services Customer Relationship Mgmt Account Mgmt., Customer Relationship Mgmt Alerts "Lights Out" Svcs Email SWIFT, FIX, XML E-Trading Customer Interfaces Telephony-Based Services Customer Calls Handling (ACD, Flex-Routing, Call Center Mgmt.) CSR Assisted Services (Product Support, Issue Resolution, Proactive Account Mgmt.) Web-Enabled Applications Financial Applications (Market Facing Applications) Fax Internet-Based Services (XML/SWIFT/FIX, Email, Browser) News & Information, Research, PDFformatted reports and statements Global etrading, Account Mgmt, Order Mgmt, Portfolio Mgmt, Financial Planning, Financial Statements DataWarehouse-Driven Decision Processing Application Package DataWarehouse Information Template Analytical Applications (Performance Reports, Performance Measurement Analysis, Trend Analysis and Forecasts, etc.) DataWarehouse Interface Trading & Back Office Support Systems Legacy Operational Systems Regulatory Management News & Information Archives Localization and Customization Personalization Interface Content Mgmt. Interface (Browsers, PDAs, WAPs) Self Care Services Help, Tutorials, etc. Order Management & Accounting Order Fulfillment (FI, Equity, Funds, Others) Risk Management Content Mgmt, Research, News & Information Alerts Remote Training Interface Collaborative Applications (Forums, etc.) Real Time Services (Financial Web Channels, Chat, TV Events, etc.) Voice/Data Integration Teleweb / Web Integration Services (Consolidated Messaging, Telephone-Based Web Services, Video Conf., etc.) Education, Games Community Clearing / Settlement Research Mgmt. Legacy Integration Middleware (straight through processing support software) Trading & 3rd Party Interfaces (local exchanges, OTC, ECNs) Custody Management Corporate Actions Mgmt. (Corporate Mail, etc.) 34
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 35
Architecture Support for Fixed Income Market Inventory Role-based market views Pre and post-trade workflow supported All Fixed Income instruments supported 36
Architecture Support for Client Access Local, specialized user interfaces API s Internet access Legacy order streams 37
Architecture Security Features Encryption standards: 128 bit RSA: RVDS X.509 compliant certificates: TIBCA Level 5 firewall architecture 38
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 39
From a Logical Infrastructure to a Physical Solution
Components Considering Mainstream Tools Applications Custom Integration and/or Integrated Applications (SAP, Baan, Lotus Notes, PeopleSoft) Frameworks Platforms 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 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 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 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 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 Database Informix, MS- SQL, Oracle, Sybase Inter-Enterprise: data exchange (XML/EDI): CardoNet, EpiCenter, Extricity, MBA, OnDisplay, Sterling, WebMethods Systems Management Systems Management BMC/Patrol, HeadsUp, Hewlett-Packard/HPOpenView, Manage.com, Sun, SystemHealth Testing RadView/WebLoad, RSW/e-test, LoadRunner, Usage Reporting Andromedia, WebTrends, WindDance Hardware/ Software NT/Intel - Compaq, Data General, Dell, GateWay, H-P Network - ArrowPoint, 3Com, Cisco UNIX - Hewlett-Packard/HPUX, IBM/AIX, RedHat/Linix, Sparc/Solaris Hosting Hosting - Digex, EMC, Exodus, GlobalCenter.com, GTE Internetworking, HostPro, MCI, Navisite, PSInet, UUnet Typically read as Vendor/Product Name 41
Evaluating Alternatives 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 42
TIB/RV LAN (dual) LAN (dual) Physical Architecture (Example 1) CSC Systems & Network Management Environment CSC Management Firewall Client Workstation Internet Client Services Administrator XML, SWIFT, FIX, Email, Fax Router HSRP Router Connects to all devices below Client Interfaces - Clients Web-Enabled Applications Flowbiz Client Interface Internet Based Services Personalization Interface Channels Interface Intrusion Detection Firewall Firewall Intrusion Detection NFR Flight Recorder Remote-1 Sun E220/Solaris 2.6 Checkpoint Firewall-1 Stonebeat NFR Flight Recorder Remote-1 Load Balancers Alteon AC3 Streaming Server (https) Streaming Server (http) Firewall with IIOP Sun E220/Solaris 2.6 Checkpoint Firewall-1 Stonebeat IONA Wonderwall Web Server Servlets & JSP Sun E220/Solaris 2.6 TIBCO Streaming Svr ncipher SSL accelerator Client Handler Client Handler Sun E220/Solaris 2.6 ncipher SSL accelerator Websphere: - HTTP svr - servlet engine - jsp engine Client Handler Servlets: - session handler - price request handler - profile handler - order handler - personalization handler - news handler - account handler - XML MOM/POP handler TIC Cache Component Manager Application Server Sun E420/Solaris 2.6 Websphere MQseries Security & Entitlements Srv Database Server Admin/Reporting Server Firewall Sun E220/Solaris 2.6 Checkpoint Firewall-1 Stonebeat Intrusion Detection NFR Flight Recorder Remote-1 Tape Silo Veritas Network Backup (shared service) Sun E420/Solaris 2.6 Sun E4500/Solaris 2.6 encommerce GetAccess 50GB Disk Array 50GB Disk Array Sybase 11.9.2 Intrusion Detection Financial Apps Logic Blotter Price Order Message Broker Client & System Admin Entitlement & Security Connectors FX, Euro, FI, MIH, RDS(MQ) Support Services XML Core Services Session/State/EOD Mgmt Process Automation Dynamic Content Mgmt Site Development Service Sun E420/Solaris 2.6 200GB raid5 Disk Array iplanet Enterprise Svr Webtrends JPM Intranet Client Services Administrator System Admin & Support Market Systems ECN's Exchanges Market & Price Data Third Pary Services (e.g. News) Markets Execution Systems Execution Systems Login, Authentication, Non-Repudiation Flowbiz RDS (Instrument data and Dictionary Interface) Flowbiz Market Instrument Hub (MIH) Foreign Exchange Euro Fixed Income Client Interfaces - Office Web-Enabled Applications Flowbiz Client & System Administration Interfaces Market Data 43
DMZ EAI Message Transport Physical Architecture (Example 2) SVB (Broker Dealer) Existing Web Solution Stratus Informix DB (session and user info) Web Browser Web Server (Sun E5500) HTML Templates CGI Applications (trading, research, funds scoring, etc.) Mainframe System SCLV Exchange MQ Series Custody Proposed Architecture Call Center ACD, CDI, etc. SNA (LU0) Mainframe (OS 390) Web Browser PDA Servlets, EJBs, JSP Database Server Oracle (Sun E5500) RETO MQ Series Net Asset Values, Customer Info Orders Funds Broker (DEC Alpha) WAP Server (Sun E4500) Web Server (JWS) (Sun E6500) App Server Websphere (Sun E5500) Mainframe (OS 390) Institutional Funds Portfolio Mgmt Future Web Solution EAI Server (Sun E5500) Research Management Private Funds Back office Web Browser Branch Offices Web Server Web Server Farm Personalization Server (Sun E5500) Server Farm (data mining, content mgmt, EAI) Sample Fixed Income Architecture 44
Outside Network Private Network Internal Network Internet Technology Infrastructure Production Server Farm Proxy Server Local Director Web Server Application Server EAI Server Development Server Farm Database Server Staging & Contingency Server Admin Server Production Support Server Screening Router Firewall Firewall Local Director Web Server Application Server EAI Server Existing BSCH Systems Database Server Bastion Host DMZ Inside Bastion Host IBM Mainframe UNIX-based NT-based 45
Physical Solution Implementation Steps
Practice Areas Blocks Development Methodology Stages Discover Design Develop Deploy Business System Development Business Modeling User Experience Content Development Application Architecture and Development Technical Architecture and Development Management and Quality Testing Performance Engineering Program/Project Management Configuration Management 47
Identifying Domains of Change Implementation team Training team Organization Business Process Projects creation and update Projects approval KPI creation Project information retrieval System administration Data conversion Supplied volume data Data Technology Application Site navigation design Site content design Reusable components Security workflow Help Hardware Standard system software Reporting software Ad-hoc spreadsheet functions Security and performance Location Office hosting development 48
Adding Iterations Development is an iterative process, where for each subset of requirements, components must be analyzed, designed, developed and deployed Release 3... Deploy Develop Design Discover Release 2 Develop Deploy Design Requirements Analysis Discover Release 1 Design Develop Deploy Discover Proposed Project Lifecycle 49
Conclusion
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 51
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. 52