Le sfide degli operatori per l accesso ai mercati finanziari Andrea Galeazzi Direttore Network Services SIA S.p.A. Francesco Lanza Marketing & Business Dev. SIA S.p.A. SIA
The scenario evolution is changing the Financial Industry business needs Regulation changes Competitive changes Technology evolution T2S OTC Transparency EMIR MiFID MiFID2 European/global market place New entrants New operators/providers Exchanges consolidation Higher capacity (processing/bandwidth) LAN link Super fast network protocol Business needs change 2
New business needs imply new technological requirements Business needs Trading on multiple markets to reach the best execution High frequency trading (i.e. >70% of US exchanges are algos driven) Ad hoc Service Level Agreements Single point of contact Time to market Short-term contracts with the best prices Technological requirements Easy access to multiple trading venues Zero latency (i.e. ASX on Dec 2010 reached 250 microseconds) and high volume Colocation and proximity End-to-end monitoring Resiliency and redundancy Security and privacy Single network/it partner for customized solutions Network infrastructures gain a relevant role in the industry as a key component in the value-chain 3
The Financial Industry is facing increasing costs and complexity Multi Network Model Customer Premise Workstation Trading Server Market 1 Back End Market 2 Back End Market 3 Back End Market n Back End Routers and firewalls Complex, inefficient and expensive approach PRELIMINARY INVESTIGATIONS FEASABILITY STUDIES Network Contracts with the Trading Venues (legal, IT ) Know-How and resources Rules and requirements of market connectivity Network design Carrier choice PROVISIONING/HOUSING NETWORK OPERATIONS Lines Router Firewall Management Maintenance Compliance Housing of network devices at colocation data Centers Network access fees Monitoring Technical Assistance 4
Moving from a Multi Network to a Single Network Platform Multi Network Model Customer Premise Workstation Trading Rationalized, Server simplified and more efficient network approach Market 1 Back End Market 2 Back End Market 3 Back End Market n Back End Single Network Model Customer Premise Workstation Trading Server Value Added Network Service Provider Trading Server Market 1 Back End Market 2 Back End Market 3 Back End Market n Back End Routers and firewalls 5
SIAnet Financial Ring is the Value Added Network designed or the European Financial Industry 6
SIAnet Financial Ring is specifically designed to address top requirements SIAnet Financial Ring is embedding cutting-edge technology, because you are never too quick or too reliable for trading: Fiber-optic redundant backbones connecting the Milan Data Centers with SIA s PoPs in London DWDM technology Point-to-point SDH high speed connections (1 Gbit/s) Direct fiber-optic connections to market platforms SIA thirty years experience in managing complex network infrastructures for the Financial Community guarantees a five star service level, including: Different network and carrier routes to increase the level of security and reliability Customized connections with trading partners Service Management: operation, maintenance, monitoring and assistance 24/7 7
SIAnet Financial Ring covers all the connectivity needs along the Capital Markets value chain Pre-trading Market data access Trading Venues Brokers Trading Market execution access Post-trading Trade Life-cycle access CSD Post Trading Service Providers 8
SIAnet Financial Ring Market accesses general overview Pre-trading Trading Post-trading 9
SIAnet Financial Ring fully support messaging solution for European Post Trade services Pre-trading Suite SIAnet.NG Trading Connectivity solutions for U2A Services (XTRM on line) Post-trading CSD ACCESS Monte Titoli Euroclear and Clearstream RNI Messaging solution for A2A services SIA Swift Service Bureau Post -Trade VAS Kedrios - Xchanging Suite SIAnet.NG Connectivity solutions for outsourcing back-office services, information and system services 10
SIAnet service model vs. business model Service Model A single local pipe to reach the SIAnet Financial Ring in order to simplify the integration efforts at the Customer premises Exemple Customer Premise 100 Mb 10 Mb 2 Mb 40 Mb Market 1 Market 2 Market 3 Business Model You can choose to be connected to the single venues with the preferred bandwith, independently to the underlying local infrastructure that will fit the total bandwith requested In this way you pay for what you need (access to the venues) and not for the underlined physical infrastructure 11
SIAnet features Top security :: guarantee of resiliency and redundancy (no single-point of failure) :: disaster recovery and business continuity provisions :: multi-carrier architecture (2 in Italy, 4 in Europe) :: end-to-end monitoring :: privacy compliant (peer-to-peer, NAT, IPSEC, Access Control) Top performances :: high speed & volumes (File Transfer up to 100GB/hour) :: fine granular bandwidth scalability :: fully managed service, full time coverage :: 99,999% End to End Service Level in 2010 Top flexibility :: interoperable network :: multi-protocol and peer-to-peer architecture :: Single Network & Single IT Partner for customized network solutions 12
Connectivity Services Overview SIAnet.NG: CONNECTIVITY SERVICES Connectivity Suites Value added Services Suite SIAnet.NG Enhanced Geographical Business Continuity (HSRP, BGP ) Suite SIAnet.NG Standard Full Solution Single Solution Suite SIAnet.NG Light SIAnet iaccess Full Solution Single Solution VPN IPSEC VPN SSL Exchange Proximity Service Network Equipment Housing SIAnet Monitor Probe T.V. compliant All servives 13
The Enhanced Suite is a tailor made Geographical solution for 5-stars service The Geographical Business Continuity is an enhanced access solution aimed at connecting different Customer sites (i.e. main site and disaster recovery site) to the SIA network with the same addressing plan BGP modality Customers use a dynamic routing protocol (BGP or OSPF, depending on Customer needs) Customers have skills and know-how to configure and manage their border gateway devices HSRP modality Minimal effort to configure Customer edge devices: only the default gateway needs to be set by Customer Customer accesses SIA network through a unique default gateway (via the HSRP protocol) on the Integration Kit routers 14
SIAnet.NG: Enhanced Suite SIA-SSB Network SIA-SSB Network CE routers CE routers CE routers CE routers FW/VPN Box Border Gateway EBGP IBGP EBGP FW/VPN Box Border Gateway FW/VPN Box Integration Kit routers Dynamic routing Dynamic routing FW/VPN Box Integration Kit routers HSRP Customer LAN Customer LAN Customer LAN Customer LAN Customer Site 1 (master) Customer Site 2 (slave) Customer Site 1 (master) Customer Site 2 (slave) Enhanced solution BGP modality Enhanced solution HSRP modality 15
SIAnet.NG: Standard Suite Fiber optic network solutions able to provide the mission-critical applications while ensuring high performance, security, scalability and flexibility, minimize risk and optimize investments and infrastructure Network solutions designed fully satisfy regulatory standards and requirements established by the Master Domain, with guarantee bandwidth from 128Kbps to 1 Gbps :: Full Solution :: Single Solution Service Level Agreement Single Solution 99.65 Full Solution 99.95 Availability % 0 99.50 99.75 99.85 99.95 100 16
SIAnet.NG: Standard Suite Customer Site IP Subnet Carrier 1 Customer Site FW/VPN Box IP subnet clients FW/VPN Box CE Routers SIA-SSB Network Carrier 1 Carrier 2 IP subnet clients FW/VPN Box IP Subnet Carrier 1 CE Router SIA-SSB Network Carrier 1 IP Subnet Carrier 2 Customer responsibility domain SIA-SSB responsibility domain Customer responsibility domain SIA-SSB responsibility domain Full Solution Single Solution 17
SIAnet.NG: Light Suite SIAnet.NG Light is an integrated, flexible solution specifically created to support the customer s future expansions Thanks to the xdsl technology, SIA guarantees its customers high performance levels at low cost Access is achieved through xdsl lines with different garantee bandwidth The solutions with access speed and guarantee bandwidth ranging from 128 kbps to 1024 kbps are: :: Full Solution :: Single Solution Service Level Agreement Single Solution Full Solution 99.50 99.75 Availability % 0 99.50 99.75 99.85 99.95 100 18
SIAnet.NG: Light Suite Customer Site IP Subnet Carrier 1 Customer Site FW/VPN Box IP subnet clients FW/VPN Box CE Routers SIA-SSB Network Carrier 1 Carrier 2 IP subnet clients FW/VPN Box IP Subnet Carrier 1 CE Router SIA-SSB Network Carrier 1 IP Subnet Carrier 2 Customer responsibility domain SIA-SSB responsibility domain Customer responsibility domain SIA-SSB responsibility domain Full Light Solution Single Light Solution 19
SIAnet.NG: i-access SIA allows clients the ability to leverage their existing Internet connectivity to access SIA central Platforms. SIA NOC enables a private link with bandwidth allocation between SIA central financial platforms and the customer location i-access: Remote Access VPN IPSEC A VPN creates a virtual tunnel connecting the two endpoints. The traffic within the VPN tunnel is encrypted with IPSEC 3DES protocol The Customer endpoint (Juniper firewall) is provided by SIA Customer SIA Processor Internal network VPN terminator Internet border Internet Internet border VPN terminator Internal network Processor VPN IPSec < ---- Customer responsibility Application traffic SIA-SSB responsibility ----> i-access: Remote Access VPN SSL A "clientless" solution: users simply launch browser and connect to the SSL appliance on SIA central platform using the browser's SSL protocol 20
Exchange Proximity Services Algorithmic and alternative trading strategies highly depend on execution speed. SIA Proximity Services directly address this market demand for ultra low latency connections Each SIA Data Center/PoP is fully equipped in order to provide co-location, hosting and facility management services for customer trading platform MTS Proximity Service SIA provide housing space for customers trading infrastructure. The exchange s member take advantage of the full service package and benefit from SIA experts know-how. Facility management and connectivity solutions are included in this turnkey solution Standard Model Customer Premise Workstation Trading Server Router SIAnet Connectivity Solution MTS Back End Tradeimpact SIA Data Center Proximity Model Customer Premise Workstation Router SIAnet Connectivity Solution Trading MTS Back End Server Tradeimpact SIA Data Center 21
Exchange Proximity Services Urban Proximity Services SIA provides an Urban Exchange Proximity service, designed for those customers wishing to reduce latency, or looking for the flexibility/scalability of a hosted facility The customer trading application servers are hosted as close as possible to the Exchange s premises to minimizes the latency Milan Urban Proximity Model Customer Premise Workstation Router SIAnet Connectivity Solution Milan - SIA Data Center Trading Server Borsa Italiana Euro-TLX Hi-MTF London Urban Proximity Model Customer Premise Workstation Router SIAnet Connectivity Solution London - SIA PoP Trading Server London Stock Exchange Chi-X Europe Nyse Euronext Liffe 22
SIAnet Monitor Probe SIAnet Monitor Probe is our new secure web-based self-service monitor providing online information about SIAnet network equipment. SIAnet Monitor Probe is a powerful network monitor designed for network administrators who want to centrally monitor centrally the status and performance of telecommunications equipment installed at operational premises directly from their own PC Functional Features Monitor Probe provides real time information including: Availability status Network schema Network configuration Round trip delay (average, min, max, n No. values, n No. Ffails) Latency Volume Throughput (input/output ports) Jitter 7 Days Reporting Advantages Improved visibility Intuitive interface Easy to of access (https://sianetmonitor.sia.eu) Speed of Control 23
SIAnet Monitor Probe: information pages 24
www.sia.eu - info@sia.eu SIA