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Software Engineering G22.2440-001
Session 6 - Sub-Topic 2Sample Enterprise Application Design
Dr. Jean-Claude Franchitti
New York UniversityComputer Science Department
Courant Institute of Mathematical Sciences
Best Practices in Technical Architectures for Fixed Income Market Participants
Dr. Jean-Claude Franchitti
Page 2
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
Page 3
4
Trading Environment Characteristics
Anonymity Liquidity Transparency
5
Brokers’ BrokerWere 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
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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
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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
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10
Architecture Vision
The eHub Securities Framework
PersonalBlotter and
Services
MessageHandlers
ExecutionEngines
ContinuousNet
SettlementSystems
LedgerOperations
InformationEngines
SecurityMaster
SystemBlotter and
ServicesBrowser/streaming interfaceDirect systems interfaces
Client Sites
Distributed Hubs
Processing Centers
Adapters, connectors,Message brokers, linkagesDistributed rules processors
Valuations andMarket data feeds
PriceSubscriptions
Personalization Rules
VerificationValidation
Rules Execution
Order and NOERules and Routing
ECN’s, ExchangesDirect Clients
Clearing and SettlementRules Execution
Portfolio, Trust, AssetLedger Rules
Risk, ForecastCRM, Budgets and Rules
Transfer Agency, Custody RulesAssets/Institutions/Prices
Portal andService Interfaces
OrderTrading and
Management
ServiceManager
PriceManager
11
Vision andObjectives
ProcessModel
SolutionArchitecture
Mapping Vision to Solution
Page 7
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
Iterative
FUTURE STATE REALIZATION PROCESS
Fulfilling the Objectives to Support the Vision
13
Architecture Design Methodology
Business Constraints
Application ModelContent Model
Web Interface
Data ModelLogical Data
PrinciplesAssumptions
Constraints
PresentationNavigation
Look and Feel
Business modelOrganization
Location
Process
Logical Application ModelExecution &
MarketSystems
EFIExecutionSystems
FXExecutionSystems
MarketSystems
Core Components
ServicesEvents
Externalization
Licensing
Messaging
Naming
Persistence
TransactionSecurity
Common Facilities
Backup /Recovery
Channels
ErrorHandling
XML POP
Help XML MOM
Monitoring
PerformanceTuning
Query / Search
Reporting
SystemAdmin
Domain SpecificClient API
EFI ExecutionInterface
FX ExecutionInterface
MarketInstrument
Reference data
Markets
Portalinterfaces
Client Handler
Client to Corecomponents
Handler
Global Front EndSystem
ClientInterface
Components
Technology Infrastructure Model
Execution &Market
Systems
InstrumentRepository
ForeignExchange
MarketSystems
Euro FixedIncome
Core ComponentsClient Handler
Preferences andOperating
Constraints
Sun E
220/Solaris 2.6
nCipher S
SL accelerator
Websphere:
- HTTP
svr- servlet engine- jsp engine
Web ServerServlets & JSP
StreamingServer
(https & http)
Sun E
220/Solaris 2.6
TIBC
O S
treaming S
vrnC
ipher SS
L accelerator
Global Front EndSystem
Client ServicesAdministrator
XML, SWIFT, FIX,Email, Fax
ClientWorkstation
System Admin& Support
Sun E420/Solaris 2.6200GB raid5 Disk ArrayiPlanet Enterprise SvrWebtrends
Admin/ReportingServer
Database Server
Sun E
4500/Solaris 2.6
50GB
Disk A
rrayS
ybase 11.9.2
Security &Entitlements Srv
Sun E
420/Solaris 2.6
enCom
merce G
etAccess
50GB
Disk A
rrayApplicationServer
Sun E
420/Solaris 2.6
Websphere
MQ
series
Page 8
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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
reA
pplic
atio
n
AbstractConcrete
DomainIndependent
DomainDependent
Domain
ClientPreferences
Application
Patterns
Analysis
Analysis
Application Model- Data Model- Business Model- Content Model
Technical Solution Development
TechnicalSolution
Development
TechnicalSolution
Development
ArchitecturalStyles
DomainModels
Questions ?
Questions ?
Application:- Data- Business Logic- Content (Screens)
KITS
Frameworks
Concrete CostsInitial Costs
Abstract Costs
Concrete Costs
PhysicalInfrastructure
LogicalInfrastructure
Conceptual
Infrastructure
- Win XP/ UNIX- Broadvision- SAP- Application Server - Transaction Processing
- Persistence- OSAAbstract
Costs
Technology& Software
Proposal End Point
TechnicalSolution
Development
Application Production(Approach/ Assembly/
Delivery)Domain Analysis
CustomerInformationGathering
Cus
tom
er In
form
atio
n G
athe
ring
(Bus
ines
s, C
usto
mer
, Usa
bilit
y, P
refe
renc
es
Questions ?
InformationNot Specific
to Domain
Questi
ons ?
Taxon
omy
DomainSpecific
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)
Page 9
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Architecture Design Approach (continued)
Logical View Implementation View
Process View Deployment View
Use CaseView
Use CaseView
“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
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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
Page 11
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
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Average Present Day SolutionFixed Income Trading Process Map
Client
OTCMarket
SubmitsOrder
Validate Order atSales Desk
Valid
"Not a validorder"
NO
Route toTradingDesk
"Electronicpass
through"
Electronicsubmissionexecution
NonAutomatedExecution
No
MonitorExecution
ConfirmExecution(price Qty,
Etc.)RecordOrder
Updatecustomeraccount
yesFront/BackOffice
ElectronicExecution?
Yes
ClientClient Places Order ConfirmationMailed to the
customer
Sales Desk CallsClient
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
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Resulting Solution Fixed Income Trading Process Map
Client
OTCMarket
Clientlogs in
"Personalized" Web Page
SubmitsOrder
Validate Order
Valid
"Not a validorder"
NO
Manual ReviewNeeded
YesIs this a product in yourinventory or available on
ECN.
No
Route toTradingDesk
Yes
Electronic TradingAvailable
NoYes
"Electronicpass
through"
Electronicsubmissionexecution
NonAutomatedExecution
No
MonitorExecution
E-mailConfirmation
ConfirmExecution(price Qty,
Etc..)
Updatecustomeraccount
"Real-timealert"
Is it Domesticyes
TriggerFXNo
FX Process
Front/BackOffice
ElectronicExecution?
Yes
*
ClientClient Callsin Order
Sales DeskContacts
Client RecordOrder
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
Page 14
Fixed Income Solution Capabilities Matrix
27
DriversTechnical Competitive Customer
Customization / Personalization
Customer Relationship ManagementEfficient cross- and inter-enterprise communicationFast, cost-efficient data links with partnersTrue 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
abili
ties
Online operation (order status, billing & pricing,accounting, portfolio management, etc.)
Preliminary Capabilities Matrix
Page 15
Deriving a Conceptual Technology Vision
29
Security Personali-zation Community Content
Management Catalogs Commerce InformationAccess
Enterprise Application Frameworks /Servers
Other Application Frameworks /Servers
Hardware/Operating Software
Hosting Services
Systems Management
Application Suites
Bus
ines
s Pr
oces
ses
App
licat
ion
Infr
astr
uctu
reO
pera
tions
Using an Architecture Framework
Page 16
30Legend: VPN: Virtual Private Network I/Fs: Interfaces ECNs: Electronic Communication Networks
Integrated
Value Chain
Support System
—Users— — Functions —
n Customer Supportn Customer Profilingn Analytics
n Customer Relationship Management
n Country management
n Online Tradingn Researchn Community/Chatn Education
Central Office
FI E-TradingCustomers
Marketing/
Sales
Global Front-End
System
Web / IVR / Fax back
CountryOffices
Accounting
IT
Management
Call Center
IT
Country CEO
n Global Account Mgmt
n Administrationn Developmentn Support
n CEOn Vision & Strategyn Legal
n 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
n Exchangesn ECNsn Data Providers, etc.
— 3rd Party System I/Fs —
n 3rd Party Broker Systemsn Remote E-BrokersWeb / VPN / Phone
n A/C Openn Kiosks
Branch Support VPN / Phone
n Order MgmtTradingWeb / VPN / Phone
Marketing/Salesn Country
Campaigns
Settlement, Operations & Accounting
n 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
LocalOffice Staff
MainOffice Staff
Order Routing
Order Placement
LocalOffice Staff
RetailClient Internet
M
e
s
s
a
g
e
B
r
o
k
e
r
Internet
Technology
Legend: Global Front End System
Integrated Value ChainSupport Systems
Local Back-Office System
Third Party Services
Order gets routed locally
Sample Trading Process
Page 17
From a Conceptual Technology Vision to a Logical Infrastructure
33
Main Office Staff(office / virtual)
Office
Customer
Retail or InstitutionalClients/Advisors
ManagementOperationsIT
Online TradingResearchCommunity/ChatEducation
BusinessFunctions Users
WinNT
Win98
IVR
OfficeIntranet
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-EnabledApplications
E-Trading CustomerInterfaces
Telephony-BasedServices
Web-EnabledApplications
"Lights Out" Svcs
XML, SWIFT, FIX, Email, Fax
BSC
H G
loba
l Com
mun
icat
ion
Net
wor
k (L
ANs
& W
AN)
(Eth
erne
t, TC
P/IP
)
Remote OfficeLANs
Web & EnterpriseIntegration Portal
Internet
Web Server Subnet
Relationship Commerce Application Server(distributed n-tier architecture)
Enterprise ApplicationIntegration (EAI) Server
DataWarehouse-Driven Decision ProcessingApplication Package
Content Management System
Integrated Value ChainSupport System
In-CountryTrading & Back Office Support Systems
Data Repositories
Integrated Data Architecture Layer(Aggregated & Detailed Data)
Enterprise Services & Back Office Applications
DesktopFilesystems
(BSCH LAO office(s))
Customer Information Database(Integrated Customer View)
In Memory Database
Local DataReplicas
Third Party Data
Legacy Operational Data
Legacy Operational Systems
Front Office Apps
Customer ProfileUser type
Customer ActivityBest Practice Info,
Svc. Level KPIsMarket 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
Business
Information
Warehouse
Customer Calls Handling(ACD, Flex-Routing, Call Center Mgmt.)
CSR Assisted Services(Product Support, Issue Resolution, Proactive
Account Mgmt.)
EmailSWIFT,
FIX, XMLEngines
Fax
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 WebServices, Video Conf., etc.)
Search Engine
TransactionService
MessagingService
Analytical Applications(Performance Reports, Performance Measurement Analysis, Trend Analysis and Forecasts, etc.)
DataWarehouse Information Template
Document Mgmt. Image/GraphicsMgmt.
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 TradingData Warehouse
ServerMetadata Repository
OLAP & Staging Engines
Ope
ratio
nal D
ata
Stor
e (d
etai
led
busi
ness
dat
a)Vi
rtual
Dat
aCub
e (a
ggre
gate
d bu
sine
ss d
ata
for B
I app
licat
ions
)M
etaD
ata
Rep
osito
ry
(via VPN)
Software / Global ContentMonitoring / Backup
PBX-Based Services
CountryOffices Staff
(office / virtual)
Branch SupportCall CenterMarketing/SalesITSettlement, Operations& AccountingCountry CEO
FaxbackIVR
Telephony Svcs
WinNT
Win98
OfficeIntranet
Front Office Apps
Ft Off. & Web Apps
"Lights Out" Services
Telephony Svcs
PDA/WAP Applications
Win98
Web Applications Financial Applications(Market Facing Applications)
Internet
NamingService
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 dataGlobal accounts dataGlobal stock symbols
Research info indexesTime critical information
Third party researchNewsetc.
Content-Mgmt Repository
XML-based presentationoriented publishing
templates
Local order book dataLocal 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
Page 18
34
PBX-Based Service
Front Office Interfaces
Call Forwarding,Teleconferencing, etc.
Remote Access
Maintenance AppsBSCH LAO Office only
Web-EnabledApplications
E-Trading CustomerInterfaces
Telephony-BasedServices
Web-EnabledApplications
"Lights Out" Svcs
Web & EnterpriseIntegration Portal
Web Server Subnet
Relationship Commerce Application Server(distributed n-tier architecture)
Enterprise ApplicationIntegration (EAI) Server
DataWarehouse-Driven Decision ProcessingApplication Package
Content Management System
Integrated Value ChainSupport 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, W APs)
Remote Training Interface
Customer Calls Handling(ACD, Flex-Routing, Call Center Mgmt.)
CSR Assisted Services(Product Support, Issue Resolution, Proactive
Account Mgmt.)
Email SWIFT,FIX, XML Fax
Internet-Based Services(XML/SW IFT/FIX, Email, Browser)
Collaborative Applications(Forums, etc.)
Real Time Services(Financial W eb 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 WebServices, Video Conf., etc.)
Search Engine
TransactionService
MessagingService
Analytical Applications(Performance Reports, Performance Measurement Analysis, Trend Analysis and Forecasts, etc.)
DataWarehouse Information Template
Document Mgmt. Image/GraphicsMgmt.
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 TradingData Warehouse
ServerMetadata Repository
OLAP & Staging Engines
Software / Global ContentMonitoring / Backup
Financial Applications(Market Facing Applications)
NamingService
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 TransactionsVoice/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
Page 19
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
Page 20
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
Page 21
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 VerisignLDAP–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/NetMeeting,
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
Com
pone
nts
Applications
Frameworks Platforms
Systems Management
Hardware/ Software
Hosting
Typically read as Vendor/Product Name
Considering Mainstream Tools
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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
WorstGoodBest
Evaluating Alternatives
43
Physical Architecture (Example 1)
Markets
Client Interfaces - Office
Component Manager
Client Handler
TIB/
RV
Firewall
Database Server
ApplicationServer
LAN
(dua
l)
LAN
(dua
l)
Firewall
Firewall
Router
Router
StreamingServer (http)
StreamingServer (https)
Firewall with IIOP
Tape SiloVeritas NetworkBackup (shared service)
CSC Management Firewall
CSC Systems & Network Management Environment
IntrusionDetection
Connects toall devices below
Security &Entitlements Srv
IntrusionDetection
Intrusion Detection
TIC Cache
Internet
JPM IntranetClient ServicesAdministrator
System Admin& Support
MarketData
HSRP
Sun E
220/Solaris 2.6
nCipher S
SL acceleratorW
ebsphere:- H
TTP svr
- servlet engine- jsp engineAlteon AC3
Sun E220/Solaris 2.6Checkpoint Firewall-1StonebeatIONA Wonderwall
Sun E
220/Solaris 2.6C
heckpoint Firewall-1
Stonebeat
Sun E420/S
olaris 2.6W
ebsphereM
Qseries
Sun E
4500/Solaris 2.650G
B D
isk Array
Sybase 11.9.2
Sun E
420/Solaris 2.6
enCom
merce G
etAccess
50GB
Disk Array
Execution Systems
Market Systems
Execution Systems
Login, Authentication,Non-Repudiation
Flowbiz RDS (Instrument dataand 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
AdministrationInterfaces
Client Interfaces - Clients
Client ServicesAdministrator
Web-EnabledApplications
Flowbiz ClientInterface
XML, SWIFT, FIX,Email, Fax
Internet BasedServices
PersonalizationInterface
Channels Interface
Sun E420/Solaris 2.6200GB raid5 Disk ArrayiPlanet Enterprise SvrWebtrends
Admin/ReportingServer
LoadBalancers
Web ServerServlets & JSP
Sun E220/S
olaris 2.6TIB
CO
Stream
ing Svr
nCipher S
SL accelerator
Intrusion Detection
Sun E220/Solaris 2.6Checkpoint Firewall-1Stonebeat
NFR
Flight Recorder
Rem
ote-1N
FR Flight R
ecorderR
emote-1
Support ServicesXML Core Services
Session/State/EOD Mgmt
Process Automation
Dynamic Content Mgmt
Site Development Service
Financial Apps LogicBlotter
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
ClientWorkstation
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44
Web Server Farm
Mainframe(OS 390)
MainframeSystem
SCLVExchange
Custody
Mainframe(OS 390)
RETO
Funds Broker(DEC Alpha)
InstitutionalFunds
Net AssetValues, Customer
Info
Orders
Portfolio Mgmt
PrivateFunds
MQ Series
SVB (Broker Dealer)
ResearchManagement
Stratus
Web Server(Sun E5500)
MQ Series
CGI Applications(trading, research,funds scoring, etc.)
SNA (LU0)
HTML Templates
Informix DB(sessionand user
info)
Web Browser
ACD, CDI, etc.
Existing WebSolution
Web Browser
PDA
Web Server(JWS)
(Sun E6500)
WAP Server(Sun E4500)
ProposedArchitecture
Web Server
Server Farm(data mining, content
mgmt, EAI)
App ServerWebsphere(Sun E5500)
Database ServerOracle
(Sun E5500)
PersonalizationServer
(Sun E5500)
Web Browser
Branch Offices
Servlets,EJBs,JSP
Future WebSolution
Call Center
EAI Server(Sun E5500)
EAI
Mes
sage
Tra
nspo
rt
Back office
Sample Fixed Income Architecture
DM
Z
Physical Architecture (Example 2)
45
Inte
rnet
Screening Router
Out
side
Net
wor
k
Priv
ate
Net
wor
k
Bastion HostInside
Bastion Host
Inte
rnal
Net
wor
k
Proxy Server
Firewall
Web Server
Local Director
Local Director
Web Server
Firewall
Development Server Farm
EAIServer
DatabaseServer
ApplicationServer
Production Server Farm
EAIServer
ApplicationServer
DatabaseServer
Staging &Contingency
Server
AdminServer
ProductionSupportServer
Existing BSCH Systems
IBM Mainframe UNIX-based NT-basedDMZ
Technology Infrastructure
Page 24
Physical Solution Implementation Steps
47
Prac
tice
Are
as
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
Page 25
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
RequirementsAnalysis
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
DiscoverDesign
DevelopDeploy
DiscoverRelease 1
Release 2
Release 3 ...
Proposed Project Lifecycle
Adding Iterations
Page 26
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
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52
Addressing the Challengesn Existing legacy systems and newer ATS’s will still need to handle
anticipated increases in trade volume implied by the development of STP.n Fixed Income securities can have complex structures. Trading systems can
plug and play analytics to calculate various essential data.n There are many types of Fixed Income securities which trade in different
ways. Standardized trading methodologies will need to be applied.n Security information repositories will need to be large enough to hold data
on millions of securities.n Present front-end interfaces are no more than client/server versions of
legacy systems.n Back-office systems are antiquated. It may not be feasible to integrate them
if they cannot support the new economy business.n The new Fixed Income market of tomorrow may require an Application
Program Interface ( API ) to a single Fixed Income exchange.n T+1 must be incorporated into new technology.
