High Performance Network Applications In The Capital Markets

High Performance Network Applications in the Capital Markets Todd L. Montgomery VP Architecture, Messaging Business Unit @toddlmontgomery 1 Why do Developers use Messaging? Message-Oriented Middleware (MOM) • Abstraction (Pub-Sub, Req/Resp, Queuing) • Separate physical systems from communication • Easily modify logic and scale applications • Functionality • Guaranteed delivery, fault tolerance, load balancing… • Efficiency • Well designed messaging systems reduce infrastructure • Leverage broad, deep and detailed expertise • Focus on core competencies, Faster Time-to-Market 2 Market Data Growth Data Deluge Aggregated One Minute Peak Messages Per Second Rates 7,174 Arca, CTS, CQS, OPRA, NQDS (in thousands) 5,957 > 1Terabyte of Data per Day 4,380 3,410 Total 2,562 Options Equities 1,925 1,562 1,100 696 559160 310120 265 7 10 13 3 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 The Trader Why Latency Matters Market Data Feed Handler Execution Fast Ultra Messaging Got INFA at 40.00 INFA at 40.00 Market Data Feed Handler Execution Slow You Lost! TIBCO RV and EMS Got Starting Line INFA at 41.00 4 The Exchange Why Latency Matters Exchanges Alpha Order Ultra Messaging Tango Trader Acknowledge TIBCO RV / EMS You Both Lost! Hotel Cancel Homegrown 5 (Ultra) Low Latency Timeline Race to Zero – Less than 8 years, 10,000x-100,000x decrease!