Your Old Stack Is Slowing You Down

Your Old Stack is Slowing You Down

Ajay Patel, Vice President, Fusion Middleware 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

• Proprietary Trading • Cash Equity & Derivative Market • Sponsored Access Making µSec • Alternative Execution Services • Futures Index Arbitrage • Option Pricing • Options Trading • Prime Brokerage services • Statistical Arbitrage

• Direct Market Access • Alternative Execution Services • Algorithmic Trading using own OMS • Algorithmic Trading • FX Arbitrage to reduce market impact (Insurance mSec • Option Pricing • Fixed Income Arbitrage Funds & Mutual Funds) • Dark Pools • Prime Brokerage services

• FX and Fixed Income Pricing • Algorithmic Trading using Sell-side • Agency Brokerage EMS (Insurance Funds, Mutual • Hedge Funds 10 mSec • Block Trading Funds , Pension Funds & Investment • Risk Trading Management)

• Risk Management • Portfolio Valuations 100s • Syndication and Origination • Pension Funds

mSec • Interest Rate Derivatives • Corporate Treasuries • Other structured products • Wealth Management

Weeks • Workstations • Workstations • Workstations

Source : Citihub Electronic Trading in Context

Venues and Counterparties

Market Data Orders & Indications

FEED HANDLERS

TICK MARKET CAPTURE AGGREGATION &

FILTERING

RISK & STORED ALGORITHMIC ANALYTICS DATA TRADING

Reference

SETTLEMENT OMS EMS Policies

Positions SMART ORDER ROUTING

Pricing Messaging Infrastructure Messaging FIX History CONNECTIVITY

Was designed for flexibility Is Slowing you down!!! • Component abstraction • Takes ages to procure & deploy • Limited dependencies • Has multiple APIs and Interfaces which add latency • Best of breed components to maintain ultimate performance • Has duplicated functionality between components • Specialized resources integrating components • Still has component lock-in because of dedicated code • Rip & Replace capability • 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

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

• 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

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

OCEP TIMESTEN COHERENCE

Java SE Suite - JRockit and HotSpot

Exalogic Elastic Cloud Software

Oracle Linux and/or Solaris

Exalogic Hardware EL X2-2

Factory Assembled Optimized for Exalogic, and Tested Installed on demand Accelerating Java Trading Apps Exalogic Engineered System

Integrated Storage • Shared storage for applications • Clustered for HA Flash • 40 TB SAS disk Accelerated • 4 TB read / 72 GB write cache

InfiniBand I/O Fabric and 10GbE/GbE

• 40 Gb/sec links; 1.2 µSec latency (MPI Ping) Fully • 10 GigE external connectivity Redundant Compute Nodes • 30 compute nodes; 360 cores (2.93 GHz) Balanced for • 2.8 TB DRAM EL X2-2 Performance • 960 GB SSD

• 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

FMW and Business Applications Virtual Assembly Builder Enterprise Manager WebLogic Coherence Tuxedo Exabus SDP API Exabus Java API Exabus RDMA API

Exalogic Elastic Cloud Software 2.0 Exalogic Exabus Traffic Director Control

Oracle VM

Exalogic Elastic Cloud X2-2 Hardware

Standard Hardware I/O Exabus

Application Application Application Application

Application Buffer Application Buffer

Copy TCP IP Transport

Kernel 20% Buffer Copies Zero Buffer Copy 40% Transport Processing Direct Memory Access 40 % Kernel Context Switches Kernel Bypass

4X Throughput, 6X Lower Latency

New C++ and Java Coherence WebLogic Any Linux APIs for maximum Tuxedo or Exabus Java APIs application I/O Solaris Exalogic SDP App. performance Messagebus

Messagebus API TCP/IP IPoIB Exabus RDMA EoIB

accelerates (C++ API)

Coherence RDMA API Exabus InfiniBand Core accelerates Tuxedo Hardware and Firmware SDP API accelerates New for EECS 2.0 Exalogic EECS 1.0 WebLogic

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

Secure segregation of traffic for Guest Guest Guest VM VM VM specific VM guests Device Device Device Driver Driver Driver Optimized I/O performance 1 1. Inbound traffic is sent to correct guest VM Virtual Switch 2 OVM 2. Guest VM is configured to use Device Driver Server selected dedicated virtual function on HCA 3. Subsequent traffic flows Virtual Physical Virtual Function Function Function directly between guest VM and physical HCA port 3 Exalogic Physical I/O Port HCA

19 Exalogic Elastic Cloud 2.0 Performance3.5X Even Better Performance

Web JMS Enterprise Java Requests/Sec. Messages/sec. Operations/Sec.

836,520 49,460 1,979,940 10X 5X 5X

401,070 9,560 78,840

Standard Hardware Exalogic Standard Hardware Exalogic Standard Hardware Exalogic

1 Best performance at each layer of the stack

Modular construction; Protection of existing 2 technology investments All components designed to work together - Integrated 3 into a comprehensive pre-optimized Engineered Solution

4 Vertical integration – hard for customers to replicate!

• 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

22 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. JDK Roadmap JDK 7u6 NetBeans.next • OSX JRE Port • Java SE 8 Support NetBeans 7 (for end-users) JDK 7u2 • JavaFX 3.0 Support • Java SE 7 JDK 7 • Improved OS • more Support • JRE 7 on java.com Last Public integration, • JavaFX 2.0 co-install auto-update • more JDK 6 Update

2011 2012 2013 2014

Mac OSX JDK 7u4 JDK 8 • JDK 7 Developer Preview • OSX JDK Port • Windows, Linux, Solaris, • Java FX 2.0 Dev Preview (for developers) OSX, Embedded Platforms • Jigsaw • Lambda • JavaFX 3.0 NetBeans 7.1 • Complete Oracle JVM • JavaFX 2.0 Support Convergence • JavaScript Interop • more

1 Performance In The Box: pre-integrated, pre- optimized, pre-tested solution

Exalogic Elastic Cloud Software - ‘The Secret Sauce’

2 Faster application Time To Market (reduced integration and testing efforts)

3 Sustainability (reduced risk and lower TCO)