Category Archives: Banking & Capital Markets
Our announcement last week was an exciting milestone for those of us who started at 29West supporting the early high-frequency traders from 2004 to 2006. Last week, we announced the next step in a 10 year effort that has now seen us set the bar for low latency messaging lower by six orders of magnitude in Version 6.1 of Informatica Ultra Messaging with Shared Memory Acceleration (SMX). The really cool thing is that we have helped early customers like Intercontinental Exchange and Credit Suisse take advantage of the reductions from 2.5 million nanoseconds (ns) of latency to now as low as 37 ns on commodity hardware and networks without having to switch products or do major rewrites of their code.
But as I said in the title, what does it matter? Does being able to send messages to multiple receivers within a single box trading system or order matching engine in 90 ns as opposed to one microsecond really make a difference?
Well, according to a recent article by Scott Appleby on the TabbFORUM, “The Death of Alpha on Wall Street”* the only way for investment banks to find alpha or excess returns is “to find valuation correlations among markets to extract microstructure alpha”. He states “Getco, Tradebot and Renaissance use technology to find valuation correlations among markets to extract microstructure alpha; this still works, but requires significant capital.” What that extra hundreds of nanoseconds that SMX frees up allows a company to do is to make their matching algorithms or order routers that much smarter by doing dozens of additional complex calculations before the computer makes a decision. Furthermore, by allowing busy software developers to let the messaging layer takeover integrating software components that may be less critical to producing alpha (but very important for operational risk control like guaranteeing that messages can be captured off the single box trading system for compliance and disaster recovery) they can focus on changes in the microstructure of the markets.
The key SMX innovation is another “less is more” style engineering feat from our team. Basically SMX eliminates any copying of messages from the message delivery path. And of course if the processes in your trading system happened to be running within the same CPU on the same or different cores, this means messages are being sent within the memory cache of the core or CPU. The other reason this matters is that because this product uniquely (as far as I know) allows zero copy shared memory communication between Java, C, and Microsoft .Net applications, developers can fully leverage the best features and the knowledge of their teams to deploy complex high-performance applications. For example, this allows third-party feed handlers built in C to communicate at extremely low latencies with algo engines written in Java.
So congrats to the UM development team for achieving this important milestone and “thanks” to our customers for continuing to push us to provide you with that “lagniappe” of extra time that can make all the difference in the success of your trading strategies and your businesses.
The latest survey by Informatica Professional Services shows that 59% of enterprises have, or are in the process of, implementing an ICC. The figures vary greatly by industry however. For example, in Financial Service Firms the percentage is 89% while for public sector organizations it is just 25%. What can we take from this? (more…)
Data is one of the most important and value assets to banks and insurance companies across the globe to help comply with industry regulations, improve customer experience, find new revenue opportunities, and reduce the cost of doing business. These are universal needs and challenges and Informatica’s industry leading solutions have helped over 780 financial services institutions increase their potential to achieve business success.
At Informatica World 2013, June 4-7 at the Aria Resort and Casino in Las Vegas, Nevada, we will be showcasing a wealth of valuable information to maximize value from your data assets and technology investments. The event includes over 100 interactive and informative breakout sessions across 6 dedicated tracks on (Platform & Products, Architecture, Best Practices, Big Data, Hybrid IT and Tech Talk).
There will also be a financial services path including guest speakers from the banking and insurance industry and from our Financial Services experts including:
- Morgan Stanley Wealth Management: Accelerating Business Growth While Protecting Sensitive Data: Find how Morgan Stanley built one of the largest Informatica platforms to mask and process over 150 thousand objects used by more than 1,000 applications globally and comply with today’s data privacy regulations.
- Wells Fargo Bank’s Data Governance Journey with Informatica: Hear and learn about Wells Fargo’s data governance strategy, program, and how Informatica is used to deliver actionable, transparent, and trusted data to the business.
- Liberty Mutual Insurance: Architecture and Best Practices with Informatica Data Integration: Learn how Informatica Data Integration’s metadata-driven architecture helps scale and support large data volumes and meet enterprise Liberty Mutual’s demands for performance and compliance.
- Addressing Top Business Priorities in Banking and Insurance with MDM: Peter Ku, Senior Director of Financial Services Industry solutions share how Master Data Management is being used in Banking and Insurance to help address top business imperatives from regulatory compliance to finding new revenue opportunities.
Register today at www.informaticaworld.com and I look forward to seeing you there!