fintechisrael may event presentation

8/9/2019 FinTechIsrael May Event Presentation

1/66

,May 4 2010


2/66

ormal Agenda &Introduction

Announcements

, & -Yaron Kantor CEO Co

Founder

,Tzahi Oved Director of

Solution Product Management

Mickey Alon, Sales Director


3/66

Cloud ComputingPay-per-Use for On-Demand Services

+60 Leading companiesBusiness & Technology Networking

Professional Work GroupsCloud LabKnowledge CenterWorkshopsInternational Collaborations

[email protected]

About The IGT

Focused on Cloud Computing


4/66

Cloud ComputingPay-per-Use for On-Demand Services

Our Cloud Computing Agenda

[email protected]


5/66

Our Sponsors


6/66

Our Focus

The goal of FinTechIsrael is to bring together Israeli, ,Startups Industry Professionals and Investors to foster

innovation in the o rl d o f fi n a n c i a l s er vi ce s


7/66Our Team

oundingTeamen WeissChairman li Magidice Chairman

ewditorial

/TechnologAdditions

essica Vrazilek

osh Richton

ickey Perlstein

alman Iliya

osi Atias

aor Lahavice Chairman enni Azariaice Chairman


8/66

Our Plan

. . . .Speakers Startups Networking Every 8 Weeks

. . Website Social Media Seminars and Vertical

.Meetups. . .Affiliations with NetBanker BarCampBank IGT MIT

.Forum


9/66Our Refreshed Website


10/66Help Wanted

StrategicPartnerships

Firms interested-in co sponsorship

/ -and or cobranding

activities inspecific FinTech

verticals


11/66Whos Here

Investors

Entrepreneurs

Industry Professionals

Students / Alumni

LEASE RETURN THE BADGES TO THE BOX OUTSIDE,To join our mailing list leave your card in the badgeyou return


12/66Yaron Kantor, Protagonis


13/66

A different view of high frequency

algorithmic tradingYaron Kantor, Protagonis Ltd.


14/66

Yaron Kantor

its not about life and death - its aboutmoney


15/66

Fundamental Trading

trader focuses on specific events todetermine which instrument to buy andwhen to buy it

simple logic: buy the cheap ones andshort-sell the expensive ones

buy-and-hold strategy


16/66

Electronic Trading


17/66

Algorithmic Trading

fully autonomous black boxes

short-term trading strategies seeking

immediate profitalgorithms decide when to buy and sell

ideally, these black-boxes only take

action when profit is certain


18/66

a good algo-trading operation needs acomputer-system, a trader and a dog:

a system to automate buys and sells a trader to monitor the system

and a dog to make sure the trader

doesnt touch the system


19/66

Algo Strategies

pure arbitrage

statistical arbitrage

volatility trading

spread trading


20/66

More of the same?

models are custom-made for specific instruments

virtually all are based on historical analysis

Variations on common practice

"models are behaving in the opposite way we wouldpredict and have seen and tested for over very longtime periods."

Sr. Trader, Lehman Bros.


21/66

Gaining Competitive Edge

High Frequency Trading

ultra-low latency:sub-millisecond, speed ofexecution

holding of positions foronly a very short time

High volume


22/66

A different view

With the absence of provable certainty, all decisions are

about probabilities... we need to uncover and engage

with the full array of complexities around making thebest decisions. Robert Rubin, former Chairman Goldman Sachs


23/66


24/66

New Algo Paradigms

dynamic analysis for optimal decisions

be dynamic

be forward looking

be broad-minded

next step: AI


25/66

Q&A


26/66

2009 Voltaire Inc. 26For Discussion Purposes Only 2009 Voltaire Inc.

07/07/2010

FinTech Israel

Tzahi Oved, Director of Solution Product [email protected]


27/66

2010 Voltaire Inc. 27Confidential

Agenda

Voltaire AboutVoltaire solution view

Quick jump to High Frequency Trading solution

Products that make the difference

Products review

Summary


28/66


About Voltaire

Founded in 1997

Headquartered in Raanana, Israel andChelmsford, Massachusetts

Public since July 2007 NASDAQ:VOLT


29/66


Mission

Leading provider of Scale-out Data Center Fabrics Used by more than 30% of Fortune 100 companies Hundreds of installations of over 1000 servers

Addressing the challenges of virtualized data centers andclouds

Special focus on low-latency applicationsInfiniBand and 10GbE Scale-out Fabrics

OEM based business model IBM and HP top Channels

New Asian OEMs fuel geographic expansion

End-to-End Scale-out Fabric ProductLine
http://images.google.com/imgres?imgurl=http://www.ipv6.net.cn/summit/Logo-New/NEC.jpg&imgrefurl=http://www.ipv6.net.cn/summit/2004/index_cn.jsp&h=160&w=304&sz=5&tbnid=dDeEoIIS3JkJ:&tbnh=58&tbnw=110&start=1&prev=/images?q=NEC+Logo&hl=en&lr=&rls=GGLD,GGLD:2004-52,GGLD:en&sa=N


30/66


Dominating Top500 InfiniBand Sites

VOLT

54%

LGC

9%

MLNX

5%

Top500 Sites By

InfiniBand Switch Vendors

VOLT

90%

QLGC

5%

Other

5%

Commercial Top500 Sites ByInfiniBand Switch Vendors

Bringing HPC Innovationto the Enterprise


31/66


Voltaire Global Successes in FinancialServices

21 Investment Banks21 Investment Banks 25 Global Hedge Funds25 Global Hedge Funds

9 Exchanges9 Exchanges

And many more.And many more.

Insurance CompaniesInsurance Companies

Financial Services InstitutionsFinancial Services Institutions

Etc.Etc.


32/66


Top Vertical Market in 2009After 3 Years of Rapid Growth

2007 2008 2009

Voltaire: Dominating High Frequency Trading

Low-latency10Gb Ethernet

Low-latencyInfiniBand

MessagingAcceleration

FabricManagement

Strong Partnerships with Software& Solution Providers


33/66

High Frequency TradingHigh Frequency TradingMarket Data ChallengesMarket Data Challenges

Trading volumes keep rising bringing existingTrading volumes keep rising bringing existingsystems to their limitssystems to their limits

With increased competition, faster response timeWith increased competition, faster response timemattersmatters

Algorithmic trading systems further increase risksAlgorithmic trading systems further increase risksassociated with latencyassociated with latency

Downtime is not affordableDowntime is not affordable

Be a Market Maker, Not a FollowerBe a Market Maker, Not a Follower


34/66

For Many Traders, this is Low-Latency Trading

TradeProcessing

low switching, excessive queuing, and protocol overhead yield poor latency and limit capalow switching, excessive queuing, and protocol overhead yield poor latency and limit capa

OS Stack: 20OS Stack: 20secsec

ETH Switch: 15-25ETH Switch: 15-25secsec

OSOSStack:Stack:20 sec20 sec




35/66

Yet, So Much Can Still Be Improved

Faster Pipes, RDMA, and OS bypass reduce latency by more than 75%Faster Pipes, RDMA, and OS bypass reduce latency by more than 75%

OS Bypass: 3-5OS Bypass: 3-5secsec

IB Bridge Switch or VantageIB Bridge Switch or VantageEthernet TOR


36/66

Application Latency with Voltaire: 7-10 sec

The Fastest Path to Lowest LatencyThe Fastest Path to Lowest Latency

29West with VMA upto 1,300,000 msg/sec


37/66

2009 Voltaire Inc. 37For Discussion Purposes Only 2009 Voltaire Inc.

07/07/2010

Products that make the difference

10G Eth t it h


38/66

2009 Voltaire Inc. 38For Discussion Purposes Only

10G Ethernet switches

Voltaire Vantage Series

Extreme Low latencyPort to port latency of 450nano-sec for director switch and 150nano-sec for

1U switch

Modular building block approachSmart Managed switches with Advanced Fabric Management

Commercial-Grade Reliability, Availability and Manageability

I fi iB d it h


39/66


InfiniBand switches

Voltaire Grid Director2000 Series

20Gbps per port(DDR)

Up to 288, 96, 24ports

Voltaires Grid Director4000 Series

40Gbps per port (QDR)

Up to 324, 162, 36ports

Extreme Low latencyPort to port latency of 300nano-sec for director switch and 100nano-sec for 1U

switch

Modular building block approachSmart Managed switches with Advanced Fabric ManagementCommercial-Grade Reliability, Availability and Manageability


40/66


Introducing

Grid Director 4036E

Single Box InfiniBand switch + Ethernet Gateway 34 x QDR/DDR/SDR (auto-negotiating) InfiniBand ports (QSFP)

2 x 1/10GbE ports (SFP+)

Extremely low (


41/66


Voltaire Messaging Accelerator (VMA)for Ethernet & InfiniBand

Key Features: Multicast message acceleration using OS bypass

A BSD-Socket compliant dynamically linked library

Seamlessly supports any socket based application

Scales well to 100s of nodes, 1000s of subscribers

Key Benefits: Lowest known latency transport over Ethernet

Higher throughput and higher packet rates with

lower CPU usage

No application changes required - plug & play with your current application

Performance over Ethernet: Raw transport socket e2e latency (packet size of 256 bytes): 3.5 vs. 10.8 microseconds (10GigE)

Application to application latency (per 29West benchmark) : 7-10 vs. 24 microseconds (10GigE) Raw maximum throughput 1,650,000 vs. 615,000 pps(10GigE)

Use cases: Enterprise Low latency messaging Exchange ingress/egress connection acceleration

Market Data Distribution

Pub-sub applications

V lt i M i S i (VMS)


42/66


Voltaire Messaging Service (VMS)for Ethernet & InfiniBand

RDMA based middleware for publisher subscriber messaging Feed client applications at appreciably higher throughput and lower latency

Low CPU overhead Eliminates the need for CPU time to perform I/O

Lower latency, higher throughput and higher packet rates with lower CPU usage

Seamlessly scales data intensive applications across multipleCPUs/machines

FeedHandler1

Matching Engine 1

Client 1 Client 2

VMS

Breakthrough applicationperformance

Over 1.6 million 200 byte

messages per second, withsingle-digit microsecondlatency

Enables whole new world of opportunities


43/66


Voltaire Unified Fabric Manager (UFM)

Real-time fabric-wide health monitoring

Monitoring for congestion and hot-spots

Single-click traffic isolation & QoS provisioning

Central view & operationsHistorical Performance Database & Reporting

Provisio

n

Monitor

Tune


44/66


Voltaire Storage Accelerator (VSA)

Many applications are bounded by I/O speedTraditionally spindles were slow.But new solutions address the problem

Capacity storage: many disks in one enclosure

Performance storage: SSD disks or cache

Access/transport is the new bottleneck! From initiator, via the fabric, to the target deviceRequires new transport solutions

Accelerated and parallel storage access

Capable of Millions of IO/sec and many GB/sec of bandwidth

ast Cacheast Cacheor Cloudor Cloudomputingomputing -eal Timeeal Timeilling inilling inTelecommunielecommunicationsations

ersistentersistentessagingessagingoror inancialinancialServiceservicesastestastesttorage fortorage foratabaseatabase


45/66


Voltaire Storage Accelerator (VSA)

High bandwidth, low latency RDMA (iSER) transport for storage

Resilient, scalable, and flexible

Uses industry standard components to save costs

Usage example

Voltaire VSA software installed on a 2U Intel server with SSD drives

Performance on par with a multi-rack, high-end EMC system

15-80x lower latency, 5-50x more IOPs, 3-5x higher bandwidth

than traditional enterprise storage systems

=

70007000

60006000

50005000

40004000

30003000

20002000

10001000

00

AccessTime

(Microseco

nds)

AccessTime

(Microseco

nds)

LeftHandLeftHandP4000 SASP4000 SAS

HP EVA 8400HP EVA 8400w/324 drivesw/324 drives

HP EVA 8400HP EVA 8400w/SSDw/SSD

EMC DMX-4EMC DMX-4950 SSD950 SSD

Voltaire VSAVoltaire VSAon 2U Intelon 2U Intel

60006000 60006000

10001000 10001000

7070

13x13x


46/66


Summary - The Challenge

Customers need lower latency

Too many different vendors for support

No acceleration software from the same hardware vendor No packet loss can be tolerated

The network must be highly available

Vendors that are new to the FSI space

No relationships with ISVs/Closed ecosystem


47/66


Summary - Why Voltaire

Differentiated products

Single vendor for complete solution

End to end solution for low latency and management:

Voltaire has been in the FSI business for many years, andunderstands the entire picture


48/66

2009 Voltaire Inc. 48For Discussion Purposes Only 2009 Voltaire Inc.07/07/2010

Thank You!


49/66

Mickey Alon

GigaSpaces Sales Director

GigaSpaces XAP 7.1

for low latency applications

About GigaSpaces Technologies


50/66

50

About GigaSpaces Technologies

100+ CloudCustomers

400+ Direct CustomersAmong Top 50 Cloud

Vendors

5050

Making scaling of a distributed cluster as simple as if it was a single machine

The Need for Change Market Trends
http://www.telefonica.es/http://dowjones.com/HomePage.htmhttp://images.google.com/imgres?imgurl=http://www.ises.org/ises.nsf/ac8b03a1d4673222c12568b200477633/1b0ec2a39e792c89c1256bb9003741b2/$FILE/SR_Logo_Internet_40z_black.gif&imgrefurl=http://www.ises.org/ISES.nsf/0/914f275add016280c1256c280013fe97?OpenDocument&h=156&w=273&sz=3&tbnid=JVqKxTAEvcQJ:&tbnh=61&tbnw=108&hl=en&start=8&prev=/images?q=swiss+re+logo&hl=en&lr=lang_en%7Clang_iw


51/66

51

The Need for Change Market Trends

Economic meltdowns impact on Enterprise ITThrowing more hardware is no longer acceptable

Data Center TCO is a priority

Algo-TradingAlgorithms have sparked a fundamental change

The need for speed is crucialNext Generation platforms must scale to support exponential

growth

The financial Implications of using GigaSpaces


52/66

The financial Implications of using GigaSpaces

Reduces the number of technologies and therefore licenses

Application server, message broker, costly database Applications and Services are delivered faster using existing skill-sets

Pojo oriented programming (Spring)

Scaling out due to business demand becomes a predictable cost

No scalability barriers, no diminishing return on investment

The ability to scale back means greater reuse of hardware assets

Scale-out / in on demand based on event driven container asruntime

Virtualization means a greater ROA and reduced TCO

Return on existing assets, better utilization of memory and CPU

GigaSpaces eXtreme Application Platform


53/66

GigaSpaces eXtreme Application Platform

In-Memory based middleware stack designed for: Low latency applications

Elastic runtime, no static constraints (IP/Disk)

SLA driven runtime with auto-scale-out

Event driven, transactional shared memory (The Space)

HA and self-healing out of the box

Latency crunching


54/66

Latency crunching

Is network latency a given fact?

Partitioning with data affinity eliminates network hops

Do we have to use disk based persistency to achieve reliability? Most transactional application use centralized disk based

persistency to achieve reliability

The cost of fast storage and fiber-optics is not justified and has adiminishing return on investment

GigaSpaces uses clustered shared memory model (the space) Which can be seamlessly partitioned

Reliability achieved through memory replication

Fully Transactional

Scaling


55/66

Scaling

Virtualizing the entire application stack Messaging, service and data

Using data affinity for collocation (share nothing model)

Using very simple API

A Transaction Flow Example - Order Management


56/66

A Transaction Flow Example Order Management

Validate

Check/match

Execute order

Business tierSubmit

OrderValidated

StoreState

V

completedCheckedC

completedRegister

Order

Notify

Completion

Perform

Query

Too many network hopsUnacceptable latency

Distributed transaction

Data Affinity is lost

Existing Solutions and Misconceptions


57/66

g p

JVM clustering, cool and simple BUT

Hides strong vendor lock-in (model)

Relays on disk for reliability (getting good numbers means

you are running in async mode)

Centralized server synchronization model

Consistent hashing dist-cache

Provides dynamic repartitioning but non transactional

Weaker data-affinity with potential network hops

Un-managed process

Extending its capabilities beyond a data-grid seems an

over-kill. Potential inconsistency in its write behind model

Scaling Out using a Traditional Approach


58/66

g g

Business tierScalability is not linear

Scalability managementnightmare

Bottlenecks need to beaddressed

Back-upBack-up

Back-upBack-up

Crunching the latency path GigaSpaces XAP


59/66

Crunching the latency path GigaSpaces XAP

Validate

Check/match

Execute order

Business tierProcessing Unit

Single model for design, deployment andmanagement

No integration effort

Manage data in memory

Collapse the tiers

Collocate the services

Transaction Flow in XAPs SBA


60/66

Processing Unit

Validate

Check/match

Execute order

ValidateCheck

Perform Query

Execute Order

Submit

Order

Notify

Completion

Async Persistency for

Compliance &Reporting purposes:

-

Storin

gState

-

Regist

er

Order

s

- etc.

Collocation of data, messagingand services in memory:

Minimum Latency (nonetwork hops)

Maximum Throughput

Maintaining Resiliency using XAPs SBA


61/66

Processing

Unit

g y g

Single, built-in failover/redundancy investment strategy

Fewer points of failure

Automated SLA driven failover/redundancy mechanism

Continuous High Availability

SLA Driven

Container

Backup

Scaling Out and Managing XAPs SBA


62/66

Processing

Unit

g g g

Write Once Scale Anywhere:

Linear scalabilitySingle monitoring and management engine

Automated, SLA-Driven deployment andmanagement

-Scaling policy, System requirements,Space cluster topology

BackupBackup

Processing and Data Collocation


63/66

g

Option 1Ship the Code on the fly

Option 2Deploy the Code with the Data

Deploy

63

Map-Reduce

Remoting

Executors

Real-time Web App of a Top Wall Street Firm


64/66

User subscribe to online content

Content feed is sent continuously in real-timeTargeting millions of users with ~300GB in-memory

pp p

Database(Background)Network Load-Balancer

Web Tier

In-MemoryData Grid

New Online Demo (Sneak Preview)


65/66

65

Web Browser

StockTicksFeeder

WebServer

Real-timeData

HistoricData

-time Web App (Stock)

-time Analytics (Historic Data)


66/66

GigaSpaces Home Page:GigaSpaces Home Page:http://www.gigaspaces.com/http://www.gigaspaces.com/

GigaSpaces XAP Product Overview:GigaSpaces XAP Product Overview:http://www.gigaspaces.com/wiki/http://www.gigaspaces.com/wiki/

GigaSpaces XAP for the Cloud:GigaSpaces XAP for the Cloud:http://www.gigaspaces.com/cloudhttp://www.gigaspaces.com/cloud

fintechisrael may event presentation

Documents