pragmatic approaches for sync delivery in finance markets

Pragmatic Approaches for Sync Delivery in Finance Markets

ATIS Time and Money, NYSE, Jan 2017

Gil Biran, SVP and GM, Oscilloquartz

© 2017 ADVA Optical Networking. All rights reserved. Confidential.2

To Time or Not to Time, That Is the Question …

Do you feel that time is running faster these days ?

The truth is that time stays the same. Thanks to us, it just becomeseven more accurate (as is required by mobile and finance applications).

10E-12 = 0,000000000001 seconds


Regulators Require Extremely Precise Timestamps for Every Single Transaction

• To provide accurate financial reporting - Based on proper time and event synchronization

• To eliminate fraud and assure security trades - Accuracy of time and timestamping provide proof if and when a transaction occurred

• To protect consumer’s data from being modified - Every access of sensitive information must be recorded for auditing with real time date and timestamp

• To ensure security of card holder data - In online or retail transaction networks

Inaccurate time and its consequences on financial applications

may consist of legal liability for negligence


Time Is Money…

• SEC Rule 613 issued August 2012

• Requires all actions placed on any US exchange to be recorded to accuracy of 1ms

• Clock needs to be 100us or better to achieve irrefutable 1ms recording

• Enables auditing in case of fraud investigation, mandatory for all financial organizations

• European Securities and Markets Authority (ESMA) consultation paper Annex B

Regulatory Technical Standard (RTS 25) on MiFID II

• Require that the clocks of trading venues and their customers must be synchronized

• Standardize the recorded time for post-trade data, transaction reporting and order event

auditing

• Level of accuracy for operators of trading venues requires 1us timestamping

• Level of accuracy for members or participants of trading venue

• Activity using high frequency algorithmic trading technique requires 1us timestamping

• Any other trading activity requires 1ms timestamping or better

• Algo traders want to record transaction times in order to Audit the performance of

their algorithms and Analyze historic data


Time as a Service – TaaS

• Many finance organization have already decided to upgrade their

networks in order to support the new timing requirements

• Operators are upgrading their networks to be PTP-capable in order

to deliver accurate phase required for mobile applications (LTE-

A/LTE-TDD) while proposing TaaS to the finance organization • Very accurate time needs to be delivered to trading customers in order to

synchronize business/enterprise clocks

• Additional potential source of revenue for operators

• TaaS is provided with committed sync SLA and service portal

• The accurate time delivered via PTP can be translated to NTP and

be offered as a service, such a service can be used to improve

installed base NTP clients time accuracy


PDV and asymmetry degrade the NTP recovered clock accuracyNo option for BC or TC with NTP

High PDV/ Asymmetry NTP Client

NTP

Server

GNSS

The Problem

NTP NTP

NTP Packets


Combine PTP with NTP by using PTP BC/TC to overcome PDV and asymmetry

NTP Client

GNSS

The Solution

PTP

To NTP

NTP

BCTC

PTP

Grand

Master

PTP

PTP Packets

NTP Packets


12:00:00.000 12:00:00.001 12:00:00.002 12:00:01.000NTP

1PPS

1PPS rising edge strobes the value of time delivered by NTP once per second. NTP inherits the accuracy delivered by PTP.

NTP NIC

with 1PPS I/O

Client Server

OSA5420

1PPS in

NTP

High Accuracy PTP Time Service

PTP Slave NTP

Server*

32x 1PPS

Outputs

OSA5420

PTP GM

Concept for Install Base - NTP Server + 1PPS


NTP Server + 1PPS Case Study - APAC

PTP Input

DataLogger

DBLogger

Time SeriesLogger

TradingTerminal

1PPS

1PPS1PPS1PPS

LANNetwork

NTP

NTP

NTP

OSA 5420

PTP GM/NTP Server


OSA 5420

PTP GM

GNSS

Switch

T-SC

T-SC

Server NICs

Customer Rack

Data Centre

PTP

PTP

PTP

Time and phase delivery using PTP enterprise profile

5420Slave

16-32x1PPS+ToD Outputs

Customer Rack

T-GM

GNSS

PTPGrandmaster

PTP Network

Time As a Service into Data Center Financial Markets

Bring accurate time and frequency synchronization into data centers


PTP

PTP

PTP1PPS

1PPS

INDEX:BC = Boundary Clock

Colocation

Colocation

PTP & Sync-E

PTP & Sync-E

PTP/NTP

Data CenterPTP BC

NTP

1PPS

PTP Mediation

Colocation

5401

Sync Distribution and Assurance for Finance


• Sync portal is a web-hosted

application

• Custom views, reports per

customer/carrier

• Data segregation ensures privacy

between customer domains

• Data collection via FSP NM or via

dedicated collector appliance

SyncNetwork

FSP NM Collector

Data Center

Storage

Syncjack Portal

Secure EncryptedCommunication

Carrier

HTTPS

HTTPS

Customer A

A

B B

A

Customer B

Sync Portal Concept


• Time accuracy of NTP-installed-based clients can improved significantly by combining the following:• Upgrade of NTP servers to telecom grade NTPv4 servers • Combine PTP with NTP to overcome asymmetry and PDV• PTP to NTP transition should be done as close as possible to NTP clients• Leverage investment made for PTP to improve NTP accuracy while

protecting the huge investment of NTP NIC in the client servers• You can also replace all NTP NIC with PTP NIC if your budget allows it

• Sync assurance is a mandatory element of any sync solution• Explore the option to use Time as a Service

Summary and Takeaways

IMPORTANT NOTICE

The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited.

The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any kind, either express or implied. ADVA Optical Networking shall not be responsible for and disclaims any liability for any loss or damages, including without limitation, direct, indirect, incidental, consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation.

Copyright © for the entire content of this presentation: ADVA Optical Networking.

Thank You

IMPORTANT NOTICE

The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited.

The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any kind, either express or implied. ADVA Optical Networking shall not be responsible for and disclaims any liability for any loss or damages, including without limitation, direct, indirect, incidental, consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation.

Copyright © for the entire content of this presentation: ADVA Optical Networking.

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pragmatic approaches for sync delivery in finance markets

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