Click here to close now.

Welcome!

Virtualization Authors: Pat Romanski, Carmen Gonzalez, Elizabeth White, Liz McMillan, Plutora Blog

Related Topics: Cloud Expo, Microservices Journal

Cloud Expo: Article

Cloud Transaction Synchronicity

Without single-source timing, financial transactions running in clouds are as random as raindrops

High-Frequency Trading (HFT) and secret algorithms have become the new competitive strategy in today's global financial industry. The faster traders can turn around trades, the faster they can get in and out of quick markets and short time pockets of opportunity.

Having accurate records of when a transaction occurs is critical as to processing the trade and valuating the transaction.

There are many articles and white papers discussing cloud computing and shared services. New services that are being touted are things like SaaS (Software as a Service), PaaS (Platform as a Service), and IaaS (Infrastructure as a Service).

What is missing is the ability to sync up transactions coming from various outbound originations. What is necessary is the ability to provide Timing as a Service (TaaS).

A Master Clock Is Needed
This TaaS type of service is the ability to have every transaction synched up off of one Master Clock. Just like the timing of the public switched telephone network (PSTN) itself is based on one Master clock (the Atomic clock), the applications needing timing should also be provided with timing. This timing could be a whole new network service for the carrier to provide.

"Timing as a Service"© (TaaS©) needs to be implemented and offered as a network services offering for financial institutions and related firms using any Cloud technologies. HFT needs TaaS© for accuracy.

Without synchronized timing coming from one source, high-speed financial transactions running through various financial networks cannot be as accurate as they should be.

Synchronized Financial Services Framework
Synchronized timing that is transaction-centric should be a mandatory service for all financial transactions that are being transmitted to all the exchanges. A well-defined timing definition for financial services (trading, transaction processing) should be developed and accepted by the various financial trading organizations because it would provide a more accurate layer of processing and oversight for all transactions being processed. A Synchronized Financial Services Framework would go down into a level of granularity of nanoseconds in order to ensure trades being done in microseconds could be easily sequenced into proper order.

Why is this so important? Financial transactions have to be processed in a very orderly fashion. Each transaction has a very precise value assigned to it based on the timing of the trade.

In the old days when everything was done manually, each order had to be time-stamped on the floor so that its value could be recorded based on the time of trade. Now, that time of trade has gone from a tenth of a second to a microsecond. (See Chart)

Financial Transactions Timing Chart

SPEED of TRANSACTIONS

(in seconds)

SECONDS

TIMING FROM

OBSERVATION

Hundredth

1/100

MULTIPLE

SERVERS

Where regulators are today

Millisecond

1/ 1,000

MULTIPLE SERVERS

Latency (30-40 milliseconds)

Microsecond

1/10,000

MULTIPLE

SERVERS

Where traders are today

Nanosecond

1/1,000,000

ONE ATOMIC CLOCK

Where regulators should be

Source: James Carlini, 2012

The safeguards and regulatory oversight have not gotten down to that level of granularity. If it had, the explanation of the 2010 Dow Flash Crash (the 1,000 Point Drop) would have been more accurate.

20th Century Solutions Cannot Be Applied to 21st Century Challenges
New services mean new revenues to network carriers. Each network circuit being used by financial organizations would have to provide timing for all transactions being sent through the network carriers.

It's too bad the carriers don't have the visionaries on staff anymore to dream up these new network services. They should have been offering this type of service already. If they did, mission-critical applications using cloud computing services would be an easier decision than it is today.

Network carriers seem to be stuck in the 1960s in their monopolistic telephony approach because this is a service clearly needed to facilitate cloud applications and opportunities in the 21st century.

•   •   •

Copyright 2012 - James Carlini

More Stories By James Carlini

James Carlini, MBA, a certified Infrastructure Consultant, keynote speaker and former award-winning Adjunct Professor at Northwestern University, has advised on mission-critical networks. Clients include the Chicago Mercantile Exchange, GLOBEX, and City of Chicago’s 911 Center. An expert witness in civil and federal courts on network infrastructure, he has worked with AT&T, Sprint and others.

Follow daily Carlini-isms at www.twitter.com/JAMESCARLINI

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers is very hard. You have to learn five new and different technologies and best practices (libswarm, sy...
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...