IBM Launches Fully Integrated Front Office Platform to Address Low-Latency, High-Volume Financial Market Trading Needs

19 September 2008

At SIBOS in Vienna, IBM (NYSE: IBM) today announced a new platform to help banks and other financial institutions quickly and confidently integrate multiple streams of market data and conduct transactions with reduced latency in today’s fast moving and volatile economy. The platform – WebSphere Front Office for Financial Markets V3.0 – combines technology from IBM’s acquisition of the InfoDyne Corporation, with ultra-low latency messaging technology developed in IBM labs.

WebSphere Front Office for Financial Markets V3.0 combines the platform technology and feed handlers from the acquisition of InfoDyne Corporation with ultra-low latency messaging technology from IBM labs, to provide an enhanced high-speed market data delivery platform with:
Unbeatable scalability: It harnesses the reliability and scalability of the InfoDyne TPS+Plus market data platform which offers a rich feed handler portfolio, enhanced platform capabilities, and extensive interoperability with the capability to handle over 40 different data feeds.
Record breaking performance: in order to provide ultra-low latency connectivity to exchanges and electronic markets, it leverages the speed and power of IBM WebSphere Low Latency Messaging V2.1, the latest version of IBM’s messaging transport which has been found to be able to handle an incredible 40 million messages a second with single digit microsecond latency over native InfiniBand.

“Financial markets firms are competing to trade at an ever more ferocious rate where the minimization of latency, in order to ensure that trades are completed, and the maximization of throughput, in order to handle ever increasing trading volumes, are both absolutely essential.” said Tom Rosamilia, general manager, IBM WebSphere. “WebSphere Front Office for Financial Markets V3.0 provides firms with a significant competitive advantage and a robust, scalable and vendor-neutral choice for market data delivery.”

Consequently WebSphere Front Office for Financial Markets V3.0 is a fully-integrated, vendor-neutral choice front office platform that offers not only security, interoperability and scalability but also high-performance, high capacity and ultra low latency – with end-to-end latency across the whole platform of less than 150 microseconds for a typical market data feed. WebSphere Front Office V3.0 also offers the ability to combine multiple order book feeds, such as ARCA, ITCH, OpenBook, DirectEdge, and BATS, into a single consolidated view of the market.

The announcement comes 140 days after IBM’s acquisition of InfoDyne and follows a wave of deals over the last few months as institutions such as Société Générale and Fifth Third Bank have opted for the InfoDyne technology inherent in new platform for its reliability and scalability.

Société Générale Corporate & Investment Banking uses integration solutions based on IBM’s InfoDyne technology for Bloomberg’s B-Pipe On-Demand (BPOD) data feeds to access fixed income, equity, equity derivatives data from Bloomberg and plans to more broadly integrate other asset classes within their applications. The solution also allows Société Générale Corporate & Investment Banking to apply a service oriented architecture (SOA) approach to reuse the same Bloomberg data across multiple business units and applications. Similar deployments are being tested in Société Générale Corporate & Investment Banking’s Hong Kong and Tokyo locations.

Fifth Third Bank, a US regional bank based in Cincinnati, Ohio, is using an InfoDyne-based solution to access interest rate derivatives market data. The system will be installed in Fifth Third’s production, disaster recovery, and development sites providing redundancy and fail-over capabilities within the bank’s infrastructure.

“It was important that the market data integrated seamlessly into our applications and that this was demonstrated prior to our decision to proceed with the software purchase,” said Cara Jonas, Lead Project Manager for Fifth Third Bank. “The low-latency enabled by this technology will drive future growth in our interest rate derivative product offerings. We look forward to deploying the new WebSphere Front Office v3 product, in order to benefit not only from InfoDyne’s market data capabilities, but also from IBM’s low latency messaging.”

In this environment, systems and software not only need the ability to process millions of messages per second from multiple feeds in microseconds, but also require interoperability with a firm’s front-, middle- and back-office applications. The announcement of WebSphere Front Office V3.0 allows financial firms to digest the enormous amount of data available and use it to their advantage.

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