ARMONK, N.Y., June 23 /PRNewswire-FirstCall/ -- Today at the
Securities Industry Financial Markets Association's annual
Financial Services Technology Expo in New
York City, IBM (NYSE: IBM) unveiled a new technology
platform designed to transform the way that financial services
firms manage the ever increasing amount of data and transaction
volumes generated by capital markets around the world.
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Financial systems are tremendously data-intensive and rely on
speed in trading transactions that can result in huge profits and
help exchanges compete and meet client demands. As market
volatility continues to increase so does the risk of system
failures that can lead to transaction delays, with a direct impact
on the global financial system and the businesses and individuals
that rely on it.
Recognizing these demands, IBM is introducing the new Financial
Markets Framework, an open standards based technology platform that
combines IBM's industry assets and ultra-low latency features with
advanced information management, analytics and process integration
software.
According to analyst firm Celent, the global securities and
investment software market currently exceeds $14 billion annually,[1] and financial services
firms are increasingly relying on technology to drive new
innovation, streamline operations, improve reliability and meet a
growing list of regulatory requirements for transparency,
compliance and risk management.
Interactive Data Corporation (NYSE: IDC) a global provider of
managed ultra-low latency services for electronic trading and a
broad spectrum of market data and related areas, is using the IBM
framework to provide a variety of electronic trading infrastructure
services to clients.
"Interactive Data's technical infrastructure supports
collecting, editing, maintaining and delivering data on millions of
trading instruments throughout the day to a wide range of financial
institutions and active traders globally," said Jeff Banker, executive vice president, Real-Time
Market Data and Trading Solutions for Interactive Data.
"Through our partnership with IBM, we will continue to pursue
new opportunities to deliver additional managed services that can
meet the evolving front, middle and back office needs of our
clients."
Interconnected systems deployed on fit for purpose technologies
that are tuned for specific workloads enable the most efficient
deployment of enterprise solutions – reducing cost and increasing
efficiencies by supporting a holistic view into essential
operations as they occur across their entire enterprise. The IBM
Financial Markets Framework leverages both industry and open
standards to simplify integration, improve interoperability and
enable the delivery of innovative customer-centric services.
IBM client, Bolsa de Comercio de Santiago, Chile's central stock exchange, has
undertaken a multi-year effort to position their exchange for the
market environment of the future. The company is utilizing the IBM
framework to advance their trading platform to meet regulatory
requirements and improve performance.
"In addition to basing our new securities trading platform on
IBM offerings, we are using the IBM Financial Markets Framework to
guide our entry into trade surveillance and monitoring," said
Jose Antonio Martinez, General
Manager, Bolsa de Comercio de Santiago. "We are performing specific
correlation analysis on trades to watch for regulatory
violations."
The IBM Financial Markets Framework provides the key
capabilities required by almost every financial markets firm,
including:
- A market data solution that can accept feeds from virtually any
provider and deliver market data at high speeds and low
latency
- An algorithmic trading program that can increase automated
trading while reducing risks
- Securities processing capabilities that consolidate similar
processes to lower operating costs
- A next generation trading infrastructure capable of low
microsecond response times and millions of orders per second
throughput
- Market surveillance and trade monitoring capabilities that can
track and analyze market activity in real time to identify and
investigate possible violations of market regulations
- A settlement risk management capability that can measure and
monitor the risk associated with unsettled trades
IBM has teamed up with Fixnetix to combine IBM's Financial
Markets Framework with Fixnetix comprehensive co-location and
market connectivity capabilities. This offers clients dedicated or
shared hosted managed services that provide cost-effective, ultra
low latency services for multi-asset market data and trade/order
execution.
"The Fixnetix and IBM strategic partnership will enable our
firms to provide tiered global services to leading investment
banks, hedge funds and proprietary trading groups," said
Paul Ellis, COO and Founder,
Fixnetix. "This is ideal for clients seeking ultra-performance,
service stability, and reduced cost."
IBM has engaged with the world's leading financial services
firms on mission-critical projects for almost 100 years. In working
with financial markets clients, IBM has developed an unparalleled
portfolio of skills, technology assets, trading-specific computing
platforms, and business consulting and information technology
services, supported by the world's largest industrial research
organization. As a result, IBM is uniquely positioned to facilitate
a collaborative approach for innovation in the financial services
industry.
Chi-Tech, one of the world's leading providers of trading
services to exchanges, is utilizing the framework as part of its
new trading platform.
"Chi-Tech is continuously monitoring best-in-class trading
technologies to meet the needs of our clients. To that end, we've
incorporated IBM middleware into our platform, to meet their
requirements and our high standards for speed and mission-critical
reliability," said Gregory E. Smith,
Vice Chairman of Chi-X Global Inc. and CEO of Chi-X Global
Technology Inc. "We are continuing the worldwide rollout in our
Chi-X Asia and North America
exchanges, and we fully support the IBM Financial Markets Framework
for the broader industry foundation that it provides to the
Chi-Tech customer base around the world."
Today's announcement represents another addition to IBM's
leading portfolio of industry solutions and frameworks. Industry
frameworks provide a configurable platform to accelerate deployment
of business solutions. They extend IBM's service oriented
architecture (SOA) middleware with industry-specific capabilities
and specially designed process templates. IBM industry solutions
and industry business partner solutions build on the value provided
by these industry frameworks to deliver a unique, end-to-end
solution for each client.
The IBM Financial Markets Framework helps clients build an
integrated platform for all of their operations based on industry
standards. It combines IBM's entire software portfolio
including WebSphere, Lotus and Information Management products and
full range of IBM server and storage products, industry-specific
offerings and consulting expertise of IBM Global Business Services.
The IBM Financial Markets Framework helps to enable the creation
of highly-available and scalable infrastructures that help reduce
costs and complexity while achieving breakthrough productivity
gains. IBM's latest advances in engineering and software
development have produced a Securities Exchange Reference
Architecture (SXRA) lab benchmark that achieved over five million
orders per second and latency as low as 12 microseconds for the
round trip from gateway to matching engine and back using a
combination of InfiniBand and 10GbE. The IBM lab performance
results show a 70 percent increase in orders per second and 40
percent reduction in latency over IBM results published one year
ago. The environment featuring Low Latency Messaging will be
recreated and on display at booth 2213 at the show.[2]
For more information on the IBM Financial Markets Framework or
for details on how IBM is helping financial services clients and
Business Partners to make smarter, faster decisions, visit:
www.ibm.com/financialmarkets.
[1] Celent: "IT Spending in Financial Services: A Global
Perspective," January 2010
[2] The environment includes: IBM® WebSphere® MQ Low Latency
Messaging, IBM solidDB™ , IBM Power® 750 Express™ , IBM
BladeCenter® HS22, IBM Enterprise X-Architecture® System x3850 X5,
and IBM XIV® Storage System
Note: All statements regarding IBM's plans, directions, and
intent are subject to change or withdrawal without notice.
IBM, the IBM logo, ibm.com, WebSphere, Rational, Tivoli, Lotus,
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worldwide. Other product and service names might be trademarks of
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please see www.ibm.com/legal/copytrade.shtml.
All other company, product or service names may be trademarks or
registered trademarks of others. Statements concerning IBM's future
development plans and schedules are made for planning purposes
only, and are subject to change or withdrawal without notice.
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IBM Media
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SOURCE IBM