Accelerating Delivery of Low-Latency

Information

A Wall Street & Technology

Editorial Perspectives TechWebCast
Sponsored by Solace Systems

Tuesday, April 8, 2008

9:00 am PT / 12:00 pm ET
 Our Distinguished Panel

• Greg MacSweeney, Editor-in-Chief, Wall Street

& Technology Magazine

• Ian Koenig, Chief Architect, Thomson Financial

• Larry Neumann, SVP Marketing, Solace

Systems
 Volume + Low Latency + Analysis

Faster Response
Message volumes are exploding

Reduced Latency
Digest data faster

More Real-Time Analysis

Evaluate data instantly DATAMONITOR
 How Low Can You Go?

No, Seriously, How Fast?

Faster is better, but how fast do you need?

Full Throttle Ahead

Will the industry reach the limit of speed?

Competitive Differentiator
Where can firms win in the future?
 Throwing a Wrench Into The Works

The Next Type of Data

Adding news and other information

Making Sense of It All

Analyzing news in real time

Pushing the Limits

How will existing systems handle the volume?
 THOMSON FINANCIAL

Event-based Content Distribution –

Accelerating Content Delivery

April 2008

Ian Koenig
Chief Architect – Thomson Financial
Agenda

1. “Quantitative” News as an event-based data source

2. The “fabric” for distributing content and its emerging
capabilities for accelerating event-based stream
processing
3. Enabling new types of data sources creating new
‘opportunities’
4. Hinting at a larger pattern for distributing content and
the role that complex event processing will play.

Copyright © Thomson Financial

Content Sources and Content Distribution

Content
Content Content
Distribution
Sources Streams Application
Fabric
Logic
Level1
Level 2 Stream Agents

Stream Adapters
CEP Engine

Application
News

Logic
Event Event
Event

r
the
O

Copyright © Thomson Financial

Why News?

….News Moves
Quantitative NewsMarkets ….
Moves Markets …

SEC will Allow Companies to

use the Internet to Improve
Investor-Management
Communications NA
From CFO.com -
August 16, 2007
According to SEC chairman
Christopher Cox, the
commission will allow companies
to use the Internet to improve
investor-management
communications. As currently
proposed by the commission, a
company interested in offering
this venue to shareholders would
alert them via

Copyright © Thomson Financial

The Metaverse
The Metadata Universe (or Metaverse) is the set of Categories (Entities and Subjects) that
provide semantic understanding for text and data.

Geography Africa
Regions, Countries,
Central America
Operates within
Physical Features
Americas North America

Geography
Is grouped by

Industry Market Asia United States

Sector Hierarchy (Equity, Commod of America
(Multiple Schemes) Analyst For FI, et al)
Europe Alabama
Subsidiary of
Arkansas
Organization Oceana
Analyst For Person
Gov’t, Agency,
(Multiple Roles)

Industry
Company , NGO Officer of
Market Participant Equities
Listed (Market

Indicator For
Mkt. Part. – Provides Quotes Classification Standard
Participant)

Index For Debt GEOGRAPHY ISO 3166

Issues
INDUSTRY SIC + NAICS +
Instrument Package TSE + GICS
Security, Future, Index Indicator Units MARKETS ISO 10962
Derivative, et al Economics,

Markets
Financial CURRENCY ISO 4217
Indexes Market Stats Futures
CORPORATE ISO 15022
Has Quotes ACTIONS
Event
Corp. Action Currency RESEARCH RIXML
Quote, Trade,
Meeting, et al IOI, Advertisement,
Order other

Copyright © Thomson Financial

Categorization Mark-up Example
Entity: Merck KGAA (MRK-US) - An Organization Entity of type: Company

Copyright © Thomson Financial

Categorization Mark-up Example
Entity: Schering-Plough (SGP-US) – An Organization of type: Company

Copyright © Thomson Financial

Categorization Mark-up Example
Entity: Pharmaceuticals - An Industry Entity

Copyright © Thomson Financial

Categorization Mark-up Example

Copyright © Thomson Financial

NewsML Mark-up example
<?xml version="1.0" encoding="UTF-8"?>
<newsItem guid="urn:newsml:CBS MarketWatch:20030620:20040903-000693:2" schema="0.0"
dir="ltr" version="1" xmlns="http://iptc.org/std/nar/2006-10-01/"
xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"

Document Level Mark-up (Categories only)

xmlns:toc="http://data.schemas.tfn.thomson.com/Common/2007-08-01/">
<catalogRef href="http://iptc.org/std-dev/NAR/1.0/specification/IPTC-TempCatalog-
inc_4.xml"/>
...
<catalogRef href="http://news.schemas.tfn.thomson.com/schemes/TF_NewsML-G2-
catalog.xml"/>
<rightsInfo> <subject type="type:subject" qcode="CategoryId:1234567" creator="org:thomson"/>
<copyrightNotice>(C) 1997-2004 MarketWatch.com, Inc. All rights
reserved.</copyrightNotice>
</rightsInfo>
<itemMeta>
<subject type="type:subject" qcode="CategoryId:1234568" creator="sys:care"
<itemClass qcode="ccls:text"/>
<provider qcode="org:TFN"/> why="why:machine-generated" confidence="70" relevance="65"/>
<versionCreated>2001-12-17T09:30:47.0Z</versionCreated>
<firstCreated>2001-12-17T09:30:47.0Z</firstCreated>
<pubStatus qcode="stat:usable"/>
<role qcode="rol:urgent"/>
...
<service qcode="NewsServiceId:NSID1">
<name>News Service 1</name>
</service>
</itemMeta>
<contentMeta toc:careVersion="1" toc:careTrainingSet="2007-07-01"
toc:dexterVersion="1" toc:dexterTrainingSet="2007-07-01" toc:stratifyVersion="1"
toc:stratifyTrainingSet="2007-07-01">
<urgency>3</urgency>
<contentCreated>1967-08-13</contentCreated>
<contentModified>1967-08-13</contentModified>
<infoSource qcode="org:TFN"/>
<headline>Staffing company shares mixed after jobs report</headline>
<by>Ciara Linnane</by>
<dateline>12:21 PM ET Sep 3, 2004</dateline>
<language tag="en-us"/>
In-line Markup (Categories + Facts)
<subject type="type:subject" qcode="CategoryId:1234567"
creator="org:thomson"/>
<body>
<subject type="type:subject" qcode="CategoryId:1234568" creator="sys:care"
...
why="why:machine-generated" confidence="70" relevance="65"/>
<subject type="type:organization" qcode="OrganizationId:0123456789"/>
</contentMeta> <p>The <toc:Category xsi:type="toc:Indicator" IndicatorId="0234551">unemployment rate</toc:Category> fell
<contentSet xmlns:tfc="http://news.schemas.tfn.thomson.com/Common/2007-07-06/"
one-tenth of a percentage point to 5.4 percent, the lowest rate since October 2001, primarily because 152,000 adults
xsi:schemaLocation=" http://news.schemas.tfn.thomson.com/Common/2007-07-06/
NewsCommonTypes.xsd">
<inlineXML xml:lang="en-us" contenttype="application/xhtml+xml"
dropped out of the labor force.</p>
xsi:schemaLocation="http://www.w3.org/1999/xhtml xhtml11-tfnews.xsd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head> ...
<title>Staffing company shares mixed after jobs
report</title>
</head>
<p>"We were encouraged to see the headline payroll number meet expectations after two months of
<body>
disappointments," said <toc:Category xsi:type="toc:Organization" OrganizationId="0234556">SunTrust Robinson
<p>NEW YORK (CBS.MW) -- After rallying <span

Humphrey</toc:Category> analyst <toc:Category xsi:type="toc:Person" PersonId="122456">Tobey

guid="xxxx">for the past few sessions, </span> shares of staffing firms and payroll
processors were mixed Friday as investors digested the August jobs report, showing
<toc:Category xsi:type="toc:Indicator" IndicatorId="0234556">U.S. payrolls</toc:Category>
rebounding after two sluggish months.</p> Sommer</toc:Category>. The report, he said, "is likely to improve investor sentiment on employment-related
<p>The <toc:Category xsi:type="toc:Organization"
stocks."</p>
OrganizationId="9000000056"> Labor Department</toc:Category> said the economy added
144,000 jobs, well above the 32,000 reading in July.</p>
<p> <toc:Category xsi:type="toc:Quote" QuoteId="123456781">Manpower (MAN-US)</toc:Category> shares led
<p>The <toc:Category xsi:type="toc:Indicator"
IndicatorId="0234551">unemployment rate</toc:Category> fell one-tenth of a percentage
the gainers, rising 2.5 percent to $44.52. <
point to 5.4 percent, the lowest rate since October 2001, primarily because 152,000 adults
dropped out of the labor force.</p>
<p>Economists surveyed by CBS MarketWatch were
...
expecting job growth of about 158,000, close to the 177,000 average for the first seven
months of the year, and a jobless rate of 5.5 percent. <a
</body>
href="http://cbs.marketwatch.com/news/economy/economic_calendar.asp?siteid=mktw">See
Economic Calendar. </a>
</p>

Copyright © Thomson Financial

Auto-categorization Technology

• Much Financial, Legal and Medical information exists in the form of textual
documents
• Traditional “Editorial” processes to tag/index documents can now be augmented by
algorithms that can achieve very high precision (~95%) against very large ontologies
(10,000’s of terms)
• Thomson employs a technology called CaRE (Categorization and Recommendations
Engine) to do this, which originated in the Thomson Legal and Regulatory division.
• CaRE uses a set of statistics-based algorithms that are trained to understand a
specific ontology as a concept scheme.

Copyright © Thomson Financial

Structured News – Summary

In-line News vs. Document level Mark-up

• Each News story is tagged at three levels.
• Document Level: The overall story lists all the category metadata (Entities +
Subjects + Genre + Sentiment) for the story.
• In-line Entities: Each initial reference to an Entity is marked up “in-line” in the
document for additional context.
• In-line Facts: Specific Numeric Elements (e.g. US GDP or Thomson Q3
Revenue) are tagged using XML elements

The Value of Structured News

• Entity tags (e.g. Company references) allow news to be linked and correlated to
Market data streams by CEP engines, for example, to make trading decisions
• Numeric Facts (when Elementized) are directly process-able by algorithms.
• Sentiment tags (e.g. positive earnings or negative rating) and Subject tags provide
semantic understanding of the news story

Copyright © Thomson Financial

Content Sources and Content Distribution

Content
Distribution
Content Content Application
Sources Streams Fabric
Logic

Level1 Stream Agents

Level 2

Stream Adapters
CEP Engine

Application
Logic
Event
News Event
Event

r
the
O

Copyright © Thomson Financial

“X” Marks the spot

Synchronization

Service
Provider

rk
wo
et
tN
en
nt
Co

Service
Consumer

Copyright © Thomson Financial

Content-Aware Hardware Infrastructure

Applications
Applications
Databases
Content
Network

Mobile
Applications
Devices IP/MPLS
Network

Content Content Network Assured

Routing Transformation Acceleration Delivery
Blade Blade Blade Blade

500, 000 routes 1000’s xforms / >1MM msgs / sec Active/active fail-
sec over
0.7ms transit
for a 4K XML
document

CONFIDENTIAL
Copyright © Thomson Financial
New Streaming Content Sources

Content
Sources
Content Content Distribution Complex Event
Level1 Streams Fabric Processing
(Intermediation, Applications
Level 2 Initialization,
News Synchronization)

Research Stream Agents

Briefings

Stream Adapters
CEP Engine

Application
Logic
Event Event
Filings Event

Deals (M&A)
Financials
Estimates
…

Copyright © Thomson Financial

Content Distribution Pattern

Content Source(s)
Content Distribution
Ingest Interface (Feeds + Authoring)
Fabric
(Intermediation,
Initialization,
The Content Synchronization)
Metadata
Master

Data Interface (Content Distribution)

The Application Database

Canonical Data Model
(in XML)
Service Interface
Human Interface

Copyright © Thomson Financial

And if you Squint just a little tiny bit …

Content Source(s)

Ingest Interface (Ripping)

Content Master Database Metadata

Data Interface (Content Distribution)

Application
Database

Service Interface
Human Interface

Copyright © Thomson Financial

The World of Event-Oriented Content

Content
Sources
Content Content Distribution Complex Event
Level1 Streams Fabric Processing
(Intermediation, Applications
Level 2 Initialization,
Orders Synchronization)

IOIs Stream Agents

Stream Adapters
News CEP Engine

Application
Logic
Event Event

Research Event

Briefings
Filings
Deals (M&A)
Financials In in this new world, all content has the potential to change
Estimates “transactionally”. We have lots of interesting new content streams
for CEP aware applications and a Content distribution fabric that
And More itself has event stream processing capabilities.

Copyright © Thomson Financial

 THOMSON FINANCIAL

Event-based Content Distribution –

Accelerating Content Delivery

April 2008

Ian Koenig
Chief Architect – Thomson Financial
Accelerating Content Delivery
in Financial Services

Larry Neumann, SVP Marketing

Financial Services IT Challenges

Performance

Market Data Order Routing SOA/EDA/CEP

Complexity

Architectural Operational Inability to Change

Costs

Scale/Redundancy Specialists $$$ Power/Cooling

CONFIDENTIAL
 Infrastructure Consolidation

Front Office Content-Aware

Network

Low Latency
Market Data IP
Network

Algorithmic
Systems
CRM/Mobile
Alerting
ESB/Web
Services

Order
Routing Database
Trade Synchronization
Settlement

Interbank
Complex Market Data Transactions
Event Processing Fanout
Back Office Global WAN
CONFIDENTIAL
The Hardware Advantage
Topic Content Content Assured Network
Routing Routing Transformation Delivery Acceleration
Blade Blade Blade Blade Blade

Solace 3230 Content Router

Turnkey hardware middleware with 10x-100x performance

advantage over software equivalent.

Predictable performance & latency (with load).

Wide range of infrastructure functionality in one box.

CONFIDENTIAL
Content Networking Benefits

Higher performance applications

Faster deployments

Predictable latency

Reduced complexity

Reduced capex and opex

CONFIDENTIAL
Example Use Cases

Larry Neumann, SVP Marketing

Market Data Distribution
MD Distribution with MD Distribution with
Middleware Software Content-Aware Hardware

Market Data Market Data

Feeds Feeds

Distribution
Servers Content
Distribution

LAN WAN LAN WAN

o Traders
o Customers
o Algorithmic
Engines

Server reduction, better performance, simpler operations.

CONFIDENTIAL
 Event Monitoring Networks
Software-Based Network-Based
Event Processing Event Processing
Decision Makers Dashboards Decision Makers Dashboards
Security/Fraud BAM Security/Fraud BAM
Alerts Alerts

BPM CEP BPM

CEP Servers Servers
Engines Engines

App Integration
Servers Messaging Engines
Servers

Millions of Events Millions of Events

Credit/Banking Credit/Banking
IT Operations Transactions IT Operations Transactions
Events Events
STP/Order Customer STP/Order Customer
Processing Service Processing Service

Higher-volume event processing, event processing offload,

reduced operational costs, lower latency alerting.
33 CONFIDENTIAL
Enterprise Service Bus
ESB in Content-
ESB in Software Aware Hardware
Order Order
News Feeds Processing
Processing News Feed

News
DBs Orders
Transfor-
Security Analysis mations

Messaging Persistant
Messaging
Rules
Engine

Lower latency, costs & simpler operations.

CONFIDENTIAL
 Back-Office Data Synchronization

Server-Based Data Network-Based Data

Synchronization Synchronization

Applications
Oracle Oracle
Oracle

Sybase

Oracle

SQL Server

Decoupled sources, reduced load on servers,

efficient network use.

CONFIDENTIAL
Summary

Performance, costs and complexity are key

issues.

Hardware offers performance and
management advantages over software.

A single hardware infrastructure can do the
job of many parallel software ones.

Shared application infrastructure lowers
costs.
CONFIDENTIAL
Accelerating Content Deilvery
in Financial Services

Larry Neumann, SVP Marketing

 Q& A
Please submit your questions now

• Greg MacSweeney, Editor-in-Chief, Wall Street

& Technology Magazine

• Ian Koenig, Chief Architect, Thomson Financial

• Larry Neumann, SVP Marketing, Solace

Systems
 Resources

To view this event on-demand:

http://www.wallstreetandtech.com/events/ondemand/

For more information please visit:

www.solacesystems.com