Digital transformation requires adopting a new approach to doing business that is always sensing and ready to change. The document discusses how traditional market data and trading platforms have inefficient spaghetti connections that are difficult to manage and perform poorly. It then proposes adopting a "market data mesh" architecture using an event mesh to connect systems simply and at scale across hybrid cloud environments. This would create an open and global market data platform. The remainder of the document discusses how Solace technology could be used to build an innovative distributed trading platform for the China Foreign Exchange Trade System to modernize China's financial system and interbank markets.

1. Digital Transformation
in Market Data and
Trading Platforms
DKF 2019
9th D-A-CH CONGRESS FOR FINANCIAL
INFORMATION

2. Digital Transformation Requires a New Way to Do Business
Gartner - “A key distinction of a digital business is that it's always sensing and always ready”
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IoT
Mobile
Machine
Learning
Microservices
Hybrid Cloud
Digital
Transformation

3. • Spaghetti connections hard to
manage
• Inefficient use of resources, e.g.
duplicate feed-handlers
• Performance bottleneck
• High cost low value
A Chaotic Market for Market Data
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Exchange SourceSourceExchangeExchange
Bank 1 Bank 5Bank 4Bank 3Bank 2
Vendor
1
Vendor
3
Vendor
2
Connecitivty
Provider

4. • Simplified architecture
• Loosely coupled
• High performance
• High scalability
• Lower cost
A Better Architecture
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Exchange SourceSourceExchangeExchange
Bank 1 Bank 5Bank 4Bank 3Bank 2
Vendor
1
Market Data Mesh
Vendor
2
Vendor
3
Vendor
4

5. • Multi/hybrid cloud across regions
• Connected by Solace Event
Mesh
• Open APIs and Protocols
• Build Platform, not System
A Global Open Market Data Platform
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Participant
ODP-Hub 1
Europe
ODP-Hub 2
US
ODP-Hub 3
APAC
Participant Participant Participant Participant Participant

6. Solace heritage of robust messaging
6
18μs latency
Pub/Sub &
WAN Optimization
99.999% uptime
Zero Data Loss
Burst Handling
28M msg/sec
Multi Protocol
Hybrid Cloud
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7. How does the mesh work?
JMS MQ
API Gateway
Public Clouds PaaS
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8. © Solace
8
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9. • 100% Interoperability
• Best of breed approach
• Eliminate platform and protocol
lock-in
• No more bridging single-purpose
systems
Native Application Integration - Open APIs & Protocols
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Objective C
iOS
JavaScript
HTML5
.NET
Core 2.0
HTTP API
Node.js
(amqp10, Rhea)
Python
Ruby
C++
.NET
Perl
RESTC
C++
Java
JavaScript
Python
Go
JMS/JCAC Java Node.jsC# / .NET Boot
Cloud
Connector
Cloud
Stream
Cloud
Data Flow
JMS
(1.1, 2.0)
Java
(SwiftMQ)
Other
.NET
(amqpnetlite)
.NET (NMS)
(Solace/Apache)
Other
.NET
(MQTT .NET)

10. Connecting Services and Events
10
© Solace
Event Mesh
Market
Data
Banking
Fintech Apps
AI/ML
Analytics
Event Driven
Microservices
Internet of Things
Mobile / Web
Event Mesh
API Gateway
Internal
Audiences
Partners Customers
Event Mesh
Event Broker
Event Broker
Event Broker
• Distribution of Events from
Legacy to any Cloud
• Dynamic Event Routing across
No Cloud, Public Clouds & PaaS
• Rich support for microservice
runtimes like Spring Cloud
Streams
• Decoupling of services for
dynamic process flow
• Simple, robust, secure support
for Event Driven Architecture
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11. • All trading of currencies, foreign or
domestic, between any financial
organisations in China, goes
through CFETS.
• In partnership with Solace to
develop an innovative, Fintech enabled
distributed trading platform.
• This platform intends to offer CFETS
members with high performance leading
edge Fintech services and create a robust
financial trading infrastructure and
interbank funding ecosystem in China.
CFETS - China
Foreign Exchange
Trade System
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Proprietary & Confidential

12. CFETS Background
-50%
0%
50%
100%
150%
200%
0
200
400
600
800
1,000
1,200
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
trillionyuan
FX Spot Money Market Bond Market
Derivatives growth YOY（RHS）
Interbank FX Market Members
195
136
99
75
33
25
20
28
15
Rural commercial Bnks and
Cooperative Banks
Cooperative Banks Foreign-
Funded Banks
Urban Commercial Banks
Finance Companies
Foreign Central Banks and
Similar Institutions
Large Commercial Banks
RMB Clearing Banks
Overseas Participating Banks
Shareholding Commercial
Banks
Rural Credit Cooperatives
Policy Banks
Village Banks
Enterprise Group
Fund&Securities Companies
Private Banks
In 2017, CFETS interbank market
trading volume was USD145.5 trillion
30,000 Member Structure in FX Market

13. Edge Computing with FINDAC Nodes
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CFETS
FINDAC
Node
Member
FINDAC
Node
Interbank
Services
Trading
Activities
Trading
Activities
Service
Delivery
Service
Delivery
FINDAC Node
PaaS
Solace Mesh
FIX Engine
Data
Governance
SaaS
Management
Security
Market Data Algo Trading
Risk
Management
Other
Services
AIBlockchain Other PaaS
Edge
Core
Member
FINDAC
Node

14. 14
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FINDAC
CFETS App
CFETS
FINDAC
CFETS
App
Member
Member
App
FINDAC
CFETS
App
Member
Member
App
Connecting Nodes 30,000 FINDAC Event Mesh

15. That’s Possible
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