Andrea Galeazzi Direttore Network Services SIA S.p.A. Francesco Lanza Marketing & Business Dev. SIA S.p.A.

Le sfide degli operatori per l’accesso ai mercati finanziari

Andrea Galeazzi

Direttore Network Services SIA S.p.A.

Francesco Lanza

Marketing & Business Dev. SIA S.p.A.

The scenario evolution is changing the

Financial Industry business needs

Regulation changes  T2SOTC Transparency  EMIR  MiFID – MiFID2 Technology evolution  Higher capacity (processing/bandwidth) Competitive changes

 European/global market place  New entrants  New operators/providers  Exchanges consolidation

Business

needs

change

New business needs imply new technological

requirements

Technological requirements

 Easy access to multiple trading

venues

 “Zero” latency (i.e. ASX on Dec

2010 reached 250

microseconds) and high volume

 Colocation and proximity

 End-to-end monitoring

 Resiliency and redundancy

 Security and privacy

 Single network/IT partner for

customized solutions Business needs

 Trading on multiple markets to

reach the best execution

 High frequency trading (i.e.

>70% of US exchanges are algos driven)

 Ad hoc Service Level

Agreements

 Single point of contact

 Time to market

 Short-term contracts with the

best prices

Network infrastructures gain a relevant role in the industry as a key component

The Financial Industry is facing increasing costs

and complexity

Customer Premise Market 1 Back End

Market 2 Back End

Market n Back End Market 3 Back End

M ul ti Netw or k M odel

Routers and firewalls

Workstation Trading Server

Complex, inefficient and expensive approach

 Network Contracts with the Trading Venues (legal, IT…)

 Know-How and resources PRELIMINARY INVESTIGATIONS

FEASABILITY STUDIES  Rules and requirements of market connectivityNetwork design

 Carrier choice

Moving from a Multi Network to a Single

Network Platform

Customer Premise Market 1 Back End

Market 2 Back End

Market n Back End Market 3 Back End

M ul ti Netw or k M odel Value Added Network Service Provider

Customer Premise Market 1 Back End

Market 2 Back End

Market n Back End Market 3 Back End

S ingl e Netw or k M odel Workstation Trading Server Workstation Trading Server

Rationalized, simplified and more efficient

network approach

Trading Server

SIAnet Financial Ring is the Value Added Network

designed or the European Financial Industry

SIAnet Financial Ring is specifically designed to

address top requirements

 Different network and carrier routes to increase the level of

security and reliability

 Customized connections with trading partners

 Service Management: operation, maintenance, monitoring and

assistance 24/7

 Fiber-optic redundant backbones connecting the Milan Data

Centers with SIA’s PoPs in London

 DWDM technology

 Point-to-point SDH high speed connections (1 Gbit/s)

 Direct fiber-optic connections to market platforms

SIAnet Financial Ring is embedding cutting-edge technology, because you are never too quick or too reliable for trading:

SIA thirty years experience in managing complex network infrastructures for the Financial Community guarantees a five star service level, including:

SIAnet Financial Ring covers all the connectivity

needs along the Capital Markets value chain

Trading Venues Brokers

CSD

Post Trading Service Providers

Pre-trading Market data access

Trading Market execution access Post-trading Trade Life-cycle access

SIAnet Financial Ring

Market accesses general overview

Trading

SIAnet Financial Ring fully support messaging

solution for European Post Trade services

Messaging solution for A2A services

Connectivity solutions for U2A Services (XTRM on line)

Suite SIAnet.NG

RNI

SIA Swift Service Bureau

CS D A CCES S Monte Titoli Euroclear and Clearstream e VA S Suite SIAnet.NG Pre-trading Trading Post-trading

SIAnet service model vs. business model

A single local pipe to reach the SIAnet Financial Ring in order to simplify the integration efforts at the Customer premises

You can choose to be connected to the single venues with the preferred bandwith, independently to the underlying local infrastructure that will fit the total bandwith requested

In this way you pay for what you need (access to the venues) and not for the underlined physical infrastructure

Se rv ic e Mo de l Bu sin es s Mo de l

SIAnet features

:: guarantee of resiliency and redundancy (no single-point of failure)

:: disaster recovery and business continuity provisions

:: multi-carrier architecture (2 in Italy, 4 in Europe)

:: end-to-end monitoring

:: privacy compliant (peer-to-peer, NAT, IPSEC, Access Control)

Top security

:: high speed & volumes (File Transfer up to 100GB/hour)

:: fine granular bandwidth scalability

:: fully managed service, full time coverage

:: 99,999% End to End Service Level in 2010

:: interoperable network

Top performances

Geographical Business Continuity (HSRP, BGP ) Full Solution Single Solution VPN IPSEC VPN SSL Full Solution Single Solution

Connectivity Services Overview

Suite SIAnet.NG Standard Suite SIAnet.NG Enhanced

Suite SIAnet.NG Light

SIAnet iAccess

Network Equipment Housing Exchange Proximity Service

SIAn et .NG : CON N ECT IV IT Y SERV ICES Connectivity Suites Value added Services  







The Enhanced Suite is a tailor made

Geographical solution for 5-stars service

BGP modality

• Customers use a dynamic routing protocol (BGP or OSPF,

depending on Customer needs)

• Customers have skills and know-how to configure and manage

their border gateway devices HSRP modality

• Minimal effort to configure Customer edge devices: only the

default gateway needs to be set by Customer

The Geographical Business Continuity is an enhanced access solution aimed at connecting different Customer sites (i.e. main site and disaster recovery site) to the SIA network with the same

SIAnet.NG: Enhanced Suite

Customer Site 2 (slave) Customer Site 1 (master)

Customer

LAN Customer LAN

IBGP

Border

Gateway _GatewayBorder

FW/VPN Box FW/VPN Box CE routers CE routers SIA-SSB Network EBG P EBG P

Customer Site 2 (slave) Customer Site 1 (master)

Customer

LAN Customer LAN

HSRP

Integration

Kit routers Integration _{Kit routers}

FW/VPN Box FW/VPN Box CE routers CE routers SIA-SSB Network D y nam ic r ou ti ng D y nam ic r ou ti ng

SIAnet.NG: Standard Suite

Fiber optic network solutions able to provide the mission-critical applications while ensuring high performance, security, scalability and flexibility, minimize risk and optimize investments and infrastructure Network solutions designed fully satisfy regulatory standards and requirements established by the Master Domain, with guarantee bandwidth from 128Kbps to 1 Gbps :: Full Solution :: Single Solution 99.95 99.65 Single Solution Full Solution

SIAnet.NG: Standard Suite

IP Subnet Carrier 1

IP Subnet Carrier 2

Customer responsibility domain SIA-SSB responsibility domain

FW/VPN Box FW/VPN Box CE Routers Carrier 1 Carrier 2 SIA-SSB Network Customer Site IP su bn et cli en ts

Customer responsibility domain SIA-SSB responsibility domain

Customer Site IP Subnet Carrier 1 FW/VPN Box CE Router Carrier 1 SIA-SSB Network IP su bn et cli en ts

SIAnet.NG: Light Suite

SIAnet.NG Light is an integrated, flexible solution specifically created to support the customer’s future expansions

Thanks to the xDSL technology, SIA guarantees its customers high performance levels at low cost

Access is achieved through xDSL lines with different garantee bandwidth

The solutions with access speed and guarantee bandwidth ranging from 128 kbps to 1024 kbps are:

:: Full Solution

:: Single Solution

99.50

Single Solution

SIAnet.NG: Light Suite

IP Subnet Carrier 1

IP Subnet Carrier 2

Customer responsibility domain SIA-SSB responsibility domain

FW/VPN Box FW/VPN Box CE Routers Carrier 1 Carrier 2 SIA-SSB Network Customer Site IP su bn et cli en ts

Customer responsibility domain SIA-SSB responsibility domain

Customer Site IP Subnet Carrier 1 FW/VPN Box CE Router Carrier 1 SIA-SSB Network IP su bn et cli en ts

SIAnet.NG: i-access

i-access: Remote Access VPN IPSEC

A VPN creates a virtual “tunnel” connecting the two endpoints. The traffic within the VPN tunnel is encrypted with IPSEC 3DES protocol

The Customer endpoint (Juniper firewall) is provided by SIA

SIA allows clients the ability to leverage their existing Internet connectivity to access SIA central Platforms. SIA NOC enables a private link with bandwidth allocation between SIA central financial platforms and the customer location

VPN IPSec

Application traffic Customer

VPN terminator

Internet border Processor

Internal network Processor Internal network VPN terminator Internet border SIA Internet SIA-SSB responsibility ----> < ---- Customer responsibility

Exchange Proximity Services

Algorithmic and alternative trading strategies highly depend on execution speed. SIA Proximity Services directly address this market demand for ultra low latency connections

Each SIA Data Center/PoP is fully equipped in order to provide co-location, hosting and facility management services for customer trading platform

MTS Proximity Service

SIA provide housing space for customers’ trading infrastructure. The exchange’s member take advantage of the full service package and benefit from SIA experts’ know-how.

Facility management and connectivity solutions are included in this turnkey solution

SI A D at a Ce nt er Cu sto m er Pr em is e Workstation Trading

Server Router SIAnet Connectivity Solution MTS Back End Tradeimpact

St and ar d M od el at a Ce nt er Cu sto m er Pr em is e Pro xi m ity M od el

Exchange Proximity Services

SIA provides an Urban Exchange Proximity service, designed for those customers wishing to reduce latency, or looking for the flexibility/scalability of a hosted facility

The customer trading application servers are hosted as close as possible to the Exchange’s premises to minimizes the latency

Milan - SIA Data Center

Customer Premise

Workstation Router SIAnet Connectivity Solution Trading Server

M ila n U rb an Pro xi m ity M od el

London - SIA PoP

Customer Premise

ity

Euro-TLX

Hi-MTF

London Stock Exchange Borsa Italiana

SIAnet Monitor Probe

SIAnet Monitor Probe is our new secure web-based self-service

monitor providing online information about SIAnet network

equipment. SIAnet Monitor Probe is a powerful network monitor designed for network administrators who want to centrally monitor centrally the status and performance of telecommunications equipment installed at operational premises directly from their own PC

Functional Features

Monitor Probe provides real time information including:

 Availability status  Network schema

 Network configuration

 Round trip delay (average, min, max, n° No. values, n° No. Ffails)

 Latency

 Volume

 Throughput (input/output ports)  Jitter

 7 Days Reporting

Advantages