WIXLIB

WebSphere MQ Low Latency MessagingAddressing your high-volume, low-latency requirementsIBM WebSphere MQ Low Latency Messaging, Version 2.0High throughput and low latency to maximize business responsiveness

IBM WebSphere MQ Low Latency Messaging is a messaging transport that is highly optimized for the veryhigh-volume, low-latency requirements of financial services firms. Applications include the high-speed delivery ofmarket data, trade data, reference data and event data in or between front-, middle- and back-office operations.Characteristic applications require extremely low (submillisecond) latency and high message volumes (ranging frommany thousands to millions of messages per second).

“In financial markets, microsecondscan make the difference. We arepleased to be working with IBM tooffer significantly higher throughputand significantly lower latency asproven by our performance tests.”— Patrick Guay,Senior Vice President of Marketing,VoltaireWebSphere MQ Low Latency Messaging, Version 2.0 extendsHigh-speed messagingthe WebSphere MQ product line with a new transportWebSphere MQ Low Latency Messaging offers thedesigned for low-latency, high-throughput messaging. Itmessaging technology previously available as a componentadds to the existing range of transports a messaging productof WebSphere Front Office for Financial Markets as anoptimized for the very high-volume, low-latency requirementsenhanced, separately available product. Its messaging QoStypical of financial services firms and other industries wherecan be used as a stand-alone element of financial marketsspeed of data delivery is paramount. Although WebSpheresolutions or in other industries that have similar needsMQ continues to provide the premier solution for rock-solid,for reliable, high-speed data delivery. WebSphere MQ Lowassured, time-independent message delivery, the addition ofLatency Messaging is also embedded in WebSphereWebSphere MQ Low Latency Messaging to the WebSphereFront Office.messaging portfolio augments this comprehensive suite oftransport protocols to address an increasingly broad rangeBased on technology developed at the IBM Haifa Researchof quality of service (QoS) requirements.Lab, WebSphere MQ Low Latency Messaging achieves itsbreakthrough speed by packetizing data efficiently andIBM WebSphere MQ Low Latency Messaging delivers:exploiting Internet Protocol (IP) multicast infrastructure in adaemonless fashion to eliminate network connections. Very high messaging throughput with low latencyWebSphere MQ Low Latency Messaging provides a multicast One-to-many multicast messagingtransport for high-speed, one-to-many communications using Point-to-point unicast messagingUDP with receiver feedback. Although typical multicast Support for Support for User Datagram Protocol (UDP)implementations offer only best-effort, unreliable messageand Transmission Control Protocol (TCP)delivery, the addition of delivery options for receiver feedback Positive or negative message acknowledgementenables business-based tradeoffs of speed over reliability or Stream failover for high availabilityreliability over speed. Flexible, fine-grained message filtering Traffic rate and congestion control Robust monitoring of application and network statistics,including internal and external latency Support for Linux, Windows and Solaris platforms

WebSphere MQ Low Latency Messaging offers two transportsWebSphere MQ Low Latency Messaging supports highlyin addition to reliable multicast. The first alternative is aavailable message transmission. All transports enablelightweight, point-to-point UDP transport with either positive-high- availability distribution by implementing a number ofor negative-feedback reliability and traffic control featuresstream failover policies that allow seamless migration ofsimilar to the multicast offering. With positive acknowledgment,message transmission from failed to backup processes.all packets are acknowledged, whereas negativeThe unicast transport enables connection retry and resendacknowledgment provides feedback only if a packet is lost.as necessary, and heartbeat signals to verify that theThe second alternative offers reliable, point-to-point, unicastconnection is kept alive.messaging over TCP/IP, in which reliability and traffic controlare primarily handled by the TCP protocol. These alternativesWebSphere MQ Low Latency Messaging also offers aprovide the ability to deliver a stream of data across a widerange of message-filtering options, including coarse-grained,area network (WAN) or through a firewall.topic-based and fine-grained filtering. This flexibility allows theapplication to control the amount of data that is delivered toStandard multicast transports do not offer congestion-controleach application to make the most efficient use of networkor failover capabilities, resulting in competition betweenbandwidth and processing resources.receivers and between streams with subsequent delaysand data loss. WebSphere MQ Low Latency Messaging addsInfiniBand is a next-generation interconnect standard thattraffic-control features on top of the multicast layer for bothoffers high transmission rates and scalability. WebSphere MQmulticast and unicast transports. Both multicast and unicastLow Latency Messaging delivers support for InfiniBand overtransports include methods to monitor traffic (includingIP to enable higher throughput with even lower latency,transmission rate, losses and retransmissions, and latency) toreduced latency variability and low central processing unitnotify the application of network-congestion problems and to(CPU) consumptionmanage these detected problems by handling slow receiversor regulating the transmission rate.“The performance and interoperability of WebSphere MQ Low Latency Messaging will giveour clients even more open access to Reuters systems at greater speed than ever. For thefirst time, developers will be able to build new applications using IBM messaging software toaccess content from [Reuters Market Data System] RMDS and to distribute it into other partsof their organizations. This is another example of our key aim to put customers first, and welook forward to working more closely with IBM as it introduces further enhancements to thesuite of IBM WebSphere Software products.”—Peter Moss,Global Head of Enterprise Solutions,Reuters

Dataaggregatorsand s, pricing,trade and ordermanagementPre- and posttrade complianceCounterpartyconfirmationsWebSphere MQ Low Latency MessagingInternal andreference dataPositions nsPaymentsWebSphere MQMarket and creditrisk analyticsFront officeAccounting andgeneral ledgerPositions andportfoliosMiddle officeBack officeInternalFigure 1. Low-latency messaging and WebSphere MQ in the trade processApplications of WebSphere MQ Low Latency MessagingWebSphere MQ Low Latency Messaging can help addressWith the rapid growth of algorithmic and model-driven tradingthese common issues:and direct market access, financial services firms requiresuperior messaging infrastructures to manage the massive·Increasing market-data volumes: Fragmented orders and higherexplosion of data to remain competitive. “Firms are turning tomessage traffic due to growth in electronic exchanges, high-electronic trading, in part because a 1-millisecond advantagefrequency trading strategies and longer trading hoursin trading applications can be worth millions of dollars a year·to a major brokerage firm.”1high volume and throughput requirements·As shown in Figure 1, WebSphere MQ Low Latencyfor example REG NMS and MiFID·of the following types of information:Excessive message latency: Caused when daemon-basedmessaging solutions insert excessive network connections· Market data from exchanges to market-data consumersIncreasing regulatory requirements: Determination required ofbest price for all client orders, with execution against that price,Messaging can be used almost anywhere within themarket-data and trading life cycle. This can include deliveryPressure on existing messaging solutions: Inability to handleDropped messages and network storms: When high volumes ofmessages interfere with one another Market and reference data within the enterprise to analytic ortrading applications Trade data — such as positions, orders and confirmations — todirect market access and other trading applications Event notifications for systems monitoring, risk analytics andcompliance applicationsWebSphere MQ Low Latency Messaging can extend theadvantages already available within WebSphere Front Officefor the transport of market data to a broad range of messagesfor the middle and back offices of financial markets, andto other industries with similar needs. Potential futureapplications of WebSphere MQ Low Latency Messagingcould include transportation, chemical and petroleum processing defense, multimedia and other industries that requirehigh-volume, low-latency, reliable message delivery.

Performance tests conducted in IBM’s Haifa ResearchThe following results were achieved:Lab demonstrate the outstanding performance and latencythat can be achieved with WebSphere MQ Low Latency About one million 120-byte messages per second on EthernetMessaging.2 The test environment included these components: Close to three million 120-byte messages per second onInfiniBand Two IBM BladeCenter HS21 servers with two Intel Xeon More than 8 million smaller messages per second, all on common 5130 2 GHz CPUs and 4 GB RAM running Linux RH4 Update 4x86 servers on Ethernet Very low latency of 30 microseconds for 120-byte messages(x86-64, 64-bit instruction set) Gigabit Ethernet network, including one Cisco switch for IBMBladeCenter H and two internal IBM BladeCenter GigabitEthernet expansion cards Voltaire InfiniBand network, including one Voltaire ISR9096 switch, Version 4.0.0; two InfiniBand x4 HCA cards(PCI-Express x8); three Voltaire GridStack, Version 4.3.0 4 e2;and four InfiniBand multicast libraries by Voltaire, called MCE,Version 207ThroughputNetworkMessage size [bytes]InfiniBand (MCE)Ethernet (1 Gbps)msgs/secMbpsmsgs/secMbps128 250 0007748 360 000784457 080 00024902 500 0008881202 900 0002730970 0009121200270 000254099 00092812 00026 00024309850923120 00029402750987926Table 1. Throughput3Gbps gigabits per secondMbps megabits per secondSingle-hop latency (microseconds)NetworkInfiniBand (MCE)Ethernet (1 Gbps)Messagesize 971961206193171100080253Table 2. Average single-hop latency Transmission rate (msgs/sec)147

New messaging quality of serviceWebSphere MQ Low Latency Messaging is designed toprovide the qualities of service that financial services need,as shown in Table 3.WebSphere MQ familyIBM WebSphere MQ products serve as the backbone formessaging throughout the entire enterprise, both internallyand externally. The comprehensive suite of transport protocoland QoS options combined with extensive support andindividual computing platforms and runtime environmentsprovide the underpinning for an enterprise service bus (ESB)architecture and speedy adoption of a service orientedarchitecture (SOA).For more informationTo learn more about how IBM WebSphere MQ Low LatencyMessaging, Version 2.0 can help you optimize yourinvestments and reach your business and IT goals, contactyour IBM representative or IBM Business Partner, or e MQWebSphere MQ Low Latency MessagingSpeed QoSTime-independent, “as-soon-as-possible” deliveryUltra-fast delivery in microsecondsReliability QoSUltra-reliable, “bet the business” deliveryReliable, “know-when-you-lose-data” deliveryTarget marketEnterprise messagingLow-latency messagingTarget industriesAllFinancial markets and others with similarQoS needsQueuingYesNoAPIsJMS, XMS and MQIUnique, including its own set of APIs optimizedfor low-latency message deliveryPlatform coverage80 platformsLinux and Microsoft Windows on x86Table 3. Comparison of IBM messaging transports