EXTENT-2016: Software Testing & Trading Technology Trends 22 June, 2016, 10 Paternoster Square, London Trading Technology Trends and Innovation Neeraj Kulshrestha, Chief Business Operations, BSE Ltd Would like to know more? Visit our website: extentconf.com Follow us: https://www.linkedin.com/company/exactpro-systems-llc?trk=biz-companies-cym https://twitter.com/exactpro #extent2016 #exactpro

1. Neeraj Kulshrestha
Chief Business
Operations
BSE Ltd
Trading
Technology Trends
and Innovation

2. 2
Technology trends and Innovation
NEERAJ KULSHRESTHA

3. 3
Other Investments
BSE GROUP
Exchange
BSE
100%
Equities/SLB
 Equity Derivatives
 Currency Derivatives
 Interest Rate Derivatives
Mutual Funds/ETFs
SME / ITP
Corporate Debt
Listing
Data
 OFS
 FII Auctions
 G-sec
CDSLICCL
CCP CDP
54.2%100%
Clearing
Settlement
Risk Management
Depository
Record Keeping
CVL
CIRL - Insurance
BSE Investments Ltd.
100%
Strategic Investments
SERVICES
50%100% 100%
Market Place
Technologies
IT Service
MT Tech
Infrastructure
BSE Institute
Training
Certification
 BFSI
 BSE SL
Asia Index
Pvt. Ltd.
 50% JV with
SPDJI
Index Business
BSE
Sammaan
CSR Limited
CSR Activities
100%
BSE CSR
Integrated
Foundation
CSR Activities
75%
3
4.99%
CSE
16.66%
NPEX
BSE Group – a complete Securities ecosystem

4. 4
BSE – some technology milestones
•Fastest trading technology with 6 micro response
time
•Trading platform – Deutsche Borse T7 platform
customised for Equity
•Provides Colocation and HFT
•PTP synchronisation – Meinberg
•500 K OPS
•Network Latency 10 micros

5. 5
Key trends in Trading Technology
Social Media Mobile Apps Ultra HFT
Hardware
efficiency
Connectivity Cloud AI Big Data
Infrastructure
consolidation
E commerce DLT
Cyber
security

6. 6
Technology trends
Social media for trading and analysis
• People spend more time on social media
• Integration of Social media with trading applications to accept orders, trade and Post
trade
Mobile based rich apps
• Mobile apps are already available for trading systems.
• Richer applications to utilize the powerful CPU's and huge RAM's
• Mobile applications will substitute desktops
FPGA based HFT's and FPGA based exchanges
• Superior and cost effective technologies used in Defense sector
• BSE order confirmation time of 6 microseconds is the fastest in the world - move to nano
seconds
• Limitations to application based performance improvement
• Extract performance developing code for hardware- FPGA's
• FPGA - Offer flexibility of software and performance of hardware,

7. 7
Technology trends
100G connectivity
• 100 G will offer unprecedented speed of communications
• Will help provide latencies in nanoseconds / sub nanoseconds
• Faster inter-process communications
• Superior technologies like Infiniband will significantly reduce
IPC
Cloud based exchanges
• Scalability and extensibility with optimum use of infrastructure.
• Private clouds to optimally utilize the bare metal infrastructure.
• "Cloudification" of hardware goes a long way in scaling
horizontally.
Data and Cyber Security

8. 8
Technology trends
Infrastructure consolidation
• “One-box exchange" model
• Using shared memory communications, wires are completely eliminated. With
efficient use of NUMA and CPU sets, the processes are distributed over different
cores and memory pools
Big Data and Analytics
• Consolidation of data across multiple platforms bringing efficiency and lower cost of
ownership
• Data Driven Enterprise - ability to analyse and act on information in near real time.
• Real time surveillance and fraud detection models for Risk mitigation
E-Commerce
• Competitors of Exchanges
• Indian regulators allow purchase of mutual funds through e commerce platforms

9. 9
Technology trends
DLT
• Technology under assessment
• 5-10 year timeframe
AI
• Machine learning

10. 10
BSE IT in 2009
Trader
BOLT / DTSS
 EQ Trading
 F&O Trading
 RMS & Collateral (EQ)
COSS (CLS) - EQ
Sybase
β3
ER
BOSS-i Datafeed
Central Data
Warehouse
DRS
Reuters
Bloomberg
BSE Website
Clearing House System
(CHS)
Banking
System
IDB
Non-trading related
back-office operations
CMS
IMOPS
TWS 1
Online
Collateral
EQ Masters,
System
Parameters
Orders,
Inquiry,
Broadcast
Online EQ /F&O
Trade info &
Market Picture
Online
EQ/F&O
Order info
Trade info
Market Picture
Online EQ/F&O
Market Picture EOD FQ/F&O
Order & Trade
info & Market
Picture
EOD EQ
Trade info
EOD F&O
Trade info
EQ Security
ObligationsF&O Security
Obligations
EQ Funds
Obligations
F&O Funds
Obligations
Online Trades
I
M
L
Internet
DLOAD
DUS
Extranet
FOW
COSS (CLS) - EQ
Banking
System

11. 11
Transformation
•Complete revamp of trading system
•Distributed Architecture for Vertical and Horizontal scalability
•Brought down round trip latency from 40 millisecond to less
than 200 micros
Core Trading System
•Separated supporting functions from the trading system
•Independent systems having real time integration with the
trading system. 50 + applications
Supporting Functions
•Migration of Unix Based system to Windows and Linux Based
•Migration and Consolidation of multiple Oracle and Sybase based
databases to SQL Database
Technology Migrations
•Complete underlying network changed to the state-of-art
technology to handle high speed, scale and throughputNetwork Revamp
•Hadoop Cluster using Open Source Big Data technologies
•Built up capacity of 320 TB
•Migrated all MIS reporting and analytics to this framework
Data Warehouse
•PR of all application at P.J.Towers; real time DR
•Near site Data Backup and resiliency
•Automation of switchover
Site Consolidation

12. 12
BSE IT in 2016

13. 13
BSE Testing philosophy
Robust testing
Faster time to market
Standard testing across applications
Ensure all stakeholder participation

14. 14
Testing process
4 tier testing
• Development
• User Application Testing
• Quality Assurance
• Marketwide Mock
Testing environments
• Development
• UAT
• Simulation – available to members 24x7 for testing patches
• Internal Lab – for internal system and application testing and
tuning
• Algo Test Lab on cloud – members can test algo strategies

15. 15
Testing process
Testing tools
• Load simulator
• Automated testing
Type of testing
• Black-box testing (functional)
• Regression testing
• Sanity testing
• Negative testing
• GUI testing

16. 16
Testing approach
Development team
• Design document/ Implementation approach shared with UAT and QA teams
• Knowledge transfer session conducted for UAT and QA teams
UAT and QA teams
• Preparation of test plans, test scenarios, test cases
• Observations/Defects reported in Reporting system Redmine
• Review discussions of reported observations/defects with Dev team
• Re-testing of observations once fixed by development team
• Sign-off by both teams after completion of testing
• One round of testing conducted in the production environment during mock trading
session

17. 17
QA Testing approach
• Agile methodology - reduces the testing and release to the market time
• Test complete system v/s only the functions
• Automated testing for the applications to do regression testing which
ensures complete coverage (Qualitia Product with underlining tool QTP and
Selenium)
• Release Management tool like SVN ensures the correct code is migrated to
the production setup

18. 18
THANK YOU