This presentation demonstrates how the combination of Push Technologies 'Diffusion' and GemStone's 'GemFire' can reduce the cost of latency.

1. The true cost of latency Christian James Product Manager Push Technology Ltd Mike Stolz VP of Architecture GemStone Systems Inc.

3. Latency is everywhere What is latency?

7. In the context of an ‘e-trade’ Hardware And Software T0 = Price Generation T1 = Spread T2 = Distribution T0 = Price Generation T1 = Spread T2 = Distribution T6 = Hedge? T1 = Spread T2 = Distribution T1 = Spread T5 = Calculate bank’s position T4 = Book trade T3 = Pre-trade credit check T2 = Distribution T1 = Spread T6 = Hedge? T2 = Distribution T1 = Spread T5 = Calculate bank’s position T6 = Hedge? T2 = Distribution T1 = Spread T4 = Book trade T5 = Calculate bank’s position T6 = Hedge? T2 = Distribution T1 = Spread T3 = Pre-trade credit check T4 = Book trade T5 = Calculate bank’s position T6 = Hedge? T2 = Distribution T1 = Spread Transmission Propagation Service End-user processing

10. In the context of an ‘e-trade’ Difference in price at T0 and T6 X Amount traded is the Cost of Connectivity (COC) – or Cost of Latency T3 = Pre-trade credit check T4 = Book trade T5 = Calculate bank’s position T6 = Hedge? T2 = Distribution T0 = Price Generation T1 = Spread End-user processing

11. Every pip difference between T0-T6 reduces your profit £10,000,000 @ 1.6489 T0, make a price of 1.6489/1.6490 T6, hedge the trade, market price now 1.6484/1.6485 £10,000,000 @ 1.6485 Negative P&L of £4,000 versus Positive P&L of £1,000 Doesn’t sound a lot until you consider the trillions traded in a day and the speed that prices can be changing (8+ times a second)

12. “ Latency Exists, Cope!” (Dan Pritchett) Combating it, and its hidden barriers Hardware or software?

13. Moore’s law makes hardware seem like the logical option?

14. The same can’t be said for corresponding speed gains, they are slowing CPU Clock Speed, Moore’s law still exists (for how long) but for different reasons – plus Memory/RAM Wall broken Ram Speed (limited to distance from CPU) Desk I/O PS Network Speed of light Speed Date

18. How we tackle it Get smarter with less "Hardware can give you a generic 20 percent improvement in performance, but there is only so far you can go with hardware. “ Rob Wallos, global head of market data Citi

19. In the context of an ‘e-trade’ Transmission Propagation Service T3 = Pre-trade credit check T4 = Book trade T5 = Calculate bank’s position T6 = Hedge? T2 = Distribution T0 = Price Generation T1 = Spread End-user processing

21. Connecting your clients in the most latent efficient manner Load Balancer Diffusion Internet Message Broker Application Layer Load Balancer Europe Asia Diffusion Internet Message Broker Diffusion Internet Message Broker Application Layer Diffusion Internet Message Broker DB GemFire DB GemFire

27. Hierarchical topics, in context of FX