Thomson Low Latency-metadata Presentation

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Accelerating Delivery of Low-Latency Information A Wall Street & Technology Editorial Perspectives TechWebCast Sponsored by Solace Systems Tuesday, April 8, 2008 9:00 am PT / 12:00 pm ET

Our Distinguished Panel • Greg MacSweeney, Editor-in-Chief, Wall Street & Technology Magazine • Ian Koenig, Chief Architect, Thomson Financial • Larry Neumann, SVP Marketing, Solace Systems

Volume + Low Latency + Analysis Faster Response Message volumes are exploding Reduced Latency Digest data faster More Real-Time Analysis Evaluate data instantly DATAMONITOR

How Low Can You Go? No, Seriously, How Fast?

Faster is better, but how fast do you need? Full Throttle Ahead

Will the industry reach the limit of speed? Competitive Differentiator Where can firms win in the future?

Throwing a Wrench Into The Works The Next Type of Data

Adding news and other information Making Sense of It All

Analyzing news in real time Pushing the Limits How will existing systems handle the volume?

THOMSON FINANCIAL

Event-based Content Distribution – Accelerating Content Delivery April 2008

Ian Koenig Chief Architect – Thomson Financial

Agenda

1. “Quantitative” News as an event-based data source 2. The “fabric” for distributing content and its emerging capabilities for accelerating event-based stream processing 3. Enabling new types of data sources creating new ‘opportunities’ 4. Hinting at a larger pattern for distributing content and the role that complex event processing will play.

Copyright © Thomson Financial

Content Sources and Content Distribution

Content Sources

Content Streams

Content Distribution Fabric

Application Logic

Level1 Level 2

CEP Engine Event

r

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Event Event

Application Logic

he t O

Stream Adapters

News

Stream Agents

Why News?

….News Moves …. Quantitative NewsMarkets Moves Markets …

SEC will Allow Companies to use the Internet to Improve Investor-Management Communications NA From CFO.com August 16, 2007 According to SEC chairman Christopher Cox, the commission will allow companies to use the Internet to improve investor-management communications. As currently proposed by the commission, a company interested in offering this venue to shareholders would alert them via

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The Metaverse The Metadata Universe (or Metaverse) is the set of Categories (Entities and Subjects) that provide semantic understanding for text and data. Africa

Subsidiary of

Americas Asia

North America United States of America

Europe

Alabama Arkansas

Analyst For

Person (Multiple Roles)

Officer of

Mkt. Part. – Provides Quotes Issues

Instrument Security, Future, Derivative, et al

Event Corp. Action Meeting, et al

Index For

Index Financial Indexes

Has Quotes

Quote, Trade, IOI, Advertisement, Order

Indicator Economics, Market Stats

Industry

Gov’t, Agency, Company , NGO Market Participant

Oceana Equities Classification Standard

Debt Package Units

Markets

Organization

Listed (Market Participant)

Analyst For

Market (Equity, Commod FI, et al)

Geography

Industry Sector Hierarchy (Multiple Schemes)

Central America

Operates within

Indicator For

Is grouped by

Geography Regions, Countries, Physical Features

Futures Currency other

Copyright © Thomson Financial

GEOGRAPHY INDUSTRY MARKETS CURRENCY CORPORATE ACTIONS RESEARCH

ISO 3166 SIC + NAICS + TSE + GICS ISO 10962 ISO 4217 ISO 15022 RIXML

Categorization Mark-up Example Entity: Merck KGAA (MRK-US) - An Organization Entity of type: Company

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Categorization Mark-up Example Entity: Schering-Plough (SGP-US) – An Organization of type: Company

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Categorization Mark-up Example Entity: Pharmaceuticals - An Industry Entity

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Categorization Mark-up Example

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NewsML Mark-up example ... (C) 1997-2004 MarketWatch.com, Inc. All rights reserved. <provider qcode="org:TFN"/> 2001-12-17T09:30:47.0Z 2001-12-17T09:30:47.0Z ... <service qcode="NewsServiceId:NSID1"> News Service 1 3 1967-08-13 1967-08-13 Staffing company shares mixed after jobs report Ciara Linnane 12:21 PM ET Sep 3, 2004 <subject type="type:subject" qcode="CategoryId:1234567" creator="org:thomson"/> <subject type="type:subject" qcode="CategoryId:1234568" creator="sys:care" why="why:machine-generated" confidence="70" relevance="65"/> ... <subject type="type:organization" qcode="OrganizationId:0123456789"/> Staffing company shares mixed after jobs report

NEW YORK (CBS.MW) -- After rallying <span guid="xxxx">for the past few sessions, shares of staffing firms and payroll processors were mixed Friday as investors digested the August jobs report, showing U.S. payrolls rebounding after two sluggish months.

The Labor Department said the economy added 144,000 jobs, well above the 32,000 reading in July.

The unemployment rate fell one-tenth of a percentage point to 5.4 percent, the lowest rate since October 2001, primarily because 152,000 adults dropped out of the labor force.

Economists surveyed by CBS MarketWatch were expecting job growth of about 158,000, close to the 177,000 average for the first seven months of the year, and a jobless rate of 5.5 percent. href="http://cbs.marketwatch.com/news/economy/economic_calendar.asp?siteid=mktw">See Economic Calendar.



Document Level Mark-up (Categories only) <subject type="type:subject" qcode="CategoryId:1234567" creator="org:thomson"/> <subject type="type:subject" qcode="CategoryId:1234568" creator="sys:care" why="why:machine-generated" confidence="70" relevance="65"/>

In-line Markup (Categories + Facts)

The unemployment rate fell one-tenth of a percentage point to 5.4 percent, the lowest rate since October 2001, primarily because 152,000 adults dropped out of the labor force.

...

"We were encouraged to see the headline payroll number meet expectations after two months of disappointments," said SunTrust Robinson Humphrey analyst Tobey Sommer. The report, he said, "is likely to improve investor sentiment on employment-related stocks."

Manpower (MAN-US) shares led the gainers, rising 2.5 percent to $44.52. <

...

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Auto-categorization Technology • Much Financial, Legal and Medical information exists in the form of textual documents • Traditional “Editorial” processes to tag/index documents can now be augmented by algorithms that can achieve very high precision (~95%) against very large ontologies (10,000’s of terms) • Thomson employs a technology called CaRE (Categorization and Recommendations Engine) to do this, which originated in the Thomson Legal and Regulatory division. • CaRE uses a set of statistics-based algorithms that are trained to understand a specific ontology as a concept scheme.

Copyright © Thomson Financial

Structured News – Summary

In-line News vs. Document level Mark-up • Each News story is tagged at three levels. • Document Level: The overall story lists all the category metadata (Entities + Subjects + Genre + Sentiment) for the story. • In-line Entities: Each initial reference to an Entity is marked up “in-line” in the document for additional context. • In-line Facts: Specific Numeric Elements (e.g. US GDP or Thomson Q3 Revenue) are tagged using XML elements

The Value of Structured News • Entity tags (e.g. Company references) allow news to be linked and correlated to Market data streams by CEP engines, for example, to make trading decisions • Numeric Facts (when Elementized) are directly process-able by algorithms. • Sentiment tags (e.g. positive earnings or negative rating) and Subject tags provide semantic understanding of the news story

Copyright © Thomson Financial

Content Sources and Content Distribution

Content Sources

Content Streams

Content Distribution Fabric

Application Logic

Level1

he t O

r

CEP Engine Event

Copyright © Thomson Financial

Event Event

Application Logic

News

Stream Adapters

Level 2

Stream Agents

“X” Marks the spot Synchronization

Co nt en tN

et wo rk

Service Provider

Service Consumer

Copyright © Thomson Financial

Content-Aware Hardware Infrastructure Applications Applications Databases Content Network

Mobile Devices

Applications IP/MPLS Network Content Routing Blade

500, 000 routes

0.7ms transit for a 4K XML document

Content Transformation Blade

1000’s xforms / sec

Network Acceleration Blade

Assured Delivery Blade

>1MM msgs / sec

Active/active failover

Copyright © Thomson Financial

CONFIDENTIAL

New Streaming Content Sources

Content Sources Level1 Level 2 News

Content Streams

Content Distribution Fabric

Complex Event Processing Applications

(Intermediation, Initialization, Synchronization)

Research

Deals (M&A) Financials Estimates …

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CEP Engine Event

Event Event

Application Logic

Filings

Stream Adapters

Briefings

Stream Agents

Content Distribution Pattern Content Source(s) Content Distribution Fabric

Ingest Interface (Feeds + Authoring)

The Content Master

Metadata

(Intermediation, Initialization, Synchronization)

Data Interface (Content Distribution)

The Application Database

Canonical Data Model (in XML)

Service Interface Human Interface

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And if you Squint just a little tiny bit … Content Source(s) Ingest Interface (Ripping)

Content Master Database

Metadata

Data Interface (Content Distribution) Application Database

Service Interface Human Interface

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The World of Event-Oriented Content Content Sources Level1 Level 2 Orders

Content Streams

Content Distribution Fabric

Complex Event Processing Applications

(Intermediation, Initialization, Synchronization)

IOIs

CEP Engine Event

Event Event

Application Logic

Research

Stream Adapters

News

Stream Agents

Briefings Filings Deals (M&A) Financials Estimates And More

In in this new world, all content has the potential to change “transactionally”. We have lots of interesting new content streams for CEP aware applications and a Content distribution fabric that itself has event stream processing capabilities.

Copyright © Thomson Financial

THOMSON FINANCIAL

Event-based Content Distribution – Accelerating Content Delivery April 2008

Ian Koenig Chief Architect – Thomson Financial

Accelerating Content Delivery in Financial Services

Larry Neumann, SVP Marketing

Financial Services IT Challenges Performance

Market Data

Order Routing

SOA/EDA/CEP

Architectural

Operational

Inability to Change

Complexity

Costs

Scale/Redundancy CONFIDENTIAL

Specialists $$$

Power/Cooling

Infrastructure Consolidation Front Office

Content-Aware Network

Low Latency Market Data

IP Network

Algorithmic Systems CRM/Mobile Alerting ESB/Web Services Order Routing Trade Settlement

Complex Event Processing

Back Office CONFIDENTIAL

Database Synchronization

Market Data Fanout

Interbank Transactions

Global WAN

The Hardware Advantage Topic Routing Blade

Content Routing Blade

Content Assured Transformation Delivery Blade Blade

Network Acceleration Blade

Solace 3230 Content Router



 

Turnkey hardware middleware with 10x-100x performance advantage over software equivalent. Predictable performance & latency (with load). Wide range of infrastructure functionality in one box.

CONFIDENTIAL

Content Networking Benefits



Higher performance applications



Faster deployments



Predictable latency



Reduced complexity



Reduced capex and opex

CONFIDENTIAL

Example Use Cases

Larry Neumann, SVP Marketing

Market Data Distribution MD Distribution with Content-Aware Hardware

MD Distribution with Middleware Software

Market Data Feeds

Market Data Feeds

Distribution Servers

LAN

Content Distribution

LAN

WAN

o o o

Traders Customers Algorithmic Engines

Server reduction, better performance, simpler operations. CONFIDENTIAL

WAN

Event Monitoring Networks Software-Based Event Processing

Network-Based Event Processing

Decision Makers Security/Fraud Alerts

BPM Servers

CEP Engines App Servers

Messaging Servers

Dashboards BAM

Decision Makers Security/Fraud Alerts

Integration Engines

Millions of Events

33

Credit/Banking Transactions STP/Order Processing

BPM Servers

CEP Engines

Millions of Events

IT Operations Events

Customer Service

IT Operations Events

Credit/Banking Transactions STP/Order Processing

Higher-volume event processing, event processing offload, reduced operational costs, lower latency alerting.

CONFIDENTIAL

Dashboards BAM

Customer Service

Enterprise Service Bus ESB in ContentAware Hardware

ESB in Software Order Processing

News Feeds

News DBs Security

Analysis

Messaging

News Feed

Orders Transformations

Persistant Messaging Rules Engine

Lower latency, costs & simpler operations. CONFIDENTIAL

Order Processing

Back-Office Data Synchronization Network-Based Data Synchronization

Server-Based Data Synchronization

Applications Oracle

Oracle

Oracle

Sybase

Oracle SQL Server

Decoupled sources, reduced load on servers, efficient network use. CONFIDENTIAL

Summary 

Performance, costs and complexity are key issues.



Hardware offers performance and management advantages over software.



A single hardware infrastructure can do the job of many parallel software ones.



Shared application infrastructure lowers costs.

CONFIDENTIAL

Accelerating Content Deilvery in Financial Services

Larry Neumann, SVP Marketing

Q& A Please submit your questions now • Greg MacSweeney, Editor-in-Chief, Wall Street & Technology Magazine • Ian Koenig, Chief Architect, Thomson Financial • Larry Neumann, SVP Marketing, Solace Systems

Resources To view this event on-demand: http://www.wallstreetandtech.com/events/ondemand/ For more information please visit: www.solacesystems.com


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