Differences between Financial and Telecom Network Environment. Kamatchi Gopalakrishnan Distinguished Engineer

Transcription

1 Differences between Financial and Telecom Network Environment Kamatchi Gopalakrishnan Distinguished Engineer

2 Agenda Network Time-sync Telecom versus Financial Network Time-sync Profile comparison Summary

3 1 Time-sync basics and requirements

4 Synchronization overview Frequency Synchronization Phase Synchronization Time Synchronization 01:00:00 01:00:10 A T A =1/f A A T A =1/f A A t B T B =1/f B B T B =1/f B B f A =f B t f A =f B f A =f B 01:00:00 01:00:10 Aligning clocks with respect to frequency Aligning clocks with respect to phase Aligning clocks with respect to time. FDD application TDD application FSI application

5 Synchronization methods and options GNSS (GPS, GLONAS, Galileo, BeiDou) - Jamming, Spoofing, RF factors - Expensive - Line of site issue NTP - Good for milliseconds - Not good for high precision SONET/SDH, Sync-E - Not for phase or time sync - Every node must support PTP - High precision Phase, Frequency and Time

6 Telecom versus FSI network timing requirements Telecom network Frequency and/or phase sync UTC traceability not a must. Arbitrary time source is acceptable Ranges from 100nsec to order of microseconds depends on MBH applications Operational requirements FSI network Time of day (ToD) sync UTC traceability is must (ESMA) or NIST traceability in US (SEC) Must be less than 100usec from UTC (ESMA) Regulatory requirements

7 2 Timing in Telecom versus Financial network

8 Telecom versus FSI network model comparison Telecom network model Multiple administrative domain Network services and transports not in control of single admin No direct leverage to upgrade network segments Downtime causes financial impact Timing is operational requirement FSI network model (Mostly) Single or few cases multiple administrative domain Controlled network services and transports Leverage to upgrade/modify network segment Downtime causes both financial and regulatory impact Timing is a regulatory requirement

9 Telecom Multi Operator network Operator-3 Operator-2 Operator-1 GNSS Access Network Backhaul Network Mobile Core Network Core GM End to End 1.5 microsecond

10 Mobile Phone roaming between cell-sites BS1 BS2 BS2 drifts outside 50ppb window BS2 BS1 +/-50 ppb Mobile cannot lock to BS2, call dropped +/-50 ppb

11 Phase (TDD) and Frequency (FDD) sync Frequency Division Duplex Cell tower Send to handset at frequency F 1 Handset Send to tower at frequency F 2 Cell tower Time: 12:00.01 Send to handset at frequency F 1 Time Division Duplex Handset Time: 12:00.05 Send to tower at frequency F 1 F 1 F 2 Tower Handset Time Requires: accurate frequency F 1 Tower Hand Tower Hand Tower Time Requires: accurate frequency & phase

12 Mobile application phase sync requirements (Frequency : 16 ppb/ 50 ppb) Application CDMA2000 LTE-TDD LTE MBMS (LTE-FDD and LTE-TDD) LTE-A CoMP LTE-A eicic E911 and Locating services Small cells Phase +/-3 us to +/- 10 us +/- 1.5 us (< 3KM cell radius) +/- 5 us (> 3KM cell radius) +/- 10 us +/- 0.5 us to +/- 1.5 us +/- 1.5 us to 5 us +/- 0.1 us +/- 3 us (1 to 5 us) with 100 to 250 ppb

13 Financial Network Single Operator Domain 10 / 100 thousand servers. Boundary Clocks to serve group of servers EXCHANGE MARKET DATA FEED EXCHANGE CUSTOMERS HFT SERVERS BACK END COMPUTE CLUSTER Compute Cluster Interconnect MONITORING APPLICATIONS

14 Synchronization flow model Gateway routers Leaf Switches Spine Switches

15 Time Legality How do you prove that something happened before (or after) a certain time? How do you correlate events across a large/global network?

16 Time-sync requirements in FSI (MiFID-2/ESMA) RTS 25 of Regulatory and Implementing standards annex 1 Adopted regulatory requirements Reference Time UTC traceable Compliance with maximum divergence requirements Level of accuracy for operator of trading venue Gateway-to-Gateway latency Maximum divergence from UTC Time stamp Granularity > 1 millisecond 1 millisecond 1 millisecond or better =< 1 millisecond 100 microseconds 1 microsecond or better

17 Telecom Financial/Ente rprise 3 Profile comparison

18 What are profiles? Timing profiles are subset of requirements derived from IEEE1588 specification. Targeted for particular application to achieve required synchronization goals in most reliable and interoperable way. Different Timing profiles: Telecom profile Mobile Backhaul applications Enterprise profile Enterprise/DC and financial application 802.1AS/AVB profile Audio/Video in bridged network SMPTE profile IP based video broadcasting network

19 Telecom versus Enterprise profile Telecom Profile PTP over Ethernet Multicast Sync-E + PTP combined mode Phase accuracy in microseconds Fixed PTP packet rates Alternate Best Master Clock Algorithm (ABMCA) No Unicast Negotiation Enterprise Profile PTP over IPv4 or IPv6 Multicast Plain PTP mode Time of day (less than 100us UTC) Configurable packet rates 1588 default Best Master Clock Algorithm Unicast negotiation allowed

20 4 Summary

21 Summary - Precision Timing Challenges Packet Delay Variation Scaling - Number of PTP clients support Number of hops between GM and End Slave nodes Precision Performance Monitoring Overlay versus Inline synchronization flow

22 Thank you

23 Backup slides

24 Case1 - Accuracy in Hi-FREQ algorithmic trading Trade Execution Servers Market Data Creation Servers Market Feed Generator Servers T1 Trade Execution T2 Timestamp Market Data Creation T3 Timestamp Market Feed Timestamp With NTP precision, often T3 < T2 < T1 ie, market data is sent before it is created and even When The trade market a trade execution data feed creation executes, generator reaches data the before the trade has been a is sent timestamp The servers customers the market market generate timestamp algorithmic data is generated data is a timestamp sent the creation feed servers to the settled! Algorithms are confused by the trade servers when feed which with generator the new market servers data is execution they three send timestamps leading to lost business server out and created embedded angry customers for the exchange T3 Market Feed Timestamp T2 Market Data T1 Trade Data With PTP, exchanges can achieve better precision (1 us or less) that will let them fix this problem Algorithmic Trading Servers Trading Algorithmic Servers Trading Servers

25 Case-2: End To End Latency Analysis Market data feed BGP/OSPF IP Multicast In HFT, latency is king Different latency components PTP based timing to correlate measurements across nodes HFT servers HFT servers

26 Case 3: logging for regulatory reasons Customer Trade Requests Market data feed BGP/OSPF IP Multicast X Trade Buy With request NTP is executed precision, arrives ( filled ) from it might Customer by be server that Y A for T3 at IBM time < T1 options T2 < T2, log so at this A T1, record server is how C the sent timestamped log to looks logging like server when with T3, read record after sent the fact: to the logging server T1 T2 Customer T3 X Customer Buy Fill IBM Buy A B C HFT Algorithmic Trading Servers Logging Server Raises regulatory concerns around fair trading Precise timing provided by 1588 is needed to achieve accuracy in logging operations to alleviate regulatory problems

27 MiFID-2/ MiFIR and ESMA MiFID Markets in Financial Instrument Directive MiFIR Markets in Financial Instrument Regulation ESMA European Security Market Authority Regulatory Technical Standard (RTS) Implementing Technical Standard (ITS) Imposes: Fairer, safer and more efficient markets Greater transparency Stronger investor Protection