Stock exchange NYSE Euronext is deploying a 100Gbps network from Ciena as part of its plans to improve bandwidth tenfold and reduce latency in financial transactions. It hopes the increase in speed and reduction in the time taken for transaction processing the network promises to provide will enable it to take more business...
The network will play a key role in NYSE Euronext's communications backbone - the Secure Financial Transaction Infrastructure (SFTI) network, which aims to give the exchange's customers' access to a variety of financial services.
Last year the NYSE replaced an Oracle IO relational database with a datawarehousing appliance from Netezza, allowing it to conduct rapid searches of 650Tbytes of data.
Andy Bach, senior vice-president for network communications at NYSE, said the new network will lower latency by 70 milliseconds. "This is a tremendous amount as our business is in high-frequency trades. Whoever has the faster execution engine will get more business. Reducing latency means more business for the NYSE."
The far reaching project has involved creatineg a 400,000 square foot datacentre in New Jersey connected to four hubs using optical fibre links. The links vary between 60km and 100km from the datacentre and use dense wave division multiplexing to split white light into its constituent colours, which are then used to transmit data. Each fibre can handle up to 100bps of bandwidth and the network can scale to up to 88 wavelengths transmitted simultaneously. Bach said that when the site launches at the end of the year, it will be using 800Gbps of bandwidth.
"It is critically important for NYSE Euronext in our dual role as an exchange operator and technology company to ensure a technology and operational infrastructure of the highest quality and integrity, and to provide the highest levels of speed and capacity, lowest latency and maximum flexibility," said Stanley Young, CEO of NYSE Technologies and co-global CIO of NYSE Euronext.
Bach and his team of network engineers have spent the past year defining an architecture and selecting a partner to jointly define, create and deploy a state-of-the-art network that would position NYSE Euronext at the forefront of ultra-low-latency executions and market data distribution, the exchange said.
Phase one of the project will go live in June, when Bach switches the first NYSE network over from the existing 10Gbps infrastructure onto the Ciena system.
Ciena's 100G technology will be a core infrastructure component to support the growing bandwidth demands of NYSE Euronext's state-of-the-art datacentres in New York and London. These facilities are expected to be operational in 2010 and are designed to serve as the company's operational hubs for more than one billion daily transactions comprising petabytes of information.
The network uses Ciena's CN 4200 RS FlexSelect Advanced multiplexor, which is capable of delivering a 100Gbps data stream over a single wavelength.