ClearNet:%20Centralized%20Control%20in%20a%20Decentralized%20Architecture%20for%20Online%20Financial%20Services

1
ClearNet Centralized Control in a Decentralized
Architecture for Online Financial Services

• Nasser Barghouti
• ONEWORLD Software Solutions
• San Diego, CA

2
ClearNet

• Infrastructure for online financial applications
  at Bear Stearns Co.
• Heterogeneous platforms (NT, Sun Solaris, IBM
  AS400, IBM mainframe).
• High level of security.
• Replicated infrastructure for disaster recovery
  and load balancing.

3
ClearNet Applications

• Suite of 30 applications.
• Portfolio management.
• Online order entry.
• Broker applications.
• Online statements and account management.
• Securities research.

4
ClearNet History

• Mainframe applicationsdirect connectivity
  between clients (brokerages) and Bear Stearns
  Clearance organization.
• Client-Server applications replaced mainframe
  apps in late eighties.
• Browser-based applications replaced client-server
  ones starting in 1997.
• HTML (thin) and Java (thick) clients.

5
Logical Architecture
Java applet
Presentation layer
C
servlets
ASP/COM
Business logic layer
Stored procs
Gateway objects
Semi-permanent data layer
Tables
Mainframe regions
Market data feeds
Permanent data layer
6
Physical Architecture of ClearNet
Tier 2
Tier 3
Tier 4
Tier 1
Internet
Private access
7
What is Centralized?

• Centralized authentication single sign-on,
  unified entitlements system, re-usable software
  components/interfaces.
• Centralized market data feeds.
• Centralized billing.
• Centralized connectivity to legacy systems (books
  records trade settlement).
• Centralized mainframe operations organization.

8
What is Decentralized?

• Decentralized application development.
• Decentralized testing.
• Decentralized application execution.
• Decentralized data access and manipulation.
• Decentralized software distribution model.
• Decentralized business decision making.
• Decentralized profit centers.

9
Tensions

• Centralized control over data vs. decentralized
  access/manipulation by various applications.
• Diverging business needs vs. centralized
  infrastructure (CIO vs. Business leadership).
• Centralized security monitoring vs. flexible,
  decentralized access.
• Disaster recovery centralized control for a
  decentralized infrastructure.

10
Examples of tension (I)

• Application X has a need to add a field to the
  centralized mainframe database but is unable to
  effect the changedeveloper decides to keep data
  in an alternative database (diverge).
• Need to synchronize alternate database with
  mainframe database (nightly batch job)soon BIG
  MESS.

11
Examples of tension (II)

• Application Y needs a specific authentication
  structure that is not provided by centralized
  single sign on system.
• Developer of centralized single sign on system
  codes additional features and produces a
  specialized build for App Y.
• Centralized SSO system must support standard plus
  specialized feature.
• SUPPORT HEADACHEMultiple streams.

12
Examples of tension (III)

• Company has a centralized Market Data
  infrastructure.
• Application Z needs market feed from Thailand
  market, which is not yet supported by centralized
  system
• Developer contracts with another market data feed
  to get needed data.
• Company pays for and supports competing
  infrastructures...

13
Examples of tension (IV)

• Disaster recovery setup in geographically
  distributed locations.
• Persistence of online customer information.
• Data replication and manipulation.
• Transaction management (online order entry
  online trade entry).

14
Conclusions

• Cannot resolve many of the tensions without
  restructuring organization.
• Transition from centralized to decentralized may
  not be worth itreplace the whole thing (spin
  off?)
• Transition cannot be done with the software
  development organization that produced the
  centralized solution.

15
ONEWORLD Software Solutions

• Global company software lifecycle support
  (definition to deployment)
• Partner with software product companies (e.g.,
  IBM, HP, Cisco, Endeavors Technology) to help
  them meet time-to-market and increase capacity.
• 300 people in 5 centers (SV, SoCal, Boston,
  Beijing, Amman)
• www.oneworldsoftware.com