FusionCube for Shanghai-Hong Kong Stock Program
By Wang Feng, FusionCube PDT Leader, Huawei IT Product Line
On April 10, 2014, the China Securities Regulatory Commission (CSRC) and the Securities & Futures Commission (SFC) of Hong Kong jointly approved the Shanghai-Hong Kong Stock Connect program, to allow investors to freely trade stocks from each other’s exchange. This cross-market connection is a milestone in history for China’s financial development, and marks a giant leap for boosting the Chinese Renminbi (RMB) in international currency markets.
Prior to this cross-market connection, RMB capital was being amassed outside China where, by the end of May 2014, deposits in Hong Kong had reached an equivalent total of HKD 955.8 billion — of which HKD 158.4 billion was sourced from current deposits and HKD 797.3 billion from fixed-time deposits. For all of 2013, total RMB deposits in Hong Kong stood at only HKD 860.5 billion, which means that RMB deposits had increased by HKD 95.3 billion within a short five-month period.
Consequently, enormous transactions in the financial capital markets are occurring. However, these enormous transactions present challenges to the IT systems that handle securities trading services. The IT systems must be able to support large numbers of concurrent trading services, smoothly, in real-time, and with zero faults.
On May 16, 2014, Huawei and Infocast marked a new level of collaborative success with the joint launch of the “Gemini” securities trading platform.
Improved Trading Speed and Efficiency
The Gemini system architecture uses two communication links: The downlink connects directly to the Hong Kong exchanges (HKEx), while the uplink connects to the Infocast data center over an express line leased from PCCW Ltd. and then extended to the HKEx. On the operations layer, the “Gemini” platform provides two operational modes for more than 300 securities traders: One mode allows traders to access easy-to-use services, and the second mode allows traders to quickly place orders. The system is designed to keep pace with the many requirements imposed by the Chinese mainland and Hong Kong trading authorities.
According to Su Yongjian, Director of the Infocast Gemini service department, the Gemini platform employs application layer information optimization technologies to ensure trading speed and efficiency. At the facilities level, the Gemini platform employs Huawei’s FusionCube, ultra-low latency flash-memory technology and dual-layer architecture to deliver efficient and stable operations. The FusionCube/Gemini platform improves the processing capability of the HKEx Business Support System (BSS) for single customers to 1,000 orders per second, which is twice the second highest level in the industry. In addition, Gemini can connect to more than 10 BSSs concurrently to process up to 10,000 orders per second. The processing latency of each trade has been reduced by 90 percent — to within 20 ms — versus the 200 ms HKEx reference standard.
Establishing a Stable Infrastructure
FusionCube supports on-demand resource allocation and scale-out, helping eliminate I/O bottlenecks that occur on traditional, hardware-separated IT architectures. Based on a distributed architecture, with integrated computing, storage, and networking, FusionCube consolidates Intelligent Network Interface Cards (iNICs), Solid-State Drives (SSDs), and InfiniBand switch modules in its subrack. FusionCube ships with a pre-installed distributed storage engine, virtualization platform, and cloud management platform.
Supporting enterprise applications, database software, and featuring various automatic service-processing mechanisms, FusionCube users are presented with a simplified one-stop platform that reduces the service rollout cycle from weeks to days.
FusionCube met the needs of the Shanghai-Hong Kong Stock Connect program and the Gemini software system by optimizing system throughput and reducing latency for handling securities trades and placing orders quickly.
“The Huawei FusionCube platform is resolving the massive daily demand for IT resources within the Hong Kong financial industry,” says He Yongsi, Chairwoman, Infocast. “It consolidates physical space and resources, reduces human resource costs, and has dramatically improved work efficiency. Because of FusionCube, we see a promising future in both Hong Kong and Chinese mainland markets.”
According to Ren Zhipeng, President, Huawei IT Cloud Computing Division, “We have collaborated with Infocast to develop the ‘Gemini’ system as an outgrowth of our customer-centric philosophy to deliver state-of-the-art solutions that solve realworld problems.”
Voice of the Customer
“The Huawei FusionCube platform is resolving the massive daily demand for IT resources within the Hong Kong financial industry. It consolidates physical space and resources, reduces human resource costs, and has dramatically improved work efficiency. Because of FusionCube, we see a promising future in both Hong Kong and Chinese mainland markets.”
– He Yongsi, Chairwoman, Infocast