CMG India Annual Conference 2016

We Are Top ranked Globally NSE Today We Are Top ranked Globally 1st 2nd 1st INDEX OPTIONS STOCK FUTURES CURRENCY OPTIONS 94% NIFTY MARKET SHARE IN EQUITY FUTURES & OPTIONS LARGEST TRADED INDEX IN THE WORLD

Stock Exchange Schematic

Technology as a Differentiator Reliability at our core, Stimulating progress using technology Highly Scalable Custom Systems SCALABLE & FAULT TOLERANT ARCHITECTURE BUILT FOR PERFORMANCE & RELIABILITY 100% Availability NEVER LOST A TRADING DAY NO SETTLEMENT FAILURE 1,000,000+ Microseconds Billion+ PROCESSING CAPACITY FASTEST RESPONSE TIMES MESSAGES PER DAY

Pace of Change 1000x Increase Performance requirements Demanding performance requirements Performance requirements Performance requirements Throughputs in thousands Daily transactions in Millions 1000x Increase Throughputs in millions Daily transactions in Billions 1994-2001 2016 18-11-2018 NSE Internal

Mission Critical & Real-Time Our Systems Mission Critical & Real-Time Mission Critical Real-Time System whose failure can cause catastrophic consequences. System which has to respond to externally generated input within a finite and specified period.

Maintaining Excellence Our Challenges Maintaining Excellence Scalability Fast Response 100% Up-Time Zero Errors Quick Releases HIGH PERFORMANCE AVAILABILITY Response time in microseconds & Peak Throughputs in million messages/sec 100% Uptime RELIABILITY DYNAMIC CHANGE ENVIRONMENT Smooth functioning of markets with zero tolerance for any error/failure Critical functionality changes expected to be released in days/weeks

Consequences of Failure NASDAQ SGX LSE BATS Glitch delays announcement releases by 90 minutes Had to re-call it’s own IPO Paid $64 million for Facebook IPO glitch Technical glitch shuts down trading for entire day WE AVOID FAILURE AT ALL COST

Stock Exchange Trading in India Our Journey Stock Exchange Trading in India Before NSE Launch of NSE NSE Today Open Outcry system World’s first fully electronic exchange India’s Leading Exchange Accessible only to select few Nation wide reach Nation wide reach Throughput in hundreds Throughput in Millions Response time in seconds Response time in microseconds Messages per day in thousands Messages per day in Billions 1875 1994 2016

Our Performance Journey LEGACY SYSTEMS Mainframe server Single Machine architecture Tightly coupled architecture Closed technology Limited performance Complex to change Scalability is a concern Member connection Validations Order Matching Market Data Inquiries Send data to Interfaces ( Risk Management, Surveillance etc.)

Our Performance Journey LEGACY SYSTEMS SPLIT ARCHITECTURE RE-ENGINEERING Single Machine architecture Tightly coupled architecture Closed technology Limited performance Complex to change Scalability is a concern Divide and conquer paradigm Monolithic system divided into multiple sub systems High speed messaging infrastructure for communication On-demand scale Trading platforms reengineered completely Ground up application development Cutting edge technology Multiple projects executed in parallel Transparent roll out with no disruptions All variables changed at the same point of time !!! Without disrupting the Market …

Our Performance Journey EXTREME PERFORMANCE ENGINEERING LEGACY SYSTEMS SPLIT ARCHITECTURE RE-ENGINEERING Single Machine architecture Tightly coupled architecture Closed technology Limited performance Complex to change Scalability is a concern Divide and conquer paradigm Monolithic system divided into multiple sub systems High speed messaging infrastructure for communication On-demand scale Trading platforms reengineered completely Ground up application development Cutting edge technology Multiple projects executed in parallel Transparent roll out with no disruptions Performance engineering across all levels of the ecosystem Extensive performance testing to extract the maximum performance across all layers

Performance monitoring and analysis Accurate and precise measurements is the cornerstone for performance engineering Understanding system bottlenecks is half the battle Performance results in Test and Production environments can be very different Pro-active performance monitoring Identifying customer behaviour Identifying concerns early Identifying potential bottlenecks Aids in future design Real time performance monitoring Non intrusive monitoring Measuring wire timestamps on the Network Nanosecond level precision End to end monitoring of every message

Control processes to stay ahead Performance control Control processes to stay ahead Performance – A strategic focus Setup of a core team Daily latency dashboards Single view for all stakeholders Setup of HPC lab Predictive analytics Continuous skill development Significant investments in RnD Innovation culture

We are Driven to make change Key Takeaways We are Driven to make change 02 Set up a core team 01 Performance engineering should not be a secondary task Clear understanding of system bottlenecks is half the battle Performance tuning is as important as an optimal system design Clarity is Essential Clear objectives Think ahead as far as possible Spend maximum time on design Start Small, Think Big 03 There is No Finish Line Performance requirements are ever-evolving Always keep innovating

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