PowerPoint Presentation

Feb 2016

Miguel Gallego

Enterprise Architect from Banco de Espaa

IMS on IBM z Systems for LCMM in T2S: Driving Securities Settlement for Europe

2016 IBM Corporation

Agenda

Introduction to LCMM and T2S

LCMM in Process Network Architecture of T2S

LCMM Internal Process Architecture

LCMM and T2S Practical Issues

1

Introduction to LCMM in T2S. Securities Markets

2

Are places where securities are exchanged by money. Transactions are executed

Examples of different types of securities are stocks or bonds.

Business Transactions have different parts which give rise to three transaction phases

2

Introduction to LCMM in T2S. Markets Phases

3

Securities are negotiated in the Stock Markets. Deal buyer-seller is reached

Prepare all things to enable the settlement Eg: aggregating, netting and novation

Securities are exchanged by money and accounts are credited and debited

Trading

Clearing

Settlement

3

4

CH

CH

CH

CH

CSD

CSD

CSD

CSD

CSD

TM

TM

TM

TM

TM

Trading

Clearing

Settlement

Different countries have their own market strategy

Introduction to LCMM in T2S. Europe before T2s

TM: Trading Market

CH: Clearing House

CSD: Central Security Depositary

4

5

CSD

CSD

CSD

CSD

CSD

Trading

Clearing

Settlement

Different countries have their own market strategy

T2S Settlement IT Platform

Introduction to LCMM in T2S. Europe after T2s

TM: Trading Markets

CSD: Central Securities Depositary

5

Introduction to LCMM in T2S. European Project

6

Promoted by ECB, and developed and operated by BBK, BdE, BdF, BdI (4CB)

T2S is a pan-European IT platform dedicated to the settlement of securities

So far T2S will integrate IT platforms of 24 CSDs across Europe

6

Introduction to LCMM in T2S. European Project

7

Huge workload and great efficiency to reduce current European settlement costs

Cross CSD elimination and harmonization, rules, simplify European financial market

Peaks of 120 Millions of IMS transactions and 5 millions of business transactions per day

7

Introduction to LCMM in T2S. Program Plan

8

Production Phase

2015 - 2016

2017

2018 20xx

Migration Phase

2006/07/06

Specification

Preparation

Development and Testing

User Testing

Today

2009 - 2010

2011- 2014

2006 - 2008

Go live

June 2015

MW2

MW3

MW4

MWn

Sep 2017

MW5

8

Introduction to LCMM in T2S. T2S Functionality

9

C CASH

ACCNT-n

B CASH

ACCNT-2

CASH

ACCNT-1

Settlement

Functionality

LCMM

Functionality

Interface

Functionality

Other

Functionalities

CSDs

Securities

T2S

A SEQ

ACCNT-A

C SEQ

ACCNT-m

B SEQ

ACCNT-B

Central Banks

Money

Static Data

Functionality

LCMM: Life Cycle Management and Matching

9

Static Data

Functionality

Introduction to LCMM in T2S. T2S Functionality

10

C CASH

ACCNT-n

B CASH

ACCNT-2

CASH

ACCNT-1

Settlement

Functionality

LCMM

Functionality

Interface

Functionality

Other

Functionalities

CSDs

Securities

T2S

A SEQ

ACCNT-A

C SEQ

ACCNT-m

B SEQ

ACCNT-B

Central Banks

Money

Matching

Validation

Validation

10

Introduction to LCMM in T2S. T2S Infrastructure

11

Supporting modern and open communications, seamlessly U2A an A2A

The infrastructure must provide scalability, reliability, availability and security

Counting with a multi-tier state of the art architecture with a front-end and a back-end

11

Mainframe Z13

Sysplex

z/OS

12

MQ

IMS DB2

COBOL

LCMM

Static Data

Settlement

External

Networks

U2A

A2A

MQ

https

LCMM: Life Cycle Management and Matching

WAS DB2

JEE (U2A)

Interface

DB2 - WMB

(A2A)

Introduction to LCMM in T2S. T2S Infrastructure

12

Agenda

Introduction to LCMM in T2S

LCMM in the Process Network Architecture of T2S

LCMM Internal Process Architecture

LCMM and T2S Practical Issues

13

LCMM in Process Network Architecture. Drivers

14

High Performance. To reduce current settlement costs and be a financial success

Large Workload. T2S assumes the workload currently processed in 24 CSDs platforms

Great Scalability. To be able to include other settlement platforms in the future

14

LCMM Process Network Architecture. Beginnings

15

Mainframe

IMS

Dynamic Data

DB2

Static Data

DB2

VAL

MAT

LCT

IFC

SPS

VPB

WAS

MQ

MQ

TM

JEE/DB2

JEE/DB2

Interface

LCMM

Settlement

U2A

A2A

LCMM

Settlement

External

Network

T2S

15

LCMM Process Network Architecture. Working

16

U2A

A2A

External

Network

Mainframe

T2S

MAT

LCT

IFC

TM

SPS

VPB

MQ

MQ

IMS

WAS

JEE/DB2

JEE/DB2

Dynamic Data

DB2

Static Data

DB2

Interface

VAL

LCMM

Settlement

16

LCMM Process Network Architecture

17

U2A

A2A

Mainframe

T2S

MQ

MQ

WAS

JEE/DB2

JEE/DB2

Dynamic Data

DB2

Static Data

DB2

Interface

IMS

LCMM

Static Data

SETT

External

Network

17

Great Business Flexibility:

Different functionalities are processed in the same network.

Allows easy functionality enrichment:

Adding new net points to the network (Message Processing Program MPP).

Increasing the functionality inside each MPP.

It can process individual messages as well as bunch of messages

Good Connectivity with other business networks: z/OS systems and distributed systems

By means of their natural connectors: IMS and MQ queues

By means of IMS and z/OS connection features

Inherits Sysplex synergies

High reliability, scalability, availability and performance

LCMM Process Network Architecture. Features

2

LCMM Process Network Architecture. Tuning

19

The greater the workload the bigger the parallelism

Data

The design of physical data model must avoid contention on data accessing

19

LCMM Process Network Architecture. Channels

20

The greater the workload the bigger the parallelism

Data

The design of physical data model must avoid contention on data accessing

A2A Network

U2A Network

20

Agenda

Introduction to LCMM in T2S

LCMM Process Network Architecture of T2S

LCMM Internal Process Architecture

LCMM and T2S Practical Issues

21

LCMM Internal Process Architecture. Drivers

22

Maintainability. Low maintenance cost due to compliance with high quality standard

Durability. Build on very stable technologies with business and technology independency

Portability. Capacity of quickly adapting to any other technology or IT platform

22

LCMM

Any LCMM Process

LCMM Internal Process Architecture. Structure

23

PUTLGM

BUSINES

IMS

PREADP

ADPIMS

GETIMM

GETMMI

GETSMI

GETLMI

PUTMM

PUTSCM

PUTLGM

PUTTR

TRCCF

PUTMQM

PUTIMM

BUSXXX

BUSYYY

INSLGM

PUTTRQ

PCBPOL

GETTRI

MQ

Queue

IMS

Queue

SUSREF

IMS

Bus. Queue

IMS

Bus. Queue

NEGOCIO

MQ

LOG

Queue

TRACE

Queue

TRC

MPP Log Writing

MPP Tracing Writing

LOG

PUTTRF

GIMTRM

PUTTRF

GIMTRM

DINSTO

TRANSLATION

SQL

DATA

SQL

DATA

Trace

23

LCMM Internal Process Architecture. Layers

24

Physical Access

to Data

DB2

Physical Entities

Translation

Translation:

Logic Entity

Physical Entities

Vice versa

BUSINESS

Business Logic

Logical Entities

Communication

IMS

MQ

2

1

3

4

Architectural Services

Tracing, Log, Monitoring, Error Management, etc

5

24

LCMM Internal Process Architecture. Audited

25

Physical Access

DB2

Acceso a datos

Entidades Fsicas

Translation

Traduccin:

Entidad Lgica

Entidad Fsica

Viceversa

BUSINESS

Lgica de Negocio

Entidades Lgicas

Communication

IMS

MQ

2

1

3

4

Servicios

Trazas, Log, Monitorizacin, Manejo de Errores, etc

5

Physical Access

DB2

Physical Entities

Translation

Translation:

Logic Entity

Physical Entities

Vice versa

BUSINESS

Business Logic

Logical Entities

Communication

IMS

MQ

2

1

3

4

Architectural Services

Tracing, Log, Monitoring, Error Management, etc

5

25

LCMM Internal Process Architecture. Working

26

PUTLGM

BUSINES

IMS

PGM

ADPIMS

GETIMM

GETMMI

GETSMI

GETLMI

PUTMM

PUTSCM

PUTLGM

PUTTR

TRCCF

PUTMQM

PUTIMM

BUSXXX

BUSYYY

INSLGM

PUTTRQ

PCBPOL

GETTRI

MQ

Queue

IMS

Queue

SUSREF

IMS

Bus. Queue

IMS

Bus. Queue

NEGOCIO

MQ

LOG

Queue

TRACE

Queue

TRC

MPP Log Writing

MPP Tracing Writing

LOG

PUTTRF

GIMTRM

PUTTRF

GIMTRM

DINSTO

TRANSLATION

SQL

DATA

SQL

DATA

Trace

26

Programing Language is COBOL

Development enhanced by Rational Development for Z (RDZ)

The data is kept in DB2 and the encoding is Unicode UTF-16

Tivoli Workload Scheduler (TWS) is used as batch scheduler

Changeman is used as SCM

ETO Support tool is used to enhance IMS

LCMM Development Technologies

2

Agenda

Introduction to LCMM in T2S

LCMM Process Network Architecture of T2S

LCMM Internal Process Architecture

LCMM and T2S Practical Issues

28

BMP Integrated in the Network

2

IMS

Non-message-driven BMP

Message-driven BMP

IMS

Data

BMP

TWS

Submit

IMS

BMP

Data

TWS

Submit

Batch processing within a MPP Network

2

IMS

IMS

TWS

TWS

TWS

Watcher

Business Process A

Business Process B

It would be nice if IMS would assume the functionality of Watcher

This is, send an event when a predefined set of MPPs (Buss Proc A) have processed their queues

30

Batch processing within a MPP Network

2

IMS

IMS

TWS

TWS

TWS

Watcher

Business Process A

Business Process B

It would be nice if IMS would assume the functionality of Watcher

This is, IMS could send an event when a predefined set of MPPs have processed a predefined set of messages. These set of messages could be predefined by:

Being injected to IMS by a specific process or a set of processes.

Arriving into a specific IMS process (or set of processes) between two timestamps

The application could let IMS knows in advance the two timestamps

Being able to process batch workload with an MPP-Network will bring into the batch processing advantages of MPPs like bigger scalability and flexibility.

32

Possible IMS improvements.

No part of this document may be reproduced or transmitted in any form without written permission from ECB and BdE.

BdE and ECBs statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at BdE or ECB sole discretion.

The development, release, and timing of any future features or functionality described remains at our sole discretion.

2

Disclaimer

Thank you very much

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