Spotlight on Financial Services with Calypso and SAP ASE

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Calypso Solutions SAP Adaptive Server Enterprise

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© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public

Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related document, or to develop or release any functionality mentioned therein.This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.


Presenters

Karl-Heinz HoffmannVP ISV GTM, SAP

Talat SadiqSVP Alliances and Partnerships, Calypso

Vikram PradhanSenior Director of Engineering,

Calypso

Ashok SwaminathanSenior Director, Product

Management, SAP

Mayank ShahSenior Director of Strategy, Calypso

1. Please ask questions during the question via the chat box2. We will open up for Q&A for 10 mins at the end of the call, if we don’t manage to answer we will follow up via email3. Attendees can download presentation by clicking from the resource list “Green Widget”


SAP and CalypsoDelivering innovation to the front, middle and back office

18 Years of Partnership

Jointly defining next generation

platforms

Delivering today’s in market

innovations


Agenda

1. Calypso, SAP Treasury and Risk Management Mayank Shah, Vikram Pradhan Calypso

2. SAP Adaptive Server Platform, for Calypso applications Ashok Swaminathan, SAP

3. Questions and Answers


Agenda




This document represents Calypso Technology’s current view of its product direction and product development cycle as of the date of publication and is intended for informational purposes only. The development, release and timing of any features or functionality described for our products remains at our sole discretion. This document should not be interpreted as a commitment, promise or legal obligation on the part of Calypso Technology with respect to product content or timing of product development and is subject to change at any time without notice or consultation. CALYPSO MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENTThis document is subject to copyright. Complying with all applicable copyright laws is the responsibility of the user. Without limiting Calypso’s rights under copyright or under any non-disclosure agreement, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express prior written permission of a Calypso authorized signatory.Calypso may have patents, patent applications, trademarks, copyrights, trade secrets, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Calypso, the furnishing of this document does not give you any license to use such Calypso patents, trademarks, copyrights, trade secrets, or other intellectual property.


New Market Structure Realities

Source: American Banker; McKinsey, BIS

27 85%

$14 trillion 7%

Number of years implementing Basel

regulation

% of vanilla USD IRS market

cleared today

Size of global collateral market

Post regulation return on equity

7


Executives Facing Challenges

8

Regulatory ChallengesBusiness Challenges

Technology Challenges


Regulatory Challenges

9


Business Challenges

Head of FICC, Major Investment Bank

“It’s all about return on capital.”

10


Technology Challenges

Lifecycle & trade booking systems

Rates

FX

Credit

Cash & Financing

Pricing Engine

Collateral Mgt

Recon.

ExceptionHandling

KPIs

TradeReporting

Credit RiskValuations

Compliance

XVA

Clearing

Treasury

Market Risk

Algos

Order Mgt

Static Data

Market Data

Payments

Confirms

Matching

Finance

GL

RegReportingTrade Capture

High Error Rate

Difficult End-to-End Testing

High Support Costs

High TCO

Fragmented Architecture

11


Imagine…

Pricing in a context of all known client risks (credit, market, collateral)

Capital and funding charge quantified before the sales person makes a price

Consistency of models between FO, Risk, BO

Single Source of Data for Capital Markets and Banking

Decision tools for “where to clear” pre-trade

Real-time risk, pricing, and exception handling

One Solution

Enterprise Wide Business Analytics for Profitability, KPIs, Op

Analysis


Calypso + SAP Partnership

Market leading Front to Back Cross Asset Trading and

Treasury Platform

SAP Expertise in Financial Services, Support & Latest DB Platform and In Memory Technologies

The most complete Treasury and Capital Markets trading solution for SAP customers

+ =


Calypso Treasury Trading Solution - Functional Overview


Calypso Technical Architecture Overview

Real Time,Processing

JMS Provider

DataServices Fabric Data Grid

Real Time,Low-Latency Processing

JMS Provider

E- Markets Connectivity

Real-time Trade

Routing& Positions

Trading Limits &

Compliance … Confirmation …

Anal

ytic

s

Risk Services

PresentationService

Computation Service

Desk Risk

Live Update Grid Management

Computation Grid

Remote Data API | Security | Audit

Data/ReportingServices

Business Object& Static Data

Access/Persistence RDBMS

CCR/CVA

Enterprise Risk

Market Risk/VAR

What If

Workflow Services

Business Object Workflow

Web Services

Business ServicesFor

Web Applications

Market DataServices

Policy BasedReal Time

Market Data

Busi

ness

Inte

rfac

es Bloo

mbe

rg/R

eute

rsD

TCC

Mar

kitW

ire

…SW

IFT

Caly

pso

Gat

eway

(XM

L/FP

ML)

Settlements Connectivity


Capital Markets Treasury Trading Solution

Consolidate Cash and Derivatives Trading

• Simplify your trading environment • Reduce costs and TCO• Improve Return on capital

Meets Regulatory Requirements• Regulatory Reporting• Capital Optimization• Liquidity and collateral

management• Monitor risks in real time

Provide a platform for future innovation & business growth

• Flexible solution to meet current / future needs around Customer Facing and Treasury Business Lines

• Integrated with Industry Utilities (Exchanges, CCPs, etc) and Internal GL lowering implementations costs

FO

MO

BO

FX FI Equity IRD CMD

Fron

t-to-

Bac

k

CROSS-ASSET

CRD

Cash Derivatives

Single System, No SiloesMinimized IntegrationModern Future-Proof PlatformSeamless processingCentralized dataUnified pricing, risk and analytics

EFFICIENT, COST EFFECTIVE,HIGHLY OPTIMIZABLE


Gartner – Magic Quadrant

17

Key Highlights

Product Innovation: Bank-in-a-Box New Front Office Workstation Modern Treasury Cloud delivery

Forward-thinking partnership with SAP

Client references

Source: Gartner


Roadmap for Integrated SAP Ecosystem

Cash Trading Derivatives Trading Risk& Limits

Post Trade Processing Clearance / Settlements Sub Ledger Accounting

Treasury

Collateral

CRM (SAP – CRM)

Account Origination

Business Partner

Customer Interaction Center

Campaign Management

Activity Management

Banking Services(SAP-BaS)

Transaction Processing

Loans Mgmt.

Deposits Mgmt.

Collateral Mgr

Settlement and Pricing

Master Contracts

Accounting for Fin Instruments

Source Data LayerProfit Analyzer Limit ManagerResults Data Layer

Bank Analyzer (SAP-BA)

Electronic Funds Transfers

Wires and Cheques

Bill Payments

Loans Payments

ABM/ POS

Payment Engine(SAP-PE)

Accounts Receivable

Accounts Payable

Reserve Bad Debt

Incentives/ Commissions

General Ledger (GL)

Enterprise Core Component (SAP-ECC)

ETL

Balance Sheet

Reconc hub

Segment Reporting

P/L and Contrib Margin

Business Warehouse(SAP-BW HANA)

SAP Liquidity Risk Mgmt(SAP-LRM)

Liquidity

LCR

Treasury

Reporting

Forecasts

1

Counterparty/ Entity Data

2 Postings + Cash Flows

2aPostings 2cCash Flows

2bCash Flows + Postings

3

Payments (Swift)

4

Collateral Movements Trades

SAP Capital Markets Trading and Treasury By Calypso

Key Highlights Seamless integration with SAP applications

True Bank in a Box, Increased RoE

Faster and efficient response to Reg Changes


SAP ASE Calypso Partnership

Calypso runs on ASE for transactional processing

Our R&D teams are partnering to optimize performance of Calypso on ASE

Additionally, our joint R&D teams are collaborating to ensure that our clients get benefits from deployment technologies and platforms offered by SAP ASE

Cap Markets/ Treasury Solution Runs on ASESAP Capital Markets by Calypso

Trading Treasury

Risk Collateral

SAP ASE


Calypso Roadmap with SAP Platform Technologies

- Calypso recently certified SAP ASE v15.7 on Calypso’s V14.4 Patch release

- Subsequent to v15.7 certification, Calypso is working on certifying SAP ASE 16 on our next application release

- We are evaluating how clients can leverage SAP ASE v16 features (e.g. HA/DR & Performance) to optimize deployments

- Our R&D teams are also collaborating to evaluate SAP’s in-memory DB (SAP HANA) technologies for performance intensive analytics and risk runs


Agenda





ASE Strategy

• Continued investment to address market requirements for high throughput and low latency apps

• Reduce operational costs and be the best TCO DBMS for custom and packaged apps

• Provide a best-of-breed solution by leveraging HANA

Drivers

Increasing Transaction Speed

Exploding Data Volumes

Increasing Complexity

Technology Drivers ASE Strategy


Historical Perspective: 3 Years of Feature-Packed ReleasesFeature Rich Releases in Quick Succession

• Incremental reorg• Incremental dump database• Shrink DB• Performance : • - Insert, create index

- Dump and Load• Monitoring and Diagnosis

20142013 2015

ASE 15.7 SP 100: Reduce TCO

ASE 16: Scale, Speed, Security

• Scale-up on large SMP systems

• Partition-level locking• Index compression• Full database encryption• Residual data removal• Multi-trigger support

ASE 16 SP02: Acceleration, Availability, Agility

• Extreme Transaction processing support

• Single HA and DR solution based on synchronous replication

• Workload Analyzer for easier troubleshooting and upgrade

• Increased data availability


• In Memory Technology (Database MemScale Option)• Compiled Queries, Latch Free Index, Lockless Data

Cache, SSD As Cache, Transactional Memory

• Report Acceleration (SAP HANA Accelerator for ASE)• Enable ASE reports to run faster on HANA• Manage ASE from HANA, as part of HANA Cluster

• Replication Based HA (Database Always-on Option)• 2 node HA Cluster – with zero data loss• Can be configured for HA/DR

• Workload Analysis (Workload Analyzer Option)• Capture and Replay Workloads• Capability incorporated in ASE server

• Cloud Readiness• Support ASE on HCP/AWS

Performance

Availability

Ease of Use

ASE 16 SP02: Key Features


ASE 16 – Start Of High Performance Focus

16 32 48 64 800

200000400000600000800000

10000001200000

Scale-up Performance

Transactions per minute

> 1 million tpm

Engines

Environment

SUSE Linux Enterprise Server 11

Platform: 8 sockets/80 cores Intel® Xeon® [email protected] with 1TB RAM

Feature Description

Scale up on large SMP systems

• Minimize locking/latch contention, in highly concurrent environments• Enhancements in the area of run time logging optimization, metadata management, lock management

Partition level Locking • Granular locking for partitioned table• Enables Concurrent DDL and DML operations on a table

Dynamic Thread Assignment

• Allows executing query plans in parallel with fewer resources/threads• If # of threads < work units, threads completing execute remaining tasks

Index Compression • Index compression enabling storage savings for large indexes • Completes current capabilities - data compression (row/page), LOB, backup

Optimized Star Join Queries

• Allows hints in the join syntax• Can use the syntax “plan (use fact_table tablename)” –query processing optimizations related to star join


Recent SD Benchmark Results with ASE

• Recent SAP SD benchmarks with ASE 16 shows dominance over Microsoft on same 2 and 4 processors• Benchmark on June 1 performed on a hardware priced much lower than that used in the May 5. With similar

range of number of users, this provides even higher price performance.

Date Hardware CPU Operating System RDBMS Users5/5/2015 • HP ProLiant DL580

Gen9 Intel Xeon E7-8890 v3, 2.5 GHz, 4 Processors

RHEL 7 SAP ASE 16 31,000

Windows Server 2012 Datacenter Edition

Microsoft SQL Server 2012

29,360

6/1/2015 • HP ProLiant BL660c Gen 9

Intel Xeon E5-4669 v3 2.1 GHz, 4 Processors


Windows Server 2012 Datacenter Edition


27,200

6/1/2015 • Dell PowerEdge M830 Intel Xeon E5-4669 v3 2.1 GHz, 4 Processors


11/9/2015 • Dell PowerEdge R730 Intel Xeon E5-2699 v3, 2.3 Ghz, 2 Processors

RHEL 7.1 SAP ASE 16 15,120

Windows Server 2012 R2 Standard Edition


13,680


SAP ASE 16 SP02 – High Performance Features

To Be Developed

T/SQLJDBCODBC

XOLTP QP

Parallel Dynamic ThreadingCode Compile

MVC

C

In-memory Row Store

Main MemoryLockless Metadata

Transaction Memory

Kernel Threading

DiskFlash Disk

Upcoming New In SP02

Buffer Cache

Scripts

Available

Latch Free BTree

Lockless Data Cache

Simplified Native Access Plans (Compiled Queries)• Compiled query plans – faster execution• Transparent to applications and users

Latchfree B-Tree on Indexes• Reduces contention• Increases concurrency and performance

Lockless Buffer Manager• Decreases cache contention• Increases concurrency and performance

Transactional Memory• Minimize contention leveraging hardware for identifying memory

conflicts

Non Volatile Cache Management• Leverage SSD for storing frequently accessed/updated pages

Latch Free BTree

Lockless Data Cache


Workload Capture and ReplayHigh-Level Architecture

Replay Engine

ASE Cockpit

AdministrationMonitor Collection Alert

Coordinator MonitorClient Threads

Cockpit Core

Workload Capture and Analyzer

PresenterTDS Parser Analyzer

Repository

AM

F

Kernel

Network Thread

Receive/ Send

Read TDS

Write PCAP File

Production/ Test ASE

TDS

Raw Workload

PCAP/TDS

Repository DBMS Server

Rapidlog

1

2 3

4

5

Capture Analyze Replay AnalyzeUse Case

• Identify problematic queries.

• Investigate client activities.

• Measure impact from configuration changes.

• Evaluate migration options.

• Problem reproduction• Get advice from analyzing

captured workload (advisors).

• Evaluate upgrade options/new features.


HADR Cluster

Always-On For High Availability

HADR ClusterLog-based Logical Replication Based Synchronous, Near-Synchronous, Asynchronous Zero Data Loss in Synch (RPO=0)

Fast failover (<2 minutes normally) Planned failovers <1 minute

Currently limited to 2 nodes Multi-standby on the roadmap

CapabilitiesAutomated fault detectionAutomated transparent client failover Planned and unplanned failover support

Companion can be read-only for reportingZero-down time major upgrades

HADR Service

HADR Service

Primary ASE Companion ASE

Read/Write Read Only

Roadmap/Focus AreasThis presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.


Future directionKey Areas Of Focus

This is the current state of planning and may be changed by SAP at any time.

SAP ASE

Increased MarketData Load Performance

In-Memory Processing

High Availability

Storage & Operational Simplicity

SAP Business Suite

Security & Auditing

Cloud Support

HANA Integration


Agenda




Thank you

Spotlight on Financial Services with Calypso and SAP ASE

Data & Analytics

Transcript of Spotlight on Financial Services with Calypso and SAP ASE