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Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

Benchmark testing confirms the enterprise-class performance of Kondor+ 3.3 and Misys Global Risk running on SQL Server 2008 R2 Enterprise and Windows Server 2008 R2 Enterprise

Technical White Paper Published: October 2012 Applies to: Microsoft SQL Server 2008 R2 Abstract
Kondor+ is a market-leading trade and risk management solution from Misys that lets users manage global trading activities on a single flexible and extensible platform. Misys Global Risk (MGR) is a framework for collaborative risk management, which includes components that let users manage market risk, credit risk, and credit limits in real time. The current releases of these MGR components and of Kondor+ are now available on Microsoft SQL Server database software and the Windows Server operating system. As part of a strategic agreement to promote a joint trade and risk management system for financial institutions, Misys and Microsoft worked together on a series of benchmarking tests to compare the performance of Kondor+ 3.3 and of the MGR components running on Microsoft SQL Server 2008 R2 Enterprise and Windows Server 2008 R2 Enterprise to that of the solutions running on the Sybase Adaptive Server Enterprise (ASE) 15.5 data manager. The test results were impressive. Kondor+ and the MGR components running on SQL Server and Windows Server as the database back-end outperformed Sybase ASE in a majority of the test scenarios and matched performance in the others. Results included a 263 percent performance improvement for running Kondor+ financial reports and a 53 percent improvement for completing an MGR batch credit limit task. Financial organizations can be confident that Kondor+ and MGRdeployed on SQL Server and Windows Serverprovide a reliable, scalable, cost-effective, and low-maintenance financial data management solution that can meet their performance and scalability requirements.
Benchmark Testing Results: Kondor and Misys Global Risk Running on SQL Server i

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Table of Contents
Introduction............................................................................................................................................... 1 Kondor+: Enterprise and Trade and Risk Management.................................................................................... 2 MGR: Collaborative Risk Management ............................................................................................................ 3 The Benefits of SQL Server ................................................................................................................................ 4 Benchmark Testing .................................................................................................................................... 5 Testing Environment......................................................................................................................................... 5 Test Databases ................................................................................................................................................. 7 Benchmark Test Scenarios ................................................................................................................................ 7 Kondor+ Test Scenarios ................................................................................................................................ 7 MGR Test Scenarios...................................................................................................................................... 8 Benchmark Testing Results......................................................................................................................... 9 Performance Results......................................................................................................................................... 9 SQL Server Metrics.......................................................................................................................................... 10 Summary ................................................................................................................................................. 12 Additional Information ............................................................................................................................ 13 About Misys .................................................................................................................................................... 13 About Microsoft ............................................................................................................................................. 13

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Introduction
Banks and financial institutions seeing opportunities for growth during the greatest economic crises of a generation must be more agile than ever against a backdrop of unprecedented market volatility. At the same time, these organizations must manage the transition to a new era of regulation. The financial crisis highlighted risk management failings across many participants and regulators. The resultincreased capital requirements, tighter risk monitoring, and more frequent reportinginevitably impacts margins because institutions are required to do more with less. Financial institutions face a number of challenges:

We are excited by the improved operational efficiency that will be available to our customers using Kondor+ for trade and risk management. The performance benefits presented by SQL Server and Windows Server speak for themselves, and are in-line with the business strategies being implemented by many of our banking clients. These institutions are looking to streamline operations, reduce risk, improve speed, and lower total cost of ownership.
John Palmiero Global Head of Sales Misys

Pressure to grow revenues The ability to create new products and take advantage of market openings is as critical as ever. Banks need to get to the marketplace fast with products that enable them to mine opportunities as quickly as possible. At the same time, it is getting difficult to report risk across assets, while disparate and disconnected systems make it harder to achieve consistent global valuations. Cutting costs The proliferation of disparate trading systems in pursuit of fast profits has resulted in complex, highly expensive networks of software. These point solutions that were acquired during booming growth at the start of the decade have resulted in fragmented trading and risk management architectures that are also expensive to maintain and update.

High-volume, low-value trading There is an increasing focus on high volume, low margin trades where process automation is essential to remove manual Putting in place a future-ready strategy in interventions and drive down the cost per trade. In this todays complex and challenging environment to environment, simple, reliable, cost-effective platforms have a support and grow the trading and risk potential advantage over more complex alternatives. management business is extremely high on the
agenda of financial institutions CXOs the world over. The Kondor+ solution on Microsoft SQL Server offers a very compelling value proposition to support our customers mission-critical business.
Joe Pagano Managing director, banking and capital markets Microsoft

Managing compliance The number of regulatory issues is growing. For example, Basel IIIs heavy increases in capital requirements, initially by 2013, will drive investment in counterparty credit risk calculations.

Liquidity management There is greater pressure than ever to run complex liquidity stress-test scenarios within hours. This is required by senior management to make critical decisions including liquidity contingency plans.

Benchmark Testing Results: Kondor and Misys Global Risk Running on SQL Server

Misys helps financial institutions address these challenges with a portfolio of fast, reliable, secure, and affordable trade and risk management solutions, including Kondor+ and Misys Global Risk (MGR). As a key Microsoft Capital Markets Partner and a Microsoft Strategic Global Independent Software Vendor (ISV) in the financial services industry, Misys works closely with Microsoft to offer these solutions on the Microsoft platform. In June 2012, Misys and Microsoft completed a series of benchmarking tests that compared the performance of the Kondor+ 3.3 and MGR solutions running on Microsoft SQL Server 2008 R2 Enterprise and Windows Server 2008 R2 Enterprise to that of the solutions running on the Sybase Adaptive Server Enterprise (ASE) 15.5 data manager. This paper describes the results of testing.

Kondor+: Enterprise and Trade and Risk Management


Kondor+ is the enterprise trade and risk management platform used by some of the worlds largest financial institutions. The current version offers many new benefits, including: Comprehensive asset class coverage Kondor+ 3.3 offers rates, commodities, and equities alongside established foreign exchange (FX), money market (MM), and fixed income functionality. Flexible architecture The new N-tier service-oriented architecture supports consolidation on the latest hardware and operating systems, which helps to reduce the total cost of ownership (TCO). Complete front-to-back solution Kondor+ 3.3 provides full front-to-back trade and risk management coverage, supports a wide range of asset classes, integrates with the back office, and includes outstanding levels of automation. Supported by a strong partner network Kondor+ 3.3 is delivered by a team of global experts in conjunction with a network of technology partners and systems integrators.

Kondor+ 3.3
Kondor+ is the worlds most widely used trade and risk management solution serving more than 600 institutions in 66 countries, including some of the biggest names in finance. The user experience of Kondor+ 3.3 provides a new look and feel with insightful analytics, concise reporting, and outstanding performance. In addition, Kondor+ 3.3 adds extensive asset class coverage, seamless front-to-back office integration and a more flexible, open architecture. Kondor+ provides a solution for financial institutions seeking to efficiently control and expand their trading operations; it ensures that decisions can be made quickly and with confidence.

Fast to deploy, fast to benefit Kondor+ 3.3 offers fast, comprehensive out-of-the-box functionality that can be easily integrated with existing systems and applications where required.

For more information about Kondor+, see http://Kondor.misys.com/.

Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

MGR: Collaborative Risk Management


MGR provides a framework of components for enterprise risk management that enables collaboration between finance and risk, trading and banking, and the front and back offices. It supports better decision making thanks to real-time access to all risk factorscredit, liquidity, counterparty or market basedwith the most sophisticated analysis tools currently available. MGR links all risks components and provides a framework that adapts to changing market conditions and regulations. Benefits include: An intuitive and dynamic risk dashboard The MGR hub provides an intuitive way to visualize and share information across the organization. An advanced data aggregation engine lets users look at information from different perspectives and drill-down on areas of interest. Front-office analytical libraries for risk reporting MGR ensures data consistency by using the actual analytical libraries developed and maintained by the organizations front office. Credit and market risk engines in one product MGR delivers real-time access to all risk factors, whether credit or market based, with sophisticated analysis tools.

Misys Global Risk


MGR consolidates credit limit information and manages the data in real time across all instrument types. It provides credit and risk managers with the control and ability to monitor credit exposures, enabling efficient limit utilization across the enterprise. The scalable architecture of MGR makes it suitable for single-site and global institutions alike. Traders can also perform limit enquiries and reservations, and receive limit updates in real-time. Built with an open and flexible data model, MGR is designed to operate on top of multiple front office systems, with deep two-way integrationfrom checking trade compliance in real time, directly from a front office screen, to sharing the front office analytical libraries.

Sophisticated and flexible stress testing MGR includes an advanced stress testing engine that lets customers model exposures to different historical, event-driven, and client-specific scenarios over any time period.

Highly flexible limits rules MGR supports sophisticated limits rules that let users structure any kind of limit, internal business hierarchy, and counterparty hierarchy. It also lets risk managers re-allocate limits on the fly. Powerful data aggregation and analysis engines MGR offers the flexibility to build and run complex scenarios; users can update data and rerun only the relevant parts of a report. These elements are then automatically rolled up into the overall result without the need for time-consuming recalculations. Open, flexible, and generic data model The open and generic data model gives customers the flexibility to model any exposure by using their own measures of risk. It also allows them to simulate any banking activity and to fully explore counterparty risks.

For more information about MGR, see www.misys.com/mgr.

Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

The Benefits of SQL Server


SQL Server is a comprehensive, integrated, and enterprise-ready data-management software solution. It provides a reliable, cost-effective, low-maintenance database framework for Kondor+ and MGR that can support the largest and most process-intensive deployments. Hundreds of enterprises are currently running 10 terabyte (TB) and larger transactional databases on SQL Server. Running Kondor+ and MGR running on SQL Server provides customers with many benefits, including: Six nines (99.9999 percent) uptime availability Misys customers can protect their mission-critical databases from downtime and data loss with six nines uptime availability.1,2 Faster deployment On average, SQL Server database administrators (DBAs) can install and configure new database servers in 1.5 hours, while the largest competitors DBAs can take six hours.3 Lower hardware costs SQL Server can run on standard commodity server hardware, which can dramatically lower the TCO for customers. Lower software costs The list price of SQL Server is a third of the largest competitors;4 in addition, SQL Server includes major database-related features, such as high availability; remote disaster recovery; partitioning; data compression; transparent data encryption; spatial data; master data management; complex event processing; extract, transform, and load (ETL) capabilities; online analytical processing (OLAP); data mining; reporting services; and selfservice business intelligence (BI) tools. Competitors licensing models add costs for options and add-ins.5 Simpler systems management and lower staffing costs SQL Server database administrators (DBAs) can typically manage four times as many physical databases as competitors' DBAs.6

1 2

http://www.microsoft.com/sqlserver/en/us/product-info/why-sql-server.aspx http://www.microsoft.com/casestudies/Microsoft-SQL-Server-2008-R2-Enterprise/Stratus-Technologies/Protect-your-mission-criticaldatabases-from-downtime-and-data-loss-with-six-nines-uptime-availability/4000007136 http://download.microsoft.com/download/0/A/F/0AFA3A2D-827B-4A39-A2D4-9907AAA391CA/Alinean_SQL_Server_and_ Oracle_TCA_Study.pdf http://www.microsoft.com/sqlserver/en/us/tools/cost-savings-calclator.aspx http://www.microsoft.com/sqlserver/en/us/product-info/competitor-compare.aspx http://www.microsoft.com/sqlserver/en/us/product-info/why-sql-server.aspx

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Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

Lower administration costs SQL Server delivers a 460 percent saving in annual costs of administration per database over that of the largest competitor.7 Fewer security vulnerabilities SQL Server has consistently had fewer security vulnerabilities than the largest competitor solutions.8

When banks around the globe deploy Kondor+ or MGR on SQL Server, they benefit from high levels of performance, availability, and security; easy-to-use management and application development tools; and self-service BI tools that let them gain valuable insight into their processes and customers. Kondor+ and MGR running on SQL Server equips banks with a world-class solution for streamlining operations, reducing risk, improving speed, and lowering TCO. For more information about SQL Server, see www.microsoft.com/sqlserver.

Benchmark Testing
As part of their strategic partnership, Misys and Microsoft worked together to execute benchmarking tests in June 2012 at the Misys Development Center in Puteaux, France. The goal of the benchmark testing was to compare the performance of the Kondor+ 3.3 and the MGR market risk, credit risk, and credit limit components running on Microsoft SQL Server 2008 R2 Enterprise and Windows Server 2008 R2 Enterprise to that of the solutions running on the Sybase ASE 15.5 data manager. The test results were very impressive. Kondor+ and MGR running with SQL Server and Windows Server as the back-end database infrastructure performed better than the Sybase in a number of the tests, including a relative improvement of 263 percent when running Kondor+ financial reports and a relative improvement of 53 percent for completing the MGR limit batch task.

Testing Environment
To compare the performance of Kondor+ and MGR running on Sybase to that of the solutions running on SQL Server, a team from Misys and Microsoft installed databases on independent test servers: One server ran Windows Server 2008 R2 and hosted the SQL Server 2008 R2 database, and one server ran the x86 Solaris operating system and hosted Sybase ASE 15.5 with electronic software distribution #4 (ESD#4). A third server hosted the processes and configuration for Kondor+ 3.3 with service pack 1 (SP1) and MGR. The systems were located on an isolated private network, as shown in Figure 1.

http://www.microsoft.com/sqlserver/en/us/product-info/why-sql-server.aspx

http://www.microsoft.com/sqlserver/en/us/product-info/why-sql-server.aspx

Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

Figure 1. High-level architectural diagram

Table 1 shows details for the hardware and software used in the tests.
Table 1. Hardware and software for single application server test scenario

Server

Make and model HewlettPackard (HP) ProLiant DL580 G7 HP ProLiant DL580 G7

CPU

Number of cores and threads

RAM

Intel HyperThreading Technology enabled

Operating system

SQL Server database server

4 Intel Xeon processor X7550 (2.00 GHz) 4 Intel Xeon processor X7540 (2.00 GHz) 4 Intel Xeon processor X7540 (2.00 GHz)

8 cores, 16 threads

128 GB

Yes

Windows Server 2008 R2 Enterprise

Sybase ASE dataserver

8 cores, 16 threads

128 GB

Yes

Solaris x86

Application server

HP ProLiant DL580 G7

8 cores, 16 threads

128 GB

Yes

Solaris x86

Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

Test Databases
To simulate a real-world scenario, the team used a database provided by an actual Misys customer. This customers database contains 3.5 million FX deals and 2 million archived deals, and performs 500,000 operations on futures.

Benchmark Test Scenarios


The benchmark tests comprised a number of different Kondor+ and MGR scenarios. Table 2 lists and briefly summarizes these scenarios, and the sections that follow provide more detail.
Table 2. Test scenarios

Scenario number 1 2 3

Test title Kondor+ financial report Kondor+ import process Kondor+ KplusBatch

Description Measured the time to execute a financial report Measured the rate (in deals per second) to complete imports Measured the KplusBatch report runtimes Measured the time to insert high volumes of FX deals into Kondor+, processing the deals, and sending them to Kondor+ Trade Processing Measured the time to calculate credit limits in batch mode using linear and non-linear methods Measured the runtime for calculating present values from front-office analytics

Kondor+ front-to-back workflow

MGR limit batch

MGR market risk process (MRP)

Kondor+ Test Scenarios


Four Kondor+ scenarios were tested: financial report, import process, KplusBatch, and front-toback workflow.

Test Scenario 1: Kondor+ Financial Report


In the financial report test scenario, the team measured the time it took to execute a financial report with Kondor+, generated with the following setup: 456 cash flow deals 59,682 FX swap transactions 564,800 outright forward transactions 858,874 spot transactions 8,587 FX over-the-counter (OTC) options 757 equity OTC options

Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

Test Scenario 2: Kondor+ Import Process


In the Kondor+ import (KIS) process test scenario, the team measured the rate of spot deal insertion into the SpotDealTable, based on the insertion of 20,000 identical spot deals with a kplus user. The test was executed with and without custom windows attached to the deal. Note that the test measured the performance of only the import flow.

Test Scenario 3: Kondor+ KplusBatch


In the Kondor+ KplusBatch test scenario, the team measured the time it took to complete the KplusBatch reporting process. All KplusBatch tasks were executed sequentially. The team input data for the following deals: 518,658 spot transactions 50,904 FX swap transactions 7,237 FX OTC options 251,961 forward transactions 51,988 other deals

Test Scenario 4: Kondor+ Front-to-Back Workflow


Organizations in many industries process high volumes of deals every day. As deals mature, they are moved from the Kondor+ front-office module to the Kondor+ back-office module. The Kondor+ front-to-back workflow test scenario simulated the daily activity of a back-office institution by inserting 10,000 deals into Kondor+ through Kondor+ import. Kondor+ then processed these deals by using straight-through processing and sent 5,200 of the deals to the back office.

MGR Test Scenarios


Two MGR scenarios were tested: limit batch and risk process.

Test Scenario 5: MGR Limit Batch


In the limit batch test scenario, the team measured the time to calculate credit limits in batch mode using linear and non-linear net-to-gross counterparty (NGR Cpty) methods. With the linear method, the team used three steps: 1. Processed 100,000 deals across one limit to create 100,000 limit impacts in work storage. 2. Aggregated the 100,000 limits impacts to compute one new limit exposure and several subexposures (one per counterparty) in work storage. 3. Copied the new exposures and impacts from work storage to real storage. With the non-linear method, the team added a functional flag NGR Cpty to compute fine deal contributions for the 100,000 limit impacts in as well.

Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

Test Scenario 6: MGR Market Risk Process


The market risk process (MRP) is used to estimate the value at risk (VaR), which shows the maximum loss expected over a given time period and given a specified confidence level. In the MRP tests scenario, the team used historical simulation to calculate the VaR. This method reorganizes actual historical returns from worst to best and assumes that, from the perspective of risk, history will repeat itself. The MRP uses RisKatcher, a global market risk simulation report based on shift scenarios that can apply to any market risk factor for all types of instrument, to calculate present values (PV). The test scenario consisted of running a RisKatcher report that priced 3,869 swap deals on 250 scenarios and three risk classes. The team then measured the runtime for calculating the 2,901,750 PVs ([3,869 deals] x [250 scenarios] x [3 risk classes]).

Benchmark Testing Results


The benchmark test results demonstrate that Kondor+ 3.3 and MGR running on SQL Server outperformed the solutions running on Sybase operating system in most of the test scenarios, with an impressive 263 percent relative improvement for running financial reports and a 96 percent improvement for running KplusBatch reports with Kondor+, and a 53 percent relative improvement for measuring the time to calculate credit limits in batch mode using non-linear methods.

Performance Results
Table 3 summarizes the results of the tests. Note that for each test scenario, the team first ran an initial warm up run; the team then ran each test scenario three times and averaged the results to produce a final value.
Table 3. Benchmark testing results

Test title (scale) Kondor+ financial report Kondor+ import process with custom window Kondor+ KplusBatch Kondor+ front-to-back workflow MGR limit batch (NGRCpty ) MGR limit batch (linear) MGR MRP

Relative improvement between SQL Server and Sybase 263% relative improvement 27% relative improvement 96% relative improvement Insignificant change (-1% difference) 53% relative improvement 3% relative improvement No change

Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

SQL Server Metrics


Table 4 shows the database server metrics for SQL Server. Note that the average CPU utilization remained below 25 percent in all test scenarios.
Table 4. Database server metrics for SQL Server

Test title (scale) Kondor+ financial report Kondor+ import process with custom window Kondor+ KplusBatch Kondor+ front-to-back workflow MGR limit batch (NGRCpty ) MGR limit batch (linear) MGR MRP

Average CPU utilization (%) 1% 6% 6% 23% 4% 4% Approximately 0%

Average SQL Server memory use (KB) 20,215,680 20,215,680 8,623,872 7,338,047 5,691,736 4,819,857 506,677

Average number of batch requests/sec 65.45 1,610.98 137.21 2,130.46 458.65 574.62 2.50

Figure 2 shows the average I/O per second for both reads and writes.

Figure 2. SQL Server metrics: average I/O requests per second

Benchmark Testing Results: Kondor+ and Misys Global Risk Running on SQL Server

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Figure 3 shows the average latency per I/O request for both reads and writes.

Figure 3. SQL Server metrics: average latency per I/O request (in seconds)

Note that the total of the reads and writes in the stacked graphs indicates the expected averages, in transfers per second (Figure 2) and in seconds per transfer (Figure 3).

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Summary
Microsoft and Misys worked together to compare the performance of the Kondor+ 3.3 and MGR solutions running on SQL Server 2008 R2 Enterprise and Windows Server 2008 R2 Enterprise to that of the solutions running on the Sybase Adaptive Server Enterprise (ASE) 15.5 data manager. The results showed that Kondor+ and MGR running on SQL Server outperformed the solutions running on the Sybase operating system in a majority of the test scenarios, and matched the performance in the other two cases: Kondor+ financial report Kondor+ executed financial reports 263 percent faster on SQL Server than on Sybase. Kondor+ import process The Kondor+ deal-import performance was more than 17 percent faster on SQL Server than on Sybase on the core module, and even faster on the custom modules. Kondor+ KplusBatch KplusBatch reporting was 96 percent faster than on Sybase. Kondor+ front-to-back workflow The benchmark tests showed that front to-back deal processing was almost identical on SQL Server and on Sybase. MGR limit batch The MGR limit batch was calculated 53 percent faster on SQL Server than on Sybase. MGR MRP The MGR market risk process was completed in the same amount of time on SQL Server as on Sybase.

These results demonstrate that Kondor+ and MGR running on SQL Server 2008 R2 and Windows Server 2008 R2 can handle the demands of major financial organizations. Customers can feel confident in choosing SQL Server and Windows Server for Kondor+ and MGR.

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Additional Information
The following references provide more information about Misys and Microsoft.

About Misys
Misys is at the forefront of the financial software industry, providing the broadest portfolio of banking, treasury, trading and risk solutions available on the market. With 1,800 customers in 120 countries, our team of domain experts and partners have an unparalleled ability to address industry requirements at both a global and local level. Misys was formed by the merger of Misys with Turaz, which includes the award-winning Kondor+ product line. Combined, they are able to address all customer requirements across both the banking and trading book businesses. Misys is the trusted partner that financial services organizations turn to for help solving their most complex problems. For more information, visit: www.misys.com

About Microsoft
At Microsoft, we're motivated and inspired every day by how our customers use our software to find creative solutions to business problems, develop breakthrough ideas, and stay connected to what's most important to them. We run our business in much the same way, and believe our five business divisionsWindows and Windows Live, Server and Tools, Online Services, Microsoft Business, and Entertainment and Devicesoffer the greatest potential to serve our customers. For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. Outside the United States and Canada, please contact your local Microsoft subsidiary. For more information, visit: www.microsoft.com

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