WebRTC and the Capital Markets - SYS-CON...

WebRTC and the Capital Markets

Leo Papadopoulos – CTO and Co-Founder of Cloud9 Technologies

Copyright 2015 – Cloud9 Technologies LLC 2

Trader Communications in Financial Services • Compliance: The financial industry is complex and

highly regulated.

• Security: Requires highest levels of security.

• Unique Acoustic Requirements: Trading floors in particular are a chaotic, and traders need voice communication that can handle a harsh acoustic environment.

• High Availability: Voice trades require significant collaboration and information-sharing between counterparties.

• Unique Call Types: Always on multi-party calls that must survive network interruptions. PTT functionality with no voice clipping.

• Risk Averse: Trading technology is often outdated, but many firms are reluctant to move away from legacy solutions.

• DR/BCP Support: Trading must continue even in the case of a disaster.


Market

220,000 institutional traders

2,500 trading floors globally (ranging in size from 1 to 2,000 desks)

Large Bank profile:

• 6,000 to 9,000 traders

• 60-80 trading floors

Used by all trader types: brokers, sell side, buy side, asset

management, etc…

Used for all financial instruments i.e. equities, fixed income, energy,

derivatives, futures, etc…


Turrets: The Current Voice Trading Solution

Turrets have rarely changed in their 40+ year history and

present a number of issues for financial institutions:

High cost of hardware, and high recurring cost

for lines and maintenance ($4.1K/user/year)

Months to install new lines

Not conducive to modern working

environment –occupies space on already-

crowded trader desks

No high definition audio

Security vulnerabilities

Duplicate system and space required for

disaster recovery

No mobility


Why Build on Anything Other Than WebRTC?

Web Services Telephony Why?

Web App PSTN App Telephony standards hinder modern app

development. We decided to make a web app.

Web App Servers SIP App Servers Web apps and app servers are ubiquitous &

feature rich. SIP servers are limited & unreliable.

WebRTC Developers SIP Developers Experienced web developers are easy to find. SIP

developers are few, expensive, & difficult to find

and recruit. Better career path for web developers.

WebRTC Stack SIP Stack WebRTC is an emerging technology that will be in

every browser. PSTN technology is outdated..

Open Source Proprietary Standards The WebRTC native stack and OPUS CODEC are

open source.

New Services Mature and Fading The WebRTC stack is continuously being improved

by the community. Apps can be interoperable and

inherit new features.


Why WebRTC and why the native stack

Auto-reconnect if calls drop

<15ms push to talk - no

voice cut off

Remove echo from my

neighbor

Only remove his echo when

he is next to me

Monitor client and devices.

Tell the trader Monitor/Alarm voice quality,

packets lost, jitter, delay, etc.

Check if calls stay up

Keep calls up for many

hours

• Team collaboration

• Special signaling

• Complex audio (muting, barge, echo)

• Compliance (recording, encryption)

• Large scale

• Speed

• Reliability

WebRTC

• Designed for browser

• Peer to peer

• Simple calls

• Communications for the

JavaScript programmer

• No signaling standard

WebRTC - Native Stack

• VoIP Engine

• High Grade CODEC’s

• Encrypted Audio

• Basic Latency Management

• Basic audio processing

• Firewall Traversal

Trading Floor Communications

Compliance

Psychoacoustic Processing

Object Oriented Call Model

End-to-End Provisioning


How Financial Firms Benefit from WebRTC

Supports mobility, traders can work from anywhere during a disaster

Reduces costs vs hardware, telephone lines, and maintenance

Virtual connections between counterparties allow efficient

communications

Supports a secure product – TLS, SRTP, STUN/TURN

Facilitates call recording– important compliance elements

High-quality audio is one of the first things many firms notice – clear

communication improves productivity

Gain a reliable service that always works, even in emergency

situations


The Potential of WebRTC is Limitless

• Widespread Usage - WebRTC has moved beyond its initial

use case in customer service and customer communication

interactions, and is facilitating communication at the highest

levels of government and in some of the most security-,

compliance-, and performance-conscious industries of the

world.

• Market Penetration - There are numerous examples of

successful WebRTC usage in the U.S. government, clinical

healthcare, pharmacies, the hospitality industry, insurance,

higher education, utility, and retail.

• UCC - Going forward it will be a key element of modern Unified Communications solutions, offering high-

quality, reliable communications across platforms, networks, and devices.

• Internet of Things – Integrating devices with WebRTC will fundamentally change the way we

communicate.

• Connected household appliances, security systems, baby monitors all supported with an interactive

application – enabling everything from tele-presence to omni-present customer support.


1. Modern telecom companies as we know them become obsolete as new players emerge with cheaper, more reliable, and more adaptable enterprise communication tools.

2. There are an estimated 350M desk phones sitting in corporations around the world, WebRTC will make it possible to replace all of them.

3. WebRTC enabled apps make it easier to implement unified communications, and will span widespread implementation of UCC systems in a cost effective, and highly usable fashion.

4. WebRTC will be used to communication enable almost every trading application. Communications from these application will be required and not a nice to have.

Predictions


10

Email: [email protected]

Twitter:@LeoP_TCTO

Web: www.c9tec.com

mailto:[email protected]

http://www.c9tec.com/

WebRTC and the Capital Markets - SYS-CON...

Documents

Transcript of WebRTC and the Capital Markets - SYS-CON...