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Hardware Solutions for Fast & Secure Transaction Processing

RubyNicholson

Guest blog written by Bill Mannel, VP & GM – HPC, Big Data & IoT Solutions, HPE Servers

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Today’s financial services organizations are continually challenged to strengthen customer relationships, expand service delivery models, boost profit margins, and address changing regulatory requirements. 

As the industry becomes increasingly data-driven, fast-paced, and competitive, these challenges grow in complexity and tough decisions must be made to align business and IT strategies for the betterment of the enterprise. Investments in the latest technologies have become necessary to build the supporting infrastructure for enhancing operational efficiencies, improving data security, and driving better business outcomes.

When it comes to hardware selection, speed and security have emerged as two of the most vital requirements for organizations that regularly process large volumes of financial transactions.  

Success in this era of finance is dependent on the ability to offer investors, executives, traders, and regulators fast and reliable access to financial data. Particularly in the field of high-frequency trading (HFT), every millisecond gained or saved can have a significant impact on financial returns.

As the pace of electronic trading increases from milliseconds to nanoseconds, servers built to optimize transactions for speed and volume are essential to support the rapid flow of financial data between trading firms and exchanges. Whether tracking real-time market updates or executing stock trades, faster processing speeds improve data-driven decision-making and help traders quickly gather, analyze, and convert momentary market fluctuations into strategic insight.

Minimizing system latency is another way to make sub-second improvements to transaction speeds. While a millisecond of trade delay may seem inconsequential, capitalizing on latency advantages has been known to boost an HFT firm’s earnings by as much as $100 million per year. Hardware configurations right-sized for co-location facilities and offering a smaller footprint can improve the ability to easily deploy infrastructure in close proximity to exchanges, reducing latency and improving the speed and efficiency of HFT operations.

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This need for anywhere, anytime data access combined with the soaring popularity of mobile banking and payment apps also pose a significant hurdle for financial CSIOs, for whom guarding against the exposure of sensitive customer data is now a daily reality. Financial organizations are tasked with not only protecting personal customer information, but also defending the enterprise against data breaches and cyber attacks.   

Failures of data security can have catastrophic consequences for both customers and firms. A recent Ponemon Institute study on the cost of cyber crime contained a number of troubling findings, including:

  • The number of cyber attacks against U.S. companies continues to grow in frequency and severity, with incidents becoming increasingly expensive to resolve and disruptive to operations.
  • The average time it took companies to resolve security incidents was 46 days, leaving customer’s personal, financial or credit card information exposed for long periods of time.
  • Financial organizations experience the highest average annualized costs of cyber crime (over $28 million in 2015).  

Building a security infrastructure to heighten the protection of sensitive customer data has become crucial to proactively managing risk, not to mention ensuring ongoing regulatory compliance. In addition to investing in the hardware, software and IT personnel necessary to prevent attacks from outside sources, financial organizations must also implement strategies that address the confidentiality, integrity, and availability of data. Trusted compute partners can help build a robust data security and risk management technology portfolio to safeguard an organization’s most valuable digital assets.

In this fast-paced world of finance, profits can only grow when transactions are executed quickly and securely. As financial institutions become progressively connected and flooded with more digital data than ever before, selecting powerful, intelligent server hardware is the first step of an IT transformation which helps financial organizations operate with greater speed and efficiency while keeping data fully protected.

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About the Author

RubyNicholson

I am a Senior Manager managing external content and social media for HPE Servers Awareness. Stay tuned for topics on Mission Critical Solutions, Core Enterprise and SMB Solutions, Next Gen Workload Solutions, Big Data and HPC, Cloudline and HPS Options! Follow me @RubyD_Nich