At the ATIS Workshop on time synchronization in financial markets, Gil Biran of Oscilloquartz explained how time as a service can deliver the accuracy that financial organization need to meet new network timing requirements. The presentation to the Time and Money workshop held at the New York Stock Exchange outlined how combining PTP and NTP, together with sync assurance, provides the precision and stability necessary for the finance networks of tomorrow.

1. Pragmatic Approaches for Sync
Delivery in Finance Markets
ATIS Time and Money, NYSE, Jan 2017
Gil Biran, SVP and GM, Oscilloquartz

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To Time or Not to Time, That Is the Question …
Do you feel that time is running faster these days ?
The truth is that time stays the same. Thanks to us, it just becomes
even more accurate (as is required by mobile and finance
applications).
10E-12 = 0,000000000001 seconds

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Regulators Require Extremely Precise
Timestamps for Every Single Transaction
• To provide accurate financial reporting - Based on proper time and
event synchronization
• To eliminate fraud and assure security trades - Accuracy of time and
timestamping provide proof if and when a transaction occurred
• To protect consumer’s data from being modified - Every access of
sensitive information must be recorded for auditing with real time date
and timestamp
• To ensure security of card holder data - In online or retail transaction
networks
Inaccurate time and its consequences on financial applications
may consist of legal liability for negligence

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Time Is Money…
• SEC Rule 613 issued August 2012
• Requires all actions placed on any US exchange to be recorded to accuracy of 1ms
• Clock needs to be 100us or better to achieve irrefutable 1ms recording
• Enables auditing in case of fraud investigation, mandatory for all financial organizations
• European Securities and Markets Authority (ESMA) consultation paper Annex B
Regulatory Technical Standard (RTS 25) on MiFID II
• Require that the clocks of trading venues and their customers must be synchronized
• Standardize the recorded time for post-trade data, transaction reporting and order event
auditing
• Level of accuracy for operators of trading venues requires 1us timestamping
• Level of accuracy for members or participants of trading venue
• Activity using high frequency algorithmic trading technique requires 1us timestamping
• Any other trading activity requires 1ms timestamping or better
• Algo traders want to record transaction times in order to Audit the performance of
their algorithms and Analyze historic data

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Time as a Service – TaaS
• Many finance organization have already decided to upgrade their
networks in order to support the new timing requirements
• Operators are upgrading their networks to be PTP-capable in order
to deliver accurate phase required for mobile applications (LTE-
A/LTE-TDD) while proposing TaaS to the finance organization
• Very accurate time needs to be delivered to trading customers in order to
synchronize business/enterprise clocks
• Additional potential source of revenue for operators
• TaaS is provided with committed sync SLA and service portal
• The accurate time delivered via PTP can be translated to NTP and
be offered as a service, such a service can be used to improve
installed base NTP clients time accuracy

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PDV and asymmetry degrade the NTP recovered clock accuracy
No option for BC or TC with NTP
High PDV/
AsymmetryNTP Client
NTP
Server
GNSS
The Problem
NTP NTP
NTP Packets

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Combine PTP with NTP by using PTP BC/TC to overcome
PDV and asymmetry
NTP Client
GNSS
The Solution
PTP
To NTP
NTP
BCTC
PTP
Grand
Master
PTP
PTP Packets
NTP Packets

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12:00:00.000 12:00:00.001 12:00:00.002 12:00:01.000NTP
1PPS
1PPS rising edge strobes the value of time delivered by NTP once per second.
NTP inherits the accuracy delivered by PTP.
NTP NIC
with 1PPS I/O
Client Server
OSA5420
1PPS in
NTP
High Accuracy
PTP Time
Service
PTP SlaveNTP
Server*
32x 1PPS
Outputs
OSA5420
PTP GM
Concept for Install Base - NTP Server + 1PPS

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NTP Server + 1PPS Case Study - APAC
PTP Input
Data
Logger
DB
Logger
Time Series
Logger
Trading
Terminal
1PPS
1PPS1PPS
1PPS
LAN
Network
NTP
NTP
NTP
OSA 5420
PTP GM/NTP Server

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OSA 5420
PTP GM
GNSS
Switch
T-SC
T-SC
Server
NICs
Customer Rack
Data Centre
PTP
PTP
PTP
Time and phase delivery using PTP
enterprise profile
5420
Slave
16-32x1PPS+ToD Outputs
Customer Rack
T-GM
GNSS
PTP
Grandmaster
PTP Network
Time As a Service into Data Center
Financial Markets
Bring accurate time and frequency synchronization into data centers

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PTP
PTP
PTP1PPS
1PPS
INDEX:
BC = Boundary Clock
Colocation
Colocation
PTP & Sync-E
PTP & Sync-E
PTP/NTP
Data CenterPTP BC
NTP
1PPS
PTP
Mediation
Colocation
5401
Sync Distribution and Assurance for Finance

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• Sync portal is a web-hosted
application
• Custom views, reports per
customer/carrier
• Data segregation ensures privacy
between customer domains
• Data collection via FSP NM or via
dedicated collector appliance
Sync
Network
FSP NM Collector
Data Center
Storage
Syncjack Portal
Secure Encrypted
Communication
Carrier
HTTPS
HTTPS
Customer A
A
B B
A
Customer B
Sync Portal Concept

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• Time accuracy of NTP-installed-based clients can improved significantly by
combining the following:
• Upgrade of NTP servers to telecom grade NTPv4 servers
• Combine PTP with NTP to overcome asymmetry and PDV
• PTP to NTP transition should be done as close as possible to NTP clients
• Leverage investment made for PTP to improve NTP accuracy while
protecting the huge investment of NTP NIC in the client servers
• You can also replace all NTP NIC with PTP NIC if your budget allows it 
• Sync assurance is a mandatory element of any sync solution
• Explore the option to use Time as a Service
Summary and Takeaways

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15. IMPORTANT NOTICE
The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this
presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited.
The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any kind, either express or
implied. ADVA Optical Networking shall not be responsible for and disclaims any liability for any loss or damages, including without limitation, direct, indirect, incidental,
consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation.
Copyright © for the entire content of this presentation: ADVA Optical Networking.
Thank You
IMPORTANT NOTICE
The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this
presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited.
The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any kind, either express or
implied. ADVA Optical Networking shall not be responsible for and disclaims any liability for any loss or damages, including without limitation, direct, indirect, incidental,
consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation.
Copyright © for the entire content of this presentation: ADVA Optical Networking.