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Financial Trading Systems Using JMS
and Message-Oriented Middleware

by Yako Fain

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!hilly JU"# October $%# $&&%
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'bo(t Mysel)

J$** 'rchitect and deeloper

+reator o) the seminars ,-eekend -ith

*xperts.

*nterprise Jaa editor at Jaa /eeloper0s

Jo(rnal

'(thor o) Jaa books and articles

!art-time pro)essor at 1ew York Uniersity

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'genda

' brie) oeriew o) the stock trading process

Message Oriented Middleware 2MOM3

4asics o) Jaa Messaging Serice

Jaa JMS clients and Message-/rien 4eans 2M/43

M(ltithreading

5ntrod(cing 6/'! serers

!otential iss(es
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' Trading System
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-all Street

Stock *xchanges
21YS*# 1'S/'7#
'merican Stock
*xchange83

4rokerage ho(ses#
trading )loor#
specialists
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Stock !(rchase Order

-ho can place an order to b(y9sell a stock: '

broker# a day trader8 50e done that as well .

"U59-eb inter)ace

Market# 6imit# "T+ orders

1ew# Mod# +ancel orders. Slicing

'sk and 4id prices

Front9Middle94ack O))ice systems; trading9pro)it <

loss# risk management9 settlements# record keeping#
reg(latory compliance
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Order0s 6i)e +ycle

+reate a new order in yo(r database

Send an order to the stock exchange

=eceie exec(tion2s3 or re>ection2s3

!rocess modi)ications9cancels o) some orders

=eport a trade to middle9back o))ice applications

The order has to go thro(gh seeral applications on

written in di))erent lang(ages on di))erent plat)orms.
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Faster, Faster, Faster!

=o(nd-trip metrics

' st(ck message is a liability

?igh 'ailability

Scalability

5ntegration with other 2legacy3 systems

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MOM Serers
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Message-Oriented Middleware

MOM allows to connect ario(s applications in a

loosely co(pled )ashion with minim(m
programming re@(ired.

MOM is similar to a post o))ice.

"(aranteed deliery 2is not always needed3.

'synchrono(s processing; applications do not rely

on aailability o) other applications.

Messaging helps in b(ilding open ended# serice-

oriented and loosely co(pled systems.
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Ma>or MOM !roiders

-ebSphere M7 2)ormer M7 Series3# 54M

Tibco =endeAo(s# Tibco

FioranoM7# Fiorano So)tware

Sonic M7# Sonic So)tware

MSM7# Microso)t
Messaging bridges come handy in cases like mergers of two companies,
i.e.: A trading system that uses WebSphere MQ can arrange money
transfer from a banking application that uses Tibco.
Webogic has a concept of foreign !MS ser"ers.
Sonic MQ has a bridge to WebSphere MQ#
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+onnecting 'pplications with MOM
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More MOM bene)its

Yo( do not need to write a c(stom so)tware

to connect two applications.

5) one o) the applications is not aailable#

MOM stores messages.

MOM proides cl(stering# load balancing

and )ail-oer witho(t additional
programming.
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Messaging 4(AAwords

Message prod(cers and cons(mers# simple clients

!oint-to-!oint 2!$!3# 7(e(es# Senders

+hannels# 7(e(e Managers

!(blish-S(bscribe 2!(b9S(b3# Topics# !(blishers#

S(bscribers# /(rable S(bscribers

!ersisted messages are stored on disks while non-

persisted messages stay in memory.
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!oint-to-!oint Model

There is only one receier )or

any partic(lar message 2i.e. a
sender places an order and a
receier gets it3.

' sender is called a message

producer and a receier is a
message consumer.

The message is remoed )rom a

@(e(e as soon as the receier
s(ccess)(lly gets it.
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!(blish-S(bsribe Model

' message is published to

a topic and m(ltiple
receiers can get it 2i.e.
stock price @(otes3

=eceiers subscribe to a
topic.

!(blishers and s(bscribers

are connected by a
message broker.
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J$** Serers
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Jaa Messaging Serice 2JMS3

JMS is an '!5 to MOM. Message prod(cers and cons(mers

can (se non-JMS '!5s.

Synchrono(s message retrieal.

JMS 6isteners.

J$** senders; Session 4eans.

$oncurrency, transaction support, easy configuration, they can send messages
to any topic or %ueue

J$** receiers; Message-/rien 4eans 2M/43.

$oncurrency, transaction support, easy configuration, they are mapped to a
particular topic
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Message-/rien 4eans

M/4 are stateless# no remote and home inter)aces

public class OrderListener implements
MessageDrivenBean, MessageListener{

MessageDrivenContext ctx;
public OrderListener() {}
public void onMessage(Message message){
// our business code goes !ere"
}
// Bean Life supporting methods go here
}
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M/4 descriptor; e>b->ar.xml
#message$driven%
#e&b$name%OrderListener#/e&b$name%
#e&b$class%com"x'("OrderListener#/e&b$class%
#transaction$t'pe%Container#/transaction$t'pe%
#transaction$scope%Local#/transaction$scope%
#message$driven$destination%
#&ms$destination$t'pe%&avax"&ms"Topic
#/&ms$destination$t'pe%
#&ms$subscription$durabilit'%nondurable
#/&ms$subscription$durabilit'%
8
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weblogic-e>b->ar.xml
Mapping of an MDB to a topic:
#)eblogic$enterprise$bean%
#e&b$name%OrderListener#/e&b$name%
#message$driven$descriptor%
#destination$&ndi$name%
OrderTopic
#/destination$&ndi$name%
#/message$driven$descriptor%
#/)eblogic$enterprise$bean%
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Simpli)ied Order =o(nd Trip
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Synch s. 'synch
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Synch s. 'synch 2cont.3
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JMS +lasses From >aa.>ms

Message

7(e(e# 7(e(e+onnection# 7(e(e+onnectionFactory#

7(e(eSession# 7(e(eSender# 7(e(e=eceier

Topic# Topic+onnection# Topic+onnectionFactory#

TopicSession# Topic!(blisher# TopicS(bscriber
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JMS Message Types

TextMessage B any Jaa String

Ob>ectMessage B any serialiAable Jaa Ob>ect

4ytesMessage B a stream o) bytes

StreamMessage B a stream o) Jaa primities

MapMessage B any key9al(e pair

An &b'ectMessage or a MapMessage are good
choices for a trading S&A application.
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?ow to Send a Message
*ueueConnection+actor' ,actor' - ne)
*ueueConnection+actor'();
//*ueueConnection+actor' ,actor'-
//(*ueueConnection+actor') ctx"loo.up(/Order*C+0);
*ueueConnection connection -
,actor'"createQueueConnection();
connection"start();
1ession session - connection"createQueueSession(
,alse2 1ession"345O63C78O9L:D;:);
*ueue io*ueue - session"createQueue( /Order*ueue0 );
*ueue1ender <ueue1ender -session"createSender(io*ueue);
5extMessage outMsg - session"createTextMessage();
outMsg"setText(/=>M ?@@ M.t0); // >u' ?@@ s!ares o, =>M
<ueue1ender"send(outMsg);
<ueue1ender"close();
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?ow to =etriee a Message
class M'Aeceiver implements MessageListener{
M'Aeceiver(){
*ueueConnection+actor' ,actor' - ne) *ueueConnection+actor'();
// *ueueConnection+actor' ,actor' -
// (*ueueConnection+actor') ctx"loo.up(/Order*C+0);
*ueueConnection connection - ,actor'"createQueueConnection();
connection"start();
1ession session - connection"createQueueSession(
,alse2 1ession"345O63C78O9L:D;:);
*ueue io*ueue - session"createQueue( /Order*ueue0 );
*ueueAeceiver <ueueAeceiver - session"createeceiver(io*ueue);
*ueueAeceiver"setMessageListener(t!is);
}
public void onMessage(Message msg){
1tring msg5ext;
tr'{ i, (msg instanceo, 5extMessage){
msg5ext - ((5extMessage) msg)"get5ext();
1'stem"out"println(/;ot / B msg5ext);
}else 1'stem"out"println(/;ot a non$text message0);
}
C
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?ow to !(blish a Message
5opicConnection+actor' con+actor' -
(5opicConnection+actor') ctx"loo.up(/ipo5C+D);
5opicConnection connection -
con+actor'"create5opicConnection();
5opic1ession pub1ession -
connection"create5opic1ession(,alse21ession"345O63C78O9L:D;:);
5opic ipo5opic - (5opic)ctx"loo.up(/=EO63lerts0);
5opicEublis!er publis!er-pub1ession"createEublis!er(ipo5opic);
connection"start();
5extMessage message - pub1ession"create5extMessage();
message"set5ext(/;oogleFs =EO is sc!eduled ,or tomorro)0);
publis!er"publis!(message);
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?ow to S(bscribe )or a Topic
5opic1ession sub1ession-connection"create5opic1ession(,alse2


1ession"345O63C78O9L:D;:);
5opic topic - (5opic) ctx"loo.up(/=EO63lerts0);
5opic1ubscriber subscriber-sub1ession"create1ubscriber(topic);

connection"start();
subscriber"setMessageListener(t!is);

public void onMessage!Message message" {

1tring msg5ext;
tr'{
i, (msg instanceo, 5extMessage){
msg5ext - ((5extMessage) msg)"get5ext();
1'stem"out"println(/;ot / B msg5ext);
}else 1'stem"out"println(/;ot a non$text message0);
}
8
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Message Str(ct(re

The header describes the message# i.e.

msg id, routing, correlation id (!MSMessage)*, !MS+elyTo,
!MS$orrelation)*,

The body contains the application data 2(p to C&&Mb3

te-t, bytes, key."alue pairs, etc.

Optional properties and selectors.

Application specific parameters. Support customi/ed
message selection. Allows sharing %ueues for different types
of messages.
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Message Selectors
5) yo( hae to share a @(e(e )or di))erent types o) messages (se selectors 2)ilters3
to aoid DstealingD somebody else0s messages;
1tring selector - D1:-831D3*D;
session"createAeceiver(<ueue2 selector);
S(ch a listener will de-@(e(e only those messages that hae a String property S*
with the al(e ,1'S/'7..

Message prod(cers hae to set this property;
5extMessage outMsg - session"create5extMessage();
outMsg"set5ext(/G@@ **** M0);
outMsg"set1tringEropert'(D1:D2 D831D3*D);
For better per)ormance (se n(meric selectors
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Message 'cknowledgement

Use o) transactions and a message acknowledgement mode

are speci)ied d(ring creation o) a JMS session ;
Connection+actor' con+act- ne) Connection+actor'();
Connection con-con+act"createConnection();
1ession session - con"create1ession(false2
Session#$%TO&$C'(O)L*D+*);
The other choices are $)01T2A$31&W040 and
*56S2&32A$31&W0*40

5) the )irst arg(ment is true# the session will (se

transactions and the second arg is ignored. 'n explicit
commit() is re@(ired in this case.
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M(ltithreading

M/4 allow yo( create a pool o) message listeners witho(t thread

programming. 'nother choice; instantiate Jaa listener-classes on
the app serer start(p.

J$** spec disco(rages (se o) m(ltithreading in containers# b(t8

Using threads to send messages )rom session beans is OF.

+ontrol threads by (sing thread pools. 's o) Jaa %.& they are part
o) J$S* 2see &ava"util"concurrent"5!readEool:xecutor3.

The Jakarta +ommons pro>ect has a Thread!ool component

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6/'! Serers
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6/'! Serers )or +orp /irectories

6/'! directory serers are highly optimiAed )or data

retrieal.

/ata in memory are stored in a tree str(ct(re;

oGxyA.com
o(Ggro(ps
cnGacco(nting
cnG?=
cnG=iskTechnology
cnGYako

The address o) the ob>ect that0s bo(nd (nder the node Yako is ;
cnGYako# cnG=iskTechnology# o(Ggro(ps# oGxyA.com

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6/'! Serer )or JMS Ob>ects

Storing 7(e(e Managers and 7(e(es in 6/'! directory

serers;
oGxyA.com
o(GTrading
cnGOrder7+F
cnGOrder7(e(e
cnG'ck7+F
cnG'ck7(e(e
cnG+ompliance7(e(e

?ere0s the J1/5 look(p parameter;

cnG+ompliance7(e(e# o(GTrading# oGxyA.com
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6/'! and J1/5 look(p

Set JNDI properties, connect to the LDAP server, and find the
object called rder!"F# a J$S %ueue connection factor&'

Has!table env - ne) Has!table();

env"put(Context"=8=5=3L6CO85:I56+3C5OA2
/com"sun"&ndi"ldap"LdapCtx+actor'0);
env"put(Context"EAOJ=D:A64AL2 /ldap:,,m-ldapserver#x-.#com:/010);
env"put(Context"1:C4A=56345H:85=C35=O820simple0);
env"put(Context"1:C4A=56EA=8C=E3L2 /cn-Director' Manager0);
env"put(Context"1:C4A=56CA:D:85=3L120m'Eass)ord0);

DirContext ctx - ne) =nitialDirContext(env);
*ueueConnection+actor' ,actor' - (*ueueConnection+actor')
ctx#loo2up!3cn4OrderQC5, ou4Trading, o4x-.#com6";
*ueue order*ueue - (*ueue)
ctx#loo2up!3cn4OrderQueue, ou4Trading, o4x-.#com6";
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4inding Ob>ects to an 6/'! Tree

'n example o) binding a -ebSphere M7 @(e(e ob>ect. ' @(e(e

connection )actory can be bo(nd to 6/'! similarly.
DirContext ctx-ne) =nitialDirContext(env);// see previous slide
8
M**ueue <ueue - ne) M**ueue();
<ueue"setEersistence(KM1C"M*KM16E:A68O8);
// =, on t!e ot!er end o, t!e <ueue is a non$&ms readerL
// <ueue"set5argetClient(KM1C"M*KM16CL=:8568O8KM16M*);
1tring ldap8ame - Dcn-Order*ueue2 ou-5rading2 o-x'("comD;
ctx"rebind(ldap8ame2 <ueue);

'n app does not know i) yo(0re (sing -ebSphere M7 or other

proider;
*ueue order*ueue - (*ueue)
ctx#loo2up!3cn4OrderQueue, ou4Trading, o4x-.#com6";
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' @(iA
The data center with the MOM serer is down.
Yo(r trading application (ses seeral @(e(e
managers# topics and doAens o) @(e(es.
?ow do yo( @(ickly re-con)ig(re yo(r trading
system to (se a di))erent MOM serer:
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7(iA Sol(tion
=(n an 6/'! binder program that will rebind
the /isaster =ecoery site0s MOM serers#
@(e(e managers# @(e(es and topics.
Yo(r trading system may stay alie een
witho(t bo(ncing J$** serers.
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=eporting and +ompliance
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Trade =eporting and +ompliance

1'S/'7 H&-seconds r(le

Trading !re-+learance

5nsider Trading

Use o) 4(siness 5ntelligence *ngines

'nti-Money 6a(ndering
Using real-time messaging helps in preenting iolations;
re>ect a trade i) it iolates any reg(lations.
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SO'# */' and Messaging
Serices;

Orders# 'cco(nts

+redit =ating 2+=3. 5nstead o) checking )or eery order# s(bscribe )or
modi)ications o) += 2!(b9S(b3.

Trades. +heck )or and p(blish iolations. +ompliance department

s(bscribes )or iolations 2!oint-to-!oint3.

!ositions

Market data. S(bscribe )or partic(lar stock in)o and initiate trades when
conditions are met 2!(b9S(b3.

Tibco 4(siness-orks o))ers an easy way to integrate serices by

connecting them to the same message b(s and creating serice adapters.
Watch for WS.1otifications spec (&AS)S, that won7t re%uire e"ery ser"ice to
be written in !a"a.
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!otential 5ss(es

Se@(encing. Messages may arrie o(t o) order 2i.e. mod

comes be)ore create3.

5) yo( know in adance how many slices are being sent# >(st
add a se@(ence n(mber to a the header property.

+reate a re-se@(encer that will p(t a message with high

se@(ence n(mbers aside (ntil the preio(s message arries.

=eceier can also can also not accept a message i) a

preio(s one does not exist in the database 2modi)ication o)
a non-existing order3.

JMS!riority header )ield 2&-C&3 might help in deliering

expedited messages 2%-H3 ahead o) normal ones.
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!otential 5ss(es 2cont.3

!oisoned Messages 2any type o) corr(ption3. They ca(se an

application to rollback and retry.

The n(mber o) re-tries sho(ld be con)ig(rable.

!oisoned messages sho(ld be placed into a separate @(e(e

and re@(ire examination by people.
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!otential 5ss(es 2cont.3

The connection to the MOM proider is lost

5) yo( set a &avax"&ms":xceptionListener to
yo(r +onnection ob>ect# it0ll be noti)ied o) connectiity
problems.

This inter)ace has the only method ;

on:xception(KM1:xeption e){
// tr' to reconnect}.

5) yo(r MOM proider s(pports logical 5!s# arrange

some wait in this method to allow )ailoer to a /= site.
conn"set:xceptionListener(
:xceptionListener listener)
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Scalability in Messaging

Systems need to accommodate more conc(rrent (sers or

increased ol(me.

MOM +l(sters with the messages persisted on the Storage

'rea 1etworks 2S'13 deices based on ='5/ disks.

5) yo( can not a))ord S'1# yo(0ll hae to arrange a

replication o) the persisted messages.

5s the price o) persisting messages too high: Yo( can easily

increase the message thro(ghp(t C& times or more by
switching to a non-persistent mode.
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*nterprise 5ntegration !atterns
www.eaipatterns.com has a good and growing
collection o) *5 patterns that are not tied to a speci)ic
implementation# )or example;

Message =o(ting; /ynamic =o(ter# 'ggregator#

=ese@(encer# Splitter

Messaging *ndpoints; *ent-/rien +ons(mer# !olling

+ons(mer# Transactional +lient
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Thank yo(I
7 < '
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