HDFC Securities Gains 3x Throughput Performance, Executes Online Trades Up to 60% Faster, and Cuts Data Center Costs
 
Oracle 1-800-633-0738
Find an Oracle Specialized Partner
Oracle Customer Programs
 
 

HDFC Securities Gains 3x Throughput Performance, Executes Online Trades Up to 60% Faster, and Cuts Data Center Costs

As a subsidiary of HDFC Bank, HDFC Securities is a leading financial services firm in India, serving a diverse clientele ranging from retail to institutional investors. The company offers a wide spectrum of financial products and services, such as insurance, portfolio, and equity management to 1.8 million customers from a network of more than 200 branches across 150 cities in India. HDFC Securities is also recognized as an e-brokerage pioneer, offering an online trading platform for its investors, where they can make trades via the internet and mobile services. The online trading platform has become a major line of business for HDFC Securities as it is the largest e-brokerage house in India and generates nearly 80% of the company’s annual revenue. 

HDFC Securities needed to ensure high availability for its online trading platform to support the rapidly growing customer base and daily transaction load. The company’s legacy servers and storage systems did not meet service-level agreements and could not scale to support projected growth. The platform experienced large I/O bottlenecks and significant response time delays, which negatively impacted the customer experience. In a highly time-sensitive trading environment, this could cause direct financial losses to investors and penalize the company for breaching regulatory requirements, as well as tarnishing its brand in the financial industry. 

In November 2012, HDFC Securities consolidated 25 servers and two storage systems into a single Oracle SuperCluster and ensured a highly available, scalable, and secure online trading platform in a business where fractions of a second matter. The company accelerated throughput performance by 3x, increased online trading speed by up to 60%, produced reports 67% faster, improved risk management, and cut data center costs.

 
Accelerates Throughput Performance and Online Trading Speed

A word from HDFC Securities

  • "Oracle SuperCluster was the obvious choice for our time-sensitive business, as it offers extreme performance, has no single point of failure, delivers single-vendor support, and provides the highest level of efficiency for our online trading platform where 100% uptime is essential. We saw a threefold improvement in throughput performance, increased the speed of online trading by up to 60%, produced reports 67% faster, improved risk management, and cut data center costs." – Vivek Joshi, CTO, HDFC Securities

HDFC Securities needed a highly available, scalable, and high-performing online trading platform to ensure providing subsecond customer response times and support its growing business. HDFC Securities has 1.8 million customers, and the company’s projected growth was 15,000 customers a month. It also estimated a 2.5x increase in daily trade transactions and expected to double concurrent users over the next three years.

By using Oracle SuperCluster, HDFC Securities accommodated growth with a 3x increase in throughput performance, thanks to Oracle Exadata Smart Flash Cache. The company also minimized the data bottleneck between the servers and storage system by using Infiniband Networking technology and the increased I/O throughput. The company can now easily process more than 200,000 daily trade transactions at peak hours and has achieved subsecond response times for more than 10,000 concurrent users. 

“Oracle SuperCluster was the obvious choice for us. It was the best fit for our time-sensitive business in which 100% uptime is critical for our online trading service. When customers want to trade, they can trade. Our staff can also confidently commit to our customers because they know they can deliver,” said Vivek Joshi, CTO, HDFC Securities.

 
Avoids a Single Point of Failure and Saves Data Center Costs

 
Decreases Trade Settlement Time by Three Hours, Improves Risk Management

 
Single Vendor Support and Provides Seamless Integration

 
 

 
 

Challenges

  • Ensure high performance and high availability of business-critical online trading services
  • Improve customer response times and operational efficiency for trading by eliminating multiple points of failure
  • Support anticipated growth in securities trading over the next three years
  • Reduce data center costs and time spent managing multiple vendors, enabling staff to focus on strategic projects and value-added tasks

Solutions

  • Improved throughput performance by 3x, using Oracle Exadata Smart Flash Cache and minimized I/O bottlenecks with Oracle SuperCluster’s InfiniBand Networking technology, enabling subsecond response times for 10,000 concurrent users
  • Accelerated online trading by up to 60% and easily processed more than 200,000 trade transactions every day, thanks to the extreme performance of Oracle SuperCluster
  • Provided a highly available, high-performing, and scalable online trading platform with less than one-minute automatic failover, versus 30 minutes with the legacy environment
  • Ensured no system downtime and avoided a single point of failure 
  • Reduced data center costs by consolidating 25 servers and two storage systems into a single, pretested engineered system, requiring only one-sixth the floor space, and cutting cooling and energy consumption requirements
  • Improved risk management by creating exposure reports 67% faster—in just 10 minutes instead of 30 minutes—providing consistent and rapid assessment of each client’s trading position and ensuring compliance
  • Cut batch processing time for trade settlements from eight hours to five hours—eliminating trade settlement delays and reducing compliance risk
  • Simplified system management by integrating servers, storage, networking, and software into a single vendor system, rather than managing multiple vendor systems, enabling staff to focus on value-added projects and saving IT costs
  • Enabled seamless integration to Oracle SuperCluster by using Oracle Solaris Cluster to significantly reduce time for patching and minimized unplanned downtime

Why Oracle

HDFC Securities decided to consolidate its legacy infrastructure onto a single Oracle SuperCluster engineered system for its extreme performance, single vendor support, simplified system management, and clear roadmap.

“We chose Oracle SuperClusterover other vendors, as it was the perfect fit for our time-sensitive business, in which every second is critical. We were very impressed with its extreme performance and built-in redundancy. As important, we no longer have a single point of failure, and we boosted our operating efficiency. Our customers can now trade when they want, which is hugely beneficial for our trading services,” Joshi said.

Implementation Process

In November 2012, HDFC Securities began to consolidate its legacy IT infrastructure into Oracle SuperCluster. The entire implementation took five months to complete and included installation and testing, as well as migration of Oracle Solaris 11. The new system went live in April 2013.

HDFC Securities completed the initiative on time and within budget. Upon go live, the online trading platform ran flawlessly on Oracle SuperCluster, and staff members completed their duties without problems.

Partner

HDFC Securities engaged Oracle partner, Tata Consultancy Services to assist with its Oracle SuperCluster implementation and Oracle Solaris 11 migration.

“We had worked with Tata Consultancy Services for years, and the team was involved in every step of the implementation to ensure smooth operations. Tata Consultancy Services’ IT experts combined with Oracle SuperCluster technology enabled us to provide the highest online trading service to our customers and support our growth,” Joshi said.