Copyright 2007, Information Builders. Slide 1 BT Managed Secure Messaging Mike Byles BT June,2008.

Copyright 2007, Information Builders. Slide 1

BT Managed Secure Messaging

Mike Byles

BT

June,2008


iWay and BT Quote

BT Selects iWay Software to Support Its Secure Messaging Service

New York, NY – May 16, 2007 – iWay Software, an Information Builders company and an innovator of enterprise integration solutions announced today it has been selected by BT toenhance its successful secure messaging service for the global financial services community.

BT’s secure messaging service uses the BT Radianz shared market infrastructure to deliver time-critical and cost effective demands unique to financial services organizations

BT Selects iWay Software to Support Its Secure Messaging Service

New York, NY – May 16, 2007 – iWay Software, an Information Builders company and an innovator of enterprise integration solutions announced today it has been selected by BT toenhance its successful secure messaging service for the global financial services community.

BT’s secure messaging service uses the BT Radianz shared market infrastructure to deliver time-critical and cost effective demands unique to financial services organizations

“Our service depends on cost-effectively moving billions of messages describing financial transactions. We needed a vendor that could handle our rigorous technical requirements,yet still be lightweight and flexible. In iWay, we have found a solution with technical attributes that will grow with us as we expand our service“

“Our service depends on cost-effectively moving billions of messages describing financial transactions. We needed a vendor that could handle our rigorous technical requirements,yet still be lightweight and flexible. In iWay, we have found a solution with technical attributes that will grow with us as we expand our service“

Kevin Covington, VP Product and Business Development, BT Radianz


BT Employees: 125,000 Revenue: £20.2 billion

BT Global ServicesEmployees: 38,000 Revenues: £9.1bn

BT Global Financial ServicesRadianzNet – 10,400 financial sitesVoice Trading Systems – 1 in 3 trading positions worldwide SettleNET – 100+ clients

ProfileBT is one of the world's leading providers of networked IT services to the global financial community. With more than 25 years of experience providing products and services developed specifically to the unique requirements of the financial services industry, BT has built a reputation for creating solutions that help financial firms to increase revenues, reduce costs, and improve service to their customers.

BT Overview


RequirementBT has successfully operated a secure messaging service for the UK financial marketplace for 12 years and needs to update the technology of that service and extend its reach to becomea global network.

The ChallengeDevelop a secure, managed, low-cost network for the world’s premier settlement system for domestic and international securities transactions, covering bonds, equities, and investment funds.

The StrategyCreate a working POC that could demonstrate the ease of use, flexibility, and out of the box performance of iWay solutions, in order to meet the discerning demands of the finance industry.

The ResultsThe end product will replace the existing infrastructure and provide a springboard for further development of BT and enable additional growth opportunities from the global finance sector.

Our SolutionThe complete iWay suite of products operating on multiple servers and client gateways together with professional services (in excess of 400 days).

BT Summary


The Business Problem

The Problem European Financial Settlement Integration

Business IssueBanks are asking for a single settlement platform for European securities. This isbecause cross- border securities settlement in the EU are expensive – 6 times moreexpensive than domestic and domestic settlement in EU are 8 times moreexpensive than in the USA.

The Business Solution Euroclear – A clearing house for securities traded in the Euromarket. Euroclearspecializes in verifying information supplied by two brokers in a securitiestransaction and in the settlement of securities.


CSD

Securities

Legal

Services

Settlement

Platform

EMSS /FMS /COMS

NEXTSEFRGV/Relik+CREST

CeBM withBoE in EUR

USD assuredpayment

UK Settlement &

Custody

UK / Irish Law

UK securities,Irish equities,some foreign

equities

CeBM withEDF in EUR

CeBM withDNB in EUR

CeBM withBNB in EUR

CoBM withE in 30+

currencies

FrenchSettlement &

Custody

DutchSettlement &

Custody

BelgianSettlement &

Custody

Multi-MarketSettlement &

Custody

French Law Dutch Law Belgian Law Belgian Law

French securities,

some foreign equities

Dutch securities,

some foreign equities

Belgian Equities &

Corp. bonds, some foreign

equities

International bond,

money-market, equity and funds

Euroclear UK

& Ireland

EuroclearFrance

EuroclearNetherlands

CIKBelgium

Euroclear

Bank

Current Settlement Stovepipes

Goal:Single Settlement Engine

How is it done Today!

*Formally CrestCO*


The Technical Challenge

The Technical Solution Common Communication Interface – This is the planned shared platform fromEuroclear which will allow all Euroclear members to share a common messagingexchange platform

BT and EuroclearBT submitted a bid to Euroclear to be one of several, CCI compliant, franchisedoperators of a managed network service between Euroclear and its global clientbase.The CCI is a new initiative to provide a common communications infrastructure for any globally based customer wishing to use any Euroclear application. To date onlytwo organizations have been recognized as CCI compliant – BT and SWIFT.

iWay, BT, and Euroclear iWay is the solution that BT has chosen to build out their CCI architecture


Eurclear UK

& Ireland

EuroclearFrance

EuroclearNetherlands

CIKBelgium

Euroclear

Bank

What Problem Does it Solve?

Financial Institutions

File Channel Screen Channel Message Channel

BT Radianz

File Channel via RadianzNet Screen Channel via RadianzNetMessage Channel via RadianzNet

Message and Files Per Day: 13.4mScreen Transactions per day: 1.4m

2,000 Institutions, 500 transactions per second across the WAN


Internet Internet

Screen over Internet

Smart Client

Screen

STP and Screen

Workstation

Smart Client

Workstation

Smart Client

Workstation

BackOffice Single

PlatformApp

SinglePlatform

App

SinglePlatform

App

Gateway

Gateway

Gateway

Gateway

Gateway

Gateway

SoftGateway

BT Radianz

Deployment

Euroclear DC1

Euroclear DC2

Euroclear DC3


Workstations

Customer

SinglePlatform

App

SinglePlatform

App

SinglePlatform

App

Euroclear

Digital Signatures

Gateway

Gateway

Gateway

BT Radianz

Back OfficeSystems Gateway

The gateways contain Hardware Security Modules

(FIPS 140-2 Level 3)

Digital Signatures are added to messages

Also SSL encryption

HSM


Workstations

Customer

SinglePlatform

App

SinglePlatform

App

SinglePlatform

App

Euroclear

Non-repudiation

Gateway

Gateway

Gateway

BT Radianz

Back OfficeSystems

Gateway

HSM

All messages and receipts received are logged for Non-

Repudiation purposes

All transfers generate a signed

receipt

Log


Workstations

Customer

SinglePlatform

App

SinglePlatform

App

SinglePlatform

App

Euroclear

Fully-Managed Service

Gateway

Gateway

Gateway

BT Radianz

Back OfficeSystems

Gateway

HSM

Log

RMC

Gateways and connections are remotely

managed

Remote Management

Card


Log

Customers Euroclear

Euroclear Front End

AS2Adapter

RelayService

AS2Service

Sign/Verify

Enterprise Gateway

FileListener

RelayService

AS2Service

Sign/Verify

Standard Gateway

BT Radianz

File Drop Interface

Customer’s File Store

Log

Data is transferred as a messageData is picked up

and dropped as a file

Signed Messages and Receipts are logged


Log

Customers Euroclear

Euroclear Front EndCustomer’s Queue Manager

Log

AS2Adapter

RelayService

AS2Service

Sign/Verify

Enterprise Gateway

MessageClient

RelayService

AS2Service

Sign/Verify

Standard Gateway

BT Radianz

MQ Interface


Log

Customers Euroclear

Euroclear Front EndLog

Sign/Verify

Enterprise Gateway

Sign/Verify

Standard Gateway

BT Radianz

Screen Channel

Http Proxy Http Proxy/ SOAP Actor


Log

BT Radianz

Log

Customers Euroclear

Euroclear Web Server

Sign/Verify

Enterprise Gateway

Sign/Verify

Soft Gateway

Internet Screen Channel

Http ProxyHttp Proxy/ SOAP Actor

Smartcard or USB HSM

Smart Client

Customer’s Workstation


iWayService

ManagerGateway

BT Radianz

iWay Gateway and Adapters

HTTP(S)

AS2

HTTP(S)

MQ

File

AS2

SOAP

HSM

Cryptographic Service

Customer’s File System

Customer’s Queue Manager

Customers Interactive CLients

Euroclear Applications

PKCS #11

LoggingService

Management Service


Why iWay?

Reliability, Ease of Use, Inter-operability, Agility, FlexibilityDIY – the range of adapters needed ruled out a DIY solutionMature – a sound track record in integration technologiesFinancially soundOur contacts in iWay understood our requirementsService Manager technology is up to date - Java iWay was sufficiently flexible about the contract to meet our

particular requirementsFlexibility over changes


iWay Flexibility

AS/2 relay features, AS/2 is not usually relayed New AS2 Acknowledgement Handling (deferred MDN) Pluggable Security Providers

JCE Certificate Store and Key Store (with iWay SecurityManager for multi-

Key support) XML Digital Signature (sign and validate agents) SOAP with attachments (parse, manage and construct) Standalone and Hardened deployment (XML DSig based) Separate runtime console with user extensibility New Audit Driver Exit points Enhanced NIO based transports (HTTP, AS2)


Experience

Where are we? Completed protocol interoperability testing with Euroclear Commencing performance testing

Additional adapters, SOAP and AS/2 were not originally envisaged Changes have been carried out professionally It works! Developer acceptance Faults are handled responsively To do:

Performance Management Deployment


Futures?

Value added services Store and Forward Bureau Gateway Peer to Peer

More interfaces and adapters FTPS, MMTP Generic Screen channel Others


In Conclusion

Regrets, I’ve had a few;But then again, too few to mention.I did what I had to doAnd saw it through without exemption.

I planned each charted course;Each careful step along the byway,But more, much more than this,I did it iWay.

Copyright 2007, Information Builders. Slide 1 BT Managed Secure Messaging Mike Byles BT June,2008.

Documents

settlement of securities

financial services industry

global financial community

information builders

domestic settlement

financial firms

bt toenhance

bt quotebt