: On March 30, 2016, ISE announced that it is the first regulated exchange to build and operate a cloud-based disaster recovery infrastructure as part of its disaster preparedness requirements established by the SEC. In this presentation, Rob Cornish, CIO at ISE, talks about the benefits of a cloud-hosted disaster recovery infrastructure, the business reasons behind the initiative, the production timeline, and the realized benefits.

1. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Rob Cornish, CIO at International Securities Exchange
April 14, 2016
Disaster Recovery in the Cloud

2. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
International Securities Exchange
Founded in 1997
Offers investors efficient and transparent marketplaces for price and liquidity discovery
Options on over 2,000 underlying equity, ETF, index and FX products
Member-owner of the Options Clearing Corporation (OCC)
143 different members combine for an average daily volume of 2.4 million contracts
Regulated by the Securities and Exchange Commission (SEC)
Launched third options exchange, ISE Mercury, in February 2016
The first all-electronic options exchange in the US, launched in May 2000
ISE Holdings was the first U.S. securities exchange to go public in March 2005
The first regulated exchange to launch a production Disaster Recovery in the Cloud

3. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Competitive Landscape
U.S. options market environment:
14 current exchanges
At least one additional planned for 2016
Differentiation driven by:
Market structure
Pricing model
Technology platform
Functionality

4. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Faster time to market
Higher quality
Better time to resolution
Reduce human error
Eliminate redundancies
Quicker & more reliable fallback
Enhanced business efficiency
Continuous Improvement

5. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Culture and Collaboration

6. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Raising the Bar

7. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Regulation SCI
The SEC determined our Disaster Recovery was not geographically diverse

8. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Rising to the Challenge
Needed to be robust and resilient with 2 hour resumption of trading
Looked at multiple options:
Build new redundant environment
Small cloud or Big Cloud
ISE decided on a different path…

9. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Out-of-Region Disaster Recovery Solution
Utilizes a small footprint in Chicago datacenter for member firm and market data connectivity
Core trading system and all the supporting applications in AWS - U.S. West (Oregon)
Includes multiple cloud-based virtual servers and terabytes of cloud-based storage
Member connectivity and market data feed handling appliance at the Chicago data center

10. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Benefits and Solution
Quick member provision
Physical connectivity to cloud service providers
Physical connectivity to market data
Limits management of physical infrastructure
Ability to add capacity if necessary
Mobility of virtual cloud infrastructure to other regions

11. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
ISE Datacenters

12. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Project Timeline

13. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Invisible Infrastructure
AWS provides elastic compute and storage
CoreOS provides system security and reliable updates
Docker containers for isolation, reliability, and time to market
Weave enables multicast in the cloud
ISE multicast proxy connects market data feeds across data centers
Terraform provides cloud-agnostic infrastructure
Duo Security provides two-factor authentication
Open-source tools provide data sync to S3

14. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
High-Level Design
Market
Data

15. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS Direct Connection / Virtual Private Network

16. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Two-Factor Authentication

17. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
High-Level Security Design

18. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Disaster Recovery in the Cloud - Delivered
Utilizes a small footprint in Chicago data center for member firm and market data connectivity
Core trading system and all the supporting applications in AWS - U.S. West (Oregon)
Includes multiple cloud-based virtual servers and terabytes of cloud-based storage
Member connectivity and market data feed handling appliance at the Chicago data center

19. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Broader Outcomes of Our Journey
Fully automated configuration and orchestration
Build, test, deploy pipeline begins with code check-in
Rapid, continuous delivery
Run workloads across any infrastructure
Launched new markets with no additional headcount
Overall IT spend reduced more than 35% since 2011

20. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Questions

21. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Thank you!
Rob Cornish, CIO at International Securities Exchange
rcornish@ise.com
@robcornish on github