Online Trading System – Daewoo Securities

Daewoo Securities switched from Oracle to Altibase, eliminating authentication issues that stemmed from mass concurrent logon attempts.

Use Case: Online Trading System

Current Customers: E*TRADE and Kyobo Securities

Industry: Finance

Who

Daewoo Securities is a full-service brokerage firm with the largest market share in Korea.

Problem

Daewoo Securities faced numerous problems with its online trading systems. The problems were manifested in three crucial areas.

  • Due to a massive but typical influx of logon attempts between 9 and 10 am (at market open), the company’s DBMS system could not handle the load. As a result, logon attempts were unsuccessful and in-use disconnections were widespread. This basic dysfunction frustrated clients and ultimately led to a growing incertitude in Daewoo Securities’ ability to meet even simple needs.
  • Daewoo Securities had to assuage customers by indemnifying them, causing immediate negative impact on its profits. Worse yet, customer ill-will, loss of faith and viral spread of news related to the pervasive system limitations resulted in two vicious outcomes: large customer attrition and inability to attract new clients.
  • Daewoo Securities was embroiled in a crisis. Its profitability and reputation were suffering irreparable damage. Additionally, Daewoo Securities was facing the bitter reality of being left behind and passed by competitors. With the geometric growth of online trading in Korea, Daewoo securities was in need of a quick, implementable and seamless solution.[1]

Solution

Daewoo Securities adopted Altibase in in-memory mode in 2001. Specifically, Altibase eliminated authentication issues, which cleared the path for speed, connection stability and complete logon reliability. Altibase provided Daewoo Securities with stable performance that was 6 times faster and more reliable than its previous on-disk DBMS. Altibase, without issue, processed more than 30,000 simultaneous logons.

Results

  • Daewoo Securities no longer has customer-facing issues and related complaints, reputational risk and profit damage.
  • Altibase’s marked benefits are now integrated into the company’s main information system that processes and analyzes more than 2,000 quotes per second in multiple markets, including FX and options.
  • Altibase increased Daewoo Securities’ data processing speed by 7 times.[2]
  • Daewoo Securities achieved its number 1 position in market share in the year 2005, up four spots from the year 2000.
  • Representing 8.5% total market share in 2005, Daewoo Securities was still maintaining its number 1 position with 9.9% market share in 2010.
  • Daewoo Securities’ continued growth is attributable to further adoption of Altibase in its main information processing system.

Online Trading System

 


[1] Online trading grew from 2.9% to 66.6% from 1998 to 2001.
[2] (0.002 sec per order) vs (0.014 sec per order)

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