Oracle SOA Suite’s middleware application is an adaptive medium with the capability to integrate various heterogeneous applications. KPEI use the app advantage to develop and implement Straight-Through Processing (STP) system for a fast, efficient, and secure stock exchange transaction.
Transaction activities at the Indonesia Stock Exchange (BEI) are getting more reliable these days thanks to the strong commitment from BEI to assure a fast, efficient, and secure transaction system. And PT Kliring Penjaminan Efek Indonesia (KPEI), which is the backbone of the stock exchange, plays a significant contribution to it as well. KPEI is the only clearing and settlement guarantor for every stock exchange transaction in the country. The self-regulatory organization is a busy company due to the high transaction volume in the stock exchange.
KPEI provides clearing and settlement guarantee for stocks, bonds, and derivative products transaction in the stock exchange. In its capacity as Central Counterparty, KPEI applies Continuous Settlement system with intraday facility, providing margin trading, and manages clearing member’s collateral. In short, KPEI made transactions in BEI more efficient and reliable.
Using STP system, all kinds of transactions in the exchange, from order, execution, clearing, confirmation/affirmation, to settlement are done electronically without manual intervention. Aside improving processing capacity and made transaction process faster, more efficient and transparent, STP also minimizes errors. It also improves supervision.
The Role of Middleware
In practice, STP role is to integrate information and applications traffic in BEI, KPEI, and KSEI. Thus, KPEI tries to develop middleware application that makes integration process between application run smoother, faster, and centralized.
The challenge is to simplify system integration and communication between apps in KPEI; simplifying operation procedure and maintenance by reducing dependency between apps; provide System Monitoring, Service Level, Audit Trail, and Dashboard for operational support; and opening up the chance to develop application using web-based SOA (service-oriented architecture) to make it easier for the IT team to follow the business process dynamics.
“It was a mess, we’re doing it one by one. Meaning we have to be able to define the effect of each change points,” says Aditya Gadiri, VP IT Division KPEI. This clearly took time and troubling.
Aditya and his team had begun to think about solving the issue since 2008, triggered by the implementation of Risk Management System. Using middleware, adjustment only needs to be done on the middleware when there are changes in the system or application.
Nimble with Oracle SOA Suite
In 2009, KPEI did several researches including on Oracle and its Oracle SOA Suite. As part of the Oracle Fusion Middleware software, Oracle SOA Suite enables system developer to manage various services in a system by orchestrating various application and business process. Using the middleware, the company can build its IT architecture while maintaining the existing IT investment.
Prior to deciding, KPEI asked the principal to inform a capable partner to provide the solution. Higher qualification means KPEI can rely on its service guarantee. Oracle then listed PT Mitra Integrasi Informatika (MII) as a trusted partner for the project.
Another requirement is principal willingness to give full guarantee upon the project smooth completion. The support should be more than just a commitment to take over the work if the partner is incapable, but also providing the engineer.
After a tight consideration, KPEI decided to use Oracle for its middleware needs. “Oracle SOA Suite makes middleware development more nimble, including in modifying and integrating heterogenic applications and services,” explains Aditya.
Live in Mid 2012
The project began to commence at the end of 2009. As instructed by KPEI, MII is required to build and adjust all the business process needs and to transform and connect all business process using SOA technology. Other tasks is to integrate all the existing application such as RAZOR, e-CLEARS, e-BOCS, RMOL, ARMS, Data Feeder, Validator, and Member Interface that operates in various protocol and technology.
MII used the Oracle SOA Suite during the middleware development and infrastructure production stage, and added with Oracle WebLogic Server on enterprise java application server also Oracle Database Server on production environment.
After running for 3.5 years and went through several simulations, KPEI’s middleware go live in mid of 2012 and becomes an inseparable part of the STP system. All of the members of the stock exchange have benefited from the implementation.
MII is proven to give its fullest support. Now, MII continue to post its dedicated engineer at KPEI.
KPEI’s homework doesn't ends with the completion of the middleware. “This is just the risk management-centric and the surrounding. In the future we want to develop office application since our colleagues and management has felt the benefit," says Aditya.
The development and implementation of middleware at KPEI and STP is just a part of the building block to create and integrated stock exchange network. Oracle SOA Suite is proven to be the right and fast solution as an adaptive foundation.