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Licensing Client and Server Applications

Licensing Client Applications

To access an exchange via a TT Gateway, TT client applications must be licensed (with the three files listed in Overview). The .LMT file controls the type and number of client applications that can access any particular market (e.g., CBOT, Eurex, etc.), as well as the mode in which they operate. Although, all products licensed for Production are also licensed for Simulation by default, not all products licensed for Simulation are also licensed for Production. The following example illustrates how the .LMT file controls TT applications at the client site.

Example

Quick Financial Services (QFS) has 80 X_TRADER® workstations and access to three markets via TT Gateways (CBOT, Eurex, and CME). For its license file, QFS has purchased access to one exchange for 40 traders, access to two exchanges for 20 traders, and access to three exchanges for 20 traders (for a total of 80 traders).

In the future, if QFS orders more X_TRADER® workstations, TT must generate a new license file to allow for the increased number of trader workstations and associated exchange access.

Warning

TT licenses only its client products (by their total number) and the total number of exchanges that they access. Thus, if your network has more installed X_TRADER®s than are listed in the license file, legitimate traders may not be able to access needed exchanges if non-legitimate users log into the system.

Market-Based Client Licensing

Market-based licenses manage both the total number of client applications and the number of markets each license can connect. Market-based licenses exhibit the following behaviors:

  • All client applications in a trading environment share a pool of licenses. TT does not offer IP specific licenses for client applications.
  • The licenses are allocated on a first come, first served basis. Once allocated, a license remains unavailable until ‘timed out’.
  • Licenses ‘time out’ within thirty seconds of a trader logout.
  • Licenses are available in different ‘sizes’ that relate to the potential number of markets each license can connect.
  • For each license request, X_TRADER simply verifies whether a license exists for the number of markets the trader will log into.
  • Multi-market licenses only begin to be restricted when a trader logs into the same number of markets as the largest available license. For example, a three market license is consumed by the first trader to log into a third market.
Note

Client applications trading on a TTSIM Gateway do not consume a market license provided all Guard Servers in the TT trading environment are on Version 7.5.2 or higher. Client applications still require market licenses in order to login to all other TT Gateways.

Client applications and TTSIM Gateways still need respective client and server licenses to operate.

Market-Based Client Licensing Example- Successful Allocation

The Small-Guy trading firm consists of ten traders. Five traders solely trade Eurex. Three traders work with products on CME and ICE. The last two traders want to trade all three markets (i.e., CME, ICE and Eurex).

The Small-Guy trading firm installs ten X_TRADER workstations (one for each trader) and three TT Gateways (one for each exchange). To accommodate this setup, the firm purchases the following licenses:

  • A total of five one-market licenses for the trader on Eurex.
  • Three separate two-market license for the trader working with CME and ICE.
  • Two separate three-market license for the trader who wants to trade all three markets.

The diagram below illustrates a possible market-based license distribution for the example above.

Market-Based Client Licensing Example- Unsuccessful Allocation

The Small Guy Trading Firm purchases the following licences:

  • A one-market license
  • A two-market license
  • A three-market license

At the start of the trading day, three traders log into one market each. Although the licenses can collectively work for up to six markets, they are distributed among three separate X_TRADER workstations leaving none available.

If a fourth trader attempts to login, the login fails due to lack of available licenses. However, any two of the original three traders logged in may log in to a 2nd market and one of the original three traders logged in may log in to a 3rd market.

Licensing Server Applications

TT Gateways are licensed by the following items:

  • Server components (i.e., Price Server, Order Server, etc.)
  • The static IP address of the TT Gateway machine
  • The exchange-flavor of the TT Gateway selected during its installation

TT Gateways do not function if their information (listed above) is not present in the license file, or does not match it.

Server Components

Each server component within a TT Gateway must be listed and activated in the license file in order to function. For example, both the Guard Server and Order Server are listed and activated in the license file on an individual basis. Additionally, TT can also license only those server components needed by the customer. For instance, if a customer needs a dedicated Price Server on a machine, TT can license the TT Gateway so that only the Price Server is available for use.

Note

By default, TT licenses 99 Order Routers on its TT Gateways. However, most markets require that you use a much smaller number of Order Routers. For instance, LIFFE recommends that no more than twenty direct traders connect to a LIFFE Exchange Gateway. Because the TT Gateway connects to only one LIFFE Exchange Gateway at a time, you must limit the number of Order Routers you use to accommodate this limitation.

For information on setting the number of Order Routers on a TT Gateway, refer to Editing ttchron.ini. For a recommended number of Order Routers to use on a specific TT Gateway, refer to the installation chapter of the SAM specific to that TT Gateway.

Static IP Address

The machine used to run a TT Gateway must have a static IP address set in its network protocols. Because its IP address must match the one listed in the license, the TT Gateway server must not receive an IP address from a DHCP server.

If you use more than one NIC card on the TT Gateway, you must supply the IP address of the primary NIC card to TT. Since TT’s software binds to this NIC card, the TT Gateway cannot function without this information.

Exchange Flavor

During installation of a TT Gateway you must select the exchange-flavor as listed in the license file.

For example, if your license file lists ICE-A, when you install the TT Gateway, you must select the exchange-flavor ICE-A.