extent-2016: technology trends in capital markets
TRANSCRIPT
Innovation is power
Technology Trends
in Capital Markets
Page 1 22/06/2016
Innovation is power
1. Description Driven Systems
• System Description
• Asset Class Description
2. Automated System Health Monitoring
Page 2
Innovation is powerPage 3
Description Driven Systems
The Abstraction Gap
Business Functionality
System Implementation
Engineer (code) system. Expensive, error prone
Innovation is powerPage 4
Description Driven Systems
The Abstraction Gap
Business Functionality
System Implementation
Engineer (code) system. Expensive, error proneUnderstanding
existing functionality extremely difficult
Innovation is powerPage 5
Description Driven Systems
The Abstraction Gap
Business Functionality
System Implementation
High level, abstract spec
Low level, detailed implementation
Mostly manual code creation. Expensive, error prone.Understanding
existing functionality extremely difficult
Innovation is powerPage 6
Description Driven Systems
The Abstraction Gap
Business Functionality
System Implementation
High level, abstract spec
Low level, detailed implementation
Abstraction
gap
Mostly manual code creation. Expensive, error prone.Understanding
existing functionality extremely difficult
Innovation is powerPage 7
Description Driven Systems
Bridging the Gap Automatically
Business Functionality
System Implementation
High level, abstract spec
Low level, detailed implementation
Description Language
Specification
High level, formal spec
Innovation is powerPage 8
Description Driven Systems
Bridging the Gap Automatically
Business Functionality
System Implementation
High level, abstract spec
Low level, detailed implementation
Fully automatic code generation
Description Language
Specification
High level, formal spec
Little change in abstraction levels during human effort
Innovation is powerPage 9
Description Driven Systems
Bridging the Gap Automatically
Description Language Toolkit:
• Domain specific languages.
• Allows high level specification.
• Defines data, computation, workflows & interfaces.
• Concise, with high levels of abstraction.
• Automated inference.
• Strongly typed.
• Compile time verification of system specification.
• 100x efficiency improvement.
Innovation is power
1. Description Driven Systems
• System Description
• Asset Class Description
2. Automated System Health Monitoring
Page 10
Innovation is powerPage 11
Asset Class Functionality
Position
Management
Trade Management
Risk
Settlement
E F O
E F O
E F O
E F O
Equities
Futures
Options
Behaviour
coded into
system
Variety of
products, with
configurable
attributes
Innovation is powerPage 12
Asset Class Functionality
Position
Management
Trade Management
Risk
Settlement
E F O
E F O
E F O
E F O
Equities
Futures
Options
S
S
S
S
Adding a new
product means
changing
entire system
Swaps
Innovation is powerPage 13
Locally encoded product behaviour:
• Obscures system functionality.
• Promotes fragmentation.
• Hinders integration & unification.
• Reduces information reliability.
• Increases operational risk.
• Increases costs.
Asset Class Functionality
Innovation is powerPage 14
Asset Class Description
All behaviours of every asset class specified in one place
All functionality managed centrally and coherently
Asset classes
Position
Management
Trade
Management
MTMRisk
Settlement Delivery
Asset class agnostic system infrastructure
Innovation is powerPage 15
Centralized asset class description
• Clarifies system functionality.
• Promotes integration & coherence.
• Increases business agility
• Reduces information loss & Increases information reliability.
• Reduces operational risk.
• Reduces cost of ownership and change.
Post-Trade Description
Language
Innovation is powerPage 16
A Description Language that:
• An algebra over the set of all post-trade asset classes.
• A small number of primitives covering all behaviours, over all clearing and settlement functions.
Post-Trade Description
Language
Innovation is powerPage 17
Built on A Mathematical
Model of Post-Trade
Innovation is power
1. Description Driven Systems
• System Description
• Asset Class Description
2. Automated System Health Monitoring
Page 18
Innovation is powerPage 19
Impossible to proactively & effectively monitor manually
• Tens of servers.
• Complex network architectures.
• Hundreds of processes; active, standby & admin.
• Hundreds of gateways & file interfaces.
• Hundreds of internal users.
• Thousands of external users connections.
• Millions of messages & events per day.
System Monitoring
Innovation is powerPage 20
Impossible to proactively & effectively monitor manually
• Thousands of statistics & system monitoring messages.
• Events indicative of a developing problem will not be noticed.
• Management can only be reactive.
System Monitoring
Innovation is powerPage 21
Proactive System Management
Thousandsof statistics & system monitoring messages
Errors are
noticed only
after they occur
Warning signs
are missed
!
Innovation is powerPage 22
Early warning of impending issues essential for effective system management:
• Events that will cause future errors.
• Resource usage trends indicating impending capacity issues.
• Missing events indicating silent errors.
• Unusual system behaviour indicating underlying issues.
Proactive System Management
Innovation is powerPage 23
Proactive System Management
AI F
ilter
Warning signs
can be
proactively
managed
Errors avoided
by proactive
remediation
Innovation is powerPage 24
Automatic Adaptive Filtering
Learn to identify warning signs based on:
• Precursors of previously observed errors.
• Observed temporal & frequency domain patterns.
• Observed normal operating parameters.
Innovation is powerPage 25
Goals:
• Automated, pre-emptive early warning.
• Automated preventative actions.
• Automated remedial actions.
Proactive System Management
Innovation is power
Thank you.
Page 26 22/06/2016