Part 1: What the Infrastructure Needs to do
Trades and Products
Where do Trades Come From?
The Purpose of the Infrastructure
Part 2: The Problems with Trade Processing Infrastructure
The Evolution of Technical Complexity
The Regulatory Challenges
The Complexity Cycle
Part 3: Historic Approaches to Transformation
Functionalisation, aka “Factories”
The Golden Middle
Part 4: New Approaches to Infrastructure
Cloud and Utilities
Artificial Intelligence and Robotics
Big Data and Analytics
Blockchain/Distributed Ledger Technology
Distributed Ledger Technology: Hybrid Approach
I don’t really care what happens to the trade after we put it into a message and send it downstream. Fire and forget, that’s what we do.
– Front-office IT manager
This chapter will describe the fundamental processing that infrastructure needs to keep a capital markets business operating. If you already have a “front-to-back” understanding of what infrastructure takes in as inputs at various points, the outputs produced and how they relate to business needs, by all means move on to the next chapter.
However, if you have been working in a specific area it is quite likely you may have developed at the very least a subconscious “fire and forget” attitude. This attitude is generally not driven by a belligerent desire to launch missiles of bad data at the rest of the organisation. More typically, it simply comes from the fatigue of keeping your own piece of the complex infrastructure working. This chapter will therefore provide a comprehensive yet concise description of what the overall trading and trade processing infrastructure really needs to do. This should be useful for anyone interested in improving the overall infrastructure, or even the way their specific