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
Almost everyone agrees there is a problem with the highly complex and expensive trade processing of investment banks and the markets divisions of general banks. Regulators, central banks, politicians, bank managements, management consultants, software vendors, the fintech world and the internal IT departments themselves all seem to be in agreement. The succession of large-scale programmes to “transform” infrastructure indicate there must be some major problems because managements spent so much time and money trying to fix them.
The “problems with problems” come when they are not really defined, when they are only a problem for some parties but not for others, when a problem is created simply because someone wants to gain money or power by purporting to fix it, or where the problem is actually just an aspiration for something that is probably unachievable.
Rolling out a new system without having defined the problem can make achieving success difficult. Setting out on a transformation project without an objective baseline to measure success against, not even knowing whether the project has succeeded or failed, can lead to an even worse situation. This is a surprisingly common