A number of disruptive technologies have
the potential to radically change how derivatives markets
operate but internal procedures are holding back adoption at
financial institutions, a recent whitepaper by FOW has
The whitepaper, which was produced
following a private forum of 10 leading individuals from banks,
brokerages and trading companies, covered big data, the
distributed ledger and machine learning.
The forum discussed how big data has
already made an impact on operations within derivatives markets
but as usage grows, banks could have the potential to analyse
their entire portfolios in real time and offer dynamic funding
options to clients to balance the bank’s
The whitepaper explores the development of
machine learning and genetic programming, not just in the front
office for trading strategies but in the back office to spot
trade break patterns and increase efficiency.
It also examines the likely growth of
blockchain technology in the form of distributed ledgers
arguing that smaller permissioned ledgers will soon replace
some internal processes within financial organisations.
While the potential for new technologies
is huge, the whitepaper found that adoption rates of new
technologies are being held back by internal processes within
These include outdated procurement
processes and a lack of facilities to trial new
With installation and adoption times and
costs slashed by software-as-a-service distribution, the
economics of investment in new technology is changing and to
take advantage, firms need to adapt.
To download the free whitepaper, visit: http://bit.ly/1iEYGQD