A number of disruptive technologies have the potential toradically change how derivatives markets operate but internal procedures areholding back adoption at financial institutions, a recent whitepaper by FOW hasfound.

The whitepaper, which was produced following a private forumof 10 leading individuals from banks, brokerages and trading companies, coveredbig data, the distributed ledger and machine learning.

The forum discussed how big data has already made an impacton operations within derivatives markets but as usage grows, banks could havethe potential to analyse their entire portfolios in real time and offer dynamicfunding options to clients to balance the bank’s positions.

The whitepaper explores the development of machine learningand genetic programming, not just in the front office for trading strategiesbut in the back office to spot trade break patterns and increase efficiency.

It also examines the likely growth of blockchain technologyin the form of distributed ledgers arguing that smaller permissioned ledgerswill soon replace some internal processes within financial organisations.

While the potential for new technologies is huge, thewhitepaper found that adoption rates of new technologies are being held back byinternal processes within financial institutions.

These include outdated procurement processes and a lack offacilities to trial new technologies.

With installation and adoption times and costs slashed bysoftware-as-a-service distribution, the economics of investment in newtechnology is changing and to take advantage, firms need to adapt.

To download the free whitepaper, visit: http://bit.ly/1iEYGQD