We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byNathaniel Boyle
Modified over 3 years ago
© 2007 IBM Corporation Next Generation Grid: Emerging technologies poised to revolutionize financial markets Kevin Pleiter Director – Global Financial Services Sector
© 2007 IBM Corporation FMA | October, 2007 2 Companies need to grow aggressively by leveraging differentiating technology Financial Market Analytics
© 2007 IBM Corporation FMA | October, 2007 3 Financial Services Sector Trends, 2007-2015 Informed clients are increasing demands Global integration is reshaping industries Regulatory burdens are growing Innovation is becoming imperative FSS Industry TrendsChallenges Data Explosion Managing Complexity Managing Business Integrity Collaboration & Partnering Speed & Transparency
© 2007 IBM Corporation FMA | October, 2007 4 Electronification will target all asset classes… 1 Average Daily Trade Volume (millions) (10 year CAGR 19%) Security brokers and services personnel ('000) (10 year CAGR 3%) Average Daily Trade Volumes vs. Headcount, 1994-2004 (Millions of Shares; Number of Employees (000), Volume per Employee) Number of US and European Electronic Trading Systems 1, 1997-2004 (Number of Electronic Trading Systems by Type of Market Supported) Note: 1 Totals may exceed the actual number of systems listed since some systems cover multiple product lines Source: The Bond Market Association; Reuters; SIA; IBM Institute for Business Value analysis Volume of daily shares traded per employee (10 year CAGR 15%)
© 2007 IBM Corporation FMA | October, 2007 5 …causing agency margins to die and value to shift toward riskier activities Note: 1 Agency is risk free intermediation of a trade and principal is risk assuming intermediation of a trade Source: IBV profit map model (see slide 18 in this study) 1 Agency vs. Principal 1, 2004 and 2015 (US $ Billions, Margin Percentage) Firms unanimously agreed that proprietary trading will be an increasingly important source of profit over the next ten years; regulators indicated they will not prevent it. 2004 2015 Revenue Share 50% Financing and Structured Products Revenue, 2004 and 2015 (US $ Billions) Financing Structured products CAGR 11% Revenue Share 50% RevenueMargins Revenue Share 30% Revenue Share 70% Revenue Share 50% Revenue Share 50%
© 2007 IBM Corporation FMA | October, 2007 6 The data center energy, power and cooling challenge is a major hurdle for the ongoing success of Financial Services Grids Power Use 35 30 25 20 15 10 5 0 Chiller/ Cooling Tower Information Technology LightingSwitch/ Gen Uninterruptible Power Supply Power Distribution Unit Computer Room Air Conditioner Humidifier Cooling systems Electrical and building systems % of total data center electricity use
© 2007 IBM Corporation FMA | October, 2007 7 These Business and Technology imperatives result in the following Technology trends in financial markets globally Aggressive adoption of Model and Algo driven trading + Demand for real time portfolio and risk management + Massive build out of computing infrastructure Next Generation Grid Powered by Hybrid Computing and Stream computing enabling the use of Data and Analytics as a Weapon
© 2007 IBM Corporation FMA | October, 2007 8 Specifically Financial firms analytic infrastructures are challenged to support ongoing business growth in five dimensions Application Management Workload Management Data Management Systems Management Hardware Management Inconsistent and unrepeatable Inability to quickly deploy new apps High cost model Lack of scalability and Performance I/O bottle necks and geographic data dispersion issues not addressed Data center Crisis Cost, utilization, power and space High cost, manual and reactive No automated / integrated feedback
© 2007 IBM Corporation FMA | October, 2007 9 The need for speed Exploit advanced technology to accelerate performance
© 2007 IBM Corporation FMA | October, 2007 10 Hybrid computing powered Grids incorporating the Cell Broadband Engine (Cell/B.E.) Ten year collaboration with Sony®, Toshiba® –Extended through 2012 IBM BladeCenter® QS20 system introduced September 2006, QS21 in 2007 and QS22 2008 –Just another Blade –Operates in standard BladeCenter® chassis –Infiniband, Gig-E and 10GigE support –Runs Redhat Linux and a host of other standard industry applications Cell/B.E. Highlights –Significant performance advantages over traditional systems –64-bit Power –Streaming Processors –Low power consumption –Real-Time –Security Enabled
© 2007 IBM Corporation FMA | October, 2007 11 Cell use cases in the Financial Service Sector Various domains –Fixed Income and FI Derivatives, Equities and Equity Derivatives, Risk Management, Portfolio Trading, Algorithmic Trading and Analytics Functional areas –Pricing of Options, Swaps, and Futures –Interest Rate Modeling, CDO, MBS –Path Dependent Calculations –Risk evaluations – VaR, EPE, PCE, etc –Stream Processing - market and analytic data
© 2007 IBM Corporation FMA | October, 2007 12 Typical Algorithms being deployed in Cell grids Algorithms typically used include –Analytical and approximate (crude) solutions through to Black-Scholes –PDE solvers (e.g.,Crank-Nicolson) –Householder transformation, Cholesky decomposition, SVD, PCA –Monte Carlo Simulations –Statistical Analysis Standard Library routines being called –BLAS, LAPACK, FFT –Random Number Generation (Sobol, MT, Box-Muller, Moros Inversion) –Math Librarys (R, NAG)
© 2007 IBM Corporation FMA | October, 2007 13 Rapidly growing Application Development, Math library and Grid ecosystem for Financial Services
© 2007 IBM Corporation FMA | October, 2007 14 x86 Linux master cluster Cell/B.E. accelerator cluster Hybrid Supercomputing Reference Targeting 1.4 petaflop peak, 1.0 petaflop sustained performance
© 2007 IBM Corporation FMA | October, 2007 15 For more information download How much is a microsecond worth? at www.ibm.com/financialmarkets
© 2007 IBM Corporation FMA | October, 2007 16
1. 2 © 2007 Bloomberg L.P. All Rights Reserved. The Impact of Computers on the Financial Industry Kai To Bloomberg L.P.
August 27, 2008 Platform Market, Business & Strategy.
© 2007 IBM Corporation Steve Bowden Green Computing CTO IBM Systems & Technology Group UKISA Sustainable Computing in a Carbon Sensitive World Blue turning.
© 2008 IBM Corporation System z10 The Cornerstone of the New Enterprise Data Center Mark Anzani VP System z Technology Deployment.
Research Department 1 Global Economic Crisis and the Israeli Economy Herzliya conference Dr. Karnit Flug Research Director, Bank of Israel February 2009.
Enterprise Computing Strategies This gig is bigger than grid: from HPC to service orientation John Barr Research.
Historical Perspective on British Columbias Credit Rating Presentation to Financial Management Institute June 18, 2008.
1 Uniform Methods Project Jointly managed by the DOE Office of Electricity Delivery and Energy Reliability and the Office of Energy Efficiency and Renewable.
10-1 Financial Innovation and Banking Industry Structure Responses to Changes in Risk 1.Adjustable-rate mortgages 2.Financial Derivatives Responses to.
McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
NASA/IBM Partnership Milestones IBM Helps design and build the Automatic Sequence Controlled Calculator for Harvard University.
Water Utility Business Applications. 2 Agenda Industry overview and trends Our application visionary solution Business values Wireless network components.
Chapter 6 Public B2B Exchanges and Support Services.
© 2011 IBM Corporation Smarter Software for a Smarter Planet The Capabilities of IBM Software Borislav Borissov SWG Manager, IBM.
2008 Pan-European Private Equity & Venture Capital Activity EVCA, The Voice of European Private Equity Industry since 1983.
IMF Conference, Washington, 1 June 2005 Financial Conglomerates Koos Timmermans General Manager, Market Risk Management.
IBM Energy & Environment © 2008 IBM Corporation Energy Efficiency in the Data Centre … and beyond Peter Richardson UK Green Marketing Leader.
© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Better business outcomes equal better.
Translation in the 21 st Century Impacts of MT and social media on language services.
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 25 Risk Assessment. Introduction Risk assessment is the evaluation of distributions of outcomes, with a focus on the worse that might happen.
Canada and Florida: An Economic Impact Study Presentation to the Metro Orlando Economic Development Commission March 11, 2009.
Smarter Telecom Mr. Prashant Tewari Country Manager, Business Analytics IBM India/SA.
Cisco Confidential © 2012 Cisco and/or its affiliates. All rights reserved. 1 Cisco Partner Plus: Premium Enablement Accelerate Your Competitive Edge.
Mafijul Islam, PhD Software Systems, Electrical and Embedded Systems Advanced Technology & Research Research Issues in Computing Systems: An Automotive.
A © 2001 Arthur Andersen. All rights reserved. The Accountants Role in the New Economy Robert A. Johnson February 5, 2001.
Chapter 15 1 Understanding Money, Financial Institutions, and the Securities Markets Understanding Money, Financial Institutions, and the Securities Markets.
© Copyright 2013, First Solar, Inc. First Solar FuelSmart™: Powering Energy Security Dr Raed Bkayrat, VP Business Development, Saudi Arabia.
Chapters 11 & 12 Banking Industry: Structure, Competition and Regulation.
Dynamic Pricing - Potential and Issues Joe Wharton and Ahmad Faruqui Kansas Corporation Commission Workshop on Energy Efficiency March 25, 2008.
IFC 2009 Creating Opportunity. 2 Our Vision That people should have the opportunity to escape poverty and improve their lives We foster sustainable economic.
1Abacast - Confidential1 Hybrid Content Delivery Network (CDN) Technologies and Services.
European Commission Directorate-General Employment, Social Affairs and Equal Opportunities New Skills for New Jobs Annual Northern Ireland Skills Conference.
1 Improving transparency in the insurance sector: progress made and outstanding challenges OECD-ASSAL Regional Expert Seminar Montevideo, September.
Value-at-Risk: A Risk Estimating Tool for Management February 24, 2000 David Dudley Federal Reserve Bank of New York.
Sydney, 17 July 2007 IBM SOA EXECUTIVE SUMMIT. IBM SOA © 2007 IBM Corporation Dollars & Cents, Justifying Your Business Flexibility Project Matt English.
TABLE OF CONTENTS CHAPTER 1.0: Trends in the Overall Health Care Market Chart 1.1: Total National Health Expenditures, 1980 – 2005 Chart 1.2: Percent Change.
Addition 1’s to
Grid Computing at The Hartford OGF22 February 27, 2008 Robert Nordlund
Copyright © 2008 Pearson Addison-Wesley. All rights reserved. Chapter 15 Interest Rates and the Capital Market.
Energy in the U.S. - Why Wind? Financing Wind Power: The Future of Energy Institute for Professional and Executive Development Santa Fe, N.M. July 25,
© Actility – Confidential – Under NDA 1 Advanced flexibility management: concepts and opportunities Making Things Smart.
Copyright © Jigsaw 1 Marketing Cloud Manifesto First Draft Submitted by Kevin Akeroyd COO/CMO JigsawOctober 21, 2009.
© Copyright IBM Corporation 2008 Expectations from the stakeholders during downturn G Venkatraghavan March 24,2009 NASSCOM, Chennai.
1 Options. 2 Options Financial Options There are Options and Options - Financial options - Real options.
WHY INDIA? September Quantum Advisors 2 Summary Overall, economic policy is geared towards growth India is a party to various global trade and tariff.
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 5 Capacity Planning For Products and Services.
1 International Workshop Beijing, 8-10 June 2009 From Data to Accounts Session VI: General Discussion Moderator : Frederick W H HO.
Name, Title. Presentation Title Name, Job Title Global Digital Information Created and Shared (Posts, Pictures, Documents, Tweets) The Data Explosion.
September 6, 2006 The Future of GroupWise Phillip Karren GroupWise Product Manager Ken Muir Director of GroupWise Engineering.
© 2017 SlidePlayer.com Inc. All rights reserved.