EXTENT-2016: Software Testing & Trading Technology Trends 22 June, 2016, 10 Paternoster Square, London Technology Trends in Capital Markets Dr. Satchi Branavan, Chief Scientist Machine Learning, MillenniumIT Would like to know more? Visit our website: extentconf.com Follow us: https://www.linkedin.com/company/exactpro-systems-llc?trk=biz-companies-cym https://twitter.com/exactpro #extent2016 #exactpro

1. Innovation is power
Technology Trends
in Capital Markets
Page 1 22/06/2016

2. Innovation is power
1. Description Driven Systems
• System Description
• Asset Class Description
2. Automated System Health Monitoring
Page 2

3. Innovation is powerPage 3
Description Driven Systems
The Abstraction Gap
Business
Functionality
System
Implementation
Engineer (code)
system. Expensive,
error prone

4. Innovation is powerPage 4
Description Driven Systems
The Abstraction Gap
Business
Functionality
System
Implementation
Engineer (code)
system. Expensive,
error proneUnderstanding
existing functionality
extremely difficult

5. Innovation is powerPage 5
Description Driven Systems
The Abstraction Gap
Business
Functionality
System
Implementation
High level,
abstract spec
Low level, detailed
implementation
Mostly manual code
creation. Expensive,
error prone.Understanding
existing functionality
extremely difficult

6. Innovation is powerPage 6
Description Driven Systems
The Abstraction Gap
Business
Functionality
System
Implementation
High level,
abstract spec
Low level, detailed
implementation
Abstraction
gap
Mostly manual code
creation. Expensive,
error prone.Understanding
existing functionality
extremely difficult

7. Innovation is powerPage 7
Description Driven Systems
Bridging the Gap Automatically
Business
Functionality
System
Implementation
High level,
abstract spec
Low level, detailed
implementation
Description
Language
Specification
High level,
formal spec

8. Innovation is powerPage 8
Description Driven Systems
Bridging the Gap Automatically
Business
Functionality
System
Implementation
High level,
abstract spec
Low level, detailed
implementation
Fully automatic code
generation
Description
Language
Specification
High level,
formal spec
Little change in
abstraction levels
during human effort

9. Innovation is powerPage 9
Description Driven Systems
Bridging the Gap Automatically
Description Language Toolkit:
• Domain specific languages.
• Allows high level specification.
• Defines data, computation, workflows & interfaces.
• Concise, with high levels of abstraction.
• Automated inference.
• Strongly typed.
• Compile time verification of system specification.
• 100x efficiency improvement.

10. Innovation is power
1. Description Driven Systems
• System Description
• Asset Class Description
2. Automated System Health Monitoring
Page 10

11. Innovation is powerPage 11
Asset Class Functionality
Position
Management
Trade Management
Risk
Settlement
E F O
E F O
E F O
E F O
Equities
Futures
Options
Behaviour
coded into
system
Variety of
products, with
configurable
attributes

12. Innovation is powerPage 12
Asset Class Functionality
Position
Management
Trade Management
Risk
Settlement
E F O
E F O
E F O
E F O
Equities
Futures
Options
S
S
S
S
Adding a new
product means
changing
entire system
Swaps

13. Innovation is powerPage 13
Locally encoded product behaviour:
• Obscures system functionality.
• Promotes fragmentation.
• Hinders integration & unification.
• Reduces information reliability.
• Increases operational risk.
• Increases costs.
Asset Class Functionality

14. Innovation is powerPage 14
Asset Class Description
All behaviours of
every asset class
specified in one place
All functionality
managed centrally
and coherently
Asset classes
Position
Management
Trade
Management
MTMRisk
Settlement Delivery
Asset class agnostic system infrastructure

15. Innovation is powerPage 15
Centralized asset class description
• Clarifies system functionality.
• Promotes integration & coherence.
• Increases business agility
• Reduces information loss & Increases information reliability.
• Reduces operational risk.
• Reduces cost of ownership and change.
Post-Trade Description
Language

16. Innovation is powerPage 16
A Description Language that:
• An algebra over the set of all post-trade asset classes.
• A small number of primitives covering all behaviours, over
all clearing and settlement functions.
Post-Trade Description
Language

17. Innovation is powerPage 17
Built on A Mathematical
Model of Post-Trade

18. Innovation is power
1. Description Driven Systems
• System Description
• Asset Class Description
2. Automated System Health Monitoring
Page 18

19. Innovation is powerPage 19
Impossible to proactively & effectively monitor manually
• Tens of servers.
• Complex network architectures.
• Hundreds of processes; active, standby & admin.
• Hundreds of gateways & file interfaces.
• Hundreds of internal users.
• Thousands of external users connections.
• Millions of messages & events per day.
System Monitoring

20. Innovation is powerPage 20
Impossible to proactively & effectively monitor manually
• Thousands of statistics & system monitoring messages.
• Events indicative of a developing problem will not be noticed.
• Management can only be reactive.
System Monitoring

21. Innovation is powerPage 21
Proactive System Management
Thousands
of statistics
& system
monitoring
messages
Errors are
noticed only
after they occur
Warning signs
are missed
!

22. Innovation is powerPage 22
Early warning of impending issues essential for effective
system management:
• Events that will cause future errors.
• Resource usage trends indicating impending capacity issues.
• Missing events indicating silent errors.
• Unusual system behaviour indicating underlying issues.
Proactive System Management

23. Innovation is powerPage 23
Proactive System Management
AIFilter
Warning signs
can be
proactively
managed
Errors avoided
by proactive
remediation

24. Innovation is powerPage 24
Automatic Adaptive Filtering
Learn to identify warning signs based on:
• Precursors of previously observed errors.
• Observed temporal & frequency domain patterns.
• Observed normal operating parameters.

25. Innovation is powerPage 25
Goals:
• Automated, pre-emptive early warning.
• Automated preventative actions.
• Automated remedial actions.
Proactive System Management

26. Innovation is power
Thank you.
Page 26 22/06/2016