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

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

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

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

Innovation is power Page 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

Innovation is power Page 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

Innovation is power Page 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

Innovation is power Page 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

Innovation is power Page 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.

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

Innovation is power Page 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

Innovation is power Page 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

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

Innovation is power Page 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 MTM Risk Settlement Delivery Asset class agnostic system infrastructure

Innovation is power Page 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

Innovation is power Page 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

Innovation is power Page 17 Built on A Mathematical Model of Post-Trade

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

Innovation is power Page 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

Innovation is power Page 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

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

Innovation is power Page 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

Innovation is power Page 23 Proactive System Management AI Filter Warning signs can be proactively managed Errors avoided by proactive remediation

Innovation is power Page 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.

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

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