TY - JOUR T1 - Effects of Proposed Regulations on Demand for Technology in Finance JF - The Journal of Trading SP - 78 LP - 81 DO - 10.3905/jot.2010.5.3.078 VL - 5 IS - 3 AU - Aleksey Maslov Y1 - 2010/06/30 UR - https://pm-research.com/content/5/3/78.abstract N2 - With the precipitous end of the pure investment banking model, firms will be under tremendous scrutiny by the Federal Reserve and subject to more stringent capital requirements. Such scrutiny will create demand for greater integration between trading desks, back offices, and firm analytics, reducing the time it takes for a trade to be incorporated into risk models, VAR, and capital reserves calculations, both across division desks and firm-wide. In anticipation of regulatory changes, financial firms, in the interest of selfpreservation, are building up in-house risk analytics at unprecedented scale, along with tighter infrastructural integration and centralization. This article discusses the effects of proposed regulations on the demands for technology. For example, the central clearance of all derivative contracts will require a massive computational effort in order to mark all of the contracts daily in order to impose margin requirements. Marking derivatives could involve extremely complex calculations, especially if they have multi-leveled (such as CDO2) structures, triggers, caps, or floors. In addition, the demand for efficient grid/cloud computing and near real-time analytics, aggregation, and reporting, as well as complex user-driven visualization and single-entity distributed failure-resistant data storage, will increase post-crisis.TOPICS: Exchanges/markets/clearinghouses, VAR and use of alternative risk measures of trading risk, derivatives ER -