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The financial clouds review

The financial clouds review
The financial clouds review
This paper demonstrates financial enterprise portability, which involves moving entire application services from desktops to clouds and between different clouds, and is transparent to users who can work as if on their familiar systems. To demonstrate portability, reviews for several financial models are studied, where Monte Carlo Methods (MCM) and Black Scholes Model (BSM) are chosen. A special technique in MCM, Least Square Methods, is used to reduce errors while performing accurate calculations. The coding algorithm for MCM written in MATLAB is explained. Simulations for MCM are performed on different types of Clouds. Benchmark and experimental results are presented for discussion. 3D Black Scholes are used to explain the impacts and added values for risk analysis, and three different scenarios with 3D risk analysis are explained. We also discuss implications for banking and ways to track risks in order to improve accuracy. We have used a conceptual Cloud platform to explain our contributions in Financial Software as a Service (FSaaS) and the IBM Fined Grained Security Framework. Our objective is to demonstrate portability, speed, accuracy and reliability of applications in the clouds, while demonstrating portability for FSaaS and the Cloud Computing Business Framework (CCBF), which is proposed to deal with cloud portability.
Financial Clouds, Financial Cloud Computing, Cloud Computing Business Framework, Monte Carlo Methods, Monte Carlo Simulations, Least Square Methods, Black Scholes Model, 3D Black Scholes, MATLAB and Mathematica applications on Clouds, Enterprise portability for Clouds, Operational Risk.
2156-1834
41-63
Chang, Victor
a7c75287-b649-4a63-a26c-6af6f26525a4
Li, Chung-Sheng
d8201cde-ec26-4ae8-b686-e4eee1291bf9
De Roure, David
02879140-3508-4db9-a7f4-d114421375da
Wills, Gary
3a594558-6921-4e82-8098-38cd8d4e8aa0
Walters, Robert
7b8732fb-3083-4f4d-844e-85a29daaa2c1
Chee, Clinton
c314864b-a5bf-470d-97a3-8de36357465e
Chang, Victor
a7c75287-b649-4a63-a26c-6af6f26525a4
Li, Chung-Sheng
d8201cde-ec26-4ae8-b686-e4eee1291bf9
De Roure, David
02879140-3508-4db9-a7f4-d114421375da
Wills, Gary
3a594558-6921-4e82-8098-38cd8d4e8aa0
Walters, Robert
7b8732fb-3083-4f4d-844e-85a29daaa2c1
Chee, Clinton
c314864b-a5bf-470d-97a3-8de36357465e

Chang, Victor, Li, Chung-Sheng, De Roure, David, Wills, Gary, Walters, Robert and Chee, Clinton (2011) The financial clouds review. International Journal of Cloud Applications and Computing, 1 (2), 41-63.

Record type: Article

Abstract

This paper demonstrates financial enterprise portability, which involves moving entire application services from desktops to clouds and between different clouds, and is transparent to users who can work as if on their familiar systems. To demonstrate portability, reviews for several financial models are studied, where Monte Carlo Methods (MCM) and Black Scholes Model (BSM) are chosen. A special technique in MCM, Least Square Methods, is used to reduce errors while performing accurate calculations. The coding algorithm for MCM written in MATLAB is explained. Simulations for MCM are performed on different types of Clouds. Benchmark and experimental results are presented for discussion. 3D Black Scholes are used to explain the impacts and added values for risk analysis, and three different scenarios with 3D risk analysis are explained. We also discuss implications for banking and ways to track risks in order to improve accuracy. We have used a conceptual Cloud platform to explain our contributions in Financial Software as a Service (FSaaS) and the IBM Fined Grained Security Framework. Our objective is to demonstrate portability, speed, accuracy and reliability of applications in the clouds, while demonstrating portability for FSaaS and the Cloud Computing Business Framework (CCBF), which is proposed to deal with cloud portability.

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More information

Published date: 1 April 2011
Keywords: Financial Clouds, Financial Cloud Computing, Cloud Computing Business Framework, Monte Carlo Methods, Monte Carlo Simulations, Least Square Methods, Black Scholes Model, 3D Black Scholes, MATLAB and Mathematica applications on Clouds, Enterprise portability for Clouds, Operational Risk.
Organisations: Electronic & Software Systems

Identifiers

Local EPrints ID: 271858
URI: https://eprints.soton.ac.uk/id/eprint/271858
ISSN: 2156-1834
PURE UUID: ef3a6358-6f70-413b-b032-d92af8ed819c
ORCID for David De Roure: ORCID iD orcid.org/0000-0001-9074-3016
ORCID for Gary Wills: ORCID iD orcid.org/0000-0001-5771-4088

Catalogue record

Date deposited: 31 Dec 2010 18:40
Last modified: 06 Jun 2018 13:20

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