In Part 2 of this white paper series that examines the transformation of the capital markets and the emerging dynamics impacting front office risk technology, Numerix Chief Strategy Officer and SVP of Client Services Satyam Kancharla shares his views on the accelerating pace of technology change and innovation in the capital markets. The paper examines the critical components that should serve as part of a firm’s technology architecture strategy and that could shape and enhance the future of its front-to-risk value chain, including:

  • The digitization of the trading business. A digital transformation can improve risk management capabilities and support business growth.
  • In terms of accuracy, completeness and timeliness, data quality, management and analytics will become requisite to improve performance, make better decisions and mitigate risk.
  • Artificial intelligence is a game changer for risk management. AI applications could discover potential counterparty risks, unveil portfolio costs, or identify new trading patterns.
  • The financial industry is on its way to fully embracing the public cloud. The benefits of the public cloud include flexibility, huge workload capacity and significant compute power.
  • The capital markets are seriously looking at distributed ledger technology. Implementing blockchains could result in greater business efficiency and the streamlining of processes, in addition to cost savings.

 

The paper also points out the significant roadblock in the industry: the continued existence of aging legacy infrastructures, which is one reason banks and other financial institutions are struggling to achieve improved profitability.

Making technology modernization a priority is the underlying tenet of Mr. Kancharla’s message.

 

Author Biography

Satyam Kancharla, Chief Strategy Officer and Senior Vice President, Numerix
Mr. Kancharla, as Chief Strategy Officer and Senior Vice President, is responsible for corporate strategy and currently heads the Client Solutions Group at Numerix. This group is responsible for Product Management, Financial Engineering and Business Analysis. Prior to this, he has served in various roles in Quantitative Software Development, Financial Engineering and Client Services at Numerix. Before transferring to Numerix in New York City, he was the CTO for Numerix Japan LLC in Tokyo, heading the Pre-Sales and Financial Engineering teams for Asia. Prior to joining Numerix in 2003, Mr. Kancharla also worked with Merrill Lynch and GE Capital in Quantitative Finance and Product Development roles. He holds an MBA degree from New York University’s Stern School of Business, an MSc degree in Applied Statistics and Informatics from Indian Institute of Technology, Bombay and a BSc in Mathematics and Computers from the University of Mumbai.

Download Paper

Complete the form below to download this complimentary paper.

Select Form: 

Form #5: Research

Keep me informed of future research from Numerix:

Sign me up to receive "Thinking Derivatively" monthly newsletter by Numerix:

* Required fields
white paper

React, Adapt and Enact: The Catalysts to Capital Markets Transformation