Technology Committee: Publications

The mission of the Committee is to facilitate the development of standards and leading practices for the application of financial models through technology solutions. The formation of the Committee underscores the increasing need for methods to integrate financial models, data and systems. The Committee will also provide a forum for examining the major business and technology paradigm shifts that are occurring as the financial engineering industry embraces the internet.

The Committee is inviting industry leaders to contribute to the process of creating standards, and determining priorities for technology development. The Committee will also provide a forum for examining the major business and technology paradigm shifts that are occurring as the financial engineering industry evolves with the internet. Some of the objectives that will be addressed are creating greater pricing and risk reporting transparency, reducing model risk, reducing operational costs and risks, and accelerating product innovation. One of the most important issues facing the financial markets is the emergence and application of internet technologies. One specific issue area regards the definition of data and interface standards for internet based trading, risk management and reporting. In particular this involves the definition of semantic tags for the application of XML as an interface standard. Another important initiative is in the area of standardizing risk reporting through the normalization of risk definitions (´greeks´, P/L vectors, etc.)

Another goal of the Steering Group will be to explore areas of potential cooperation with other industry bodies, such as ISDA, FIX, FpML and GSTPA, to determine in which areas the Committee should focus its efforts.

IAFE Committee on Financial Modeling and Technology:

The Committee is composed of industry participants, vendors, consultants, and academics

Some future projects include:

• Organize Blind valuation and modeling tests for credit derivatives and other emerging products.
  
• Define Data and interface standards for web based risk management and reporting.
  
• Draft Request for technology for financial model and derivative product definition standards.
  
• Conduct Survey on best practices for IT architecture to support counterparty risk measurement.
  
• Draft White paper on emerging ASP/dot.com techniques for on-line processing of financial instruments
  
• Draft White paper on technology and data requirements for credit measurement and modeling.
  
• Draft White paper on model risk control methods and reserve methodologies.
  
• Provide structured input to other industry committees: ISDA, FIXML, FpML, etc.
  
• Organize workshops and conferences.