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Author: Syed Musaveer Rahman |07/17/19

How Financial Institutions can Benefit from Mindtree’s Murex on the Cloud Solution

Multinational banks and financial institutions use Murex for trade execution and risk management where systems require heavy computing power to perform complex algorithms on trade matching, deal pricing, and mark-to-mark margin, etc. They have to run considerable amount of calculations to measure its risks like counterparty exposure risk, collateral adjustment valuation, netting, and near real-time settlement risk processing which involves humungous amount of data that needs to connect to more and more new services resulting in inefficiencies in the existing on-premise infrastructure model observed on weekend, month-end, quarter-end, year-end as well as areas of scalability, processing power like GPU, provisioning, utilization management, disaster management.

Murex supports technology that connects with banks and financial institutions for reducing financial risk burden on them. Mindtree as a global System Integrator (SI) and strategic alliance partner have developed cloud frameworks to utilize the power of cloud.

This blog is in continuation to one of the challenges in Murex digitalization called ‘Customization and standardization trade-off with legacy models’ mentioned in our earlier blog ‘Creating Digital Strategy Framework in Consumer’s Market with Murex’.

With an established cloud practice and its long-standing partnership with Microsoft, Mindtree helps clients migrate the Murex on-premise environment to a Microsoft Azure platform. Every institution has different business needs and requirements and cloud computing is a fit for all institutions, be it small or large enterprises. Cloud computing isn't an all or nothing service approach where enterprises can choose to use cloud to store their data and execute logics as much as or as little as necessary to fulfill their business requirements. Existing businesses can choose a gradual movement to accelerate delivery, save money on infrastructure and administration costs.

Mindtree offers multiple cloud frameworks that helps banks and financial institutions overcome the drawbacks of legacy infrastructure and leverage latest technology to gain competitive advantages like scalability, processing power, provisioning, utilization management, and disaster management.

1. Scalability - Dynamic Solutions

Banks run complex algorithms for regulatory like fundamental review of Trading Book-FRTB, essentially, they perform 60 to 100 times more calculations than usual reports. Since these reports require heavy computing power, having them on the cloud allows the banks to scale up/scale down resources when required.

Mindtree cloud frameworks allow you to dynamically increase or decrease resource and services utilization, based on the application work load.

Horizontal and Vertical scaling Frameworks
Vertical scaling, also known as 'scaling up', is the process of adding resources to increase power of an existing server.
Example: Adding more CPU, Cores or Memory etc. i.e. A server (Virtual Machine) running with 16 vCPU and 64GB RAM can be vertically scaled up to 64 vCPU and 256GB RAM or other configurations.

Horizontal scaling, also known as 'scaling out', is the process of adding more servers (Virtual Machine) that function together as one unit.

Example: Adding additional VAR/SVAR, GRID or EOD servers. i.e. An application environment with 10 servers can be horizontally scaled up to 11 or more servers with the same, increased, or decreased server configuration.

Application to an MX.3 Environment:

At times such as day-end, weekend, month-end, quarter-end and year-end or when there is a spike in traffic or utilization (i.e. Memory, Core, CPU etc.), servers like VAR/SVAR, GRID can be horizontally scaled-up and work-flow server, position server, aggregation server can be vertically scaled up.

2. Reliability - Self Managed Solution

Data availability is the key factor for a critical business to run. Redundancy is often built into cloud services architecture, meaning if one component fails, a backup component takes its place. Azure Cloud offers features called Availability Zone and Availability Set.

"Availability Set" refers to two or more Virtual Machines deployed across different fault domains to avoid a single point of failure.
"Availability Zone” is a fault-isolated area within an Azure region, providing redundant power, cooling and networking.

Application to an MX.3 Environment:

In any environment Availability Set and Availability Zones for VMs can be configured and they serve as primary backup for their servers.
Eg: Application server primary backup Virtual machine on a production environment.
That results in build server availability or up time with 99.999% SLA.
The Mindtree-developed cloud framework provides superior on-demand processing power and low latency solution to clients.

3. Runtime – MX.3 On-Demand Provisioning and De-Provisioning

When there is a change in modules, multiple teams like to test the impact through MX.3 DEV/UAT environments. Generally, due to unavailability of an MX.3 environment, teams delay delivery of deployment.
Auto provisioning cloud frameworks provides the flexibility of computing needs of the environment and spontaneous delivery of environment. Disaster recovery framework will help on-demand provisioning of the DR system which helps setup environment on the go.

Application to an MX.3 Environment:

DEV, UAT, SIT, Pre-Prod etc. environments can be provisioned/de-provisioned with configuration templates.

Does a Runtime DR server mean there is no server running in the DR environment?
The database will be in continuous sync with production and other environments can be created in run time.
Eg: MX.3 Application, GRID, VAR/SVAR and other servers

4. Serverless Services

The word ‘serverless’ does not mean there is no server for executing programs; instead it means there is no infrastructure to manage. It’s a PaaS offering, charged based on program execution.

Common serverless services:

  • A Logic App running on the infrastructure of an Azure region (VMs in a datacenter), not visible as it is hidden away. By provisioning a Logic App, you leverage a bit of that infrastructure (indirectly via the Logic App Service) once you define a workflow and the flow gets triggered. Furthermore, you get billed by some trigger/actions that execute and scaling is done for you.
  • Azure functions enable creation of small pieces of meaningful, reusable methods, easily shared across services. You can build the Azure function in various languages like Node.js, C#, F#, Python, PHP, Java, Bash, and PowerShell. It even supports Command Line through CMD or BAT file. They are typically designed to serve a single purpose and respond to events in connected services.

Application to an MX.3 Environment:

Logic apps and Azure functions help address complex problems like process management.

To conclude, cloud computing is changing the way companies buy information technology. Businesses have a range of paths to the cloud, including infrastructure, platforms and applications that are available from cloud providers as online services. Mindtree cloud frameworks help to provide superior on-demand processing and low latency solutions to cater to the increased demand for elasticity of data and infrastructure for the trading community. It accelerates the client’s business model, which in turn helps in implementation and smooth environment management of Murex GRID, simulation reports, end-of-the-day batches, profit and loss accounting, Value at Risk (VAR), etc.

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