Towards Financial Cloud Framework - Modelling and Benchmarking of Financial Assets in Public and Private Clouds

The Financial Cloud Framework is proposed, which contains business models, forecasting, sustainability, modelling, simulation and benchmarking of financial assets, and Monte Carlo Methods for pricing and Black Scholes Model for risk analysis are selected.

Abstract

Literature identifies two problems in clouds: (i) there are few financial clouds and (ii) portability of financial modelling from desktop to cloud is challenging. To address these two problems, we propose the Financial Cloud Framework (FCF), which contains business models, forecasting, sustainability, modelling, simulation and benchmarking of financial assets. We select Monte Carlo Methods for pricing and Black Scholes Model for risk analysis. Our objective is to demonstrate portability, speed, accuracy and reliability of financial models in the clouds, and present how modelling, simulation and benchmarking fit into FCF. Experiments and benchmark are performed in public and private clouds, where portability, speed, accuracy and reliability from desktop to clouds are successfully demonstrated.