one of my latest article on cloud computing got published in cloud computing journal.
http://cloudcomputing.sys-con.com/node/1662935
this is about implementing "Corporate Actions" of Fianancial sector in cloud computing environment.
Happy reading.
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Traditionally business process services are built on applications that are running within the enterprise to fulfill business demands. In the recent past, the concept of SaaS Clouds gained significance with services being hosted in a common cloud environment within the enterprise or outside the enterprise. In this article, we propose an innovative implementation of Cloud-based SaaS Enterprise Frameworks in "Corporate Action Events" Processing.
A lot of discussions have appeared on how enterprise architecture services and cloud-based services, namely SaaS, are connected within an organization and how these architectural styles are better leveraged to fulfill business domain demands. [1] Enterprise architecture often describes the blueprint of applications and strategies within an enterprise, whereas enterprise SOA is more about enterprise services and provides integration using service orientation. Cloud-based SaaS has the ability to utilize the services from a common framework either internally using private clouds or externally using public clouds. Technology advancements always provide a good opportunity for the fulfillment of various business demands.
Cloud-based SaaS has gained importance and plays a significant role in the automation of several processes in the financial services, particularly in the capital markets, to meet the demands on a global basis. This is because of the increasing complexity of various standards, formats, guidelines, and rules and regulations of financial services. Challenges will increase in the case of small and mid-size brokers/dealers as automation involves a lot of budgets on IT infrastructure. Even large firms are looking at cost-effective solutions with less maintainability and low risk. Most of the corporate action-events processing are date and data-centric timely processes. The availability of timely information is a critical factor for successful processing, but the industry is struggling to get that information on time, which leads to the failure of processing and missed deadlines. This will cause financial loss to the firm. These factors drive the industry standards body association to standardize the global standards of events, to adapt the emerging technologies to provide better and cost-effective, flexible solutions that will leverage and address the concerns of the industry.
In this article, we explore how significant "Corporate Action" events such distribution of income, raising the capital, or restructuring the capital can be hosted on a SaaS-based environment that will help organize centralized data for the purpose of multi-tenants simultaneously with advanced technology standards. In all these scenarios, effective governance signifies the importance of services availability and adaptability.
Current Industry Trends in Corporate Action Events Standards
Most of the Corporate Action Events are volume-intensive with lots of clustered and distributed data; all of this exposes banking and brokerage agents to high expenses and operational inefficiencies. Hence most of the brokerage and asset management organizations are moving toward standardization, reducing the cost and lowering the risk of corporate action by adapting event processing by global XBRL (eXtensible Business Reporting Language) messaging standards as a way of announcing and reporting corporate action events from issuer to intermediary chains to investors. In te U.S. market, DTCC, SWIFT and XBRL US are combined on this XBRL standardization (2, 3, 4). The XBRL XML message format is based on the latest ISO 20022 standards issued in 2010. In the European market SWIFT is a leading provider with ISO standards. The Indian market is nascent in the corporate action automation process. The BSE (Bombay Stock Exchange) recently took initiative with SWIFT to disseminate corporate actions information in ISO 15022 format which is globally accepted standard for messaging. [5]
Processing Corporate Action Events via Cloud SaaS
The emerging technology and industry standards re-fuel and drive the rethinking of the Enterprise Architecture Solution Framework for innovative way of doing corporate action processing. As part of that, we believe cloud SaaS can be leveraged to outsource some of the upstream actions of corporate proceedings. Why do we suggest upstream as of now? Because of the confidentiality of the client, transactional data cannot be shared with others and will most likely be a part of enterprises rather than common services. Demands for capabilities and processing of downstream components within the enterprise are different from upstream and this differentiation will provide the guidelines for implementing cloud-based services at the upstream level. Hence, upstream process, announcement capture, communication and others can be processed and hosted on a public/private cloud, because corporate action event information is kind of open information to all which need to be processed. In the next section, we have proposed an enterprise services framework for processing Corporate Action Events using cloud-based SaaS technology.
Enterprise Services Framework Using SaaS
Corporate Actions applications consist of three layer framework consisting of issuers, custodian s and then investors. The issuers' layer is upstream of the framework and consists of a capturing system for all data. This upstream capturing utility framework is an enterprise services-based business processes that will capture the announcement data from issuers and agents and will provide support based on agreed formats and standards upon certification. The next step to capture information is to validate the data based on configured business rules, check duplicate of information, and finally create the event. This golden copy of events can be subscribed by the mainstream corporate action process.
CIO, CTO & Developer Resources
The mainstream corporate action processing solution framework processes the core downstream part of the corporate action life cycle like entitlements calculations, instructions, payments and settlements. The complete corporate action ecosystem is formed with holding, price, reconciliation, assets, and accounts systems. This framework will be hosted in a private cloud / within an organization, and an individual instance will be created on a per-consumer basis.
The investors receives a notification to participate in an election by the various modes of communication opted by investors such as e-mail, fax, mobile, and SWIFT. The emerging mobile computing enables this solution framework to adapt investors' participation in the election through a mobile device, which will accelerate the response from investors.
Providing a SaaS-based solution automates most of the events as part of a corporate actions event such as custodian instructions, account data transfer, creating client-based events, and notifications from the given interfaces. Services can be generalized for several customers or specific to individual customer demands and these can be fulfilled by creating workflows to satisfy the requirements of making events a part of rules engine. This will make sure that controls are incorporated.
User interfaces for services can be designed to include multi level role-based access, dashboards, exception monitoring, audit trails, and, of course, personalization based on user access. At the same time, services can also provide compatibility with various technologies such as SWIFT and XBRL. Otherwise enterprises would need to invest in their own in the absence of a cloud-based framework. This framework also provides different user interfaces as services for capturing and certifying the data at upstream and configuration to individual clients at core processing of the system.
As described Figure 1, the upstream processing component of the applications can be created as software as services, which can then be leveraged for customers who would like to reduce the cost of investment in technology and also enhance standardization.
please rest of the article on website.
Regards
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