To unlock the full potential of open-source software, as it is with any modern-day software, it must have an integrated ecosystem of complementary solutions that add value.
That is the aim of the FINOS Tech Sprint 2024, which kicked off on July 16th with a gathering of existing FINOS projects and new teams creating new value (code, tests, documentations, GH issues, etc.) using existing solutions in the FINOS ecosystem and beyond.
Over the next few months, developers are addressing a list of use cases that target key challenges in the financial services world. For those who don’t know, the FINOS Tech Sprint is open to all and runs until September 30th, ending with demos by the finalists at the Open Source in Finance Forum in New York.
The primary integration target for this Tech Sprint was TraderX: an open-source, cloud-native, highly modular reference architecture for a trading platform, which can be easily extended and is lightweight enough to run on a laptop, acting as a junction point for integrating FINOS projects for financial services use cases.
Developers have the opportunity to start coding using the TraderX platform as a Software Developer Kit (SDK) in order to deliver value across a wide list of use cases that address real-world financial services scenarios.
It’s time to share what the first batch of developers worked on to understand what to expect from the FINOS Tech Sprint!
Use Cases
Below is a list of use cases presented during the kick-off event. If any of these spark your interest, just drop a comment in the relevant GitHub discussion!
1. Deploying TraderX Using Radius
Jonathan Smith and Will Tsai (Microsoft Azure Incubations) proposed migrating TraderX from Docker Compose to Radius, a cloud-native application platform designed for scalability and portability.
During the kickoff, they showcased deploying some TraderX components using Radius. They are looking for developers interested in “radifying” other TraderX components such as the database and the message bus resources, as well as building an end-to-end automated CI/CD pipeline. For the full roadmap, check out the discussion and don’t forget to watch the video to learn more.
2. TraderX Support for Bitemporal Data
Jeremy Taylor and Matt Butler (JUXT / XTDB) introduced the audience to the concept of Bitemporal Database and pitched the benefits in the context of TraderX. A bitemporal database, like XTDB, is a specialised database that addresses time-related business requirements efficiently.
They are looking for inputs regarding which parts and components of TraderX have a bi-temporal use case that delivers value to the end-users. Check out the discussion and the video for more information.
3. CDM Integration for TraderX Trade Processor
Tom Healey (ICMA) presented the opportunity to enable TraderX with the Common Domain Model (CDM), a standardized, machine-readable, and machine-executable model that represents financial products, trades in those products, and the lifecycle events of those trades. An array of CDM resources can be found in the FINOS Knowledge Base.
Integrating the CDM within the TraderX trade processor and database modules will improve TraderX’s integration possibilities with downstream systems and formats for trade management, collateral, reporting, confirmations and other data exchange. Exploring the potential of CDM as a data model for the entire lifecycle, from trade inception through the lifecycle.
Tom is looking for developers who are interested in building a CDM transformation and validation engine and integrating it with the TraderX database. If you are interested, check the discussion for more details.
4. Climate Scenario Analysis Within TraderX
Now, moving to the “specific process” use cases, we will see how open source can enable critical aspects, like climate and accessibility, in financial services.
Matthieu Meaux (Capgemini) and Vincent Caldeira (Redhat) presented a new method for generating climate scenarios that simulate the effects of physical and transition risk on trading activities.
Vincent explained that any financial institutions with a trading book will be required to stress test it. He is looking for developers to build a “risk engine” on top of TraderX, so that WITNESS climate scenarios can flow in and hit the trading book to simulate and stress-test P&L.
If you are not a developer but an economist with an interest in data science, you might want to help Matthieu improve WITNESS, by incorporating the transition risk in the physic-risk damage function. Read the discussion and watch the video to learn more about it.
5. Banking Trading App Connected to TraderX
The Smoothstack team pitched a retail banking app that connects the customer bank account with investment services and accounts, resulting in lower fees and better UX for the end user.
Right after, Simon Redfern (TESOBE / OBP) presented the Open Bank Project, an open-source API solution designed for financial services. It boasts over 550 API endpoints related to banking and finance and supports all the major Open Banking standards in use worldwide.
OBP is a perfect fit for the use cases covering Banking Trading App pitched by the Smoothstack team. The OBP sandbox acts as a self-contained banking environment to test various approaches to integrate a banking application with TraderX.
For example, one can argue that a wholesale banking application could be connected directly to a “trading system” (i.e. TraderX); but a retail banking app should be connected to TraderX via the OBP sandbox because it provides a set of functionalities, such as authentication, authorisation, 2FA, views and entitlements, etc, that makes the poc application a potential Minimum Viable Product.
In addition to the use case, we came to another conclusion during the event. The OBP API Explorer allows developers to browse available APIs and call them directly from their browser.
We realised that it would be beneficial to display TraderX Data and Trading APIs in the OBP API Explorer, where developers can manage them easily and implement access control as per regulatory guidelines.
The Smoothstack team has provided a set of requirements and a high-level architecture in the Github discussion. You will also find two video recordings, useful to deepen your understanding of both ideas and the combination of the two.
Calls to Action
You can engage with the Project Leads directly on GitHub by adding comments to the discussion or by writing your ideas in the Slack Channel.
- Join the discussions on GitHub: Explore the use cases and share your insights or questions.
- Connect on slack: Engage with Project Leads and fellow developers. Collaborate, share ideas, and find support in the FINOS Tech Sprint Slack. Join here.
- Start coding with Trader X: Check out the GitHub and get started today!
- Attend the Open Source in Finance Forum (OSFF) on September 30th - October 1st in NYC: View project demos, network with industry leaders and participate in workshops at OSFF. Register here.
- Stay updated: Follow FINOS on social media and subscribe to our mailing list for the latest updates.
Authors: Luca Borella, AI Strategic Initiative Manager, FINOS and Dylan Thiam, Head of Marketing & Content, TESOBE / Open Bank Project
