Advances in Computational Finance and its Application in Distributed Systems

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Many world economies seem to be slowly recovering following the 2008 market crash. However, due to their inter-dependence, there is still the looming danger of recession in some developed countries such as Germany. This is happening even after new regulations such as the Dodd-Frank reform and consumer protection act required all Derivative instruments to be collateralized to eliminate counter-party risks. Options are one of the common derivative instruments and pricing options is the backbone of research problems in finance. Dr. Thulasiram’s research program spans into areas that are seemingly unrelated to each other such as financial derivatives, distributed resource management. With carefully designed methodologies and technical approaches, his research has discovered the existence of some fundamental principles that connect these fields. The mathematical and computing components of his research in the past helped discover some of the hidden links and is the impetus for the current mission to further uncover such hidden relationships among them, thereby benefiting all these fields. Through this new research initiative he plans to train a fresh class of high quality research personnel in Canada. Dr. Thulasiram's research will use modern computers and advanced computational techniques inspired from the natural world to study problems in finance. His research will allow for better understanding of the behaviour of some of the financial instruments. The research results will help speed up the decision making process for investments, hence to avoid potential financial losses for millions of investors. This research can be used in common computing platform such as Cloud for resource pricing for services. Cloud is a distributed system where services such as memory, data storage, bandwidth etc., are available any time any wherer as a pay-as-you-go model. In essence, Dr. Thulasiram's research results will answer some newly aroused questions in financial markets and on commonly used Cloud resources such as: (i) What could be the relationship between finance and Cloud computing? (ii) Is there any opportunity to profit investing in a particular derivative instrument? (iii) How can one (individual or organization) evaluate the value-at-risk to continuously balance their financial health? (iii) How can the market volatility be precisely measured for profit making opportunities? (v) Are consumers paying a fair price for the Cloud resources they rent? (vi) How can one eliminate risks involving acquired versus rented resources? (vii) How can a service provider guarantee profit for their business while satisfying the quality of service for customers? (viii) How can providers expand their business for optimum utilization of their resources? (ix) Can Cloud be used for financial derivatives advisory services without compromising the privacy of the investor and security of the investment instruments?