Contract-driven financial reporting: building automated analytics pipelines with algorithmic contracts, Big Data and Distributed Ledger technology

Abstract

Future regulatory reporting should be automated to make it more efficient. Moreover, automation enables the supervising authorities to effectively oversee and identify risks of individual financial institutions and the entire financial market. During the last years, we have developed new technologies that are important to reach this goal. These technologies include (i) a suitable standardized representation of financial contracts, (ii) a standardized way of carrying out financial analytics, (iii) Big Data technology required to process hundreds of millions of financial contracts and (iv) Distributed Ledger and Smart Contract technology to create a secure layer for automated reporting. In this work, we provide an overview of these technological elements that are required to reach an earlier established vision of future financial risk reporting.