12,000

We have over 12,000 students, from over 100 countries, within one of the safest campuses in the UK

93%

93% of Lancaster students go into work or further study within six months of graduating

Home > Research > Publications & Outputs > Engineering foreign exchange processes via comm...
View graph of relations

« Back

Engineering foreign exchange processes via commitment protocols

Research output: Contribution in Book/Report/ProceedingsConference contribution

Published

Publication date2007
Host publicationServices Computing, 2007. SCC 2007. IEEE International Conference on
Place of publicationLos Alamitos
PublisherIEEE Computer Society Press
Pages514-521
Number of pages8
ISBN (Print)0-7695-2925-9
Original languageEnglish

Abstract

Foreign exchange (FX) markets see a transaction volume of over $2 trillion per day. A number of standard ways of conducting business have been developed in the FX industry. However, current FX specifications are informal and their business semantics unclear. The resulting implementations tend to be complex and compliance with the standards unverifiable. This results in potential loss of value due to incompatible business processes and possible trades not consummated. This paper validates a formal, protocol-based approach by specifying foreign exchange processes as standardized by the TWIST consortium. The proposed approach formalizes a small, core set of foreign exchange interaction protocols on which the desired processes can be based. The core protocols can be composed to yield a large variety of possible processes. Each protocol is rigorously defined in terms of the commitments undertaken and manipulated by the parties involved. By contrast, traditional approaches as used in the current TWIST specification lead to redundancy in specification and difficulty in understanding the import of the interactions involved. In addition, our approach discovered interesting business scenarios that traditional approaches would have missed.