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Sustainable AI-Driven Architectures for Real-Time Derivative Accounting Across Multi-Counterparty Financial Networks

Abstract

Green AI architecture design for real-time derivative valuation across multilayer multi-counterparty networks that account for systemic and market-specific risk scenarios. A real-time data-pipeline and provenance management approach incorporates user-defined risk metrics that are used for SLA invocation and applied to distributed data streams to establish Near or Real-time apparent price and P&L: Risk vectors are also exploited for scenario generation in supporting and orchestrating stress testing. Provenance and quality parameters control the overall risk of the output data, whilst stress testing scenarios based on the same risk metrics assess the capacity of a Green AI architecture to fulfil the stipulated demands. A supporting process implements data-longevity concepts in SLA-driven regulatory reporting.

 

The drive towards supporting sustainable computing integrates the practices of the emerging Green AI domain with financial Information Communication Technology (ICT) infrastructures. This ushers in the consideration of Green-Computing concepts and metrics at a more detailed architectural level—directly extending the “Green” and “Minimal-Mid-Point” ICT enablers of Risk-Aware Green AI to include new components. This exploration addresses the Integrated Financial System Integration challenge, in the specific context of Real-time Apparent Pricing. The focus is the real-time accounting of retail derivatives traded over multiple counterparty pairs, where satisfactory performance characteristics need to be maintained across a specified amount of risk-based latency.

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