Supporting Securities Industry 'C to Java' Transition with 'Next-Generation Financial Framework'
'FICO' Launched Last Year to Assist Java Migration
KOSCOM has stepped up as a savior to help transform the ledger management system in the financial investment industry. Using the next-generation financial framework (FICO: Financial Industry Community), it is promoting the transition of the financial investment industry's ledger system from the existing C language to Java.
Recently, there has been an increase in cases of global financial investment companies switching to systems using the Java language. Goldman Sachs rewrote its programs in Java to apply various cutting-edge technologies for financial data processing and analysis. JP Morgan also redeveloped key modules of its trading, risk management, and data analysis platforms in Java or integrated them with Java-based technologies. As a result, calculation time was reduced by 30%, and hourly calculation costs were cut by up to 80%.
The reason Java has rapidly risen in the financial investment industry is due to the limitations of ledger management systems built with C language. Ledger systems primarily based on C language face difficulties in maintenance and have limited scalability due to system aging.
On the other hand, Java allows free implementation on both applications (apps) and the web, offering excellent scalability. It supports various tools for cloud-native technologies such as test automation and DevOps, enabling developers to focus solely on business logic development. Even without considering cloud migration, it can easily respond to the expanding demand for generative AI and machine learning technologies, represented by ChatGPT.
Helping Securities Firms Change Ledgers with FICO... No Issues Even in Systems Where Speed Is Crucial
In Korea, the number of securities firms considering building new ledger systems using Java is increasing. In response to this domestic demand, KOSCOM launched the ‘FICO (Financial Industry Community)’ framework based on ‘Spring Boot,’ optimized for cloud environments, at the end of last year to enable easy implementation of Java in financial operations. The core of FICO is its structure that accelerates digital transformation by moving away from the existing on-premise IT systems to cloud-native environments using open source.
By adopting KOSCOM’s cloud-native approach, infrastructure can be operated more effectively compared to existing systems, and dependence on commercial software can be reduced. Additionally, it benefits from the continuously evolving open source in the IT industry. In particular, business programs developed within the same framework can be jointly used by multiple securities firms in the future, which is expected to reduce costs.
KOSCOM recently conducted a proof of concept (PoC) for the next-generation order ledger system using FICO and achieved order processing speeds comparable to systems implemented in C language with a system applying Java. This proved that Java can be applied even to systems requiring fast processing speeds.
KOSCOM is also developing its internal systems using the next-generation framework ‘FICO.’ For the automatic order system ‘SOR (Smart Order Routing),’ which has recently attracted attention due to the launch of an alternative exchange, KOSCOM used FICO to convert separable unit systems such as monitoring solutions into Java. Going forward, KOSCOM plans to gradually prepare for the Java transition of the next-generation ledger system.
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