SAN MATEO (06/21/2000) - Anticipating changes in the way Wall Street calculates stock trades, Intel Corp., Microsoft Corp., and SunGard Data Systems on Wednesday formed an alliance to deliver financial service eProcessing solutions that will run on Intel's IA-64 platform.
The first of 10 expected financial applications from the trio, SunGard Panorama is a risk management application that runs on Microsoft 64-bit Windows 2000 atop Intel IA-64 Itanium processor-based systems, officials said.
SunGard Panorama is used to manage and predict financial risk by encapsulating a field of financial data, then monitoring changes as variables such as interest rates are refigured.
"One specific thing that warranted our attention in the financial space was the upcoming decimalization of stock trading," said Mack Gill, director of alliance programs for SunGard, in Wayne, Pennsylvania.
The migration of stock trading from the current fraction-based system to a decimal system will create finer granularity in the market as traders begin trading down to the penny. The added transactions will push market volumes way past current levels and place increased performance pressure on financial IT networks.
"There will be enormous pressure on info processing to handle the increased order flow and risk evaluation," said Tom Gibbs, director of vertical marketing for Intel, in Santa Clara, California.
Gibbs also listed the globalization of the stock market and 24-hour online trading as good reasons for more powerful financial processing solutions.
SunGard Panorama is backward compatible with all existing 32-bit applications that may be running inside the 64-bit environment, according to Edmond Muth, director of the financial industry group at Microsoft, in Redmond, Washington.
The final Securities and Exchange Commission deadline for all securities to trade in decimals is April 9, 2001.
Dan Neel is an InfoWorld reporter.