Large data vendor
Head of Mortgages
- Our client had an intricate pricing model tailored to handling both pools and aggregations of loans for trading desks
- The legacy solution was inhibited by increasing costs and scaling limitations, leading to performance degradation during high demand
- StructureIt was engaged to build a faster and more cost-effective solution
Our client utilized a complex pricing model to enable trading desks to price both pools and aggregations of loans. Whilst functional, the pricing model’s effectiveness deteriorated when demand surged, and required significant unnecessary spend to remain operational. Whilst the legacy solution worked, it was neither scalable nor marketable.
How StructureIt helped
The StructureIt team started by exploring an event-based architecture as a means to reduce costs during idle times whilst handling pricing requests in a scalable manner. Having proven this could work, the StructureIt development team dove into delivery, and within two months, had successfully migrated the pricing model to a serverless event-driven architecture.
The fundamental components of the StructureIt solution were:
- Segmented pricing requests: The original single pricing request is now split into smaller batch requests based on calculation complexity, with batch sizes ranging from 1 to 10 aggregations. These smaller requests are then published to the pricing model
- Execution of pricing calculations: The pricing model then ingests the smaller pricing requests and combines them with market data to price the aggregations
- Compiling the results: Once the batched calculations were completed, the individual calculation outputs are combined into a unified result and made available
The impact was immediate, with the client seeing key results:
- Scalability: The event-driven architecture overcame the original limitation of limited concurrent calculations. It enabled hundreds of parallel calculations across thousands of aggregations with varying complexity levels, significantly improving throughput even under high complexity scenarios
- Performance: The solution achieved substantial performance improvements, with a remarkable 2,620% improvement observed at 10,000 aggregations and medium complexity levels, resulting in an average performance increase of over 1,100%
- Cost: By implementing StructureIt’s event-driven Lambda solution, the client achieved impressive annual cost savings through an 84% reduction on previous spend. The focus on a “zero cost when idle” outcome ensured no expenses were incurred when the solution was not in use
The collaboration with StructureIt provided the client not just with a solution but a strategic edge, optimizing their pricing model’s efficiency, cost, and scalability.
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