(See also blog post on 2010 GS annual report.) Singapore government is smart to always look out for upstream domains. Similarly, in financial IT, there are some upstream *domains* too.
Upstream: real time risk — upstream in derivative risk … but poor Market Depth
Upstream: grid — Memory virtualization, grid computing
Upstream: Eq(and FX) HFT and algo trading is upstream to other asset classes
Upstream: Option-related (including mtg) analytics tend to be more advanced, and probably upstream. Any derivative with optinality tends to be dominated by vol in terms of pricing complexity.
Upstream: connectivity — collocation, streaming,
Upstream: latency — sub-m, multi-core, non-blocking…
Upstream: voluminous market data processing — storage, distribution…FX and eq option has the highest volume, and often dominates entire infrastructure. Many asset classes are far behind
Upstream: SecDB — firmwide singleton mkt risk engine. Upstream in m-risk technology. Most shops have data silos.
However, upstream technologies often become fads.
– C++? not really upstream. A strong c++ guy isn’t necessarily strong in java or C#.
– web service
– solace-like messaging hardware
– CEP? How much real value does it add?
– rule engines
– MortgageBackedSecurity pricing? Not really upstream, though most complex analytically.