Financial service innovation based on grid computing

In a world of economic globalization, financial industry faces many new challenges. Optimizing IT infrastructure utilization is one way to advance financial organizations´ competitiveness. Web service and grid computing appear to be increasing useful tools to realize the aim. Using existing computing resources to provide innovative financial service is the subject of the paper. Grid-based (American) stock option trading brokerage as an example, system architecture and its main issues, high-performance option pricing platform is designed. Using Web service and Java technologies, test system is set up, ideal speedup and pricing results are achieved. According to IBM´s grid value at work model, the grid system business value is analysed in quantitative approach. Low total cost of ownership (TOC), high return on investment (ROI) and internal rate of return (IRR) denote that grid-based stock option brokerage is a effective value-added service for financial institution.