REAL-TIME MIDDLE OFFICE TRANSACTION PROCESSING: MOVING BEYOND TRADITIONAL BATCH-BASED IBOR SYSTEM
DOI:
https://doi.org/10.65009/dxyxc662Keywords:
Real-time IBOR, Middle Office Transaction Processing, Event-Driven Architecture, Streaming Data Pipelines, Intraday Position Management, Investment Banking Systems, and Batch Processing Modernization.,,Abstract
Historically, Investment Book of Record (IBOR) systems have been used in Investment
Banking middle offices to store trades, positions, and balances in batch-based systems.
Although effective in terms of end of day reconciliation, these architectures bring in delays,
near real-time intraday data and increased operation risks, which restrict their applicability to
modern markets and regulatory requirements. This paper introduces a real-time middle office
transaction operation paradigm that transcends the traditional periodic IBOR models. The
approach is based on the idea of constant transaction processing and the conceptualization of
trades and lifecycle events as non-pointwise inputs which update positions and exposures
gradually during the trading day. The structure offers position and risk always-up-to-date views
through prioritizing event sequences, state consistency within the day, and decouple processing
to interact with overnight batch cycles. The suggested view is consistent with the current
demands of real-time transparent, scalable, and auditable middle-office operations, and
maintains the ability to exercise control by replay-able transaction histories. In this work, a
document-aligned and non-derivative architectural perspective is added, transforming IBOR
into a periodic ledger building into a constantly changing transactional base of investment
banking middle offices.
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