A Hot Date

Written for Fandango’s One Word Challenge (FOWC), engine.

I’m gonna post today about a component I once wrote in my professional life, which was a date engine.

For part of my professional life I was a consultant to an asset management company. Asset Managers run funds, hundrends of them. The way each fund is set up might be different. Half of it might be based on a commodity, like gold or silver, and half of it might be based on a spread of stocks in such-and-such a sector. Or, you might have a fund which is based on other funds. For example a fund might be based a third on Fund A, and two-thirds on Fund B. The possibilities are endless.

We use the term pension fund, and in fact the two are very similar ideas. The plan is just to invest into a fund, and allow the fund manager to grow the fund, without having to worry about too much detail. In fact, the funds we handled were popular with many pension companies.

Unlike the raw stocks or commodities themselves, each fund would only deal periodically. They tended to be long-term, rather than used by day-traders. In the simplest case, something might deal every day, but you could also have funds which dealt:

  • every Monday,
  • every other Tuesday,
  • the first Wednesday of each month,
  • the 2nd last Thursday of each month,
  • the 15th of each month,
  • once a year, on 31st December
  • once a year, on the first Friday

…and so on. The possibilities were pretty endless. Except that in practise, only a few tens of options were used.

The place I worked, they used to calculate these dealing calendars manually, for each fund, a year at a time. Just this process, over about 1,500 funds, took somebody about six months every year. And somebody else, another six months to check.

So they wanted to build a system which would automate the process. After all, it’s simple enough to have a computer just apply a set of rules and tag one date onto the last.

So I built an engine so they could do this. You needed to tell it the last dealing date, and once it had this, it would apply the rules for the fund and calculate the next dealinng date. So you can imagine, you could run this engine again and again, on each fund, to calculate dealing calendars years in advance.

The trickiest problem was in capturing all of these rules. Capturing them flexibly enough so as to allow many different types of rules to exist, but rigidly enough so the rule could be used to calculate a dealing date.

One of the oe other problem was, what if the engine came up with a non-banking day, for example a weekend, or New Year’s Day?

Plus, the funds were based in different countries/currencies. Different currencies have different ideas about what day is and isn’t a bank holiday. So straight away, you’re having to also capture bank holidays against all the currencies (although funds tended to be only set up in the main half-dozen currencies).

It had to take all of this into account, and more besides.

We got there in the end. It this sounds quite boring to you, that’s because it was. Working with banks was quite well-paid, but it wasn’t rocket science. The reason it paid well was because people had to be meticulous*. A lot of the time you would be working on something to improve a manual process. Either to make it quicker, or less error-prone (in this case, both). Banks are quite a specialised environment, in that respect. In later years, when I was hiring people, previous banking experience was always a big factor, just because it showed that somebody was used to that environment.

* some banks are more meticulous than others!

Author: Mister Bump UK

Designed/developed IT systems for banks, but had a stroke in 2016, aged 48. Returned to developing from home, plus do some voluntary work. Married, with a grown-up, left-home daughter.

2 thoughts on “A Hot Date”

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