<p>Development of distributed real-time applications, in contrast to best effort applications, traditionally have been a slow process due to the lack of available standards, and the fact that no commercial off the shelf (COTS) distributed object computing (DOC) middleware supporting real-time requirements have been available to use, in order to speed up the development process without sacrificing any quality.</p><p>Standards and DOC middlewares are now emerging that are addressing key requirements of real-time systems, predictability and efficiency, and therefore, new possibilities such as component decomposition of real-time systems arises.</p><p>A number of component decomposed architectures of the distributed active real-time database system DeeDS is described and discussed, along with a discussion on the most suitable DOC middleware. DeeDS is suitable for this project since it supports hard real-time requirements and is distributed. The DOC middlewares that are addressed in this project are OMG's Real-Time CORBA, Sun's Enterprise JavaBeans, and Microsoft's COM/DCOM. The discussion to determine the most suitable DOC middleware focuses on real-time requirements, platform support, and whether implementations of these middlewares are available.</p>

Development of distributed real-time applications, in contrast to best effort applications, traditionally have been a slow process due to the lack of available standards, and the fact that no commercial off the shelf (COTS) distributed object computing (DOC) middleware supporting real-time requirements have been available to use, in order to speed up the development process without sacrificing any quality. Standards and DOC middlewares are now emerging that are addressing key requirements of real-time systems, predictability and efficiency, and therefore, new possibilities such as component decomposition of real-time systems arises. A number of component decomposed architectures of the distributed active real-time database system DeeDS is described and discussed, along with a discussion on the most suitable DOC middleware. DeeDS is suitable for this project since it supports hard real-time requirements and is distributed. The DOC middlewares that are addressed in this project are OMG's Real-Time CORBA, Sun's Enterprise JavaBeans, and Microsoft's COM/DCOM. The discussion to determine the most suitable DOC middleware focuses on real-time requirements, platform support, and whether implementations of these middlewares are available.

Market makers such as large banks are exposed to market risk in fixed income by acting as a counterparty for customers that enter swap contracts. This master thesis addresses the problem of creating a cost-effective hedge for a realistic swap book of a market maker in a multiple yield curve setting. The proposed hedge model is the two-stage stochastic optimisation problem created by Blomvall and Hagenbjörk (2020). Systematic term structure innovations (components) are estimated using six different component models including principal component analysis (PCA), independent component analysis (ICA) and rotations of principal components. The component models are evaluated with a statistical test that uses daily swap rate observations from the European swap market. The statistical test shows that for both FRA and IRS contracts, a rotation of regular principal components is capable of a more accurate description of swap rate innovations than regular PCA. The hedging model is applied to an FRA and an IRS swap book separately, with daily rebalancing, over the period 2013-06-21 to 2021-05-11. The model produces a highly effective hedge for the tested component methods. However, replacing the PCA components with improved components does not improve the hedge. The study is conducted in collaboration with two other master theses, each done at separate banks. This thesis is done in collaboration with Swedbank and the simulated swap book is based on the exposure of a typical swap book at Swedbank, which is why the European swap market is studied.