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Reconfigurable acceleration for Monte Carlo based financial simulation

  • G. L. Zhang
  • , P. H W Leong
  • , C. H. Ho
  • , K. H. Tsoi
  • , Dong-U Lee
  • , C. C C Cheung
  • , R. C C Cheung
  • , W. Luk

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

Abstract

This paper describes a novel hardware accelerator for Monte Carlo (MC) simulation, and illustrates its implementation in field programmable gate array (FPGA) technology for speeding up financial applications. Our accelerator is based on a generic architecture, which combines speed and flexibility by integrating a pipelined MC core with an on-chip instruction processor. We develop a generic number system representation for determining the choice of number representation that meets numerical precision requirements. Our approach is then used in a complex financial engineering application, involving the Brace, Ga̧tarek and Musiela (BGM) interest rate model for pricing derivatives. We address, in our BGM model, several challenges including the generation of Gaussian distributed random numbers and pipelining of the MC simulation. Our BGM application, based on an off-the-shelf system with a Xilinx XC2VP30 device at 50 MHz, is over 25 times faster than software running on a 1.5 GHz Intel Pentium machine. © 2005 IEEE.
Original languageEnglish
Title of host publicationProceedings - 2005 IEEE International Conference on Field Programmable Technology
EditorsGordon Brebner, Samarjit Chakraborty, Weng-Fai Wong
PublisherIEEE
Pages215-222
ISBN (Print)0780394070, 9780780394070
DOIs
Publication statusPublished - Dec 2005
Externally publishedYes
Event2005 IEEE International Conference on Field Programmable Technology - , Singapore
Duration: 11 Dec 200514 Dec 2005

Publication series

Name
Volume2005

Conference

Conference2005 IEEE International Conference on Field Programmable Technology
PlaceSingapore
Period11/12/0514/12/05

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