Associative algebra of generalized functions closed with respect to differentiation and integration

An associative algebra of generalized functions including the $\delta$ function and also functionals of a new type which are nonzero on the $\delta$ function and its derivatives is constructed. Involution, differentiation, and integration are defined in the algebra. It can be used to construct new strongly singular potentials and also in the Hamiltonian formulation of local quantum field theory.