standards and semantics in financial services. standards for financial services – securities...

Standards and Semantics

in financial services

Standards for Financial Services – Securities Markets

OTC Product Density

1972 - Present

Funding Decision

Underwriting – Generic Capital Market Fundraising

Identifier Assignment

SubscribersLeads/Co-Leads

Market Makers

Book Runners

Dep

ends

on

asse

t typ

e Prospectus

Allocations

Pricing, Terms, Allotments

Depositary Custodian(s)

TRAD

E LI

FECY

CLEFr

ont O

ffice

Mid

dle

Offi

ceBa

ck O

ffice

SEC

Standards Landscape

Financial Semantics in OWL

• A first attempt

• Pizza approach– “Everything is a Thing”

• Would not account for common terms– e.g. accounting terms for

equity, debt, cashflow

Hypercube/EDM Council: The Semantics Repository

KR Lattice

Global terms

Instruments Components

Datedterms,

process etc.

Common types and selection lists

Top level: KR Lattice hierarchyphilosophical ordercontinuant v occurrentconcrete v abstract

Mid level: Global termsAccountingLegalMath etc.

EDMC: Financial Instruments Semantics

SecuritiesComponentsMarket dataProcesses

Hypercube/EDM Council: The Semantics Repository

KR Lattice

Global terms

Instruments Components

Datedterms,

process etc.

Common types and selection lists

Top level: KR Lattice hierarchyphilosophical ordercontinuant v occurrentconcrete v abstract

Mid level: Global termsAccountingLegalMath etc.

EDMC: Financial Instruments Semantics

SecuritiesComponentsMarket dataProcesses

These need to be aligned with the best of the rest

General Systems Characteristics

• Global scale• Information sets are comprised from real-time

and historical sources across multiple corporate/SRO/regulatory entities

• Legacy architectures– Messaging systems– Databases

• Business Processes resemble “paved cow trails”• Terms start off with meaning (legal / contractual)

but this is eroded as data passes through numerous systems and data feeds

Crossing the Language Interface

Business world

Technology world

Physical design

Logical design

Business terms(semantics)

The language interface

MDDL

FIX

FpML

ISO 20022 / FIBIM

EDMC SR

trace

Messaging and Database requirements

Business world

Technology world

Physical design

Logical design

Business terms(semantics)

The language interface

Database schemes

EDMC SR

Message schemes

Logical Data models Logical message models

Messaging and Database requirements

Business world

Technology world

Physical design

Logical design

Business terms(semantics)

The language interface

Database schemes

EDMC SR

Message schemes

Logical Data models Logical message models

trace

trace

The Challenge – Where are the tools?