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