FIBO CONTENT TEAM Securities Equities Agenda 2 Recap

FIBO CONTENT TEAM Securities & Equities

Agenda 2 Recap of last meeting/Reston discussions v v Financial Business and Commerce (FBC) specification review Revisit Customer/Client and KYC Homework discussion v v Still waiting for feedback on the terms, definitions, sources, and coverage Everything we’ve done/discussed to date is in the EDM Council Git. Hub repository, “pink” branch, including latest versions of FBC, IND, SEC Tool chain includes EDMC JIRA for issue raising (jira. edmcouncil. org), Git. Hub (https: //github. com/edmcouncil/fibo/tree/pink), Jenkins to run automatically on the Git. Hub site as pull requests are made Use cases – • • • New use cases for KYC – need to craft these Original integration use case is focused on CRM, could leverage new clients and accounts ontology, revisions to BE covering Legal. Entity (submitted to the OMG last week) Still need use cases that will test securities content more specifically Review of new ontology for FBC (Payments and Schedules) Homework for next time

Recap of last meeting 3 Participants included the following organizations: • • Bloomberg Citi Deutsche Bank Goldman Sachs Mphasis No. Magic Nordea Thematix Partners Lively discussion of Customer/Client distinction which spilled over to Reston.

FBC Contents Review 4 FIBO Financial Business and Commerce (FBC) common modules/ontologies identified to date: v v Financial Instruments – this ontology, which we’ve reviewed in both teams over several meetings, was moved from SEC to FBC Functional Entities § § v Products and Services • • • v v Financial Intermediaries (most content is new, includes legacy) Markets (moved from legacy) Registration Authorities (new, based on ISO 11179) Regulatory Agencies (mostly new, partially based on ISO 11179) Products and Services (high-level, most content from legacy) Clients and Accounts (high-level, most content from legacy) Payments and Payment Schedules (high-level, some content from legacy ontologies, uses Financial. Dates for schedules) Goal is to keep this as small as possible and produce an RFC for Berlin Deadline for content review is ** May 1 st **, to allow for draft specification production by May 15 th – draft specification can be revised up until the meeting once an original draft is available

Revisit: Customer/Client distinction 5 Know Your Customer (or is it Client? ), AKA KYC � � � Created to address money laundering challenges Rules vary from country to country Legislative organizations that enforce this vary across countries Basic Principle: � KYC requires that individuals and organizations that have financial interactions with a financial institution (over a certain threshold for some countries) be documented with key information, e. g. , � Name Address Date of birth (for individuals) Identification number (e. g. , Taxpayer Identification Number) Basic identification details are covered in FND/People and in BE/Legal. Persons, but should be reviewed for completeness This suggests that there needs to a singular view of customers/clients for a financial institution…?

Review: Products & Services – ODM/UML 6 v v v Clients are currently defined as having a service agreement in place; Customers are related to products/services they have purchased Account. Holder is defined in Clients and Accounts – stay tuned Recent revisions include re-vamped definition of Commodity, addition of Regulated. Commodity; new additions include Transaction, Transaction. Confirmation – needed for SEC

Products & Services – Top-level Party Definitions 7

Products & Services Parties 8

Clients & Accounts – ODM/UML 9

Clients & Accounts – Top-level Definitions 10

Clients & Accounts – Expanded Account Holder 11

Questions / Use Case to Support KYC 12 What questions do we need to be able to ask to state unequivocally that we support KYC? Who is the account holder of record and what do we know about them v Who are the beneficial owners, if any of this account v What sorts of queries need to be run when certain thresholds are met or circumstances arise? What additional due diligence is required at what levels of risk/exposure? How do we manage the additional, relevant, adverse information that might be uncovered about an account holder or beneficial owner, under what circumstances, and with what safeguards?

Homework 13 Please, please do review the definitions v v v slides will be available from the EDM Council site (and emailed to participants ontologies in RDF/XML serialized OWL have been uploaded to Git. Hub and are current Source documents, such as the US regulations cited so far, are available on request Reminder: Use cases, use cases v v Use case for KYC is a good one for FBC; another is counterparty exposure, including support for LEI roll-up based on counterparty intermediaries (see FBC Financial Intermediaries ontology as a starting point) Use case template is available from Thematix, as needed (ekendall@thematix. com) We will iterate as a group, post them to the wiki on Git. Hub for discussion / revision, use them to create test cases Goal is to develop a representative set of competency questions to help scope the development, determine how granular the ontologies need to be, let us know when we can stop … at least at some level

New FBC Payments and Schedules Ontology 14 v Payments and payment schedules are required to support Loans as well as certain securities, such as coupon payments for bonds, payment schedules for swap legs, etc.

Payments & Schedules – Top-level Definitions 15

Payments & Schedules – payment schedules 16

Example: Swapstream Interest Payment Schedule 17

Schedule 18 Next Few Meetings: April 20, 2015 – Securities Identification and test individuals for member “financial intermediaries”, legal entities, as a part of FBC validation; preliminary draft FBC specification will be published for review the week of 4/27 and sent around for comments May 4, 2015 – draft FBC specification review May 18, 2015 – FBC RFC due to the OMG; further comments may be integrated up until the Berlin meeting Note: FBC specification work will continue as part of this meeting, in addition to a bit more on Securities, unless otherwise noted. Submission to OMG � Owing to dependencies on FBC, the Securities submission will not take place until September, 2015.