FIBO CONTENT TEAM Securities Equities Agenda 2 Where
FIBO CONTENT TEAM Securities & Equities
Agenda 2 Where we are v v Financial Business and Commerce (FBC) draft specification materials (posted to the wiki) -https: //wiki. edmcouncil. org/display/FBC/Draft+FBC+Specification+Materials Revisions to the site include updates presented in Berlin A few comments have been posted there and on related pages More review is needed … Homework discussion v v v Primary open issues include coverage, gap analysis for EU institutions, analysis with respect to linking regulators to the services they regulate in what jurisdiction Recent inputs from Citi have led to the addition of jurisdiction-specific regulatory authorities (US only to date), to allow for broader test individuals Latest versions of the ontologies are in the EDM Council Git. Hub repository, “pink” branch Still need more test individuals for functional entities – examples posted in spreadsheets and slides (have basic bank and bank holding company, need investment bank, investment / management company, etc. ) – recently received examples for Fidelity, Goldman will be added this week Use cases – • • New use cases for KYC – still 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 are underway Review of revisions to Regulatory. Agencies, new USJurisdiction. Regulatory. Agencies Homework for next time
Recap of last few meetings 3 Participants included the following organizations: • • • Bloomberg Citi Deutsche Bank Fidelity Global LEI Foundation / Tahoe Blue Ltd Goldman Sachs (Mike Pool has recently moved to BNY, potential GS replacements include Bill Anderson, Fabian Neuhaus) Mphasis No. Magic Nordea State Street Thematix Partners
FBC Contents – Reminder 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 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) Business Registries (new, extends registration authorities, to support definition of legal entities per our examples) USJurisdiction. Regulatory. Agencies (new, extends Regulatory Agencies, Registration Authorities, etc. ) 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 still to keep this as small as possible and produce an RFC for Cambridge (September) – delayed to incorporate relationships between regulators and services (high-level, but with test cases)
FBC Contents – Additions to FND 5 New ontologies required by FBC, but are more appropriate for Foundations (FND): v v Arrangements Module – Ø Classification Schemes, to use in classifying financial instruments based on ISO 10962, for example (presented previously, available in Git. Hub) Ø Quantities – to support measurement units needed for commodities, among other requirements (presented previously, available in Git. Hub) Accounting Module – Ø Currency. Representation – the primary ontology representing ISO 4127 (for discussion today) Ø ISO 4127 -Currency. Codes – individuals representing the currencies and codes defined in ISO 4127 Ø Business. Centers – individuals representing the business centers defined in Fp. ML (stay tuned)
FBC Contents – New Languages, Countries, and Codes (LCC) Specification 6 v Languages Module – Ø Ø Ø v Countries Module – Ø Ø Ø v Language. Representation – the primary ontology representing ISO 639 (available in Git. Hub, currently in FND) ISO 639 -1 -Language. Codes – individuals representing the languages and codes defined in ISO 639 -1 (available in Git. Hub , currently in FND) ISO 639 -2 -Language. Codes – individuals representing the additional languages and codes defined in ISO 639 -2 (available in Git. Hub , currently in FND) Country. Representation – the primary ontology representing ISO 3166 (available in Git. Hub , currently in FND) ISO 3166 -1 -Country. Codes – individuals representing the countries and codes defined in ISO 3166 -1 (available in Git. Hub , currently in FND) ISO 3166 -2 -Subdivision. Codes – individuals representing country subdivisions and their codes defined in ISO 3166 -2 (in work) Revisions to move these to the external specification will be forthcoming w. r. t. pink
Revised Regulatory. Agencies – Licenses 7
Revised Regulatory. Agencies – Licenses 8
Revised Regulatory. Agencies – Regulations 9
Revised Regulatory. Agencies – Regulations 10
Revised Regulatory. Agencies – Legislature (new) 11
Examples 12 US Regulatory Agencies that regulate Depository Institutions and Bank Holding Companies v v v Example regulations, such as Regulation Z, which v v Federal Reserve System (FRS) / Federal Reserve Board [of Governors] (FRB) Federal Deposit Insurance Corporation (FDIC) National Credit Union Association (NCUA) Office of the Comptroller of the Currency (OCC) Consumer Financial Protection Bureau (CFPB) issued by the CFPB, defined by the Dodd-Frank Act, the Truth In Lending Act, and the Credit Card Act, identified by “ 12 CFR 1026, Federal Register Number 2013 -10429”, and applies to Credit Card Services Registries such as the National Information Center Repository, which manages RSSD IDs issued to Depository Institutions and Bank Holding Companies
Revisit: Customer/Client distinction 13 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…?
Questions / Use Case to Support KYC (Reminder – need input) 14 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 15 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
Schedule 16 Next Few Meetings: July 6 – No Meeting (4 th of July Holiday / Elisa will be on vacation) July 13 – Continued development of the relationships between regulators and services and testing of individuals; discussion of requirements for individuals for jurisdictions other than the US July 20 – Continued review / testing of individuals; discussion of any additional requirements needed to finalize FBC July 27 – Preliminary draft specification for review
- Slides: 16