FIBO CONTENT TEAM Securities Equities Agenda 2 Where
FIBO CONTENT TEAM Securities & Equities
Agenda 2 Where we are – FBC v v v Financial Business and Commerce (FBC) 1. 0 Specification – Beta documentation and artifacts are posted to the wiki at https: //wiki. edmcouncil. org/pages/viewpage. action? page. Id=6362 094 Current activities reflected in open EDMC JIRA issues New issues, as uncovered by the SEC FCT should be posted there Open Action Item review (none) Planning for the next few months Where we are – SEC v v Current version of the SEC ontologies are Git. Hub in pink, integrated with FND 1. 1, BE 1. 1, FBC 1. 0, and IND 1. 0 ontologies (BE 1. 1, FBC 1. 0 and IND 1. 0 are now baselined and tagged in pink with OMG document numbers, DA to upload / tag in yellow this week) Current FIBO FBC debt and SEC/Debt draft ontologies are posted to Git. Hub in Elisa’s_Fork/FIBO-Debt
Recap of last few meetings 3 Participants have included the following organizations: • • • • Adaptive Bloomberg Citi Credit Suisse Deutsche Bank Fidelity Global LEI Foundation / Tahoe Blue Ltd Goldman Sachs Mizuho HP Enterprise / Mphasis No. Magic Nordea State Street Statistics Canada Thematix Partners Wells Fargo
Outstanding SEC Actions / Issues 4 Actions from prior meetings have been noted on the wiki – see https: //wiki. edmcouncil. org/display/FBC/Meeting+notes https: //wiki. edmcouncil. org/display/SEC/Meeting+notes (none currently) Long-standing homework … still need reviews and input
Priorities 5 Build out “top 25” identifiers and related content, including publishers (may need to add some of these to FBC rather than in SEC) Near-term priorities for early adopter program (debt instruments / bonds): v Review “almost pink” FBC Debt. And. Equities. Entities material (migrate from “redtest” FND/Accounting – for Debt, Guaranty, Credit. Facilities soon) for definitions, annotations, relationships (see Elisa’s Fork/FIBODebt) v Review dependencies in “almost pink” Debt. Instruments (with Debt. Instruments. Cash. Flow. Terms integrated – see Elisa’s Fork/FIBO/Debt) v Review “redtest” FIBO SEC/Securities to see if we’ve missed anything – terminology related to allotment, other concepts that may be needed for bonds early adopter effort (see Dean’s Fork/redtest)
Draft Definition of Debt 6
Draft Definition of Debtor 7
Draft Definition of Borrower 8
Draft Definition of Borrowing Capacity 9
Draft Definition of Creditor 10
Draft Definition of Lender 11
Draft Extended Definition of Debt Instrument 12 too narrow? ?
Draft Definition of Credit Agreement 13
Draft Definition of Collateral 14
Draft Definition of Debt Terms 15
Draft Definition of Interest 16
Draft Definition of Debt Interest 17 Do we need this, and if so, is the right name for it?
Draft Definition of Principal. Amount 18 According to Barron’s, “principal” is the amount of money raised by a mortgage or loan, whereas “principal amount” is as defined above … don’t we need both, as well as “principal and interest (P&I) payment”, with an expression that combines the two as a defining factor?
Draft Definition of Debt. Interest. Payment. Terms 19
Draft Definition of Debt. Principal. Repayment. Terms 20
Draft Definition of Accrual 21
Draft Definition of has. Accrual. Basis 22
Draft Definition of Day. Count. Convention 23
Draft Definition of Amortization 24
Concepts dropped from Debt. Terms 25 The original Debt. Terms ontology was in FND/Accounting (red) Review determined that several concepts were either balance sheet specific or defined at too low a level of granularity Dropped/redefined concepts include: v v v Credit – defined in terms of “monies owing” from the perspective of the creditor on a balance sheet, disjoint from certain balance sheet concepts Debt – redefined to eliminate the perspective of the debtor and related balance sheet concepts Debt. Finance – somewhat redundant with Debt. Instrument, but confusing … likely intended to represent some sort of structured debt financing such as for corporate bond issuance (may need to incorporate but rework this) Monies. Owing – and related to that, Owing. Side but no reference to the lending side so it was not symmetric and somewhat confusing Balance sheet terms such as Account. Receivable. Balance, Cash. Balance, Stock. Balance which likely belong elsewhere
Draft Definition of Guaranty 26
Draft Definition of Contract. Guarantor 27
Draft Definition of Priority. Level 28 Underspecified?
Moved Dependencies from Debt Instruments Cashflow Terms to Debt Instruments 29 The original debt instruments cashflow terms ontology has properties and terms related to reinvestment, etc. that are at a relatively low level of abstraction (and have other dependencies) for the basic debt instruments ontology – preserved in the original for later review Thus moved the handful of terms that were used in debt instruments from the cashflow terms ontology to debt instruments Need to do the same with others to clean it up the rest of the way Sneak preview …
Securities Identification – what’s missing? 30 Current ontology includes: v Additional identifiers (Reuters Instrument Code (RIC)) v Potential identifiers to consider: VALOR, WKN, Common Code (CC), APIR, BEL-Code, CMED, OCC, RCMD, SICC, LCHD, Ticker Symbol, …) v Additional schemes (Euroclear. IDScheme, FTIDScheme, RICScheme, Telekurs. Security. IDScheme) Do we need these? Which ones do we need registries, etc. for?
Securities Restrictions – what’s missing? 31 We’ve referenced several US laws, regulations, and Acts of Congress in FBC – shouldn’t we have these as individuals? Same for ECB regulations? v Bank Holding Company Act of 1956 v 12 U. S. Code § 1813 v Federal Deposit Insurance Act v Investment Company Act of 1940 v Financial Institutions Reform, Recovery, and Enforcement Act of 1989 v International Banking Act of 1978 v Securities Act of 1933 What are we missing? Don’t we at least need these? What do we want to model about these regulations? – many have parts, which may have their own identifiers
SEC Homework 32 Review definitions in Securities Identification – only some of the definitions are sourced and we need to address gaps Securities Restrictions – this is really in need of review, both in terms of the content and gaps with respect to coverage (maybe rename it Regulations. And. Restrictions? ) Pools – still drafty, need to determine requirements for this Review definitions in other ontologies – Baskets, ISDA Schedules, Securities Classification (coverage? need CFI? ), Securities Issuance, Securities Listings, Security Assets … no feedback to speak of to date on any of these
Schedule 33 Next Few Meetings: v October 24 th – working session v October 31 st – no telecon (co-chair traveling) v November 7 th – working session
- Slides: 33