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/Securities and Debt draft ontologies are posted to Git. Hub in pink
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 Office of Financial Research (US Dept of the Treasury) Quarule 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 (a number of older issues we should review and close or work on, others have been addressed and we should complete resolutions for them, if they are sufficiently stable) https: //wiki. edmcouncil. org/display/SEC/Meeting+notes (6 currently, all of which have been largely addressed – need to prioritize next steps) Long-standing homework … still need reviews and input
Priorities 5 Build out “top 25” identifiers and related content, including publishers (add these to FBC rather than in SEC) Near-term priorities for early adopter program (debt instruments / bonds): v Review Debt. Instruments (with parts of Debt. Instruments. Cash. Flow. Terms and Parity. Variants integrated) in pink for any additional issues – in progress 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; awaiting upload from Mike Bennett of recent work from the early adopter calls for “coagulation”) – waiting on upload to Git. Hub in an alternate “dirty pink” fork v Review against terminology suggested by early adopter team from MSRB glossary – in progress Near-term priorities for the CFTC / Interest Rate Swaps Po. C: v Review all four ontologies now integrated in pink (Derivatives. Basics, Swaps, Rate. Derivatives, IRSwaps) for content / correctness v Identify gaps v Test with individuals and Dean’s SWRL rules with respect to cross-currency swaps
Account-specific definitions 6
Record
Account
Account. Identifier Need to generalize the definition away from client
Account. Specific. Event
Account. Provider
Account. Holder
Account. Specific. Service. Agreement
Financial. Service. Account
SEC/Debt Review 15
Concepts dropped from Debt. Terms (now called Debt) 16 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 has. Borrowing. Party, has. Lending. Party, has. Other. Viewpoint, is. Debt. To, is. Position. In. Respect. Of, is. Sum. Of, party. To
Concepts Renamed from Debt. Terms (now called Debt) 17 Under Debt. Terms (which was Debt. Terms. Set) v v Debt. Interest. Payment. Term. Set Interest. Payment. Terms Debt. Principal. Repayment. Term. Set Principal. Repayment. Terms Renamed Day. Count. Basis to Day. Count. Convention and made it a child of Business. Recurrence. Interval. Convention Added Extension. Provision (under Contract. Terms. Set), since it can apply to other contract types and should probably be in FND rather than FBC Renamed a number of properties v collateralized. By is. Collateralized. By v debt. Amount has. Debt. Amount v owed. By is. Owed. By, owed. To is. Owed. To v Several data properties that were improperly coded were changed to object properties (some were both in the original CCM version)
Discussion around Guaranty / Guarantee 18 Under Corporations, we have v v Body. Incorporated. With. Guarantee Company. Incorporated. By. Guarantee Then under Organization. Covering. Agreement, we have “Body. Limited. By. Guarantee. Principals. Agreement”, which is a child of Organization. Covering. Agreement The BE FCT is working on a resolution to eliminate Company. Incorporated. By. Guarantee and moving its restriction to the higher level class – these kinds of organizations are typically not-forprofit, and they do exist, but … Recommend raising an issue against BE to rename “Body. Limited. By. Guarantee. Principals. Agreement” to Organization. Guarantee, making it a child of Guaranty in the Guaranty ontology, then adding a sibling called Debt. Guarantee with the Barron’s definition for Guarantee
Moved Dependencies from Debt Instruments Cashflow Terms to Debt Instruments 19 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 and parity variants ontology to debt instruments Added extension provision and related property to Debt in FBC to eliminate error in redemption terms
Resulting View of Debt Instrument 20 Latest draft definition for review
Revised Definition of Tradable Debt Instrument 21
Revised Definition of Non-Tradable Debt Instrument 22
Draft definition of Settlement. Terms from DER to FBC 23
Draft definition of has. Settlement. Date from multiple places (including IND) to FBC 24
New “general” definition of Offering 25
New definition of Offeror 26
New Definition of Offeree 27
Revised Definition of Securities Offering (was Offering, originally in multiple places, including SEC and duplicated in BP/Securities. Issuance/Issuance. Process) 28
Revised Definition of Offering Document (was originally in BP/Securities. Issuance/Issuance. Process, but referenced by and needed here) 29
Revised Definition of Debt Offering 30
Revised Definition of Redemption Provision 31
Draft Definition of Lifecycle 32
Draft definition of Lifecycle Stage 33
Draft Definition of Lifecycle Event 34
Draft Definition of Call Feature 35
Draft Definition of Call Notification Provision 36
Draft Definition of Call Window 37
Draft Definition of Call Schedule 38
Draft Definition of Call Price 39
Draft Definition of Call Premium 40
Draft Definition of Call Event 41
Draft Definition of Relative Price 42
DER/Derivatives Contracts 43
Cashflow Terms 44
Cashflow Formula 45 There must be more to it than this?
Derivative Contract Party 46
Revised Definition of Derivative Instrument 47 holders – was owners
Definition of Underlier (was Derivative Underlying) 48
Revised Definition of Non-Physical Underlier (was Underlying) 49 added Observable. Value to the union
Revised Definition of Observable Value 50
OTC Instrument 51 This is a definition about a deal that is struck over the counter, between two people, a bilateral contract, not an instrument that is traded over the counter … needs more detailed review … for example, this corresponds to the Fp. ML/ISDA notion of OTC made it a child of mutual contractual agreement
OTC Transaction Confirmation 52 Do we need a note that says typically both sides send a confirmation, which must agree … where each confirmation is like a signature, partially signed, until both parties have done so?
OTC Transaction Party 53
Parametric Cashflow Terms 54 Needs example and/or source and/or note
Revised Definition of Swap (was Swap Contract) 55
Swap Terms 56
Revised Definition of Swap Leg (was Swap Stream Terms) 57
Revised Definition of Swap Execution Facility 58
Securities Identification – what’s missing? 59 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? 60 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 61 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 62 Next Few Meetings: v February 20 th – no telecon due to Presidents’ Day v February 27 th – working session
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