OMG Finance Domain Task Force FDTF Monthly Statusreview

OMG Finance Domain Task Force (FDTF) Monthly Status/review call Wednesday October 02 2019

Agenda • News • Summary – FDTF Activities • Report-back from September OMG FDTF Quarterly Meeting (Nashville) • FDTF Next Things • FIBO Status Takeaway Slides – – FIBO detail – CCM, Metadata, Products etc. FIBO Detailed Status etc. Status of Current Specifications Status of upcoming FIBO specifications and FCT activities 2

3 NEWS • FIGI v 1. 1 RTF chartered • Blockchain Ecosystems Interoperability RFI published • FIBO: EDM Council Q 3 Quarterly Release completed – Basis for FIBO v 2 FTF Report (December 2019) – Some further changes will need to be in FIBO v 2 e. g. definition IP issues – So there may be a Q 3. 5 release for this – OR initiate the proposal we were going to follow in later quarters where we do the code freeze early in which case this will be the Q 4 release ED MCou ncil /FIB O Fou nda tion

Summary – FDTF Activities • Joint activities ad Liaisons – Blockchain PSIG and MARS Joint Initiatives • DLT Interoperability RFI (with MARS) • IOTA (with MARS) • DIDO-RA (with MARS) – IDs for Crypto Assets WG – Federated Enterprise Risk Management (FERM) WG • Active Standards Efforts – FIBO (FIBO v 2) – FIGI 4

Joint Activity Updates • BC-PSIG and MARS – Issuance of Blockchain Ecosystem Interoperability RFI • MARS/2019 -08 -03 • available at https: //www. omg. org/cgi-bin/doc? mars/19 -08 -03 • work in progress page at https: //www. omg. org/schedule/Blockchain_Ecosystem_Interoperability_ RFI. html – IOTA Tangle ongoing – IOTA MAM and EEE new potential submissions • RFP or RFC, likely RFP for MAM as Linked Encrypted Transaction Streams • ID 4 CA WG – Chartered FIGI 1. 1 RTF for updates to support crypto • FERM WG – The US Financial Transparency Act (FTA) introduced to the House • SBRM – No updates this cycle 5

Active FDTF Standards • FIGI – see above; RTF chartered to support crypto – Crypto coin / ICOs – Crypto exchange pairs (and crypto to fiat) – Crypto assets • FIBO – FIBO v 2 FTF working on process alignment – Move to single URI (subject to impact assessment) – Smoother generation of future TF/RTF reports, redline, specification – Re-think of diagram formats to sustain this • SBRM (BIM not FDTF) – RFP Submissions due in December 6

FIBO v 2 FTF Accomplishments • Our primary accomplishments to date in the FTF have been • Cleaning up some older deprecated content • Addressing some minor bugs • Promoting the bonds ontology, a sibling of the equities ontology, to released status. • A number of folks including John Gemski and John Tierney have been instrumental in helping us get that done • We've also updated the ISO MIC codes to the latest version (9/2019). 7

September Quarterly Meeting Report-back 8

Day 1: Tuesday 9

FIBO Directions and FIBO v 2 Automation • Combines: – Previous ‘FIBO Directions’ position paper – FIBO v 2 TF Report Automation – URIs alignment 10

FIBO Directions and FIBO v 2 Automation • FIBO Directions – Explored several possible futures for FIBO maintenance – EDM Council now committed to FIBO development with OMG as standards process • TF Report Automation – progress ongoing – Jira alignment – La. Te. X spec and redline production – Diagrams • URI Alignment – All agree we need one URI – Preference is edmcouncil. org – Impact analysis ongoing 11

FIBO Update • Posted a version of these Monthly Update Reports with FIBO content only. • Was not presented (no-one attended Tuesday afternoon) 12

Day 2: Wednesday 13

MAM and EEE • Presentations from IOTA on overall framework and vision • Application areas for IOTA Tangle, MAM and EEE • Masked Authenticated Messaging (MAM) – Explained MAM – Allows for linked streams of encrypted messages – Also relevant to earlier IR Swaps Po. C as a way to post data that is linked to other transactions – Considered what could be standard for this – RFP v RFC • Widely usable, so RFP would be appropriate • potential RFP for linked encrypted message streams – Usage examples • EEE: Brief overview (out of time) 14

Blockchain Ecosystem Interoperability RFI • Initial review with MARS on Monday • Drafting session for latest draft to put to MARS vote on Thursday – Clean up references etc. – Responsible body is Blockchain PSIG not MARS – Added questions about and reference to DIDO RA • This was voted through at MARS on the Thursday 15

Identifiers for Crypto Assets • Use of FIGI as a persistent open identifier for – Crypto currencies – Crypto currency exchange pairs – Other crypto based assets • Except where covered by existing contract types with crypto as a reference instrument • Questions of what to recognize as needing a FIGI – Use of crypto exchanges as criteria for recognition • Recognized the need for an updated FIGI Specification to cover these requirements • FIGI v 1. 1 RTF chartered 16

FIBO Workshop • Did not take place; key attendees were at AI PTF workshop 17

FDTF Directions and Future Work • Regulatory: – Monitor regulatory initiatives and requirements • • BCBS 239 EU / ECB US – SEC, CFTC, Fed, OFR etc. Bo. E, PRA/FCA etc. – Things like the FCA Po. C and follow-ups – What happened to the 13 terms we helped define? • • Standards Industry innovations New tech What else? 18

FTF and RTF Charters (Friday Plenary) • Foundations • • • – 1. 2 RTF reported in March 2017 – 1. 3 RTF chartered Sept 2017 – Extended to 2020 (June? ) Business Entities – 1. 2 RTF chartered Sept 2016 – Separate urgent issue – to be actioned by the RTF – Extended to 2020 (June? ) Indices and Indicators – 1. 1 RTF chartered in Sept 2016 – Extended to 2020 (June? ) Financial Business and Commerce (FBC) – New RTF 1. 1 chartered in September 2016 – Extended to 2020 (June? ) • These remain in existence until FIBO 2 is approved – Needed for approving urgent issues 19

FIBO v 2 – Status • A ‘Finalization Task Force’ (FTF) was chartered at the OMG meeting (December 2018) – This inherits the JIRAs listed for the FIBO v 1 RTFs • Will generate OMG Jiras for changes since EDMC FIBO 2018 Q 2. 5 • Will bring forward only those v 1 Jiras that remain applicable – Beta 1 published January 11 – Date for comments was Feb 28 – RTF due to report in December 2019 • Subsequent changes are in later RTFs which will run quarterly tracking the preceding EDM Council Quarterly Release – EDM Council would also provide some automation for the transformation for EDM Council OWL to OMG OWL – proposal is to have one set of namespaces rather than 2 as at present 20

FIBO: Scope and Content Upper Ontology FIBO Foundations: High level abstractions FIBO Business Entities FIBO Financial Business and Commerce FIBO Contract Ontologies FIBO Indices and Indicators Securities (Common, Equities) Securities (Debt) Derivatives Loans, Mortgage Loans Funds Rights and Warrants FIBO Pricing and Analytics (time-sensitive concepts) Pricing, Yields, Analytics per instrument class now included in above Domains FIBO Process Securities Issuance and Securitization TBC; Corporate Actions included in above domains Future FIBO: Portfolios, Positions etc. Concepts relating to individual institutions, reporting requirements etc. Now included in above domains

FIBO: Status Key Draft in CCM/FIBO-V OMG in process In preparation Spec Release Upper Ontology FIBO Foundations: High level abstractions FIBO Business Entities FIBO Financial Business and Commerce FIBO Contract Ontologies FIBO Indices and Indicators Securities (Common, Equities) Securities (Debt) Derivatives Loans, Mortgage Loans Funds Rights and Warrants FIBO Pricing and Analytics (time-sensitive concepts) Pricing, Yields, Analytics per instrument class now included in above Domains FIBO Process Securities Issuance and Securitization TBC; Corporate Actions included in above domains Future FIBO: Portfolios, Positions etc. Concepts relating to individual institutions, reporting requirements etc. Now included in above domains

FIBO Products FIBO OWL Git. Hu Master b FLT Publish Decisio n FIBO-DEV (Development) is all FIBO Domains being worked by FCT’s and all others. There are >300 Ontologies. RDF Tool. Kit FIBOPedia Example Glossary term: Absolute Prepayment Rate: Model-Generated Definition : A kind of loan pool analytic. A valid occurrence the following necessary condition: • Determined by at least on occurrence of absolute prepayment rate formula. A valid occurrence may also have the following properties: • Absolute prepayment rate has value any number of occurrences of timed percentage. Visual OWL Definition: The absolute prepayment rate (for ABS) is the standard measure of prepayment rates in the autoloan sector. ABS measures the monthly rate of loan prepayments as a percentage of the original pool balance. ABS is defined by the following formula where SMM refers to Single Monthly Mortality, which measures the percentage of dollars prepaid in a given month expressed as a percentage of the scheduled loan balance. ABS=(100*SMM) / 100 + (SMM X Age-1) Protege Excel SKO S • • • SMI F UML Model • • Ontology(<http: //example. c om/SMIF/Legal. Capacities> Import(<http: //example. com /SMIF/Agents#>) Import(<http: //example. com /SMIF/Relations#>) >) ) OWL Model Fibo. schema. o rg

spec. edmcouncil. org/fibo Products • Glossary – – • • • Data dictionary spreadsheet FIBOPedia (module and ontology abstracts) Vocabulary (SKOS) – – • • • Use alt-label for synonyms for tool support added this quarter SKOS Relations usage (2 styles); actually doing just one at present? Yet we do see Concept treatments for Properties in the current SKOS as well, somehow SMIF - UML Business Model diagrams Widoco OWL documentation (including visualizations) OWL Ontology files – • • As HTML As spreadsheet RDF/XML, TTL, JSON-LD + Nquads Linked Data Fragments Schema. org (alignment) 24

FIBO Specifications Status • FIBO v 1 – – FND: 1. 2 as delivered in March 2017 FBC: 1. 1 IND: 1. 0 BE: 1. 2 – 1. 2. 1 delivering imminently* as urgent fix – RTFs remain open until FIBO 2 approved • FIBO v 2 – Expecting to report in December 2019 * for certain values of imminently 25

Change Management / Spec Automation • Steering group meets alternate Fridays – JIRA alignment EDMC / OMG • And changes to EDMC process – Specification generation via La. Te. X – New diagrams in CCM – URI alignment (single URI across EDMC and OMG) • Work continuing on these – Good buy-in from EDM Council (along with URI alignment) – Not for August/September time frame (Jiras, La. Te. X) – Diagrams off to a late start 26

Additional (Background) Slides 27

FIBO Plans • FIBO v 1 – – FND: 1. 2 as delivered in March 2017 FBC: 1. 1 IND: 1. 0 BE: 1. 2 – 1. 2. 1 delivering imminently* as urgent fix – RTFs remain open until FIBO 2 approved • FIBO v 2 – Expecting to report in December 2019 * for certain values of imminently 28

Terminology • Business Domain: Separate views of business content without reference to model structure / namespaces • Model Structure – Domain: The top level e. g. BE, FND, FBC – Module: package and IRI fragments below Domain • No longer recursive (1 level only) – Ontology: file / leaf level component • There abstracts for each of these – Included in Metadata files for each level / component – All abstracts use dct: abstract – OMG specs to be generated from these, reversing some changes e. g. add OMG Copyright when submitted • FIBOPedia also generated from these 29

spec. edmcouncil. org/fibo Products • Glossary – As HTML – As spreadsheet • • • Data dictionary spreadsheet FIBOPedia (module and ontology abstracts) Vocabulary (SKOS) – Use alt-label for synonyms for tool support added this quarter – SKOS Relations usage (2 styles); actually doing just one at present? Yet we do see Concept treatments for Properties in the current SKOS as well, somehow • • • SMIF - UML Business Model diagrams Widoco OWL documentation (including visualizations) OWL Ontology files – RDF/XML, TTL, JSON-LD + Nquads • • Linked Data Fragments Schema. org (alignment) 30

Take-away Slides 31

FIBO Current Status and RTFs 32

FIBO: Scope and Content Upper Ontology FIBO Foundations: High level abstractions FIBO Business Entities FIBO Financial Business and Commerce FIBO Indices and Indicators FIBO Contract Ontologies Securities (Common, Equities) Securities (Debt) Derivatives Loans, Mortgage Loans Funds Rights and Warrants FIBO Pricing and Analytics (time-sensitive concepts) Pricing, Yields, Analytics per instrument class now included in above Domains FIBO Process Securities Issuance and Securitization TBC; Corporate Actions included in above domains Future FIBO: Portfolios, Positions etc. Concepts relating to individual institutions, reporting requirements etc. Now included in above domains

FIBO: Status Key Draft in CCM/FIBO-V OMG in process In preparation Spec Release Upper Ontology FIBO Foundations: High level abstractions FIBO Business Entities FIBO Financial Business and Commerce FIBO Contract Ontologies FIBO Indices and Indicators Securities (Common, Equities) Securities (Debt) Derivatives Loans, Mortgage Loans Funds Rights and Warrants FIBO Pricing and Analytics (time-sensitive concepts) Pricing, Yields, Analytics per instrument class now included in above Domains FIBO Process Securities Issuance and Securitization TBC; Corporate Actions included in above domains Future FIBO: Portfolios, Positions etc. Concepts relating to individual institutions, reporting requirements etc. Now included in above domains

FIBO Where is What! • • General Information - http: //www. edmcouncil. org/financialbusiness • Historical perspective and status 29 FIBO Business Conceptual Ontologies have been built since 2008 • http: //www. edmcouncil. org/semanticsrepository/index. html • Contains much detailed downloadable information including models, spreadsheets and XLS files for 29 FIBOs • Github Working Wiki page” • https: //github. com/edmcouncil/fibo/wiki • For those who want to get serious soon – Links to UML and RDF/OWL downloadable files for all 29 FIBOs and much more of Pink and Yellow and Green FIBOs Browseable and searchable repository with workspaces for all ontologies • http: //us. adaptive. com/FIBO/a 3/ http: //www. omg. org/spec/EDMC-FIBO/FND/Current • Contains FIBO-FND in final OMG documentation form including UML and RDF/OWL models for FIBO Foundations • Github wiki is at: • https: //github. com/edmcouncil/fibo/wiki/FIBO-Foundations http: //www. omg. org/spec/EDMC-FIBO/BE/Current • Contains FIBO-BE (Business Entities) In OMG documentation form. • Github wiki is at • https: //github. com/edmcouncil/fibo/wiki/FIBO-Business-Entities • A working version in testing (“David’s Branch”) is at • https: //github. com/dsnewman/fibo/tree/pink/be http: //www. omg. org/spec/EDMC-FIBO/IND/Current • Contains FIBO-IND (Indices and Indicators) In OMG documentation form • Github wiki is at • https: //github. com/edmcouncil/fibo/wiki/FIBO-Indices-and-Indicators. Pointer to Loans FIBO Github Wiki page • https: //github. com/edmcouncil/fibo/wiki/FIBO-Loans Pointer to Securities and Equities FIBO Github wiki page • https: //github. com/edmcouncil/fibo/wiki/FIBO-Securities-and-Equities

FIBO Atlassian Wiki Spaces • FIBO Overall – https: //wiki. edmcouncil. org/display/FIBO • FIBO Content Teams – Foundations • https: //wiki. edmcouncil. org/display/FND/FCT-FND – Business Entities • https: //wiki. edmcouncil. org/display/BE/FIBO+-+FCT+-+Business+Entities – Indices and Indicators • https: //wiki. edmcouncil. org/display/IND/FCT-IND – Financial Business and Commerce • https: //wiki. edmcouncil. org/pages/viewpage. action? page. Id=786677 – Loans • https: //wiki. edmcouncil. org/display/LOAN/FCT-LOAN – Securities and Equities • https: //wiki. edmcouncil. org/pages/viewpage. action? page. Id=786661 – Derivatives • https: //wiki. edmcouncil. org/display/DER/FCT-DER • Vendor Team – https: //wiki. edmcouncil. org/display/FVT/FIBO+-+Vendor+Team 36

Appendices: Background Slides • • I Jargon Blaster II FIBO Infrastructure III Red FIBO IV FIBO Content and Status (“scenario” slides) 37

Appendix I: Jargon Blaster • ISO 10962 – Classification of Financial Instruments (CFI) – New version released in Jan 2015 • ISO 20022 – Messaging standard, UML to XML transformation – incorporated the draft ISO 19312 (WG 11) – WG 11 model was starting point for most FIBO • ISO 11179 = Metadata Repositories • XBRL = e. Xtensible Business Reposrting Language – Concepts are in individual “Taxonomies” (model schemas) only (IASB, IFRS, US-GAAP, etc. ) • MDDL – Market Data Definition Language 38

Appendix II: FIBO Infrastructure • The “Holy Trinity” – Git. Hub – JIRA – Jenkins • Wiki – Each FCT and other teams have Wiki area (“Space”) – Minutes, actions etc. posted there – How-to Guide will be posted to Wiki also • Wiki to JIRA Bridge: meeting actions identified in Wikis are also now reflected as JIRA issues – Need for some instruction in this for FCT Leads 39

How-To Guide • Shows overall process to follow in using Git. Hub and Atlassian Sourcetree, for FCT Leads • Detailed screenshots for each part of the process • New section on definitions added • Additional definitions added – This is the version that is posted on the Wiki • New section on aligning local and remote branches with EDM Council Master 40

Engagement Model • Groups – Each Team is configured as a “Group” in JIRA – This group is then also used for participation in Wiki “spaces” • If you registered for Git. Hub access, you Git. Hub ID also becomes your JIRA ID – Group leads will then add you to their team group • Otherwise, you will have received an invitation from JIRA directly – You may want to retrospectively ask to be added to Git. Hub • WG participation refocused – Groups work on Agile sprints to defined objectives 41

Questions? 42