OMG Finance Domain Task Force FDTF Monthly Statusreview

OMG Finance Domain Task Force (FDTF) Monthly Status/review call Wednesday April 01 2020

Agenda • News • Virtual Reston Quarterly Meeting feedback • Agenda Planning – Orlando – FDTF and Blockchain PSIG agendas – Room block bookings – Liaisons • FDTF ongoing activities • FDTF possible future activities • FIBO Status Takeaway Slides 2

3 NEWS • OMG Quarterly Meeting last week (all virtual) • FIBO – URI alignment • EDMC and OMG management happy with whatever is proposed by EK, MB and PR • Disposition not yet determined. – FIBO v 2 Automation – target = FTF Report – FTF Report scheduled for June 2020 • Other FDTF – Definitions – now with Gov. DTF and others – FIGI • In RTF • The ID 4 CA WG still meets • Whether ID 4 CA outcomes are RTF input or possible RFP is not yet clear • Blockchain PSIG – Possible RFPs from the Interoperability RFI – IOTA Tangle – to be targeted at Coordicide • FERM WG continues to meet ED MCou ncil /FIB O Fou nda tion

Quarterly meeting • FDTF did not meet alone • Good joint meetings with FERM WG and Gov DTF • FDTF issued one document (FIBO Update) and a Plenary Report • FIBO Update (Elisa) – New open FIBO development arrangements now live – Focus of FIBO Content teams (SEC/FBC, DER, IND) – Good progress in eliminating ‘Informative’ ontologies 4

FERM WG • Met in virtual Reston meeting – – – Data Coalition ACTUS NIEM FIBO Update FIGI Status (see later slide) 5

Orlando Agenda • FDTF – Schedule a half day Tue or Wed as available – Also meet jointly with FERM WG and Gov. DTF • Special Events – FERM Special Event (coordinated alongside MIT event) • SBRM event – postponed from March – June or September? – Plan session on line over some 4 weeks TBC • Blockchain PSIG – Monday with MARS – BC-PSIG session (half day? ) – Follow-ups with Cloud WG 6

Days to Meet • Tuesday – Morning: Gov DTF • Including NIST, NIEM and NIEM/UML – Afternoon: Gov DTF • MIT, OMB, Crypto Asset, Internationalization, Gov Blockchain • FERM + FDTF half afternoon • Wednesday – Morning: • ADTF – sometimes interesting things, maybe not this time • FDTF – but avoid any specific ADTF things of interest – Afternoon: Blockchain PSIG • AI PTF – Tue all day – Last week this was Tue pm – Also liaises with BMI (Monday) so only Tues/Wed available • SBRM – Monday am – BMI is SBRM sponsor so needs to be Monday 7

Orlando Liaisons • • • Blockchain PSIG FERM WG Gov DTF AI DTF SBRM What else? • Also track / avid AB, Board etc. that others need to be at – No Board meeting in June 8

FDTF Activities for Orlando • FIBO Status and updates – Assess the new open EDM Council FIBO dev process (per motion in December) – Need to make some recommendation based on this and vote on that • FIGI – nothing this cycle – IDs for Crypto Assets – nothing this cycle • Definitions – remaining FDTF ones? • FIBO workshop? – Hard to do without a whiteboard – Could do after coffee 9

Others for FDTF meeting? • ACTUS (may not require a session in June but monitor) – 150 terms to calculate risk metrics (Data Dictionary) – SHACL type logics for those (rules for inputs to risk algos for the contract types) – FIBO alignment • FNMA – MISMO terms and turn into formal ontology (FDTF slot)” – For risk management for Fannie and Freddie after Fed spinoff – Look at FIBO Loan terms done by Mike Uschold (Provisional FIBO) • New NIEM ‘Slice’ starting for financial reporting – (FDTF or joint with FERM – TBC later) – With US Treasury Fiscal Bureau – Include a taxonomy (NIEM XML Schema rolled forward to a taxonomy) – Terms for 2014 Data Act conformance (200 -odd terms) • For Gov DTF slot: Evidence Based Act and GREAT Act at OMB – GREAT Act ‘ontology’ – Single Audit arrangements • Any entity using >x total Gov funds reporting to grant agencies, as singe audit of funds usage • All US Government related e. g. health 10

Other Thoughts: FIBO v 2 • Given 18 months since we did the FIBO RFC, we should try and do an FTF Report that encompasses the changes since Q 3 2018 – Including stuff since Q 3 2019 to Q 2 2020 – Once we know what we want to do, could short circuit some of this with new RFC • Rather than capture all the changes in last 18 months • Would be a new RFC with a new baseline with arrangements for subsequent changes • Managing the level of change via FTF is becoming more untenable as this gets older – Decision for FDTF about whether to do new RFC instead • Major structural changes over that time frame – Need a birds eye view of the major changes • Challenges / Questions – Would tis simply be a snapshot of where it currently sis – What happens to old RTFs? • Would be a new RFC based on the current state with the usual period for external review 11

FIBO v 2 Planning • Decisions: – Discuss at June QM only? – Discuss on these Monthly calls? – Arrange further calls between now and June • The proposal is to establish a new cutover into the OMG process – Would not need to track all the changes since Sept 2018 – AB would not need to review changes since the Sept 2018 draft – Also means the diagrams and format do not need to align • Need to determine how we would then track changes going forward (FTF/RTF) – We should only embark on this idea once we have determined the precise process for tracking changes going forward – E. g. OMG only v EDMC stuff – E. g. Provisional stuff outside OMG scope • Also identify how this deals with changes coming in via the EDMC process – This has been pretty well controlled on the EDMC Git. Hub up to now • Backward compatibility – Not a requirement for a 2. 0 (any Major release need not be backward compatible) – Even though it was backwardly compatible anyway but did not intend to be • • We can also revisit whether or not CCM now supports all the FIBO design patterns Also identify the format for the documentation of the ontology in the OMG spec (precedent or ontologies generally e. g. SBRM) 12

Outcome • Discuss new RFC between now and June - confirmed – – • • What made a useful FIBO spec • No new guidance from EDMC on that Identify the format we would use in the forward-looking process Then have a session in June in the FDTF half day Alongside monitoring any impact on EDMC opening the flood gates – – – And also who will be doing all that? Previously EDMC has been a typical submitter to OMG We cannot assume anything about the rate of work coming from the Submitter • Need to consider backward compatibility challenges • Conclusion: We need dedicated regular meetings on this – Not in this time slot since it clashes with Gov. DTF – And is not the remit of this call anyway • We might also need to move this Monthly Update Call or drop it? – – – Purpose FDTF and FIBO updates to the wider world Do we still need that? So we can use this call to discuss the FIBO v 2 RFC proposal The proposal to close meetings (which was for Dec 2020) on hold anyway Review whether to continue to have this call; there is other work that can be done so we need some ongoing FDTF calls e. g. bi-weekly Organize kick-off in 2 weeks on that OR discuss on next Monthly • • Proposal is for a special meeting in 2 weeks, at a time Elisa can attend All agreed. Times TBA 13

BC-PSIG Agenda • Interoperability RFI potential RFPs – Low level protocols ontology – too soon? – Treatments for domain concept models – ongoing • Tangle (Node) RFC – With Coordicide features – Possibly draft • LETS RFP • Event Dispatcher RFP on hold • DIDO – DIDO-CLI – DIDO-RA, TE, others • New ideas 14

Other Finance Items of Interest • Including Notes from previous Monthly Updates – ACTUS • Liaising with FERM WG • FIBO Integration? – Dodd Frank (2010) OFR requirements for 2 databases • Legal entity identifier (done via GLIEF) • Financial Industry Reference Database (FIRD) – ISB looking for semantics of cash – SEC / FASB looking to OMG to help define semantics of these kinds of concept 15

FIGI Status • And ID for Crypto Assets WG – Originates requirements for the FIGI – More on crypto assets – Maintenance guidelines for provider on criteria for determining which crypto assets get IDs and which do not (location issues, exposure etc. ) – See also Crypto Compare, Kaiko • RTF is open – extending to Sept (was June) for late requirements and potential spec ripple effects • Potential new digital coin developments may also be relevant to this ID 4 CA group e. g. New York State • Update Mar 2020: things may be evolving from the above; WG continues to meet 16

FDTF Definitions • Draft definitions proposed at Dec FDTF meeting – Session not quorate • Plan to conduct an electronic vote between meetings – We needed more clarity on usage contexts (words are very contextual) – Now taken up by Gov. DTF and others for their specific contexts 17

Definitions Status • Reg. Tech is now with Gov DTF • • Financial Transparency - Gov Reg. Tech - Gov Digital Future - Gov Digital Transformation - Gov – Fin. Tech – finance (FDTF)can use existing drafts but not voted on • Insur. Tech – FDTF; as above 18

FDTF Ongoing Activities • Joint activities and 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 (ID 4 CA is FIGI next version) 19

Active FDTF Standards • FIGI - 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 – Smoother generation of future TF/RTF reports, redline, specification 20

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. – FCA Po. C and follow-ups • New interoperability thing at FCA (internationally) = Global Financial Innovation Network • OMG Observer status applied for – Term definitions • Initial 13 definitions (Amsterdam, June) • New definitions (Long Beach, December) • Input to the Data Coalition • • Standards Industry innovations New tech – including Smart Contract, Crypto Assets (with BC-PSIG) What else? 21

BC-PSIG and MARS Active Work • Blockchain Ecosystem Interoperability RFPS – Protocol Ontology – Concept models / ontology treatents • IOTA Tangle (How to be a Node) Specification – Expected formal RFC first draft June – Support Coordicide – New features e. g. ‘Chrysalis’ • Linked Encrypted Data Streams (LETS) RFP – IOTA MAM as potential submission in response • ‘Event Dispatcher’ RFP – IOTA EEE as Io. T-specific exemplar – Later than LETS 22

FIBO URI Alignment • EDMC and OMG management open to all proposals • Open to all possibilities for URIs: – Use of EDM Council URIs for both – Separate URIs for EDMC and OMG as at present – Use of W 3 C community facility for URI redirection • Preference is the W 3 C solution (single W 3 C based URIs), with redirection to either source • Current status? (FIBO Team) 23

Take-away Slides 24

FIBO v 2 – Status • ‘Finalization Task Force’ (FTF) – Chartered at the OMG meeting (December 2018) – Re-chartered as FTF 2 in Dec 2019 – 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 2019 – Date for comments was Feb 28 – FTF due to report in June 2020 • Was March – motion to extend to be raised at March plenary • Subsequent changes are in later RTFs which will run quarterly tracking the preceding EDM Council Quarterly Release – EDM Council would also need to provide some automation for the transformation for EDM Council OWL to OMG OWL – New challenges: use of Git. Hub rather than Jira at EDM Council • Either clone to EDMC Jiras per original process OR generate CSV for OMG Jira import directly • Requires that disposition, granularity, metadata etc. in Git. Hub match that needed in Jira 25

FTF and RTF Charters (Friday Plenary) • • Foundations – 1. 2 RTF reported in March 2017 – 1. 3 RTF chartered Sept 2017 • Extended to March 2020 • Motion to extend to July (for June) at Reston plenary Business Entities – 1. 2 RTF chartered Sept 2016 – Separate urgent issue – to be actioned by the RTF • Extended to March 2020 • Motion to extend to July (for June) at Reston plenary Indices and Indicators – 1. 1 RTF chartered in Sept 2016 • Extended to March 2020 • Motion to extend to July (for June) at Reston plenary Financial Business and Commerce (FBC) – New RTF 1. 1 chartered in September 2016 • Extended to March 2020 • Motion to extend to July (for June) at Reston plenary • These remain in existence until FIBO 2 is approved – Needed for approving urgent issues 26

Appendices: Background Slides • FIBO Content and Status • Jargon Blaster 27

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 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

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 Reporting Language – Concepts are in individual “Taxonomies” (model schemas) only (IASB, IFRS, US-GAAP, etc. ) • MDDL – Market Data Definition Language 30

Questions? 31