20141003 fibo status update for ofdg

FIBO Status Update

Open Financial Data GroupFriday October 3rd 2014

Overview

• FIBO Status– Status of Current Activities

• FIBO Foundations• FIBO BE• FIBO Indices and Indicators• FIBO Specification status overview

• FIBO Conceptual (canonical reference) ontology• Roadmap and next steps

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FIBO OMG Submissions Status Overview

• FIBO Foundations – New Finalization Task Force (FTF2) chartered Sept 2014– Tasked with open issues and testing– Completion December 2014

• FIBO Business Entities– FTF chartered– Completion scheduled for Dec 2014

• FIBO Indices and Indicators– Approved September 2014– FTF chartered to work through open issues– Completion scheduled for March 2015

• FIBO Securities Common and Equities– FIBO Content Team in place under Richard Beatch (Bloomberg)– Will submit an RFP in December 2014 at OMG– Submission to follow in March 2015

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OMG Revision TF(RTF)

OMG Revision TF(RTF)

Current Roadmap

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FIBO Market Data, CAE, Risk/ReportingFIBO Market Data, CAE, Risk/Reporting

FIBO Market Data, CAE, Risk/Reporting

2013 2014 2015

Foundations

Business Entities

Securities Common and Equities

Indices & Indicators

Loans common

Other FIBO Components

Public review

Public review

Public review

OMG finalization TF(FTF)

OMG finalization TF(FTF)

OMG finalization

OMG finalization

Final

Final

Final

Q1 Q2 Q3 Q4

FTF2

Q4

FIBO Content Teams{

Q1 Q2

Derivatives

Beta2

RFP

Beta2 Milestone

Spec Activity

FTF2 OMG Task Force

Submission

Beta1

FIBO Development Process

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6

FIBO™ Development Process

Semantic Enhancement

Submission to OMG Architecture Board

OMG Public comments

EDM Council Determines Next FIBO™ SubDomain Release

from the UML Model

Happy

Industry Requirements

Review Readiness with SME

Team

Not Happy

Yes

Change FIBO™ BCO

No

Consistency Testing/Repairs

Changes No

Yes

Build/Test OMG Submission No

Refactoring

FIBO™ BCO/UMLModel in Cameo, VOM, RDF/OWL

Semantic Issues

Correction

Perform Architecture and Externality

Review

Change or add

yes

No

Validation with Instance Data

Spiral implementation of enhancements

Final SME Review

Enhance?No

Yes

Pass?

Yes

No

FIBO™ Use and Maintenance

FIBO-n….n-1

FIBO-FND

FIBO-IND

FIBO-BE

Red FIBOs are in QueuePink FIBOs have been approved by the OMG AB to enter the RFC processYellow FIBOs are dealing with issuesGreen FIBOs have exited the OMG process as ratified standards.

CC EDMC 201404/09/2023

[1] incl. MD files, VOM files, TopBraid layout files, protégé catalog files, etc[2] incl. Use Case documents, demo scenarios, etc.

Industry Requirements

(use cases, scenarios)

Systems LegendA Ontology Editors Protégé, TBC, Fluent, ….B Ontology Documentation Adaptive, TBC, VOWL, Gruff, ….C Modeling Tools MagicDraw, EA, …..D Model converters VOM, SysMO, ….E Testing Pellet, Hermit, Unit Test frameworks (Fitness)F Issue Managers, eg., Github/Jira

Industry SMEsIndustry DataModelers

Yellow processes are manualBlue processes run in Jenkins

OMG

All FIBO

GitHubRepo’s

(levels are tags)

OWL Files UML Documentation

Submission to Architecture Board

Public comments

Build/Test Submission

Educational Material

(incl. pattern

ontologies)

EDMC Website

GITHUB

Version Independent

Materials[2]

FIBO Content Teams (FCT)

F

B

E

C

D

A

F

Promotion to Standard

C

Development Support

Artifacts[1]

FIBO Conceptual Ontologies

• Canonical reference model of business meanings• Implements knowledge representation principles• Independent of operational OWL ontologies• Expressed in RDF/OWL

– Without technology constraints (computationally independent model)

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FIBO Conceptual Ontologies Status

• Now being output from the legacy UML model repository into RDF/OWL

• Namespaces are spec.edmcouncil.org• Represents the “Red” FIBO in the development

process• Includes upper ontology along with semantic

primitives (archetypes) for Commitment, transaction semantics, social constructs etc.

• Looking to Applied Ontology community for additional guidance and input

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FIBO Conceptual Ontologies (Lattice etc.)

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• Lattice and other high level abstractions– Provide the conceptual “glue” for business meaning – Few practical applications would use directly– To be maintained in separate EDM Council namespace

• Maintained in RDF/OWL alongside other conceptual nuances• RDF/OWL Coming soon…

– For reference not reasoning

• Initial OMG specifications – Reflect but not include a variant of these patterns

• Ownership and Control: simpler “associative” relations added• Other model elements remain as seen

• Future OMG submissions may include this material– Scoping is determined by the FCT

Meaning

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• Syntax is not Semantics

• Truth is not Meaning

• “The lack of common meaning is a billion dollar problem for the financial industry”– Linda Powell, US Treasury Office of Financial Research

Speaking at OMG “Crossing the Chasm” event, March 2014

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Consider the Dictionary

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Where does the meaning get in?

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Semantic Networks

• Directed Graph• The meaning at each node is a product of its connections to

other nodes• So where does the meaning get in?

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Semantic Networks

Semantic Grounding for Businesses

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• Monetary: profit / loss, assets / liabilities, equity• Law and Jurisdiction• Government, regulatory environment• Contracts, agreements, commitments• Products and Services• Other e.g. geopolitical, logistics

What are the basic experiences or constructs relevant to business?

Making it Meaningful

• Putting something into RDF/OWL does not make it meaningful

• So, what is a meaningful model– 1. Formal relationship between model and subject matter:

• “Everything is a Thing”

– 2. Formal notation grounded in common logic– 3. Abstraction of kinds of thing into their simplest possible

building blocks• Contracts, Parties, Legal Entities etc.

Approaches to Meaning

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Rosetta Stone Mayan Language

Approaches to Meaning

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Rosetta Stone Mayan Language

• Existence of already-understood terms enabled translation

• Semantics grounded in existing sources

• No existing common language to enable translation

• Translation was possible only from internal consistency of concepts

Rosetta Stone v Mayan Stone

• Rosetta Stone: Semantic grounding

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Rosetta Stone v Mayan Stones

• Rosetta Stone: Semantic grounding• Mayan stones: internal consistency

• Ontologies: – Semantic grounding: identify concepts which have an

understood meaning• Other concepts have meaning with reference to this

– Deductive Closure: Internal consistency of model reflects the consistent relationships between thigns in the domain of discourse

• Requires reasoning to establish

• We need both!22

Applying Meaning to Financial Semantics

• Everything is a Thing– What kind of Thing?– What distinguishes it from other things?

• What kind of Thing?– Share is a Security is a Transferable Contract … is a

Contract

• What properties?– Share gives the holder some Equity– Share confers on the holder some Voting Rights

23Copyright © 2010 EDM Council Inc.

Where does this lead?

• Taxonomy of kinds of contract• Taxonomy of kinds of Rights

– Rights, Obligations are similar and reciprocal concepts– Note that these don’t necessarily correspond to data

• Semantics of accounting concepts – Equity, Debt in relation to assets, liabilities– Cashflows etc.

• Semantics of countries, math, legal etc.


Classification Theory

Overview of Classification Theory

• “Classification”– a system that employs a “meaningful clustering” of items

• Kwashnik (1999)

– the “orderly and systematic arrangement” of items into a “system of mutually exclusive and nonoverlapping classes”

• Jacob (2004)

• There are various kinds of classification


Classification – General View

• A Classification is a hierarchical structure• This has two properties (Loehrlein 2012)

– a hierarchical structure organizes categories on some sort of continuum.

– could be "big to small," "general to specific," "powerful to not powerful," etc.

– more categories occupy one end of the continuum than the other

• One such hierarchy is a type hierarchy– That is, a classification of some things, in some domain of

discourse, from the general to the specific


Classification Requirements

• Classification schemes may be– Monohierarchical– Polyhierarchical

• Polyhierarchical classification depends on multiple inheritance– one class may have several parents

• A whale is both a marine animal and a mammal• An IR Swap is both a Swap Contract and an Interest Rate Derivative

• There is no one right way to classify


Taxonomy

• Taxonomy:– system that can be used to group, arrange, and describe

items according to meaningful principles, and which provides users with an overview of the domain being organized

• Lambe (2009)

• A taxonomy uses a classification scheme to arrange the items in the domain of discourse

• A Taxonomy forms the basis for any ontology


Common Semantics Roadmap

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• Changes to the Legacy FIBO Models• Common Semantics

Improvements to the Legacy FIBO Models

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• Restrictions– Simple restrictions on class– Complex restriction structures

• Datatypes versus Information Kinds• Namespaces• Use of SKOS??• Legacy non-OWL features

– Enumerations etc.

Restrictions

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• Legacy model: single-use properties– Implication: each property is a necessary condition– Did not identify necessary and sufficient conditions

• Changes:– Replace properties with restrictions– Add restrictions

• Complex Restrictions– Legacy: Some properties had “logic” icon identifying multiplicity of

ranges– Transformed to OWL Union Classes– Need to apply restrictions which state what the logic icons said– OMG FIBO has similar structures (restrictions “cascades” and more

Datatypes / Information Kinds• OWL Datatypes

– Platform Specific– Limitations to XML datatype usage

• Information Kinds Examples– RDA Types Registry

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Conceptual and Physical Ontologies

Business Conceptual Ontology (CIM)

Operational Ontology(PSM)

Extract and Optimise

The Language Interface

Business

Technology

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Types and Datatypes

Business Conceptual Ontology (CIM)

Operational Ontology(PSM)

Extract and Optimise

The Language Interface

Business

TechnologyData types

Data types

Platform specific matter

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OWL Datatypes

• These are XML Schema datatypes– Only a sub-set of XML Schema datatypes are supported

• OWL datatype provision therefore very limited• Examples:

– 11am LIBOR – uses dateTime in FIBO-IND– Coupon date – want to use XML gDayMonth– Dates in general: have had to enforce the use of dateTime

with midnight times in data where only a date is intended

• This is not at all like a computationally independent model

Information Kinds

• Names• Textual material• Dates and Times• Yes or No (or maybe)• Numbers

– Whole numbers– Numbers with decimal places– Positive Numbers– Fractions– Percentages

• URL• Pictures• Sounds• Words• Letters• And many more…

Datatypes

• Text– Restricted text– Unrestricted text

• Dates and Times• Boolean• Numeric datatypes

– Integer– Float– Positive integer, positive float

• URL/URI• Other information kinds are rendered in files, for

example vector graphics, rich text, video and sound formats

Relating information kinds to datatypes

• Different kinds of information need to be stored in a computer

• Datatypes determine how these are stored for optimum memory usage– XML datatypes differ on this, in that textual conventions

are used to render different datatypes, which must then be translated to application datatypes for processing if needed

• Numeric datatypes allow for arithmetic calculations on the data

• Textual datatypes allow for alphanumeric sorting

FIBO Conceptual Roadmap 2: Common Semantics

• Transactions /REA Alignment– Commitments– Transaction process

• Social Constructs (Searle)• Geophysical v Geopolitical• Addresses• Date and Time• Occurrent (perdurant)

– Temporality

• Even t / Activity /Process• Information Artifacts (identifiers etc.)• Mereology• Math• Units of Measure• Accounting• Business: services, policy, goals etc.• Risk

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FIBO Content and Status

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Key to Colors

Planned Phase Colors Status Colors OMG Substantive

Model

Initial

Foundations and Business Entities, Indices Red = EDM Council legacy

Common Concepts all Instruments; Equity; Debt Pink = Initial Refactoring

Derivatives Common; Loans Common Yellow = OMG Submission

Derivatives: Rate, Credit, Fx Green = OMG Final

Loans: Mortgage

Debt: Structured Finance, Money Markets

Derivatives: Asset, Commodity, CFD

Derivatives: Exchange Traded

Collective Investment Vehicles

Rights and Warrants

1

2

3

4

OMG = in RDF/OWL; Beta = Model Reviewed by SMEs; Model = Modeled in Enterprise Architect; Initial = Not Yet Modeled

© 2014 EDMC FIBO 04/09/2023

5

6

7

8

10

Future

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FIBO Development Scenario (September 2014)

Reference Data (product) Semantics

Phase Domain Sub-Domain Dependency OMG RDF/OWL Beta Model

1 Foundations X

1 Business Entities X

1Indices and Indicators X

2 Common Concepts

(all instruments)X

2 Equity Instruments

Equities X

2

Debt Instruments

Debt Terms (including bonds) X

5 Structured Finance Dependent on bonds and mortgage X

5 Money Markets (includes Repo, Treasury, Government, Tax Free) X

3

Loans

Common Loan Terms X

5 Mortgage Loan Terms X

7 Other (i.e. general purpose, construction, student, miscellaneous) X

OMG = in standards process; RDF/OWL = in Web Ontology Language; Beta = Model Reviewed by SMEs; Model = Modeled in Enterprise Architect;

Reference Data (product) Semantics

Phase Domain Sub-Domain Class Dependency OMG RDF/OWL Beta Model

3

Derivatives

Common Concepts X

4

OTC Derivatives

Rate Based Dependent on indices X

4 Credit DefaultDependent on common

concepts for loans, common debt terms, indices

X

4 Foreign Exchange X

7 Asset Dependent on equities, bonds, common debt terms X

7 Commodity X

7 Contracts for Difference X

8 Exchange Traded x

9Collective

Investment Vehicles

Dependent on listed instruments, derivatives,

indices X

10 Rights & Warrants Dependent on common concepts for all instruments x



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Copyright © 2014 EDM Council Inc.

Market Data (time and date) Semantics

Domain Sub-Domain Dependency OMG RDF/OWL

Beta Model

Common Terms X

Equity Pricing X

Debt Temporal Terms

Debt Pricing and Yields X

Debt Analytics X

Debt Pool Analytics X

CIV Temporal Terms X

Loan Temporal Terms X

Trading Status X

Credit Temporal Terms

Credit Rating X

Credit Status X

Future Phase



Process Related Semantics

Domain Sub-Domain Dependency OMG RDF/OWL

Beta Model

Corporate Actions and Events X

Securities Issuance

Common Issuance Process Terms X

Equity Issuance (includes IPO, primary market) X

Debt/Bonds Issuance (includes auction, syndication and other issuance processes X

Asset-Backed / Mortgage-Backed Issuance (includes agency and non-agency) X

Securities Transactions (includes trade, post trade, clearing,

settlement)

OTC Derivatives Transactions X

Payments Processing

Portfolio and Holdings s

Future Phase


Data & Analytics

20141003 fibo status update for ofdg