Date

23 Nov 2015

Attendees

Elisa Kendall

Agenda

FIBO Content Team Slides –

1) Use Case reminder.

2) Where we are on our road map.

3) Open Action Items

4 ) JIRA Issues Review

https://jira.edmcouncil.org/browse/SEC/?selectedTab=com.atlassian.jira.jira-projects-plugin:issues-panel

5) Todays content discussion.

UML

Spreadsheet

Protégé

6) For next week.

Proceedings

FIBO-SEC FCT 20151123

All content of the FBC submission are now on the wiki at the link given on slide 2. Feedback due on 2nd reading from Sridhar (AB reviewer) today. Includes review of the Redline. No issues anticipated.

Today: al the Securities Issuance material we looked at last week. Also Securities Listings material, which will be posted to the wiki after this meeting. In the last week or so have worked on the securities issuance and listing, and work by Gareth on individual / EU stuff for FBC.

Slide 4: just under 40 issues. Elisa working with Dean and David on reconciliation of FBC with BE changes. Only a few will have impact on FBC or SEC, these include name changes around business entities and legal entities. Will revise FBC and SEC when that material is available. Gareth has been working on regulatory agencies, registration authorities and so on, for the UK. We want to have as many of the resolutions to these available right after the La Jolla OMG meetings. Expect to see work start on that in January.

Slide 5 review by Gareth of definitions for these concepts, and addition of EU and UK variants. Focus on these may cause us to change a few of the definitions of the higher up concepts. Update from Gareth: Took the US ones, transferred them over, identified commonalities across these. Partitioning where we put some entities and classes. Some are US specific and some should be pushed up a bit. Need to ensure the Branch concept exists e.g. DB are a branch. Has pulled in Europe regulatory activities, created an entity for DB UK jurisdiction and US jurisdiction; likewise for HSBC. Then we have a UK domiciled bank, and a German domiciled bank operating in the UK. EK is encouraged to see he was able to use the examples cited for the US and tweak these to define the UK and Europe individuals. Regulated services or activities are of importance regulator regulates a different service. That is also the case in the US. For example commodities / futures have their own regulator. Expect GI and EK to synch up on this during the week.

SEC JIRA no issues. Yet. Status see Slide 7. Uploads includes catalog files, which support relative paths.

See slide 8 updates made in Pink based on testing with Nordea last week. Q: have these things changed color status? No, at present the securities material is all in Pink. As some of the ontologies move forward in the OMG process (i.e. FBC), there may be changes in Yellow. Once BE and FBC goes through the Finalization process this will be work done in Yellow. However, EK says that FBC currently remains trapped Pink until it is moved to Yellow when the OMG AB does its next vote.

Slide 9 Securities Issuance class hierarchy. Was being reviewed from last week (not sure if anyone has returned comments).

Slide 10 has the definitions. Reminder to look at these definitions and make sure everyone is OK with them. Includes terms like private placement memorandum which is important. Offering Slide 13 show this in Protégé. The things in amber at lower right are the result of running the reasoner i.e. these are logical inferences based on existing assertions. People should review to ensure these inferences are correct in reality. Reminder of what we want people to review: all the definitions here.

New material in the Securities Listings ontology incudes a number of new things. we don't have VOMbased diagrams for these for review, expect these next week. Meanwhile we do have them in Protege. New concept: Registered Security - defined by 3 restrictions on properties. We don't have sources for some of these definitions. Please review and let us know if you have any good definitions with sources for these. Jeff Braswell: Status of FBC59 (Financial Instrument definition)? Comment: Market is a very broad concept. This is refined, e.g. on listed security and so on. In FBC we have FBC and Securities Exchange, as extensions of these. Used a bunch of Gareth's input on these. If this current term is defined in terms of some trading venue, then we should link to the venue. A registered security is not necessarily exchange traded. For a listed security, it is. It has a listing currency, listing date and service, and is also registered. Again no source for definitions see above. Also EK not clear what is the difference between a listed security and an exchange traded security, and if so do we have the right set of restrictions? Need SME input on these. Nordea tends to use the terms Listed and Exchange traded interchangeably. Comment: even in a particular institutions, the meanings assigned to these different words are used differently. What we need to do is pin down the term. Exchange traded expanded because of electronic trading networks, so something like NYSE might accept the trading of a security based on these criteria. Suggestions welcome. Not clear at present if there will be complete clarity on the distinction. MB notes that the concept of listing and the concept of exchange traded may be distinct concepts even if both sets may be coextensive. Also for listing, there is primary place of listing. There is a lot of prior research on this, which we should seek out, e.g. the minutes of SME Reviews at the EDM Council. MB to go back and look at and see if there is anything else that may be important for these. Reminder of question from last week: which of the issuancederived terms we got from WG11, e.g. allotments, are maintained in a typical Securities Master File? We would like to know. Please ask the SMEs about this. We can supply a list of the terms that we removed as being only relevant in the issuance process, so people can review and let us know if these are maintained in the SMF or not. There were also some more terms added note Securities Issuance that were not in the original draft, e.g. Security Prospectus. Other things in the Securities Listing ontology include Exchange and listing Service as a kind of Service. Definition of Exchange is important please make sure we got this right (SMEs). Including the restrictions by which we define what it means to be one of these. One of the gaps in FBC is the definition of a selfregulating organization (like FINRA). We may need another class as a classifier of a Securities Exchange. Would this fall under Industry Association? Possible. An exchange is memberdriven and you have to be a member in order to participate. We may need to add an assertion about this, as it sounds important. We have a definition of a Cooperative Society, in the higher level set of concepts. This was not included in the Red FIBO material, where we defined an exchange as being something that provides a given kind of service, but we did not try to identify what kind of business entity it would be that provides these kinds of services. This would also disambiguate from swap venues and the like. See definition from the Securities Exchange Act, which may need some work. MTFs are slightly different. Exchange is characterized by membership (in a way that MTFs presumably are not). MTFs were still quite new when we put together the original model on these. We kept it general as there were still a few unknowns in that part of the marketplace. Securities Exchange requires a relation to what it means to be a Security. We define this from the perspective of a Security that it is listed on and registered by some Exchange. In FBC we also need to say that something that is registered with an exchange is also regulated.

Dennis introduces Marc Alvarez, who is starting the FCT for Bonds / Debt. This will have things in common both with Securities and with Loans. Marc Alvarez has recently joined Mizuho Securities as Chief Data Officer. Current focus is regulation compliance and reporting. Mizuho believe that being able to reference internal workflows to external resources that help define and provide greater precision for concepts they care about. EK notes there are common touch points, including the high level definition for Debt Instrument in FBC. Provides the scaffolding that Bonds etc. will depend on. There is a whole set of ontologies about concepts common to debt instruments. Need to work jointly with Loans group as well to review the top level deb instrument concepts that are common both to Bonds and to Loans. Expect to get the top level piece right, that everyone needs for Loans, Bonds, other debt concepts. Also Asset Backed Securities would depend on that high level scaffolding. Marc is also an author of 2 chapters in the Financial Risk Handbook. JB notes that Bonds are also considered as Securities. We may need to make some tweaks in the FBC hierarchy, given the shades of difference between security, instrument and so on, and the way these are reflected in equities, in debt instruments, in bonds and so on. In some places, there are parallel non mutually exclusive things.

Conclusions: Please look at this stuff in GitHub and tell Elisa what's missing or needs fixing. For instance, make sure the Bonds work does not create incompatibilities with the future Money Markets work (to include bilateral debt contracts, i.e. OTC debt contracts). Open invitation t people on this call who are interested in Bonds and common Debt concepts, in the Bonds FIBO FCT that Marc will lead. This will follow the same rules. Also be aware of the Red FIBO starting material. MB and Marc to walk through the existing Debt material.

Elisa will add diagrams and definitions for what we've looked at so far for securities, for next week. Also next week: Individuals from Gareth. Will also continue to look at securities listings, security assets / portfolio ontologies and so on. Also Jeff has a catchup on LEI and on the financial Instrument definition for next week.

Decisions

Action items

Mike Bennett Also for listing, there is primary place of listing. There is a lot of prior research on this, which we should seek out, e.g. the minutes of SME Reviews at the EDM Council. MB to go back and look at and see if there is anything else that may be important for these.
Mike Bennett Marc Alvarez (Unlicensed) MB and Marc to walk through the existing Debt material.