OMG-EDMC Standards for Financial Reform Kick-off/Planning Meeting April 13 th 2011 Harsh Sharma, Citi, Mike Bennett, EDMC 1  Draft: work in progress

2 Agenda Recap of March 22 nd - 23 rd OMG-EDMC meeting in DC Summary of OMG financial reform related standards Proposed white paper outline Financial reform regulations and data matrix (draft) Matrix of proposed work streams, deliverables, time lines Proposed OMG-EDMC standard for Financial Reform Regulations –Deliverable –Success criteria & Decision Points Next steps –Logistics planning Work stream specific teams, calls Vocabulary and Models management and access/availability requirements Appendix: Semantics Repository workstreams detail

3 Recap of March 22 nd OMG-EDMC meeting Members of OMG Finance Domain Task Force and EDMC met in Washington DC to discuss sustainable data strategy, standards and model driven approach to financial reform regulations and systemic risk assessment & reporting Presentations at: Leverage EDMC’s semantic models and OMG’s governance process & modeling standards to develop framework and standards to support financial reform regulations –Reach out to regulatory, financial industry, academics and other standards bodies to seek input into business scope and prioritization of standards/deliverables –Ensure OMG-EDMC standard is complementary NOT competitive –Communicate progress & invite participation on an ongoing basis Quarterly FDTF meetings (OMG technical meetings)technical meetings Interim (Fall 2011, date TBD) 1 day session in NYC, Q1, 2012 DC…

4 Summary of OMG Financial Reform standard work streams (draft) Q2, 2011Q3, 2011Q4, 2011Q1, 2012Q2, 2012Q3, 2012Q4, 2012 Legal Entity: Business Vocabulary, hierarchy model, XMI, OWL*… Management of Regulatory Compliance V1.0 (collaborative work with OMG regulatory compliance group) Management of Regulatory Compliance V2.0 (collaborative work with OMG regulatory compliance group) Matrix of financial reform regulations, analytics/reporting data requirements and standards (ongoing) Trade Transaction Traceability Map Business Vocabulary, Process Model, Conceptual Model, Business Critical Attributes, XMI (XML Metadata Interchange format –an OMG std)… Sustainable data strategy and framework for financial reform regulations - white paper Common modeling framework for financial reform regulations Loan: Business Vocabulary, model, XMI, OWL… Business critical attributes matrix Product: Business Vocabulary, hierarchy model, XMI, OWL… Release 1 Release 2 OMG-EDMC Standard (to be named!) Time, Date, Event Model, XMI, OWL… TBD: Business Vocabulary, model, XMI, OWL… Modeling framework and enhancement of OMG modeling standards Focus of the April 13 th call * Ontology Web Language

5 White Paper sections (illustrative only) Business Drivers (Financial Crisis, Systemic Risk Assessment, Monitoring, Regulatory Reporting…) Analytics and Reporting required by global Regulatory community: what are the scope and time line conflicts from multi-agency/jurisdictional/geographical regulations Major categories of data structures required to support analytics/reporting, systemic risk assessment… Identifiers, Transactions, Event, Reference Data… Major categories of data structures required to support analytics/reporting, systemic risk assessment… Identifiers, Transactions, Event, Reference Data… Standards required and available: LEI, UCI, UPI…BIC Code, CUSIP, other reference data standards (time, date taxonomy…) Why do we need (benefits/ROI) a sustainable, data standards and model driven approach to future proof the financial system? Executive Summary Conclusion/Recommendations, Glossary, Author Bios etc.

Financial Reform Regulations and data matrix* (illustrative) 6 6 Major categories of Data required for OFR, CFTC… mandated reporting and analytics Identifiers Transaction dataOther Reference Data Trade Mortgages Legal Entity Identifier Legal Entity Hierarchy Product Hierarchy Product Identifier Customer Identifier Data Mining /predictive analytics Models, Regulatory Reports Metrics (data elements), Formats Systemic risk event patterns detection and correlation with reference data leading to predictive analytics and regulatory reporting Real-time reporting and dissemination of the swap transaction data for example Data Mining /predictive analytics Models, Regulatory Reports Metrics (data elements), Formats Systemic risk event patterns detection and correlation with reference data leading to predictive analytics and regulatory reporting Real-time reporting and dissemination of the swap transaction data for example Regulations Regulation, Rules, life-cycle state, Organization, geographic applicability, cost- benefit metrics**…cost- benefit metrics Regulations Regulation, Rules, life-cycle state, Organization, geographic applicability, cost- benefit metrics**…cost- benefit metrics Credit Ratings Alternatives Current FocusFuture Focus Broker Identifier Product Identifier Hierarchy Traceability (linkage) maps Linkage between Transactions, Positions, Contracts and audit trail metrics Correlation of Transaction, Contract ‘Legs’ Traceability (linkage) maps Linkage between Transactions, Positions, Contracts and audit trail metrics Correlation of Transaction, Contract ‘Legs’ Mortgage * Not a complete list, under development, to be published and maintained by OMG FDTF ** Office of Information and Regulatory Affairs (OIRA) Current data standards Business Identifier Code, Issuer Guarantor Identifier, CUSIP, Time & date taxonomy…. Current data standards Business Identifier Code, Issuer Guarantor Identifier, CUSIP, Time & date taxonomy…. Dodd-Frank Act Volcker Rule Other…. Events, Schedules, Date, Time, Pricing…

7 Matrix of proposed work streams, deliverables… Work streamScopeDeliverable( s)Time lineComments Sustainable Data Strategy & Framework for financial reform regulations Critical ingredients for data strategy, framework of analytics, data requirements, standards… White Paper/Position paper?Q2-Q3, 2011 endOMG, PEW Trusts, Federal Reserve, EDMC leads OMG-EDMC Standard Semantic models for financial reform* -a.k.a. EDMC Semantic repository) Modeling Framework for financial reform regulations OMG-EDMC Standard availability/access mgmt Communication Training, Certification Legal Entity, Product Identifier Hierarchy, Business Critical attributes classification, Loans/retail OMG-EDMC Standard Vocabulary Models XMI, OWL formats Q3-4, 2011 Release 1Standard doc per OMG governance process (RFC) Vocabulary OMG SBVR compatible OMG models, metamodels needed to support OMG-EDMC Standard Namespace management Wider framework (Rules, Terminology etc.) Framework of core and specialized modeling languages and transformations Q3-Q1, 2012 Candidate OMG standards include Ontology Definition Metamodel, Semantics of Business Rules and Vocabulary, Information Management Metamodel… Vocabulary and models management Web access (read only) Update, model versioning, exchange… Web based vocabulary and model management repository Q3 (end) 2011Need to develop a requirements document for managing vocabulary and models Industry awareness/advocacy Development & adoption status debriefs Advocacy/awareness presentations, Webinar… Monthly status report Meeting notes Quarterly OMG meetings Meetings in NYC, DC (1 in 2011, 2 in 2012) In hand - OMGTraining materials Certification process and materials Q Develop from Q * Not limited to financial reform

8 OMG-EDMC Standard: Deliverable (to be confirmed) OMG-EDMC standard Release 1.0 OMG Request for Comment (RFC) Format Compliant MS Word Document* Vocabulary of Business Concepts used in Release 1 Legal Entity Identifier (SIFMA work), Entity Roles, Product Identifiers, Product Hierarchy (OMG SBVR compliant) - Excel (generated from model mgmt repository?) Vocabulary in OMG XMI format (XMI File) Conceptual, logical models of Legal Entity, Hierarchy, Product Hierarchy… (OMG ODM compliant – features/notations TBC) Mandatory Attributes: Identifier, other business critical attributes??? OMG XMI, ODM/OWL format? (XMI, OWL Files) Matrix of business critical attributes from above models (MS Excel or flagged in the conceptual & logical models and generated as a report from modeling tool) OMG-EDMC standard Release 1.0 OMG Request for Comment (RFC) Format Compliant MS Word Document* Vocabulary of Business Concepts used in Release 1 Legal Entity Identifier (SIFMA work), Entity Roles, Product Identifiers, Product Hierarchy (OMG SBVR compliant) - Excel (generated from model mgmt repository?) Vocabulary in OMG XMI format (XMI File) Conceptual, logical models of Legal Entity, Hierarchy, Product Hierarchy… (OMG ODM compliant – features/notations TBC) Mandatory Attributes: Identifier, other business critical attributes??? OMG XMI, ODM/OWL format? (XMI, OWL Files) Matrix of business critical attributes from above models (MS Excel or flagged in the conceptual & logical models and generated as a report from modeling tool) * Get a sample RFC from OMG

9 Success Criteria by work stream Work streamSuccess Criteria OMG-EDMC Standard Semantic models for financial reform* -a.k.a. EDMC Semantic repository) Modeling Framework for financial reform regulations OMG-EDMC Standard availability/access mgmt Communication Training, Certification Business Entities (legal entities; other organization types) Securities (Ref Data, Market Data, Transactions, CAE) Loans/Retail Models importable to MagicDraw modeling tool, Adaptive (tool independence for model interchange using XMI, other formats –OWL?)MagicDraw Namespace: List of standard UOs, consistent OWL model export Rules and Terminology standards compatible wider framework Hosted repository; Training, certification materials EDM Council publicity OMG publicity Joint White Paper Conferences, events, symposia Academic / Semantic Tech conferences Training, certification materials (per OMG established process)

10 Decision Points by work stream Work streamDecision Point OMG-EDMC Standard Semantic models for financial reform* -a.k.a. Semantic repository) Modeling Framework for financial reform regulations OMG-EDMC Standard availability/access mgmt Communication Training, Certification Disposition of content in submissions, naming conventions (look for sample OMG RFC for guidance) Documentation: Disposition of volumes; future ISO approach This is one volume within ISO ISO includes governance and excludes content, so there are alignment challenges to solve ODM Extension vs. OWL; New metaterms Namespace: Modeling patterns, common approach Broader framework: disposition of Business Rules, Terminology Hosted repository; Training, certification requirements When and what; Events etc. Training, certification materials

11 Next steps Develop overall project plan and work stream plans (Harsh Sharma, Mike Bennett) –Major tasks, milestones, deliverables, resources & skills required… –Review draft on April 20 th Identify/volunteer teams leads and members for work streams –Need to identify/recruit business SMEs, modeling Gurus/Pundits –Work stream lead to refine and maintain and report on plans, status, issues –Work stream teams need to identify best conf. call days/times etc. (we’ll initially use weekly Wed 12-1 pm call to get started and June onwards use it for overall status, issues and other FDTF work streams etc.) Develop vocabulary and model management and access requirements document (HS, MikeB) Have LOTS of………………………….

Appendix 12

13 EDMC Semantic Repository Content Status In progress Decision: –Disposition of content to standards proposals Business Entities versus Financial / Securities Loans (non wholesale)? Status –Reference Data: DONE –Dated terms (Pricing/MD) Draft to be adopted –Process – some work. Whether to include

14 Modeling Framework Status Draft in place –Needs updating to latest ODM –Extensions to ODM? –Proposed extensions Revision in hand (EDMC/ Sandpiper) Decisions: –Whether to adopt the non OWL features –Additional (also non OWL) features –Natural Language layer implementation Success is when the model content can be imported and round tripped in any UML tool (specifically EA, MagicDraw; also Adaptive) without loss of the OWL content, the extensions, the archetypes and the business readability constructs. Also production of reports / tables.

15 Namespace / Semantics issues Semantics from Standards / Authorities –List and agree them e.g. XBRL, REA, UN-FAO Common approach to these Modeling patterns and Archetypes Sowa-based Lattice treatment Needs input and peer review of semantics modelers Validation via OWL models

16 Ecosystem Hosting –Governance, change control –Depends on completion of Framework Training and Certification –Standard OMG “Ecosystem” for standards –Define what’s needed for semantics modelers to create This Standard compliant models –Anything we’ve missed?

17 Communication Industry awareness of our activities Industry adoption and uptake Decisions –Events e.g. June in NYC; big paid event in the Fall Also awareness by tool vendors of the additional things that can be done with this standard’s framework/metamodel and proposed extensions

18 Project Plan/Tasks Milestones Under Construction