OMG Finance Domain Task Force (FDTF) Monthly Status/review call Wednesday December 5th 2012

FIBO Update, Status and Plans FDTF Agenda for Burlingame RegW and Front-running

Headline Points OMG Quarterly Meeting next week FIBO December Draft Proposed workgroup sessions

Finance Domain Task Force Tuesday 11 December Financial Data and Semantics: challenges and emerging opportunities SMART Regulation project FIRO and SMART Regulation LEI and Supply Chain Financial contracts and risk management Regulation W and Front-running Payments Traceability gap analysis Wednesday 12 December FIBO Operational POC demo FIBO-Foundations and FIBO-BE working sessions Model Driven Message interoperability (MDMI) Misc / AOB

Morning Refreshment Break Tuesday 11 Dec Time Topic Presenter, Comments 09:00-9.05 Kick-off, Meeting Agenda Review   Harsh W. Sharma, Citi 9.05-.9.45 Financial Data and Semantics: challenges and emerging opportunities (tentative title) Summary of data challenges & opportunities Role of Chief Data Officer Data Risks and rewards Etc. Joe Bugajski, Gartner 09:45 – 10.30 Smart Regulation Project – planning session Smart Regulation is a joint OMG-DTC project. Goal is to engage private and public sector stakeholders to promote data innovation in financial regulations. Smart Regulation will serve as an important business use case for the OMG Smart Data Coalition effort. Review and update business drivers, proposed deliverables, roadmap, charter, launch logistics etc. Hudson Hollister, Data Transparency Coalition (DTC) 10:30 - 10:45 Morning Refreshment Break 10.45-12.00 Financial Industry Regulatory Ontology (FIRO) and Smart Regulation (tentative title) FIRO overview and its business applications Financial Information Assurance Framework and key data Risk indicators Tom Butler, University of Cork, Ireland Harsh Sharma, Citi 12.00-1.00 Lunch 1.00-1.45 Legal Entity Identifier (LEI) and supply chain contract counterparties (tentative title) Mike Willis, PWC 1.45-2.30 Financial contracts and Risk management- Semantic approach (tentative title) Shannon Copeland, Kilpatrick Townsend 2.30-2.45 Coffee Break 2.45-4.00 Regulation W and front running – working session Wesley Moore, Wells Fargo, James Odell, Manfred Koethe 4.00-4.45 Payments Traceability (Payment Events, Actors and Standards) –gaps analysis and scope for OMG standard (tentative title) Tricia Balfe, Nomos Software 4.45-5.00 Day 1 Wrap-up 5.00 Adjourn

Morning Refreshment Break Wednesday 12 Dec Time Topic Presenter, Comments 09:00-9.05 Kick-off, Meeting Agenda Review Joe Bugajski, Gartner, Mike Bennett, EDMC 9.05-10.30 FIBO Derivatives Proof of Concept Demo (OTC+FIBO-BE) Practical demonstration of OWL application David Newman 10:30 - 10:45 Morning Refreshment Break   10.45-12.00 FIBO Business Entities – working session Summary of FIBO Business applications Status of FIBO (big picture) Review of proposed RFC1 Harsh Sharma, Mike Bennett 12.00-2.00 Extended Lunch 2.00-2.30 OMG Model Driven Messaging Interoperability (MDMI) Status update (tentative title) MDMI standard summary, business use cases/POCs status Ken Lord, Mark Eisner, Firestar Software 2.30-3.00 Property and Casualty Standard finalization status Tom Ford, LiquidHub 3.00-3.15 Coffee Break 3.15-4.45 FIBO working session continued Mike Bennett 4.45-5.00 Misc FDTF Items/announcements etc. 5.00 Adjourn

Regulation W and Front-running To be covered at Burlingame Proposal: Face to Face meeting in NYC on this Business concepts What data structures we need etc. Develop business use case/ gap analysis on data structures What standards may help Convey the utility of using e.g. FIBO to Regulators Connect to SMART Regulation project – help refine what is meant by SMART Reg etc. Likely January Also consider whether FIBO can help in this

Proposed Workstreams in 2013 FIBO Implementation Workstream Share user experiences on different routes to implementing the business concept model content in FIBO Conventional technology routes Operational Ontologies (semantic tech / reasoner based applications) Upper Ontology Partitioning More philosophical set of activities Key to alignment of concept semantics in FOBO Foundations Other FIBO Foundations work Transaction Shared Semantics – ongoing XBRL Abstract Model Date Time – do we need a workgroup for this? Real Estate (alongside Geo and Location?) – needed for future loan related terms

FIBO Moving Parts Update FIBO Status and Update FIBO Moving Parts Update Business Conceptual Ontology Foundations update FIBO-BE SME Reviews Business Presentation Layer (Adaptive) OMG Specifications Operational Ontologies

Formal Release: Feb for March 2013 FIBO Progress Summary SME Reviews Progressing well Have now resolved most of the “loose ends” that were in the existing draft Defined overall scope for February formal release Formal Release: Feb for March 2013 Draft “Convenience Document” Specification in progress for December 2012 FIBO Foundations Now need to include more than just the foundational terms needed for FIBO-BE By Feb we need all the foundational semantics in place!

Provisional Roadmap 2012 2013 Beyond Q1 Q2 Q3 Q4 FIBO-Foundations Global Terms and modeling framework Industry review OMG finalization Final FIBO Business Entity Domain ontology Industry review OMG finalization Final FIBO Securities Domain ontology Industry review OMG finalization Final FIBO Derivatives Domain ontology Industry review OMG finalization Final FIBO Loans Domain ontology Industry review OMG finalization Final FIBO Market Data, CAE, Portfolio, Payments Other Domain ontologies FIBO Market Data, CAE, Risk/Reporting Other Domain ontologies FIBO Market Data, CAE, Risk/Reporting Other Domain ontologies FIBO Market Data, CAE, Risk/Reporting Other Domain ontologies Copyright © 2010 EDM Council Inc.

Provisional Roadmap 2012 2013 Beyond Could split into phases Q1 Q2 Q3 Q4 FIBO-Foundations Global Terms and modeling framework Industry review OMG finalization Final FIBO Business Entity Domain ontology Industry review OMG finalization Final FIBO Securities Domain ontology Industry review OMG finalization Final FIBO Derivatives Domain ontology Industry review OMG finalization Final Could split into phases FIBO Loans Domain ontology Industry review OMG finalization Final FIBO Market Data, CAE, Portfolio, Payments Other Domain ontologies FIBO Market Data, CAE, Risk/Reporting Other Domain ontologies FIBO Market Data, CAE, Risk/Reporting Other Domain ontologies May bring this forward if required FIBO Market Data, CAE, Risk/Reporting Other Domain ontologies Copyright © 2010 EDM Council Inc.

Update on the Moving Parts FIBO Business Conceptual Ontology (BCO) Adaptive Web Presentation Facility FIBO OMG Specifications FIBO Operational Ontologies

FIBO Business Conceptual Ontology FIBO Business Conceptual Ontology (BCO) Adaptive Web Presentation Facility FIBO OMG Specifications FIBO Operational Ontologies

FIBO Business Conceptual Ontology Two components FIBO Foundations: Basic Business Ontology FIBO industry specifications FIBO Business Entities Future FIBO industry specifications Securities Derivatives Loans

FIBO Foundations To date we have subjected about half of this material to the formal OMG process and model changes Now plan to provide a complete Foundations first release (March) Progress in the following areas: Transactions Legal / contractual and rights/obligations Address – conceptual changes identified in POC sessions Geographical and geopolitical Need to update the list of “included” external standards E.g. ISO 3166 OWL; W3C Organization ontology Inclusion of OMG Date Time Vocabulary

FIBO Business Entities SME Reviews Great progress in these sessions Have managed to address many of the open questions and “loose ends” that seemed to be beyond us relationship types (ownership and control, influence, exposures) More clarity on sovereign, full range of Legal Persons Formal recognition of legal concepts e.g. Legal Person Removed “Legal Entity” as a label but kept the semantics of ISO 17442 “Legal Entity” in the model New “Potential Party” and clarity on what can perform what roles Extensive new material on Funds and SPVs still working through the model changes on these

FIBO Business Entities December Draft Still working on this! Take to OMG FDTF meetings at Burlingame Show that we have actioned the detailed OMG review comments to date Provide an up to date point of reference for users Table/spreadsheet of terms and definitions Machine readable files: after Burlingame Scope: Core facts as identified in the SME Reviews Other items in scope per SME reviews to be added in February version (March FDTF)

Business Presentation Facility (Adaptive) FIBO Business Conceptual Ontology (BCO) Adaptive Web Presentation Facility FIBO OMG Specifications FIBO Operational Ontologies

Adaptive Presentation Facility Identified two audience types: Those looking at the model as a model Those using the model to view the business realities That is, there will be views for those who need to understand the model in order to implement against it, and there will be views for those to whom the model is a way of representing the subject matter These have different concerns and requirements Potentially offer different levels of detail and logical information e.g. necessary and sufficient facts Requires imagination – still working on that!

FIBO OMG Specifications FIBO Business Conceptual Ontology (BCO) Adaptive Web Presentation Facility FIBO OMG Specifications FIBO Operational Ontologies

Status: OMG Specifications Most material written Content of specification is given as a report from Adaptive Idea: Re-write content similarly to the SMER Powerpoint Consistent with other OMG standards Conformance and Implementation Identified principles for “good” applications in semantic tech and in conventional tech Simple cases in Conformance section (pure extraction) Non normative annex for other best practice recommendations Could make some normative before final sign-off

FIBO Operational Ontologies FIBO Business Conceptual Ontology (BCO) Adaptive Web Presentation Facility FIBO OMG Specifications FIBO Operational Ontologies

Operational Ontologies Some valuable lessons on what makes a suitable operational ontology Currently looking at time related issues Relationships with a start and end date Comes full circle to the BCO concepts of “Party”! Interesting observations on data versus “Things” and what is modeled Open world v closed world assumptions When to model that “Thing” which is a Record Have started to identify and extend conceptual requirements on these sessions e.g. “Address” terms – to be carried back to the BCO

Questions?