SmaRT Visualization of Legal Rules for Compliance Selja Seppälä Marcello Ceci Hai Huang Leona O’Brien Tom Butler

Contents The Issue The Regulatory Interpretation Methodology SBVR and Mercury Visualizing Verb Concepts and Keywords Visualizing Rules Neo4j Visualization

New Technologies Need New Techniques The complexity of regulation In the aftermath of the Financial Crisis The complexity and ambiguity of legalese Automatic extraction of requirements from legal texts is not reliable Information Systems of the Financial Industry are lagging behind There is a natural resistance against new (semantic) technologies that must be tackled An open approach to translating regulative rules No closed list of logical sentences Allow for multiple interpretations of the same legal text Vocabulary is created as you go For Constitutive Rules, legal concept patterns are used (e.g. commencement, definition) Relies on tools (Demo of Ganesha 0.1 later on)

Regulatory Interpretation Methodology Subject-Matter Expert Legal Text ? Rule Language RDF Business Processes (BPMN) Ontology Semantic Technology Expert

SBVR Business Rules and Business Vocabulary It is prohibited that an Investment Firm that operates an OTF engages in Matched Principal Trading. Rulebook Vocabulary Investment Firm operates OTF Investment Firm engages in Matched Principal Trading Verb concepts Noun concepts Investment Firm OTF Matched Principal Trading

The Mercury Knowledge Base Every rule has a unambiguous logical formulation in propositional logics: (for each Investment Firm, OTF and Matched Principal Trading) if an investment firm operates an OTF then it is forbidden that that same investment firm engage in matched principal trading It is prohibited that an Investment Firm that operates an OTF engages in Matched Principal Trading.

FIRO Financial Industry Regulatory Ontology http://www.grctc.com/platform-research/firo/ It is prohibited that an Investment Firm that operates an OTF engages in Matched Principal Trading. What requirements are breached by Event x?  Query:  PREFIX onto:<http://www.GRCTC.com/Ontologies/FIRO/FIRO-H-v2#> SELECT ?rs WHERE { ?rs rdf:type onto:RegulatoryStatement. onto:x onto:breaches ?rs } Visualization: It is prohibited that Investment Firm engages in Matched Principal Trading Investment Firm operates OTF

Visualizing Keywords /1 Original sentence: market operator makes public credits and debt  Semantics: market operator makes public credits and same market operator makes public debts 

Visualizing Keywords /2 Original sentence: market operator operating a trading venue makes public credits  Semantics: market operator makes public credits and same market operator operates trading venue 

Visualizing Regulative Rules /1 Original sentence: It is obligatory that a market operator that operates a trading venue makes public credits and debts.

Visualizing Regulative Rules /2 Semantics: If some market operator operates some trading venue then it is obligatory that the same market operator makes public each debt and the same market operator makes public each credit. 

Neo4j Visualization

Future Work Automatic graph generation from RDF Cover other keywords Negation Quantifiers Automatic RDF generation from graph Visualizing constitutive rules

Thank you! Contacts: selja.seppala@ucc.ie marcello.ceci@ucc.ie hai.huang@ucc.ie Ceci, M., Al Khalil, F., O’Brien, L., and Butler, T., (2016) Requirements for an Intermediate Language Bridging Legal Text and Rules, December 2016, Workshop on Mining and Reasoning with Legal texts (MIREL), At Nice, France Al Khalil, F., Ceci, M., Yapa, K. and O’Brien, L., (2016), July. SBVR to OWL 2 Mapping in the Domain of Legal Rules. In International Symposium on Rules and Rule Markup Languages for the Semantic Web (pp. 258-266). Springer International Publishing. Ceci, M., Al Khalil, F. and O’Brien, L., (2016) Making Sense of Regulations with SBVR. RuleML 2016 Challenge, Doctoral Consortium and Industry Track hosted by the 10th International Web Rule Symposium (RuleML 2016).

Vocabulary Entries Advanced management of definitions: It is prohibited that an Investment Firm that operates an OTF engages in Matched Principal Trading. Noun concepts (entities) and actions can be aligned to business entities and activities in business policies and processes. Advanced management of definitions: Distinguish legal vs. non-legal definitions Distinguish definitions as (structural) rules from definitions in free text Identify the context Use different vocabulary entries for concepts with same designation but different definitions and/or domains (business/legal) Investment Firm Definition: [text or rule] Source: MiFID art. 4 Context: MiFID Investment Firm Definition: [text or rule] Source: Business Policy “X”, p. 1 Context: Business Policy “X” Investment Firm Definition: [text or rule] Source: MiFIR art. 3 Context: MiFIR

Mercury/FIRO Features Vocabulary potentialities Alignment to taxonomies Expressing semantics of definitions Classifying Disambiguating with context Rulebook potentialities Representing logical formulation of the rule Graph representation Alignment to business processes Automatic reasoning on compliance