1. Open Financial Data Group Friday October 3rd 2014
FIBO Status Update
Open Financial Data Group
Friday October 3rd 2014

2. FIBO Conceptual (canonical reference) ontology Roadmap and next steps
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

3. 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

4. { Current Roadmap FIBO Content Teams 2013 2014 2015 Beta2 Milestone
FTF2
OMG Task Force
Spec
Activity
2013
2014
2015 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Foundations
Public review
OMG finalization TF
(FTF)
FTF2
OMG Revision TF
(RTF)
Final
Beta1
Beta2
Business Entities
Public review
OMG finalization TF
(FTF)
OMG Revision TF
(RTF)
Final
Indices & Indicators
Public review
OMG finalization {
Final
Securities Common and Equities
OMG finalization
RFP
Submission
Final
FIBO Content Teams
Loans common
OMG finalization
Derivatives
OMG finalization
Other FIBO Components
FIBO Market Data, CAE, Risk/Reporting
FIBO Market Data, CAE, Risk/Reporting
FIBO Market Data, CAE, Risk/Reporting

5. FIBO Development Process

6. FIBO™ Development Process
Red FIBOs are in Queue
Pink FIBOs have been approved by the OMG AB to enter the RFC process
Yellow FIBOs are dealing with issues
Green FIBOs have exited the OMG process as ratified standards.
Review Readiness with SME Team
Happy
Industry Requirements
FIBO™ BCO/UML
Model in Cameo, VOM, RDF/OWL
FIBO-n….n-1
Not Happy
EDM Council Determines Next FIBO™ SubDomain Release from the UML Model
FIBO™ Use and Maintenance
FIBO-FND
Perform Architecture and Externality Review
Semantic Enhancement
Validation with Instance Data No
Consistency Testing/Repairs
Enhance?
Change or add
yes
FIBO-IND
Yes
Spiral implementation of enhancements
Refactoring
Semantic Issues Correction
Pass? No No
Yes
Change FIBO™ BCO
Final SME Review
Yes
Submission to OMG Architecture Board
Build/Test OMG Submission No No
Yes
FIBO-BE
OMG Public comments
Changes No

7. GITHUB Industry Requirements (use cases, scenarios) Systems Legend
All
FIBO
GitHub
Repo’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
Promotion to Standard
Development Support Artifacts[1]
Industry SMEs
Industry DataModelers
Industry Requirements (use cases, scenarios)
Systems Legend
A 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
OMG
The model is tested (E) and published in OWL/RDF, but it can be maintained using many sorts of modeling tools, either native to OWL (A) or other modeling systems (C). In the latter case, conversion tools are needed (D). Documentation is (partially) generated automatically from the model using a drawing tool for OWL, e.g., TBC, VOWL, etc. (B).
Issue management is done using systems (F) like Github (for internal things) and Jira (for the OMG process).
The OMG process results in the promotion of a FIBO from Yello (proposed) to Green (approved)
Both levels are published on the EDMC web site (in appropriate places), along with documentation, training materials, and other supplementary things (e.g., patterns)
Yellow processes are manual
Blue processes run in Jenkins
[1] incl. MD files, VOM files, TopBraid layout files, protégé catalog files, etc
[2] incl. Use Case documents, demo scenarios, etc.
CC EDMC 2014
9/22/2018

8. 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)

9. 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

10. FIBO Conceptual Ontologies (Lattice etc.)
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

11. 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

12. Consider the Dictionary

13. Consider the Dictionary

14. Consider the Dictionary
Where does the meaning get in?

15. 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?

16. Semantic Networks

17. Semantic Grounding for Businesses
What are the basic experiences or constructs relevant to business?
AKA where does the meaning get in?
Business: Grounded in the realities and sensory inputs of the organization
Monetary: profit, loss, assets
Legal: regulatory, legal environment
Ecosystem: Agreements with other organizations
Contractual and agreement
Products and services
Other e.g. jurisdiction, geopolitical
Monetary: profit / loss, assets / liabilities, equity
Law and Jurisdiction
Government, regulatory environment
Contracts, agreements, commitments
Products and Services
Other e.g. geopolitical, logistics

18. Putting something into RDF/OWL does not make it meaningful
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.

19. Approaches to Meaning
Rosetta Stone
Mayan Language

20. Approaches to Meaning
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

21. 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 things 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?
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
Copyright © 2010 EDM Council Inc.

23. Taxonomy of kinds of contract Taxonomy of kinds of Rights
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.
Copyright © 2010 EDM Council Inc.

24. Classification Theory

25. Overview of Classification Theory
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
Copyright © 2010 EDM Council Inc.

26. 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
Copyright © 2010 EDM Council Inc.

27. 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
Copyright © 2010 EDM Council Inc.

28. A Taxonomy forms the basis for any ontology
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
Copyright © 2010 EDM Council Inc.

29. Common Semantics Roadmap
Changes to the Legacy FIBO Models
Common Semantics

30. Improvements to the Legacy FIBO Models
Restrictions
Simple restrictions on class
Complex restriction structures
Datatypes versus Information Kinds
Namespaces
Use of SKOS??
Legacy non-OWL features
Enumerations etc.

31. Restrictions Legacy model: single-use properties Changes:
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

32. Datatypes / Information Kinds
OWL Datatypes
Platform Specific
Limitations to XML datatype usage
Information Kinds Examples
RDA Types Registry

33. Conceptual and Physical Ontologies
Business Conceptual
Ontology (CIM)
Business
The Language Interface
Extract and Optimise
Technology
Operational Ontology
(PSM)

34. Types and Datatypes Business Technology Business Conceptual
Ontology (CIM)
Business
The Language Interface
Extract and Optimise
Technology
Data types
Operational Ontology
(PSM)
Platform specific matter

35. These are XML Schema datatypes
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

36. 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…

37. Datatypes Text Dates and Times Boolean Numeric datatypes URL/URI
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

38. 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

39. 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

40. FIBO Content and Status

41. Key to Colors Planned Phase Colors Status Colors 9/22/2018
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 5 6 7 8 9 10
Future
9/22/2018
OMG = in RDF/OWL; Beta = Model Reviewed by SMEs; Model = Modeled in Enterprise Architect; Initial = Not Yet Modeled
© 2014 EDMC FIBO

42. FIBO Development Scenario (September 2014)
Reference Data (product) Semantics
Phase
Domain
Sub-Domain
Dependency
OMG
RDF/OWL
Beta
Model 1
Foundations X
Business Entities
Indices and Indicators 2
Common Concepts
(all instruments)
Equity Instruments
Equities
Debt Instruments
Debt Terms (including bonds) 5
Structured Finance
Dependent on bonds and mortgage
Money Markets (includes Repo, Treasury, Government, Tax Free) 3
Loans
Common Loan Terms
Mortgage Loan Terms 7
Other (i.e. general purpose, construction, student, miscellaneous)
OMG = in standards process; RDF/OWL = in Web Ontology Language; Beta = Model Reviewed by SMEs;
Model = Modeled in Enterprise Architect;

43. FIBO Development Scenario (September 2014)
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
Credit Default
Dependent on common concepts for loans, common debt terms, indices
Foreign Exchange 7
Asset
Dependent on equities, bonds, common debt terms
Commodity
Contracts for Difference 8
Exchange Traded x 9
Collective Investment Vehicles
Dependent on listed instruments, derivatives, indices 10
Rights & Warrants
Dependent on common concepts for all instruments
OMG = in standards process; RDF/OWL = in Web Ontology Language; Beta = Model Reviewed by SMEs;
Model = Modeled in Enterprise Architect;

44. FIBO Development Scenario (September 2014)
Market Data (time and date) Semantics
Domain
Sub-Domain
Dependency
OMG
RDF/OWL
Beta
Model
Common Terms X
Equity Pricing
Debt Temporal Terms
Debt Pricing and Yields
Debt Analytics
Debt Pool Analytics
CIV Temporal Terms
Loan Temporal Terms
Trading Status
Credit Temporal Terms
Credit Rating
Credit Status
Future Phase
OMG = in standards process; RDF/OWL = in Web Ontology Language; Beta = Model Reviewed by SMEs;
Model = Modeled in Enterprise Architect;
Copyright © 2014 EDM Council Inc.

45. FIBO Development Scenario (September 2014)
Process Related Semantics
Domain
Sub-Domain
Dependency
OMG
RDF/OWL
Beta
Model
Corporate Actions and Events X
Securities Issuance
Common Issuance Process Terms
Equity Issuance (includes IPO, primary market)
Debt/Bonds Issuance (includes auction, syndication and other issuance processes
Asset-Backed / Mortgage-Backed Issuance (includes agency and non-agency)
Securities Transactions (includes trade, post trade, clearing, settlement)
OTC Derivatives Transactions
Payments Processing
Portfolio and Holdings s
Future Phase