OMG-EDMC Standards for Financial
Reform
Kick-off/Planning Meeting
April 13th 2011
Harsh Sharma, Citi,
Mike Bennett, EDMC
 Draft: work in progress
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Agenda
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Recap of March 22nd - 23rd 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
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Recap of March 22nd 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: http://www.omg.org/news/meetings/tc/agendas/va/FDTF_Agenda.htm
• 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)
• Interim (Fall 2011, date TBD) 1 day session in NYC, Q1, 2012 DC…
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Summary of OMG Financial Reform standard work streams (draft)
Q2, 2011
Q3, 2011
Q4, 2011
Q1, 2012
Q2, 2012
Q3, 2012
Q4, 2012
Sustainable data strategy and framework
for financial reform regulations - white
paper
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)…
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)
Focus of the
April 13th call
OMG-EDMC Standard (to be named!)
Business critical attributes matrix
Legal Entity: Business Vocabulary,
hierarchy model, XMI, OWL*…
Product: Business Vocabulary,
hierarchy model, XMI, OWL…
Loan: Business Vocabulary, model, XMI, OWL…
Time, Date, Event Model, XMI, OWL…
Modeling framework and enhancement of OMG modeling standards
Common modeling framework for financial reform regulations
Release 1
* Ontology Web Language
TBD: Business Vocabulary, model, XMI, OWL…
Release 2
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White Paper sections (illustrative only)
Executive Summary
Business Drivers (Financial Crisis, Systemic Risk Assessment, Monitoring,
Regulatory Reporting…)
Why do we need (benefits/ROI) a sustainable, data standards and model driven
approach to future proof the financial system?
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…
Standards required and available: LEI, UCI, UPI…BIC Code, CUSIP, other
reference data standards (time, date taxonomy…)
Conclusion/Recommendations, Glossary, Author Bios etc.
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Financial Reform Regulations and data matrix* (illustrative)
Regulations
• Regulation, Rules, life-cycle state,
Organization, geographic applicability, costbenefit metrics**…
Dodd-Frank Act
* Not a complete list, under development, to be published and maintained by OMG
FDTF
** Office of Information and Regulatory Affairs (OIRA)
Volcker Rule
Major categories of Data required for OFR, CFTC… mandated reporting and analytics
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
Traceability (linkage) maps
• Linkage between Transactions, Positions, Contracts and audit trail metrics
• Correlation of Transaction, Contract ‘Legs’
Identifiers
Legal Entity Identifier
Customer
Identifier
Transaction data
Trade
Mortgage
Mortgages
Other….
Broker Identifier
Product Identifier
Credit Ratings
Alternatives
Product Identifier
Hierarchy
Other Reference Data
Legal Entity
Hierarchy
Product Hierarchy
Events, Schedules, Date, Time,
Pricing…
Current data standards
• Business Identifier Code, Issuer Guarantor
Identifier, CUSIP, Time & date taxonomy….
Current Focus
Future Focus
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Matrix of proposed work streams, deliverables…
Work stream
Scope
Deliverable( s)
Time line
Comments
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 end
• OMG, PEW Trusts,
Federal Reserve, EDMC
leads
OMG-EDMC Standard
• Semantic models for
financial reform* -a.k.a.
EDMC Semantic
repository)
• Legal Entity, Product
Identifier Hierarchy,
Business Critical attributes
classification, Loans/retail
OMG-EDMC Standard
• Vocabulary
• Models
• XMI, OWL formats
Q3-4, 2011 Release 1
• Standard doc per OMG
governance process
(RFC)
• Vocabulary OMG SBVR
compatible
• Framework of core and
specialized modeling
languages and
transformations
Q3-Q1, 2012
• Modeling Framework for
financial reform
regulations
• OMG models,
metamodels needed to
support OMG-EDMC
Standard
• Namespace management
• Wider framework (Rules,
Terminology etc.)
• 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) 2011
• OMG-EDMC Standard
availability/access mgmt
• Need 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 - OMG
• Training materials
• Certification process and
materials
Q1-2012
Develop from Q4 2011
• Communication
• Training, Certification
* Not limited to financial reform
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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)
* Get a sample RFC from OMG
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Success Criteria by work stream
Work stream
OMG-EDMC Standard
Success Criteria
• Semantic models for financial reform* -a.k.a.
EDMC Semantic repository)
• Business Entities (legal entities; other organization types)
• Securities (Ref Data, Market Data, Transactions, CAE)
• Loans/Retail
• Modeling Framework for financial reform
regulations
• Models importable to MagicDraw modeling tool, Adaptive (tool
independence for model interchange using XMI, other formats –OWL?)
• Namespace: List of standard UOs, consistent OWL model export
• Rules and Terminology standards compatible wider framework
• Hosted repository; Training, certification materials
• OMG-EDMC Standard availability/access
mgmt
• Communication
EDM Council publicity
OMG publicity
Joint White Paper
Conferences, events, symposia
Academic / Semantic Tech conferences
• Training, certification materials (per OMG established process)
• Training, Certification
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Decision Points by work stream
Work stream
OMG-EDMC Standard
• Semantic models for financial reform* -a.k.a.
Semantic repository)
• Modeling Framework for financial reform
regulations
Decision Point
• Disposition of content in submissions, naming conventions (look for
sample OMG RFC for guidance)
• Documentation: Disposition of volumes; future ISO 20022 approach
• This is one volume within ISO 20022
• ISO 20022 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
• OMG-EDMC Standard availability/access
mgmt
• Hosted repository; Training, certification requirements
• Communication
• When and what; Events etc.
• Training, Certification
• Training, certification materials
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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 20th
• 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………………………….
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Appendix
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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
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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.
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Namespace / Semantics issues
• Semantics from Standards / Authorities
– List and agree them e.g. XBRL, REA, UN-FAO
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Common approach to these
Modeling patterns and Archetypes
Sowa-based Lattice treatment
Needs input and peer review of semantics
modelers
• Validation via OWL models
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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?
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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
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Project Plan/Tasks Milestones
Under Construction
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