Posts Tagged ‘Wells Fargo’

The Office of Financial Research To Look Hard At FIBO For Financial Instrument Reference Database

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Image Courtesy: Flickr/ .reid

Ontologies are getting a thumbs up to serve as the basis for the Office of Financial Research’s Instruments database. Last week, the Data & Technology Subcommittee of the OFR Financial Research Advisory Committee (FRAC) recommended that the OFR “adopt the goal of developing and validating a comprehensive ontology for financial instruments as part of its overall effort to meet its statutory requirement to ‘prepare and publish’ a financial instrument reference database.”

The Instruments database will define the official meaning of financial instruments for the financial system — derivatives, securities, and so on. The recommendation by the subcommittee is that the OFR conduct its own evaluation of private sector initiatives in this area, including the Financial Industry Business Ontology (FIBO), to assess whether and how ontology can support transparency and financial stability analysis.

FIBO, which The Semantic Web Blog discussed in detail most recently here, is designed to improve visibility to the financial industry and the regulatory community by standardizing the language used to precisely define the terms, conditions, and characteristics of financial instruments; the legal and relationship structure of business entities; the content and time dimensions of market data; and more. The effort is spearheaded by the Object Management Group and the Enterprise Data Management (EDM) Council.

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FIBO Technology Summit At SemTechBiz: Financial Industry And Sem Tech Leaders Discuss Ontology Evaluation Tools, FLORA-2′s Potential, And More

Last week’s Semantic Technology & Business Conference played host to the FIBO (Financial Business Industry Ontology) Technology Summit. The event, which saw some 60 conference participants from the semantic web, financial industry and other sectors, as well as academia, was led by David S. Newman, SVP & Strategic Planning Manager Enterprise Architecture, at Wells Fargo and Chair of the Enterprise Data Management Council’s Semantics Program, and Dennis E. Wisnosky, founder of Wizdom Systems who is providing technical strategy and operational guidance to the Council for finalizing and implementing FIBO standards.

“This was a tremendous milestone for FIBO and FIBO’s full evolution,” Newman told The Semantic Web Blog following the event. It brought “together a lot of smart people working with semantic technology for a number of years to get their insights into how to further mature FIBO, as well as how to mature the technology, so that FIBO can really resonate with the regulatory community and the financial industry, so that it will have some real solid traction, be able to truly scale to the needs of the constituencies” – that is, not only financial institutions but the entire financial system. Says Newman, “That’s a big, tall order.”

The idea behind FIBO is to standardize the language used to precisely define the terms, conditions, and characteristics of financial instruments; the legal and relationship structure of business entities; the content and time dimensions of market data; and the legal obligations and process aspects of corporate actions. As an open-source, global financial initiative, it is planned to bring health to the financial system, through defining a vast amount of information semantically and providing a better capability for the industry and its regulators to look at more complex patterns and relationships of information in friendlier ways than conventional technology can offer.

At a session following the FIBO Technology Summit at last week’s conference, Wisnosky, also formerly the chief architect and CTO of the Department of Defense, explained one way the financial industry should view FIBO. Today, he said, financial institutions “spend hundreds of millions of dollars gathering data for regulators, with no advantage internally. The carrot [of FIBO] is to reduce those costs.” Ignore the carrot and wait for regulators to ask for more data, and watch costs go up. Added Newman, “if information is highly trustworthy, then the perception of risk regulators have of the financial industry might be lessened, if they can govern and certify an institution aligns with a common data standard, which is FIBO in our proposal.”

During that session, Newman also brought up some of the outcomes of the FIBO Technology Summit, such as discussions that were held about challenges to defining regulatory rules that are more complex and beyond the means of OWL 2 DL and SWRL. In his conversation with The Semantic Web Blog following the conference, he provided more details.

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SemTechBiz Puts Spotlight On Financial Industry Business Ontology

Image Courtesy: Flickr/Patrick Hoesly

The financial services industry is taking to semantic tech in an important way, and that’s in the form of the Financial Industry Business Ontology (FIBO), which aims to standardize the language used to precisely define the terms, conditions, and characteristics of financial instruments; the legal and relationship structure of business entities; the content and time dimensions of market data; and the legal obligations and process aspects of corporate actions. Attendees at SemTech Biz in San Francisco will get a deep dive on the how’s and why’s, at this session, while the FIBO Technology Summit invitation event will present an opportunity for working collaboratively to continue advancing the effort that has its roots in The Enterprise Data Management Council and communities of interests.

Leading that event will be Dennis E. Wisnosky, founder of Wizdom Systems, Inc. and former CTO and Chief Architect of the DoD Business Mission Area, who was recently named to provide technical strategy and operational guidance to help the Council finalize and implement FIBO standards, and David S. Newman, SVP & Strategic Planning Manager Enterprise Architecture at Wells Fargo, and Chair of the EDM Council’s Semantics Program. (Newman, with Enterprise Data Management Council Head of Semantics and Standards Mike Bennett, will also host the SemTech FIBO session.)  Speaking of the upcoming event, Wisnosky explains that a goal is to cast a wide net to find the new tech ideas and developments that both can bring benefits to FIBO in the short term and influence the longer-term research agenda to help the financial industry.

As FIBO stands now, in June the second draft of the FIBO Foundations ontology and the conceptual FIBO Business Entities ontology will be presented at a meeting of the Object Management Group in Berlin. By year’s end it is expected that the OMG will have ratified these as formal standards. “We are on the path to turn the corner from thinking of what FIBO will be to delivering it,” says Wisnosky. Read more

Adding Value at SemTech’s Financial Track

The Cogito blog has been reporting some of the highlights at the Semantic Technology Conference this week. Recently the writers at Cogito shone the spotlight on several presentations from the financial track. The blogger writes, “The speech that was the most interesting to me was that of Wells Fargo’s David Newman. Newman argues that traditional information management systems are no longer sufficient to effectively manage the continuously growing flow of data. The reasons are varied, and include the fact that the increasing amount of information, without an intelligent filtering system, can lead to higher, unsustainable infrastructure costs.” Read more