Another Word For It Patrick Durusau on Topic Maps and Semantic Diversity

March 17, 2014

ACTUS

Filed under: Finance Services,Legal Informatics,Standards — Patrick Durusau @ 4:17 pm

ACTUS (Algorithmic Contract Types Unified Standards)

From the webpage:

The Alfred P. Sloan Foundation awarded Stevens Institute of Technology a grant to work on the proposal entitled “Creating a standard language for financial contracts and a contract-centric analytical framework”. The standard follows the theoretical groundwork laid down in the book “Unified Financial Analysis” (1) – UFA.The goal of this project is to build a financial instrument reference database that represents virtually all financial contracts as algorithms that link changes in risk factors (market risk, credit risk, and behavior, etc.) to cash flow obligations of financial contracts. This reference database will be the technological core of a future open source community that will maintain and evolve standardized financial contract representations for the use of regulators, risk managers, and researchers.

The objective of the project is to develop a set of about 30 unique contract types (CT’s) that represent virtually all existing financial contracts and which generate state contingent cash flows at a high level of precision. The term of art that describes the impact of changes in the risk factors on the cash flow obligations of a financial contract is called “state contingent cash flows,” which are the key input to virtually all financial analysis including models that assess financial risk.

1- Willi Brammertz, Ioannis Akkizidis, Wolfgang Breymann, Rami Entin, Marco Rustmann; Unified Financial Analysis – The Missing Links of Finance, Wiley 2009.

This will help with people who are not cheating in the financial markets.

After the revelations of the past couple of years, any guesses on the statistics of non-cheating members of the financial community?

😉

Even if these are used by non-cheaters, we know that the semantics are going to vary from user to user.

The real questions are: 1) How will we detect semantic divergence? and 2) How much semantic divergence can be tolerated?

I first saw this in a tweet by Stefano Bertolo.

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