Implementing Financial Regulation Ontology
The slide-doc tutorial explains FRO, LKIF and FIBO design, and how to extend the ontologies for data population. We recommend to study the text end-to-end. Even beginner sections show finance related classes and data. The tutorial comes in 3 chapters available for download:
The first chapter introduces Ontology Web Language (OWL) to business and the beginning ontologist. The example “Black Rock manages Emerging Markets ETF” is a good introduction to FIBO.
Getting Started continues with step-by-step instructions for Ontology Editor, Protégé and Query tools.
FRO foundations explains the core classes relevant to regulatory compliance.
2 Loading the law
Chapter two shows how to populate FRO from XML files for law and regulations. The details of LKIF Legal Document are mainly for government agencies, who want to make correction or add more regulations and laws.
However, loaded content is basis for Legal reasoning in chapter three and process and design is similar for all data sources. All metadata, mapping, and lineage are stored within the ontology.
3 Legal Reasoning
Inference is the process to derive new knowledge from asserted facts. The operational Fund Ontology example infers, whether an Investment Funds must register with the Securities & Exchange Commission (SEC).
Chapter three starts with a deep-dive into LKIF Legal Expressions and how FRO defined classes encode SEC mandate and exceptions.
Chapter 3 will be published in soon.
4 Processing forms and reports
Semantic processing of regulatory compliance forms uses SPARQL rules to read and transform raw form data and to populate forms. In chapter 2, we loaded XML sources of laws and regulations into FRO/LKIF. This chapter applies the method to regulatory forms bi-directionally. SPARQL rules read financial data from the FIBO part of the ontology and populate:
- Form ADV (investment advisers) is a Fund Regulation ontology example
- Form PF (private funds) from the Hedge Fund Regulation ontology
- FFIEC 031 (Call Reports) a Bank Regulation ontology example
Chapter 4 will be published next year.