Source: Bloomberg LP ( Richard Beatch [X] (Inactive))
Remove Market Sector from the specification: both the spec and the machine readables.
Reported: FIGI 1.0b1 — Thu, 30 Apr 2015 16:34 GMT
Disposition: Resolved — FIGI 1.0
remove Market Sector
This change affects both the specification and the machine readable files in that all references to Market Sector or any of its child nodes are to be eliminated. The specific tasks are:
1. Table 2.1, removal of:
Market Sector Each global identifier will have at least one Market Sector associated with it. Section 6.2.3
2. Removal of section 6.2.3:
6.2.3 Market Sector
Financial instruments exist across a range of types. These types are captured in the FIBO ontology as types of contracts (FIBO’s general category corresponding to Financial Instrument) and parallel the breakdown we present below. Beyond the FIBO breakdown, which is far more granular than is typically reflected in regular industry distinctions, we present a fairly basic breakdown of the market sectors that reflect accepted industry distinctions. It is important to note that while these sectors do parallel specific types of financial instruments as represented in FIBO, they are not types of financial instruments strictly speaking. Rather, they are sectors within the financial markets that represent marketing distinctions.
The definitions of each market sector are presented below.
188.8.131.52 Commodity Market Sector
A commodity is an agriculture product, mineral, or other tangible asset that investors trade on a commodity exchange or Spot Market on a cash or future basis. The Commodity Market Sector is the market sector that supports the sale and exchange of commodities.
184.108.40.206 Corporate Bond Market Sector
A corporate bond is a debt security issued by a corporation, as opposed to those issued by a government or municipality. (Source: FIBO) The Corporate Bond Market Sector is the market sector that supports the sale and exchange of corporate bonds. Within the ontology, the Corporate Bond Sector is a sibling to Government Bond Sector and Municipal Bond Sector under a parent class of Bond Market Sector and with a rule specifying that the three child classes are disjoint.
220.127.116.11 Currency Market Sector
A currency is a generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and services, currency is the basis for trade. The Currency Market Sector is the market sector that supports the sale and exchange of currencies.
18.104.22.168 Equity Market Sector
An Equity is:
1. A stock or any other security representing an ownership interest.
2. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity".
3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.
4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage
5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio.
The Equity Market Sector is the market sector that supports the sale and exchange of equities.
22.214.171.124 Government Bond Market Sector
A Government Bond is a government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default. The Government Bond Market Sector is the market sector that supports the sale and exchange of government bonds. Within the ontology, the Government Bond Sector is a sibling to Corporate Bond Sector and Municipal Bond Sector under a parent class of Bond Market Sector and with a rule specifying that the three child classes are disjoint.
126.96.36.199 Index Fund Market Sector
An Index is a compilation of statistical data that tracks changes in the economy or in financial markets. (Source: Bloomberg LP) ) The Index Fund Market Sector is the market sector that supports the sale and exchange of index funds.
188.8.131.52 Money Market Fund Market Sector
A Money Market is an international market for dealers who trade short- term government and corporate financial instruments like banker's acceptances, commercial paper, negotiable certificates of deposit, or Treasury bills. These instruments are considered the safest and most liquid of investments. The Money Market Fund Market Sector is the market sector that supports the sale and exchange of money market funds.
184.108.40.206 Mortgage Market Sector
From the investment perspective, a Mortgage is a debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large purchases of real estate without paying the entire value of the purchase up front. The Mortgage Market Sector is the market sector that supports the sale and exchange of mortgages.
220.127.116.11 Municipal Bond Market Sector
A Municipal Bond is a city or state-issued debt instrument. Interest on such instruments is usually exempt from federal income tax. If the bond was issued in the bondholder's state of residence, interest is also usually state and local tax exempt. The Municipal Bond Market Sector is the market sector that supports the sale and exchange of municipal bonds. Within the ontology, the Municipal Bond Sector is a sibling to Government Bond Sector and Corporate Bond Sector under a parent class of Bond Market Sector and with a rule specifying that the three child classes are disjoint.
18.104.22.168 Preferred Stock Market Sector
A Preferred Stock is an equity share in a company that has priority over other stock of the same company in dividends and claims. The Preferred Stock Market Sector is the market sector that supports the sale and exchange of preferred stocks.
3. removal of section 6.3.5:
6.3.5 Market Sector
The relationship between a Financial Instrument and a Market Sector is as follows:
• A Financial Instrument is classified by at least one, but no more than two Market Sectors.
o Note: there are only a handful of Financial Instruments with more than one Market Sector associated with them. This is owing to the peculiarities of the Bond issue in each case.
4. In section 7.2, removal of sentence:
"In a sense, the security type refines the Market Sector, although a few Security Types apply to multiple Market Sectors . "
5. In section 8.2.3, removal of the sentence:
"o financial instrument market sector (FI.2.5 & FI.2.6 )"
6. In table 8-4 removal of the following rows:
<blank node> restriction FI.2.5 isClassifiedBy max 2 MarketSector
<blank node> restriction FI.2.6 isClassifiedBy some MarketSector
MarketSector class market sector Market sector assigned to the security.
7. Remove section 8.2.5 in its entirety, including figures 8-4, 8-6 .
8. From section 8.2.6, remove phrase:
"types which function as refinements of Market Sectors through the object property “isConstituentOf ”"
from first sentence.
9. From table 8-7, remove the following rows:
MarketSector class market sector Market sector assigned to the security. MS.4.1
<blank node> restriction ST.5.2 isConstituentOf min 1 MarketSector
10. From Appendix B, section 2, remove:
-from page 46 "• Market Sector " in the bulleted list.
- The sentence: "(If such is viewed as necessary by either the Registration Authority or by a Certtified Provider (see B.3), a revision of this specification will be required so as to fully document the additional classes or vocabularies.)"
In Machine readables:
1. remove Market Sector class and all of its child classes from the FinancialInstrumentIdentifier.rdf ontology. (this takes with it all references to those classes within that file.
2. remove all references to Market Sector or any of its child classes in SecurityTypes.rdf.
Updated: Fri, 2 Oct 2015 15:42 GMT