Financial Instruments Ontology
type: Ontology
abstract: This ontology defines the fundamental concepts for financial instruments in general, providing the high-level hooks for build-out in more detail in the relevant domain areas. These include, but are not limited to, equities, options, debt instruments, and so forth, some of which may be negotiable.
license: https://opensource.org/licenses/MIT
imports: FormalBusinessOrganizations
imports: LegalPersons
imports: CorporateOwnership
imports: Debt
imports: FinancialProductsAndServices
imports: CurrencyAmount
imports: Contracts
imports: IdentifiersAndIndices
imports: Jurisdiction
imports: Parties
imports: Roles
imports: Addresses
imports: ProductsAndServices
imports: Relations
imports: AnnotationVocabulary
imports: Collections
imports: ContextualDesignators
imports: Identifiers
imports: QuantitiesAndUnits
version IRI: FinancialInstruments
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments.rdf version of the ontology was modified to eliminate deprecations that are more than 6 months old.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments.rdf version of the ontology was modified to use the Commons Ontology Library (Commons) Annotation Vocabulary rather than the OMG's Specification Metadata vocabulary and to add a new property, has underlier, which is needed in both securities and derivatives.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments.rdf version of this ontology was modified to augment the definition of a commodity contract with a quantity and price as of contract execution.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments.rdf version of this ontology was modified to tease out the distinction between the nominal and notional amount, which were confused (DER-127)and to replace content that is now available in the OMG Commons Ontology Library (Commons) v1.1 (FND-380).
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments.rdf version of this ontology was modified to use the Commons Ontology Library (Commons) rather than the OMG's Languages, Countries and Codes (LCC), eliminating redundancies in FIBO as appropriate.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified as a part of organizational hierarchy simplification, to add maturity-related properties, and to add exempt security.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified for the FIBO 2.0 RFC, including minor bug fixes.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to add a property indicating the currency that an instrument is issued in, simplify the contract party hierarchy and add properties relating financial instruments to shareholders.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to add the concept of a spot contract and clarify the definition of time to maturity, as well as add a property for days to maturity.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to address dead links and text formatting issues uncovered by hygiene testing.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to change the restriction on financial instrument identifier from some values to min 0, to allow for cases when an instrument identifier identifies a listing, eliminate duplication of concepts in LCC, and simplify addresses.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to correct the label on packaged financial product.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to eliminate deprecated content, i.e., properties related to maturity that are now in the Debt ontology and revise the definition of a securities transaction identifier to align with ISO 23897.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to eliminate deprecated elements.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to incorporate a hasMaturityDate property given that it can apply to debt instruments and preferred shares, as well as to other financial instruments, eliminated the redundant hasScheduledMaturityDate property, cleaned up circular definitions, eliminated the property 'mayBeTradedIn', which was only used in one place and was redundant with the concept of a ListedSecurity / Listing in SEC, added a synonym and additional explanatory note to packaged financial product, added hasNominalValue, which was a gap, and added back restrictions on debt instrument for hasMaturityDate (min 0 to account for rare instruments (e.g., consul) that have no maturity date), hasDurationToMaturity and hasTimeToMaturity.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to make Entitlement a subclass of Security and fix spelling.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to move properties and restrictions related to maturity to the Debt ontology, on credit agreement, and deprecate them here as well as to restructure the relationship between the two ontologies.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to move redemption provision from debt to financial instruments, given that it is a broader concept needed for equities.
change note: The https://spec.edmcouncil.org/fibo/ontology/FBC/FinancialInstruments/FinancialInstruments/ version of this ontology was modified to reflect issue resolutions detailed in the FIBO FBC 1.0 FTF report.
has maturity level: Release
copyright: Copyright (c) 2015-2023 EDM Council, Inc.
copyright: Copyright (c) 2015-2023 Object Management Group, Inc.

PromissoryNote
type: Class
subclass of: debt instrument
subclass of: Restriction
  on property: is negotiable
  has value: true

cash instrument
type: Class
subclass of: financial instrument
definition: financial instrument whose value is determined by the market and that is readily transferable (highly liquid)
scope note: Cash instruments can be classified into two subgroups, as securities and other cash instruments such as loans and deposits.

commodity instrument
type: Class
subclass of: financial instrument
subclass of: Restriction
  on property: has commodity value as of execution date
  on class: MonetaryAmount
  min qualified cardinality: 0
subclass of: Restriction
  on property: involves
  on class: Commodity
  min qualified cardinality: 0
subclass of: Restriction
  on property: hasQuantityValue
  on class: ScalarQuantityValue
  min qualified cardinality: 0
definition: financial instrument representing an ownership interest in bulk goods, such as raw materials and primary agricultural products
adapted from: ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Fourth edition, 2019-10.
explanatory note: The value of the contract is derived from the market value of an underlying commodity or commodity index. Commodity derivatives can be physically or cash settled. Primary underliers include metals, agricultural goods and energy.

currency instrument
type: Class
subclass of: financial instrument
definition: financial instrument used for the purposes of currency trading
example: Example currencies include UK pounds, US dollars, Euro. An example currency instrument is spot currency instrument.
scope note: Each instance of a currency instrument has a one to one relationship with its associated currency.
adapted from: Parameswaran, Sunil. Fundamentals of Financial Instruments: An Introduction to Stocks, Bonds, Foreign Exchange, and Derivatives. John Wiley and Sons (Asia) Pte. Lte., Singapore, 2011.

debt instrument
type: Class
subclass of: CreditAgreement
subclass of: financial instrument
subclass of: Restriction
  on property: hasBorrower
  some values from: Borrower
subclass of: Restriction
  on property: hasLender
  some values from: Lender
definition: financial instrument and credit agreement evidencing monies owed by the issuer to the holder on terms as specified
adapted from: ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Fourth edition, 2019-10.

derivative instrument
type: Class
subclass of: financial instrument
disjoint with: cash instrument
definition: financial instrument that confers on its holders certain rights or obligations, whose value is derived from one or more underlying assets
example: The three major categories of derivatives are (1) forward and future contracts, (2) options contracts, and (3) swaps. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.
scope note: Derivatives can be characterized by whether they are exchange-traded or traded over-the-counter (OTC).
adapted from: Parameswaran, Sunil. Fundamentals of Financial Instruments: An Introduction to Stocks, Bonds, Foreign Exchange, and Derivatives. John Wiley and Sons (Asia) Pte. Lte., Singapore, 2011.
explanatory note: Derivative contracts owe their availability to the existence of markets for an underlying asset or a portfolio of assets on which such agreements are written. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. Most derivatives are characterized by high leverage.
synonym: derivative contract

entitlement
type: Class
subclass of: derivative instrument
subclass of: security
definition: financial instrument that provides the holder the privilege to subscribe to or to receive specific assets on terms specified
adapted from: ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Fourth edition, 2019-10.
synonym: right

equity instrument
type: Class
subclass of: security
definition: financial instrument representing an ownership interest in an entity or pool of assets
adapted from: ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Fourth edition, 2019-10.

exempt security
type: Class
subclass of: security
definition: security that is exempt from certain regulatory rules
example: Some exemptions from the registration requirement include: private offerings to a limited number of persons or institutions; offerings of limited size; intrastate offerings; and securities of municipal, state, and federal governments.
adapted from: Securities Act of 1933
explanatory note: Generally, securities must be filed with the appropriate regulatory agencies in the jurisdiction in which they are sold. The registration forms companies file provide essential facts while minimizing the burden and expense of complying with the law. Not all securities must be registered, however. By exempting many small offerings from the registration process, regulators seek to foster capital formation by lowering the cost of offering securities to the public.

financial instrument
type: Class
subclass of: WrittenContract
subclass of: Restriction
  on property: isIdentifiedBy
  on class: financial instrument identifier
  min qualified cardinality: 0
subclass of: Restriction
  on property: has nominal value
  on class: MonetaryAmount
  min qualified cardinality: 0
subclass of: Restriction
  on property: is legally recorded in
  on class: Jurisdiction
  min qualified cardinality: 0
subclass of: Restriction
  on property: is denominated in
  on class: Currency
  qualified cardinality: 1
subclass of: Restriction
  on property: is negotiable
  on data range: boolean
  qualified cardinality: 1
subclass of: Restriction
  on property: isIssuedBy
  some values from: issuer
definition: written contract that gives rise to both a financial asset of one entity and a financial liability of another entity
example: Examples of financial instruments include: cash, evidence of an ownership interest in an entity, or a contractual right to receive (or deliver) cash, or another financial instrument.
adapted from: https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2021/issued/part-a/ias-32-financial-instruments-presentation.pdf
explanatory note: A financial instrument can be thought of as a template that defines an arrangement structure that remains to be fleshed out with terms and parameters in order to establish a specific instance of the contract.

financial instrument identifier
type: Class
subclass of: Identifier
subclass of: Restriction
  on property: identifies
  on class: financial instrument
  min qualified cardinality: 0
definition: sequence of characters uniquely identifying a financial instrument for some purpose and within a specified context
scope note: Identifiers for financial instruments may include an ISIN, Sedol, CUSIP, BBGID, FIGI, or other identifier issued approximately when the instrument itself is issued, and based on the kind of instrument and jurisdiction in which it is issued.

future
type: Class
subclass of: derivative instrument
definition: derivative instrument that obligates the buyer to receive and the seller to deliver the assets specified at an agreed price, at some later point in time
adapted from: ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Fourth edition, 2019-10.

issuer
type: Class
subclass of: ContractPrincipal
subclass of: Restriction
  on property: isPlayedBy
  some values from: Restriction
    on property: isAPartyTo
    some values from: financial instrument
definition: party that issues (or proposes to issue in a formal filing) a financial instrument
adapted from: Securities Exchange Act of 1934, as amended 12 August 2012
explanatory note: An issuer can be any legal person, including a legally competent natural person, company, government, or political subdivision, agency, or instrumentality of a government, depending on the nature of the instrument. A person might provide a loan directly to another party, but most instruments are issued by legal entities.
explanatory note: With respect to certificates of deposit for securities, voting-trust certificates, or collateral- trust certificates, or with respect to certificates of interest or shares in an unincorporated investment trust not having a board of directors or of the fixed, restricted management, or unit type, the term issuer means the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust or other agreement or instrument under which such securities are issued; and except that with respect to equipment-trust certificates or like securities, the term issuer means the person by whom the equipment or property is, or is to be, used.

negotiable security
type: Class
subclass of: security
subclass of: TransferableContract
subclass of: Restriction
  on property: is negotiable
  has value: true
definition: security that can be transferred to another party

non-negotiable security
type: Class
subclass of: security
disjoint with: negotiable security
definition: security that is not transferable to another party
explanatory note: Certain securities that can be redeemed by the issuer may not be 'negotiable', such as savings bonds and certificates of deposit.

option
type: Class
subclass of: derivative instrument
definition: derivative instrument that grants to the holder either the privilege to purchase or the privilege to sell the assets specified at a predetermined price or formula at or within a time period in the future
adapted from: ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Fourth edition, 2019-10.

packaged financial product
type: Class
subclass of: FinancialProduct
subclass of: ContractualProduct
subclass of: Restriction
  on property: isIncludedIn
  on class: FinancialProductCatalog
  min qualified cardinality: 0
subclass of: Restriction
  on property: comprises
  some values from: Class
    union of: FinancialProduct
    union of: financial instrument
definition: financial product that acts as a container for at least one financial instrument, including other financial products, and whose value is derived from, or based on a reference asset, market measure, or investment strategy
scope note: Packaged products are typically included in an institution's approved product catalog, i.e., pre-approved by compliance organizations for sale to clients. Not all institutions maintain such a catalog, with internal identifiers for such products, but many do. Such core products may have as attributes: Type (product and possibly asset class), product identifier, status and approval date, product family approval (as appropriate), and so forth.
explanatory note: Certain properties of the instruments, such as their term, interest rate, eligibility of the client, etc., may be set as a part of the product specification. Some of these are intrinsic but variable properties of the instrument, for example the exact interest rate, whereas others are extrinsic, such as client eligibility. Product offerings have prices, which may build in various fees, that are components of the cost of carry on a trader's books.
explanatory note: Reference assets and market measures may include single equity or debt securities, indexes, commodities, interest rates and/or foreign currencies, as well as baskets of these reference assets or market measures. Like other well-known market instruments such as convertible bonds, many structured products are hybrid securities. Structured products typically have two components - a debt instrument and a derivative, which is often an option. The debt instrument, in some instances, may pay interest at a specified rate and interval. The derivative component establishes payment at maturity, which may give the issuer the right to buy from you, or sell you, the referenced security or securities at a predetermined price. For example, structured products may combine characteristics of debt and equity or of debt and commodities.
explanatory note: SEC Rule 434 defines structured securities as 'securities whose cash flow characteristics depend upon one or more indices or that have embedded forwards or options or securities where an investor's investment return and the issuer's payment obligations are contingent on, or highly sensitive to, changes in the value of underlying assets, indices, interest rates or cash flows'.
synonym: market-linked investment
synonym: structured product

redemption provision
type: Class
subclass of: ContractualCommitment
definition: contract provision enabling the issuer (writer) to regain possession through repayment of some stipulated price
explanatory note: In general, redemption is synonymous with 'buy back' or 'cash in', depending on the kind of instrument. Redemption provisions are commonly applicable to the process of annulling a defeasible title, such as for a mortgage or tax sale, by paying the debt or fulfilling an obligation.

securities transaction
type: Class
subclass of: Trade
subclass of: Restriction
  on property: appliesTo
  some values from: financial instrument
definition: transaction between two or more parties involving the exchange of commonly defined financial products
adapted from: ISO 23897:2020, Financial services - Unique transaction identifier (UTI), clause 3.3
synonym: financial transaction

security
type: Class
subclass of: financial instrument
subclass of: Restriction
  on property: is legally recorded in
  on class: Jurisdiction
  qualified cardinality: 1
definition: financial instrument that can be bought or sold
adapted from: Securities Exchange Act of 1934, as amended 12 August 2012
explanatory note: A security can be any note, stock, treasury stock, security future, security-based swap, bond, debenture,certificate of interest or participation in any profit-sharing agreement or in any oil, gas, or other mineral royalty or lease, any collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or in general, any instrument commonly known as a security, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase, any of the foregoing; but shall not include currency or any note, draft, bill of exchange, or bankers' acceptance which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.
explanatory note: In the U.S., the Supreme Court has adopted a flexible and liberal approach in determining what constitutes a security. In its famous decision of SEC v. W.J. Howey Co., 328 U.S. 293, 90 L.Ed. 1244, 66 S.Ct. 1100 (1946), the Court held that land sales contracts for citrus groves in Florida, coupled with warranty deeds for the land and a contract to service the land, were 'investment contracts' and thus securities. The Court stated that [a]n investment contract for purposes of the Securities Act means a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party. 66 S.Ct. at 1103. According to the Court, it is immaterial whether the shares in the enterprise are evidenced by formal certificates or by nominal interests in the physical assets employed in the enterprise. 66 S.Ct. at 1104.
explanatory note: Some securities may be traded over the counter, or through an exchange, or via some other trading venue such as an electronic trading platform.
explanatory note: Whether a contract or other economic right is a security essentially depends on whether the holder of the contract is acting as an investor who seeks financial benefits based on the work of a promoter or a third party.

spot contract
type: Class
subclass of: financial instrument
definition: financial instrument that settles for immediate delivery on a specified date
explanatory note: A spot transaction is a transaction in which some goods or instrument(s) are exchanged for some other goods or instruments, including currency, with no future delivery provision, i.e., within the minimum number of days possible. Examples include currency spots and commodity spot transactions, whose settlement convention is determined by the relevant market.

standardized terms
type: Class
subclass of: ContractualCommitment
definition: contract terms that, grouped together, that are generally and consistently reused across many contracts, published by some organization, and capable of being incorporated into a contract by reference
example: Each exchange has a set of terms they apply to membership agreements and with respect to the instruments that may be traded on that exchange. For example, there is a set expiration date that exchanges will publish for exchange-traded options - in the US it is the Saturday following the third Friday of every month. Similarly, there are set incremental dates for strike for exchange traded options. Contract sizes are also stipulated, for example in the US these are standardized by the OPRA Convention (Options Pricing Reporting Authority).

underlier
type: Class
subclass of: ThingInRole
definition: something that can be assigned a value in the marketplace that forms the basis for a derivative or pool-backed instrument
explanatory note: Underlier means any rate (including interest and foreign exchange rates), currency, commodity, security, instrument of indebtedness, index, quantitative measure, occurrence or non-occurrence of an event, or other financial or economic interest, or property of any kind, or any interest therein or based on the value thereof, in or by reference to which any payment or delivery under a transaction is to be made or determined.

has commodity value as of execution date
type: ObjectProperty
sub property of: hasMonetaryAmount
range: MonetaryAmount
definition: indicates the per unit value of a given commodity as of the date that the contract is executed

has nominal value
type: ObjectProperty
sub property of: hasMonetaryAmount
range: MonetaryAmount
definition: indicates the face value of a contract
explanatory note: Nominal value of a security is its redemption price and will vary from its market value. A preferred stock's nominal (par) value is important in that it is used to calculate its dividend while the nominal value of common stock is an arbitrary value assigned for balance sheet purposes.
explanatory note: The nominal amount of a financial instrument is the face amount used to calculate payments made on that instrument. This amount generally does not change. For securities the nominal value is often referred to as the face or par value. This is the redemption price of the security and is normally stated on the front of that security. With respect to bonds and stocks, it is the stated value of an issued security, as opposed to its market value.
synonym: has face value

has principal executive office address
type: ObjectProperty
sub property of: hasRegisteredAddress
domain: LegalPerson
range: ConventionalStreetAddress
definition: relates an organization, specifically the issuer of a financial instrument, to its principal executive address, as required for issuance of that instrument
explanatory note: Note that in most cases, the principal executive office address is also the headquarters address for a company.

has redemption terms
type: ObjectProperty
sub property of: hasContractualElement
range: redemption provision
definition: indicates the specific terms related to redemption as specified in the instrument or a related contract document

has shareholder
type: ObjectProperty
sub property of: isAffectedBy
domain: issuer
range: Shareholder
definition: indicates a party that holds shares in the issuer

has underlier
type: ObjectProperty
range: underlier
definition: relates a derivative to something on which the contract is based
usage note: The domain of this property can be either a derivative instrument or, in the case of a swap contract, one leg of the swap.

has value expressed in
type: ObjectProperty
sub property of: hasCurrency
domain: financial instrument
range: Currency
definition: relates an instrument to the currency its value is typically expressed in
explanatory note: This should be the same currency that was declared at the time of issuance.

holds shares in
type: ObjectProperty
sub property of: actsOn
domain: Shareholder
range: issuer
inverse of: has shareholder
definition: specifies the issuer in which a shareholder holds an equity position

is denominated in
type: ObjectProperty
sub property of: hasCurrency
domain: financial instrument
range: Currency
definition: indicates the currency in which the financial instrument was issued

is legally recorded in
type: ObjectProperty
sub property of: hasGoverningJurisdiction
domain: financial instrument
range: Jurisdiction
definition: jurisdiction (country, county, state, province, city) in which the financial instrument is legally recorded for regulatory and/or tax purposes

is negotiable
type: DatatypeProperty
domain: financial instrument
range: boolean
definition: specifies whether a particular financial instrument is or is not transferable

UniqueTransactionIdentifier
type: Class
subclass of: Restriction
  on property: identifies
  on class: securities transaction
  qualified cardinality: 1