A-Team Insight Blogs

ACTUS Foundation Releases Open-Source Standard for Financial Markets Contracts

The ACTUS Financial Research Foundation is releasing open-source Algorithmic Contract Types Unified Standards (ACTUS) version 1.0, which will be available on GitHub.

ACTUS creates a standard for the mathematical representation of the payment obligations embodied in financial contracts, and seeks to provide the financial industry with a unified, machine-readable depiction of financial contracts for transaction-processing, analysis, and smart-contracts.

The combination of the ACTUS Data Dictionary, consisting of the standard definitions of the collection of data elements and terms used by financial contracts, and the defined set of Contract Type algorithms that generate predicted cash flows using the current state of these contract terms, allows ACTUS to provide a foundational platform for an effective regtech technology.

According to Allan Mendelowitz, president of ACTUS, “Finance is best represented in numbers, equations, and algorithms. Banks have to look at how much they pay and receive from each party. But is there a standard way to represent that contract? When the analysts try to look into it, it can get fairly complicated, because there’s no standard balance sheet. Financial analysis starts at the granular level.”

Jefferson Braswell, chair of the board of governors at the ACTUS Financial Research Foundation, adds, “Using many of the rule-based and functional techniques that have previously been applied only to static financial statements and accounting snapshots, the complete set of scenario-dependent, cashflow forecasts of the actual contracts on a financial institution’s balance sheet produced by ACTUS can be used to source and derive a majority of regulatory reports—and which now have a robust, granular, and forward-looking data to draw upon.”

He goes on: “Applying ACTUS in this fashion greatly reduces the redundant efforts and costs that are currently involved when complying with the large number of different regulatory reporting requirements today, and it greatly increases the efficiency and adaptability of responding to future regulatory requirements.”

Leave a comment

Your email address will not be published. Required fields are marked *

*

Share article

Related content

WEBINAR

Recorded Webinar: High Performance Technologies for Electronic Execution

Don’t miss this opportunity to view the recording of this recently held webinar. When firms pursue higher performance in the electronic trading execution technology they use, they must consider the exchange and trading venue landscape as the context for their approach. Their approach can be accomplished in-house or with support from providers, which can be...

BLOG

Fine Lines Between FCA and EU on MiFID II

By Dan Barnes UK markets regulator, the Financial Conduct Authority (FCA), has issued its consultation on the implementation of MiFID II, with some significant differences to the rules published by the European Commission, particularly for the buy side. The level of surprise these changes hold for firms will typically depend on their size and investment...

EVENT

TradingTech Summit New York City

Our TradingTech Summit in New York City is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Directory of MiFID II Electronic Trading Venues 2018

The inaugural edition of A-Team Group’s Directory of MiFID II Electronic Trading Venues 2018 offers a guide to the European landscape resulting from new market structure introduced by the January 3, 2018 implementation of Markets in Financial Instruments Directive II (MiFID II). The directory provides detailed profiles of more than 70 venue operators and their...