Finance speaks one Language
The Open-Source ACTUS Financial Standard is based on a modelling paradigm, in which standardized Contract Types (CTs) are the granular building blocks of the financial world.
ACTUS aims to raise this standardization to a universal/global level.
Central to the paradigm is a standardized, machine-readable and machine executable algorithmic representation of the financial contract and a strict separation of the known from the unknown.
The only knowns are the legal agreements and possibly the current state of the risk factors.
The unknowns are the future states of the risk factors, in particular, the market, counterparty, and behavioral risks.
ACTUS Data Standard
The Data Standard defines a universal set of legal terms – or Contract Type Attributes – used as parameters throughout the different financial agreements. It is implemented in form of a Data Dictionary with Attribute Applicability by Contract Type.
ACTUS Algorithmic Standard
The Algorithmic Standard defines the logic embedded in legal agreements that eventually turn the contract terms into actual cash flows, or more generally business events.
One can think of the ACTUS Standard as the Periodic System of Finance.
The ACTUS Contract Types (CT) consistently define the universe of financial instruments.
ACTUS Contract Types enable an indisputable
Machine Readable and Machine Executable Financial Term Sheet
Given the state of contracts and a scenario of risk factors, it is possible to derive the contract events, which then generate the expected state-contingent cash flows.
From the expected state-contingent cash flows it is possible to derive the analytical metrics of interest, such as income, value and liquidity but also sensitivities, risk etc.
