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The classification of financial products
Author(s) -
Loehrlein Aaron J.,
Lemieux Victoria L.,
Bennett Michael
Publication year - 2014
Publication title -
journal of the association for information science and technology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.903
H-Index - 145
eISSN - 2330-1643
pISSN - 2330-1635
DOI - 10.1002/asi.22969
Subject(s) - viewpoints , transparency (behavior) , financial crisis , finance , financial services , business , financial market , product (mathematics) , economics , computer science , computer security , art , geometry , mathematics , visual arts , macroeconomics
In the wake of the global financial crisis, the U.S. Dodd‐ Frank Wall Street Reform and Consumer Protection Act (Dodd‐Frank) was enacted to provide increased transparency in financial markets. In response to Dodd‐Frank, a series of rules relating to swaps record keeping have been issued, and one such rule calls for the creation of a financial products classification system. The manner in which financial products are classified will have a profound effect on data integration and analysis in the financial industry. This article considers various approaches that can be taken when classifying financial products and recommends the use of facet analysis. The article argues that this type of analysis is flexible enough to accommodate multiple viewpoints and rigorous enough to facilitate inferences that are based on the hierarchical structure. Various use cases are examined that pertain to the organization of financial products. The use cases confirm the practical utility of taxonomies that are designed according to faceted principles.