The SEC and Python?

Wednesday, April 28th, 2010

Prof. Jayanth R. Varma’s Financial Markets Blog mentions an April Fools-worthy proposal — two weeks too late — involving The SEC and Python:

We are proposing to require that most ABS issuers file a computer program that gives effect to the flow of funds, or “waterfall,” provisions of the transaction. We are proposing that the computer program be filed on EDGAR in the form of downloadable source code in Python. … (page 205)

Under the proposed requirement, the filed source code, when downloaded and run by an investor, must provide the user with the ability to programmatically input the user’s own assumptions regarding the future performance and cash flows from the pool assets, including but not limited to assumptions about future interest rates, default rates, prepayment speeds, loss-given-default rates, and any other necessary assumptions … (page 210)

The waterfall computer program must also allow the use of the proposed asset-level data file that will be filed at the time of the offering and on a periodic basis thereafter. (page 211)

WTF?

Joseph Fouché has some fun with the idea:

An executable security filing may have advantages over paper filings. Debuggers for programming languages are, at this point, more advanced than debuggers for corporate accounting and derivatives. Putting the security filing in Python will actually make it more readable, since the last time I checked most financial statements aren’t Turing complete. If they were, it might destroy the very fabric of space-time. Python has lots of high quality software development tools and a cadre of even higher quality software engineers to those tools. Python may eventually come to subsume a great deal of human communication in the future since Python is more aesthetically pleasing than most human languages.

He also shares a few of his “core political beliefs”:

The only other high level (above assembler) programming languages that should be allowed to exist are C and any open source functional programming language (R, Lisp, Scheme, Haskell, Erlang, etc.). Perl will be retained because having a barbaric freakish culturally dissonant enemy along your frontier produces and maintains asabiya.

Posted in Business, Policy, Technology | 1 Comment »

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Richard Careaga says:

July 8, 2010 at 9:37 pm

A simplified example of a waterfall program can be seen at pylaw.org.

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Bob Sykes: Which is why Russia, China, Iran and North Korea have hypersonic missiles, and we don’t. Not even one successful test. Kunstler is pessimistic: https://kunstler.com/clu sterfuck-nation/pep-talk -on-a-dark-day/#more-216 11′
Gaikokumaniakku: “It’s unusual.” One might say it’s “unwonted.”
Dan Kurt: Re: “Selcouth” is not a word you see every day. It’s unusual. Ok. Strike selcouth and substitute eldritch.
Isegoria: “Selcouth” is not a word you see every day. It’s unusual.
Dan Kurt: To me this post is disconcerting. On reading it I experienced a strong sense that I had read it once before. What a selcouth déjà vu moment.
Gaikokumaniakku: Isaiah 5:20 Woe to those who call evil good and good evil, who turn darkness to light and light to darkness, who replace bitter with sweet and sweet with bitter. 21Woe to those who are wise in their own eyes and clever in their own sight.
Phileas Frogg: Again the eternal conflict between the Real and the Nominal, and once more the Nominal lies. Never forget, lying is an act of aggression, and should always be treated as such. The more egregious the lie, the more aggressive the act. Respond accordingly.
Gaikokumaniakku: Tangentially related: 3M22 Zircon: Debunking Misconceptions. At the link, a military expert criticizes Russian hypersonic weapons.
Phileas Frogg: History is a gift and its study a blessing; even the people whose effects I have come to despise are so obviously superior to our present milieu that one can’t help but feel a sort of scruffy abashedness in the presence of their biographies. And, of course, it gets worse the further back you go. One wonders at the impression a fully fledged Adam in the Garden, before the Fall, would have had on us scampering apes. Darwin got it backwards, we didn’t evolve from an ape-like...
Bob Sykes: LBJ also kept a cooler of beer in that Caddy, and he usually was drinking a beer while he drove around.
Jim: Design really is everything.
Jim: Superb excerption.
Jim: I predicted thith.
Phileas Frogg: “Interestingly, working-class Americans are more likely to read local news, while the wealthy and highly educated favor national and global news.” I wonder how much of this is social norms vs self-perception. Do the wealthy and educated feel in touch with (or that they should be in touch with) national and global events, or is it mere mimicry? How about the working-class? The two are necessarily mutually exclusive of course, but I wonder if there’s a different primary...
Phileas Frogg: As advances in weapon’s have improved the range and effectiveness of the individual soldier’s impact on the battlefield, the number of soldiers has increased in importance relative to the quality of any individual soldier. It’s the Thermopylae Principle in reverse because of weapons advancements. Reminds me of RTS balancing, where to effectively implement melee units developers need to give them either unrealistic speed or durability relative to the ranged capabilities of...
Bob Sykes: Calling Mohamed Farrah Aidid’s militia a mob is a bit much, but they were lightly armed and poorly trained. However, they defeated the US/UN mission to Somalia, or at least fought it to a draw. We’re still fighting Aidid’s grandchildren, and we still haven’t won. The war is now in its 4th decade, with no end in sight. Settling aside our Indian Wars (1607 to 1918). Somalia is the longest US war.
McChuck: Anybody who has ever played a wargame can tell you that your defenses can handle a certain amount of opposition, but when enemy numbers, regardless of quality, exceed that number, you get overrun. The mobs in Mogadishu back in 1993 weren’t well organized, weren’t well equipped, weren’t well trained, and weren’t well led. But there sure were a whole lot of them shooting at the Rangers.
Russell: New article about Thorp https://archive.ph/fq5JC
Phileas Frogg: The class divide in the US is as deep and wide as any as has existed in history, but instead of acknowledging the divide, much less trying to bridge it, we have chosen moralization and mutual animosity, which will be the death of us.

Isegoria

The SEC and Python?

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