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    <p>Domain specific languages (DSLs) are most commonly used to represent financial instruments. The canonical paper is Simon Peyton Jones' <a href="http://doi.acm.org/10.1145/351240.351267" rel="nofollow">Composing Contracts: an Adventure in Financial Engineering</a> which represents contracts using a combinator library in Haskell. The most prominent use of the combinator approach is <a href="http://www.lexifi.com/product/technology/contract-description-language" rel="nofollow">LexiFi's MLFi language</a>, which is built on top of OCaml (their CEO, Jean-Marc Eber, is a co-author on the Composing Contracts paper). Barclay's at one point copied the approach and described some additional benefits, such as the ability to generate human-readable mathematical pricing formulas (<a href="http://dx.doi.org/10.1017/S0956796808007016" rel="nofollow">Commercial Uses: Going Functional on Exotic Trades</a>).</p> <p>DSLs for financial contracts are typically built using an embedding in a functional language such as Haskell, Scala, or OCaml. The uptake of functional programming languages in the financial industry will continue to make this approach attractive.</p> <p>In addition to representing financial instruments, DSLs are also used in finance for:</p> <ul> <li>Modeling financial entities with ontology languages (<a href="http://www.omgwiki.org/OMG-FDTF/doku.php" rel="nofollow">Financial Industry Business Ontology</a>)</li> <li>Replacing computations typically described using spreadsheets (<a href="http://doi.acm.org/10.1145/1411204.1411236" rel="nofollow">http://doi.acm.org/10.1145/1411204.1411236</a>)</li> <li>Modeling pension plans (<a href="http://www.intentsoft.com/overview/case-study-financial-services/" rel="nofollow">Case Study: Financial Services</a>)</li> <li>Analyzing financial market data (<a href="https://www.youtube.com/watch?v=54Vv3Os3Ep4" rel="nofollow">The Hedgehog Language</a>)</li> </ul> <p>I maintain a complete list of financial DSLs papers, talks, and other resources at <a href="http://www.dslfin.org/resources.html" rel="nofollow">http://www.dslfin.org/resources.html</a>.</p> <p>If you'd like to meet professionals and researchers working with DSLs for financial systems, there's an upcoming workshop on October 1st at the MODELS 2013 conference in Miami, Florida: <a href="http://www.dslfin.org/" rel="nofollow">http://www.dslfin.org/</a></p>
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