A GENERIC DOMAIN SPECIFIC LANGUAGE FOR FINANCIAL CONTRACTS

Financial contracts require management, such as valuation, scheduling and generating legal documents. The current approach for managing financial contracts is inefficient, for lack of a universal language for representing contracts. Peyton Jones et al.'s proposed such a language, even though contracts are diverse and new ones are introduced often. We verify that Peyton Jones et al.'s language is expressive enough by using it to represent two new contracts: credit default swap and power reverse dual currency swap. We demonstrate its advantage by using the same program to value all contracts represented. More generally, we need only one program for each contract management task.