fm-knowledge-guide

Comprehensive guide for bank developers and Business Analysts (BAs) to master financial market business knowledge. Use this skill when users ask about derivatives (swaps, options, futures), collateral management (CSA, margin calls, VM/IM), trade lifecycle (confirmation, clearing, settlement), FX operations, fixed income, regulatory frameworks (EMIR, Dodd-Frank, UMR), or any financial market concepts they need to understand for building banking systems.

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Install skill "fm-knowledge-guide" with this command: npx skills add kooooooma/skills/kooooooma-skills-fm-knowledge-guide

Financial Market Master

This skill helps bank developers and Business Analysts understand financial market business knowledge in the context of banking IT systems.

When to Use

This skill is triggered when users:

  • Ask about financial market concepts (derivatives, FX, fixed income, equity)
  • Need to understand trade lifecycle processes
  • Want to learn about collateral management and margin calls
  • Seek knowledge about regulatory requirements
  • Need business context for building trading/settlement systems

Core Workflow

Step 1: Identify the Domain

Determine which financial domain the user is asking about:

DomainReference FileTopics Covered
Market Overviewreferences/domain-overview.mdAsset classes, market participants, infrastructure
Derivativesreferences/derivatives-basics.mdSwaps, options, futures, forwards, pricing
Collateralreferences/collateral-management.mdCSA, margin calls, VM/IM, eligible collateral
Trade Lifecyclereferences/trade-lifecycle.mdExecution, confirmation, clearing, settlement
Regulationsreferences/regulatory-framework.mdEMIR, Dodd-Frank, MiFID II, Basel III, UMR
Risk Managementreferences/risk-management.mdVaR, PFE, CVA, Greeks, Stress Testing
Market Datareferences/market-data.mdCurves, Surfaces, Fixings, Bootstrapping
Messagingreferences/messaging-standards.mdSWIFT (MT/MX), FIX, FpML, ISO 20022
Terminologyreferences/glossary.mdFinancial terms A-Z

Step 2: Load Relevant Reference

MANDATORY: Based on the domain identified, you MUST read the entire reference file before generating content:

If user asks about...MUST READDo NOT Load
CSA, margin, collateral, VM/IMreferences/collateral-management.mdtrade-lifecycle, derivatives
Swaps, options, futures, forwardsreferences/derivatives-basics.mdcollateral, regulatory
Trade confirmation, clearing, settlementreferences/trade-lifecycle.mdmarket-data, messaging
EMIR, Dodd-Frank, UMR, Baselreferences/regulatory-framework.mdderivatives, market-data
VaR, PFE, CVA, Greeksreferences/risk-management.mdmessaging, regulatory
Curves, Surfaces, Fixingsreferences/market-data.mdcollateral, regulatory
SWIFT, FIX, FpML, ISO 20022references/messaging-standards.mdrisk-management
Term definitionsreferences/glossary.md(load in addition to domain file)

⚠️ NEVER generate content without loading the relevant reference first.

Step 2.5: Detect User Persona

Adapt content depth based on the user's role (inferred from context or explicit):

PersonaFocusDetection Hints
DeveloperData Models, API fields, Message schemasmentions "database", "API", "schema"
Business AnalystBusiness Rules, CSA Clauses, Workflow logicmentions "requirement", "workflow", "stakeholder"
OperationsDaily processes, Exception handlingmentions "daily run", "exception", "dispute"
GeneralConceptual understandingno specific role indicators

Step 3: Context-Driven Explanation

Always connect business purpose → concept definition → practical example → IT system impact.

Step 4: Verify Content (Self-Correction)

CRITICAL: Before generating the final document, verify your mental draft against the loaded reference file:

  1. Term Check: Are all used terms present in the reference or standard industry glossaries?
  2. Logic Check: Does the explained flow match the "Money/Asset Flow" framework?
  3. Hallucination Check: Did I drag in a concept from a different domain (e.g., applying Equity rules to IRS)?

Step 5: Generate Learning Document

Always generate a comprehensive learning document following these guidelines:

IMPORTANT OUTPUT RULES:

  1. Do NOT include instruction labels like "(REQUIRED)", "(DYNAMIC)", "(if applicable)" in output
  2. Table of Contents must have clickable links (#section-name) matching actual generated sections
  3. References section must link to REAL external URLs (official docs, not placeholders)
  4. Replace all [Topic], [Concept A] placeholders with actual content

MANDATORY - READ ENTIRE FILE: Before generating the document, you MUST load templates/learning-guide-template.md for the complete structure and formatting rules.

Key Requirements:

  • Always include: Overview, Core Concepts, System Implementation, Real-World Scenarios, Appendix
  • Add Lifecycle section for process/flow topics
  • Add Comparison sections for explaining differences (VM vs IM, Pledge vs Title Transfer)
  • Add Calculation section for topics with formulas
  • All References URLs must be REAL, verifiable links (no placeholders)

Step 6: Save to Project Docs Directory (REQUIRED)

You MUST save the generated learning document to the project's docs directory.

Output Path Convention:

docs/fm-guide/[topic-name]-guide.md

Naming Rules:

  • Use lowercase with hyphens for topic name
  • Always suffix with -guide.md
  • Group under fm-guide subdirectory

Examples:

TopicOutput Path
Margin Calldocs/fm-guide/margin-call-guide.md
CSAdocs/fm-guide/csa-guide.md
Acadiadocs/fm-guide/acadia-guide.md
Trade Lifecycledocs/fm-guide/trade-lifecycle-guide.md
ISDA SIMMdocs/fm-guide/isda-simm-guide.md

After saving, notify the user with the file path so they can review the generated document.

Step 7: Ensure Document Viewer Exists (REQUIRED)

Before finishing, you MUST check and copy the viewer.html.

  1. Check if docs/fm-guide/viewer.html exists in the project
  2. If NOT exists, copy from skill templates:
    • Source: fm-knowledge-guide/templates/viewer.html
    • Destination: docs/fm-guide/viewer.html

Implementation:

# Check and copy viewer.html if not exists
if (!(Test-Path "docs/fm-guide/viewer.html")) {
    Copy-Item "<skill-path>/templates/viewer.html" "docs/fm-guide/viewer.html"
}

This ensures the document viewer is always available for browsing generated guides. The viewer dynamically lists all .md files in the same directory.

Step 8: Launch Document Viewer (OPTIONAL)

If the user wants to view documents in browser, launch a local HTTP server:

npx -y http-server docs/fm-guide -p 0 -o /viewer.html

Options:

  • -p 0: Use any available port
  • -o /viewer.html: Auto-open browser to viewer

Viewer Features:

  • Dynamically lists all .md files in the directory
  • Left sidebar for navigation
  • Right panel renders Markdown with Mermaid diagrams
  • Dark theme with modern UI

Topic Quick Reference

Derivatives

  • Swaps: Interest Rate Swaps (IRS), Cross Currency Swaps (CCS), FX Swaps
  • Options: Vanilla options, exotic options, swaptions
  • Futures/Forwards: Exchange-traded vs OTC

Collateral Management

  • CSA: Credit Support Annex under ISDA Master Agreement
  • Margin Types: Variation Margin (VM), Initial Margin (IM)
  • Margin Call Flow: Call → Agree → Pledge → Settle

Trade Lifecycle

  • Pre-trade: Pricing, credit check
  • Execution: Trade capture, booking
  • Post-trade: Confirmation, matching, clearing, settlement

Key Dates

  • Trade Date (T): When the trade is executed
  • Value Date: When the trade takes economic effect
  • Settlement Date: When cash/securities move
  • Maturity Date: When the trade ends

Analyst Mindset & Research (New Frameworks)

When acting as a Bank Analyst, use these thinking frameworks before generating content:

1. Risk-First Thinking

"Who carries the risk if this fails?"

  • Always identify Credit Risk (counterparty default) vs Operational Risk (process failure).
  • Explain mechanics in terms of risk mitigation.

2. The Money/Asset Flow

"Where is the asset moving?"

  • Trace the exact movement of cash/securities.
  • Identify the legal ownership at each step (Pledge vs Title Transfer).

3. System Impact Analysis

"What breaks if this field is wrong?"

  • Connect business concepts to specific database fields or API messages (SWIFT/FIX).
  • Highlight "Load Bearing" data points (e.g., Trade Date, Notional).

4. Research Methodology

  1. Source of Truth: Prioritize ISDA, FpML, and Regulatory Texts (EMIR/Dodd-Frank).
  2. Cross-Check: Verify definitions across multiple jurisdictions (US vs EU often differ).
  3. Concrete Examples: Never leave a concept abstract; always provide a numerical or process example.

Anti-Patterns (NEVER List)

CRITICAL: The following behaviors ruin the credibility of the output.

  1. NEVER Invent Terms: If you don't know the industry standard term (e.g., "Variation Margin"), do not invent one (e.g., "Daily Collateral Adjustment"). Use the glossary.md reference.
  2. NEVER Mix Jurisdictions: Do not blend US rules (Dodd-Frank) with EU rules (EMIR) without explicit distinction. They have different reporting fields and timelines.
  3. NEVER Assume Simple Interest: In financial markets, interest is almost always compounded or calculated with specific day-count conventions (ACT/360, 30/360, ACT/365).
  4. NEVER Ignore Settlement Lag: Trades rarely settle instantly (T+0). Always account for T+1, T+2 settlement cycles in process flows.
  5. NEVER Confuse VM and IM: Variation Margin (daily MTM settlement) ≠ Initial Margin (upfront risk buffer). They have different calculation methods, timing, and regulatory drivers.
  6. NEVER Omit Day Count Convention: Interest calculations MUST explicitly specify the convention (ACT/360 for money markets, 30/360 for bonds, ACT/365 for some jurisdictions).
  7. NEVER Ignore Netting Agreements: Gross vs Net exposure under ISDA CSA can differ by 10x+. Always clarify whether values are gross or net.
  8. NEVER Use Placeholder Links: All URLs in References section must be real, verifiable sources. Search for actual official documentation URLs.

Output Guidelines

  • Use clear, precise financial terminology
  • Include diagrams for complex flows (Mermaid format)
  • Provide both business and technical perspectives
  • Always cite concepts' practical implications for IT systems

Diagram Guidelines (REQUIRED)

Always use Mermaid format for all diagrams to ensure consistent styling across documents.

Supported Diagram Types

Diagram TypeUse CaseSyntax
flowchartProcess flows, decision treesflowchart LR or flowchart TB
sequenceDiagramMessage exchanges, API callssequenceDiagram
graphArchitecture, relationshipsgraph TB or graph LR
stateDiagram-v2State machines, lifecyclestateDiagram-v2

Example Patterns

Process Flow:

flowchart LR
    A[Start] --> B[Process] --> C[End]

Sequence Diagram:

sequenceDiagram
    participant A as System A
    participant B as System B
    A->>B: Request
    B-->>A: Response

Architecture Diagram:

graph TB
    subgraph "Component"
        A[Module A]
        B[Module B]
    end
    A --> B

Style Rules

  1. Use subgraphs to group related components
  2. Add labels with <br/> for multi-line text in nodes
  3. Keep diagrams focused - one concept per diagram
  4. Use consistent direction - LR for flows, TB for hierarchies

Source Transparency

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