A formal specification language and automatic modeling method of asset securitization contract

Abstract

Asset securitization is an important financial derivative involving complicated asset transfer operations. Therefore, digitizing traditional asset securitization contracts will improve efficiency and facilitate reliability verification. Furthermore, accurate and verifiable requirement description is essential for collaborative development between financial professionals and software engineers. A domain specific language for writing asset securitization contract has been proposed. This solves the problem of difficulty for financial professionals to directly write smart contract by simplifying writing rules. However, due to existing design of the language focused on some simple scenarios, it is insufficient and informal to describe various detailed scenarios. What is more, there are still many reliability issues, such as verifying the correctness of the logical properties of the contract and ensuring the consistency between the contract text and the contract code, within the language in the generation and execution of smart contracts. To overcome the challenges stated above, we extend, simplify and innovate the syntax subset of the domain specific language and name it AS-SC (Asset Securitization – Smart Contract), which can be used by financial professionals to accurately describe requirements. Besides, because formal methods are math-based techniques that describe system properties and can generate programs in a more formal and reliable manner, we propose a semantic consistent code conversion method, named AS2EB, for converting from AS-SC to Event-B, a common and useful formal language. AS2EB method can be used by software engineers to verify requirements. The combination of AS-SC and AS2EB ensures consistency and reliability of the requirements, and reduces the cost of repeated communications and later testing. Taking the credit asset securitization contract as case study, the feasibility and rationality of AS-SC and AS2EB are validated. In addition, by carrying out experiments on three randomly selected real cases in different classic scenarios, we show high-efficiency and reliability of AS2EB method.