Classification as used here attempts to arrange traded financial derivatives into product classes or groups based on similar or related properties; properties as identified within a defined scheme of taxonomies; and similarity of properties as meaningful within some context.

The motivation for classification here is not much different to classification in biology in that the focus is not so much on the naming of things but on coming up with the best possible ordering of our knowledge base about the properties of the objects being classified such that the ordering gives us the greatest contextual command of the knowledge already acquired about the objects, and also leads us in the most direct way to the acquisition of more.

 

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Classifying Derivatives Contracts (or herding cats onto carousel seats) (724)