SEC proposed to submit PYTHON code for ABS deals

Last night i was surprised  when i found that sec.gov has proposed(in 2010) a law for more regulation and transparency in disclosures for asset backed securities.

But this was not submitting an XBRL or XML source, it is a python code.

here are some lines which might create curiosity:

    We are proposing to require that most ABS issuers file a computer program that gives effect to the flow of funds, or “waterfall,” provisions of the transaction. We are proposing that the computer program be filed on EDGAR in the form of downloadable source code in Python. … (page 205)

    Under the proposed requirement, the filed source code, when downloaded and run by an investor, must provide the user with the ability to programmatically input the user’s own assumptions regarding the future performance and cash flows from the pool assets, including but not limited to assumptions about future interest rates, default rates, prepayment speeds, loss-given-default rates, and any other necessary assumptions … (page 210)

    The waterfall computer program must also allow the use of the proposed asset-level data file that will be filed at the time of the offering and on a periodic basis thereafter. (page 211)

Link to that document is:    http://www.sec.gov/rules/proposed/2010/33-9117.pdf

But do you think will industry allow it?

Well i think, No.. they should never discloses any such code to public, Because its how they are making their money. Anyway this is a proposed rule.

Up-to this point XBRL is great; but if python will be implemented,  it would definitely be a major step forward.