Sato's universal Grassmannian and group extensions

An extension of the symmetry group GL of Sato's universal Grassmannian GM is constructed. The extension plays a similar role to that of the central extension in the approach of Segal and Wilson to functions and KP hierarchy. Our group G contains GL_res as a subgroup and the associated function is a deformation of the usual function, leading to a deformed KP hierarchy. A relation to current algebra of Yang-Mills theory in 3+1 dimension is discussed.