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FpML-BP RE: Option Exercise/Expiry



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I couldn't make the meeting on the 27th August which discussed option Exercise/expiry but could I make a request to the group? For the option exercise process would it be possible to have an additional 'notification' message in the process flows for communicating the decision to parties other than the buy/sell party. London Clearing House, for example, would need such a message in order to action novated options.

 

For LCH this notification message would just require identification of the option trade. For partial exercise (which LCH don't require but which would need to be covered) there would need to be some economics to show the partial exercise amount. This could maybe achieved by making the structures containing the details of the exercise optional.

 

Regards,

 

Neal

 

Neal Johnston-Ward

Consultant

Solutions Design

LCH.Clearnet

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