What we are speaking about right now.
Ben Lis
Head of Product Management &
Integration
T-Zero
212.323.6041
www.tzero.com
From: Ben Lis
Sent: Friday, May 30, 2008 2:46 AM
To: Irina Yermakova; Brian Lynn;
Marc Gratacos
Subject: RE: Money Payment
Thanks very much, Irina. Brian or Marc, do
you guys have suggestions here?
Here’s my initial view on this one:
I can see justifying a switch to a common type like simple payment, but it
looks as if that won’t be the case here (right not ClassifedPayment
appears to be in option-shared). I’m not convinced it makes sense to move
away from initial payment.
Ben Lis
Head of Product Management &
Integration
T-Zero
212.323.6041
www.tzero.com
From: Irina Yermakova
[mailto:IYermakova@xxxxxxxx]
Sent: Thursday, May 29, 2008 11:40
AM
To: Ben Lis; Brian Lynn; Marc
Gratacos
Subject: RE: Money Payment
If the payment includes negative money
even though the direction provided.
“SimplePayment” can extend “PaymentBase” with (CD requirements
->) “adjustedPaymentDate”
“ClassifiedPayment” is already extends “SimplePayment”
with “paymentType”, so it would look like this
Will this
work, Ben? You would still have a relative date offset though. If CD desides to
go with Non-negative money Payment, then the base type would be
NonNegativePayment and would look like this
Thanks,
Irina
From: Ben Lis
[mailto:Ben.Lis@xxxxxxxxx]
Sent: Wednesday, May 28, 2008
11:12 PM
To: Irina Yermakova; Brian Lynn;
Marc Gratacos
Subject: RE: Money Payment
What type should we be proposing to the
CDWG for this change?
Ben Lis
Head of Product Management &
Integration
T-Zero
212.323.6041
www.tzero.com
From: Irina Yermakova
[mailto:IYermakova@xxxxxxxx]
Sent: Wednesday, May 28, 2008 4:25
PM
To: Ben Lis; Brian Lynn
Cc: Marc Gratacos
Subject: RE: Money Payment
-
No, there is no payment type in the new payment structures. It extends them after
all. For example “ClassifiedPayment” extends SimplePayment with paymentType
-
Yes, that is true, the new types do not offer the adjusted date (Simple Payment
can extend the new payment types with adjusted date) and introduce a relative date
offset. As I recall, although I am not sure.
Here
are the current SimplePayment and initial Payment structures.
The current SimplePayment type structure (fpml-shared) is like this:
The current InicialPayment type structure (fpml-cd) is like this:
This is how the current payment
structure would look with the new types. To change Payment type is not
that easy. Plus it has lots of extra.
I.
The current Payment type structure.
1. “Non-Negative
payment”: The current "Payment" can extend NonNegativePayment
type:
-
Note: Date type changes from
Payment.paymentDate of type AdjustableDate to paymentDate of type
AdjustableOrRelativeDate.
(similar for “Positive Payment”)
2. To
Include negative, proposed: extend PaymentBase type:
-
Note: Date type changes from
Payment.paymentDate of type AdjustableDate to paymentDate of type
AdjustableOrRelativeDate.
-
Question: PaymentAmount (is
optional in pretrade (view="pretrade" minOccurs="0") – how the view of this
in the shared structure can be handled? )
The
above “Payment” type is used by the following structures:
Fpml-doc-
-
Amendment.payment event
-
ChangeContract.payment that used
in all Contract changes
-
Contract.otherPartyPayment
-
Trade. otherPartyPayment
-
ContractNovation.payment –
payment for the Novation
-
Increase.payment – payment
for the right to increase.
Fpml-fx-
-
FxLeg. exchangedCurrency1 –
first of two currency flow that defines a single leg of the standard of the FX
transaction
-
FxLeg. exchangedCurrency2 - second
of two currency flow that defines a single leg of the standard of the FX
transaction
-
TermDeposit.payment
Fpml-ird –
-
BulletPayment.payment – known
payment between two parties
-
CapFloor.premium – premium
amount paid by buyer
-
CapFloor.additionalPayment –
additional payment between principal parties
-
Swaps.additionalPayment - –
additional payment between principal parties
-
Swaption.premium – the option
premium amount paid by the buyer to seller on the specific payment Day.
Fpml-posttrade-
-
Novation.payment
-
Termination.payment –
payment for the right to terminate
From: Ben Lis
[mailto:Ben.Lis@xxxxxxxxx]
Sent: Wednesday, May 28, 2008 3:13
PM
To: Brian Lynn; Irina Yermakova
Cc: Marc Gratacos
Subject: RE: Money Payment
Thanks, Irina. Brian’s point is a
good one – we would really need a payment type element in order to use
this. Unless we introduced two elements – one specifically for upfront
payments and one for the other (rare) case of an irregular specific payment.
Also, the currently used types allow you
to specify either an adjustable or/and an adjusted payment for the payment
date. The simple payment does not seem to offer the adjusted date and also
allows a relative date offset which would be something new.
We really should be looking for something
very close to the InitialPayment type.
Ben Lis
Head of Product Management &
Integration
T-Zero
212.323.6041
www.tzero.com
From: Brian Lynn
[mailto:brian.lynn@xxxxxxxxxxxxxxxxxxx]
Sent: Wednesday, May 28, 2008 2:42
PM
To: 'Irina Yermakova'; Ben Lis
Cc: 'Marc Gratacos'
Subject: RE: Money Payment
Irina –
Does the simple payment not have a
payment type?
From: Irina Yermakova
[mailto:IYermakova@xxxxxxxx]
Sent: Wednesday, May 28, 2008 2:34
PM
To: Ben Lis
Cc: Marc Gratacos; Brian Lynn
Subject: Money Payment
Ben,
as per today’s meeting, below is the new payment types for the CD WG to
consider.
1)
Payment Base type - An abstract base class for
payment types.
2)
Positive
money payment Proposal – : A complex type to specify positive payments that extends PaymentBase
type with paymentAmount element of type “PositiveMoney”.
3)
Non-Negative
money payment Proposal- A complex type to specify non negative payments that extends PaymentBase
type with paymentAmount element of type “NonNegativeMoney”.
4) Includes Negative money payment Proposal:
extends PaymentBase
type with paymentAmount element of type “Money”.
For example:
(Just
for your information, the above “SimplePayment” type is used by the
following structures:
Fpml-ird-
-
CancelableProvision. initialFee
– initial fee for cancelation option.
Fmpl-option-shared-
-
NettedSwapBase.additionalPayment
of type “ClassifiedPayment” – additional payment for all
swaps type (Correlation, Variance Swaps)
-
OptionBaseExtended.premium of type
“Premium” – optional premium amount paid by buyer to seller.
(used by Correlation, Variance, Dividend, CreditDefault Swaps and Bond
options)
)
**************************************************************************************************************************
The information contained in either this email and, if applicable, the
attachment, are confidential and are intended only for the recipient. The
contents of either the email or the attachment may not be disclosed or used by
anyone other than the addressee. If you are not the intended recipient(s), any
use, disclosure, copying, or distribution is prohibited and may be unlawful. If
you have received this communication in error, please notify us by e-mail at
isda@xxxxxxxx then delete the e-mail and all attachments and any copies
thereof. This communication is part of an ISDA process and is not intended for
unauthorized use or distribution.
**************************************************************************************************************************