Minutes: FpML Working Group Meeting: 5 May 2009, 1000-1100EST (London Time: 3-4pm)

Minutes from 5^th May 2009 Meeting:

- Lender Position deferring agreed.

- Business requirements update discussed at high-level

o New Deal and Facility capture

- Schema design presented

o Deal

o Facility

o Deal Trade Notice

o Deal Trade

o Facility Trade

o Par Confirm Notice

- Feedback: Make the borrower and guarantor array names at the deal and facility level, singular.

Questions:

When are we due to cover Commitment Adjustments, PIK scenarios…?
These are all covered in upcoming phases of work. Please see the scope matrix in the requirements document.
For L/C notices, why have we not allowed a choice between describing either the L/C summary and the full L/C structure – just like in the loan contract-based notices…?
It never came up as a requirement. Investigate whether there is a business case to make the (l/c and loan contract) notices consistent with each other.
From a practical implementation perspective, how should vendors manage cancellations…?
Cancellation notices have not been covered by the standard as yet. Maybe we should scope them into a particular phase…?
Most vendors are extending basic FpML structures and implementing their own cancellation methodology.
Other asset classes within FpML do define business event specific messages to allow cancellation and potential re-statement of the event. We would need to create a cancellation message for each business event created so far.
It was also noted that there may be two cancellation scenarios: a business cancellation and a protocol-transmission error.
This work should be scoped.
When describing sub-limits should we consider just borrower limits or other kinds of limits…?
We should be considering all kinds of limits on the deal structure and the best way to represent them in the deal/facility structure. This is not necessarily a trade-related requirement and can be complex. It is currently scoped for an upcoming phase of work.
Should we include any expected settlement date…?
The business working group agreed to remove those fields from the confirmation.
Delayed compensation. Are there any fields on the confirmation that describe the way in which delayed comp would be calculated…?
Not on the confirmation. There is a delayed compensation structure which when defined will exist on the funding memo structure and will define arrays of accruals for each type of ‘income stream’ (e.g. fees, interest).
Facility Trade / Upfront Fee. Should this be removed…?
Need to check with the business working group.
Facility Trade / On Risk Until Date. Should this be removed…?
Need to check with the business working group.
Trade allocations. What other information will need to be captured at the trade allocation level…?
Are there additional data points that need to be captured here in addition to the counterparty and the amount (e.g. any settlement details etc…?)

If there are any additional points or feedback that anyone wishes to send then please feel free. Most of the points above will be added to the next version of the business requirements document.

Thanks,

From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Tuesday, May 05, 2009 3:23 AM
To: loanwg@xxxxxxxx
Cc: oleg.starovoitov@xxxxxxx; paulwhardy@xxxxxxxxxxx
Subject: FpML Working Group Meeting: 5 May 2009, 1000-1100EST (London Time: 3-4pm)

All,

Dial-in details:

US: + 1 (888) 481 - 3032

Intl: + 1 (617) 801- 9600

UK: 0800 904-7961

Participant Code: 28413758

Agenda

- Lender position requirements have been removed from the v4.6 release. Referred to a later version of FpML.

- Business requirements updated (v1.35) to include extended Deal & Facility structures. Further details around the Par Trade Confirmation notice.

- Updated schema attached (with lender position notices removed).

Design issues can be discussed as we go through the requirements document and the schema design (too many to list!).

Attachments (please rename)

- Business requirements - v1.35

- Latest business working group requirements (Confirm, Assignment, Funding Memo)

- Latest schema with updated Deal/Facility/Confirm structures – v4.6

Regards,

Bhavik Katira

CEO

TenDelta™

Fresh insight. Pure logic.

www.tendelta.com

+1.917.582.4574 new york

+44.(0).7780.808732 london

TenDelta™ provides business process consulting & technology design services, specializing in the Syndicated Loan Market. Entrusted with engineering innovative & logical solutions; we endeavor to deliver timely, robust, cutting-edge solutions.

TenDelta™ Limited is a company registered in England & Wales. The Company registered number is 06285903. The registered office is 3 Francis Road, Harrow, Middlesex, HA1 2QZ, United Kingdom.

Minutes/Actions from 21st April 2009

Upcoming Documents:

1. Updated 4.6 schema. Attached is the schema containing the trading notices designed so far. Please note: a new version of the schema will be made available containing ALL v4.6 components.

2. Due to a data outage there needs to be some reconciliation between v1.34 and v1.35. A new version of the document will be sent out containing lender position and trading updates by the beginning of next week.

- Upcoming Target Dates:

--> Coordination committee would like to review the proposed structures by 8th May 2009

--> Target: End of May for Last Call Working Draft

--> Target: End of June for Trial Recommendation

--> Target: End of July for Recommendation

- Next Steps

Requirements:

- Document the facility type attribute.

- Resolve the issue around facility sub-types vs explicit field definitions of facility attributes. Define the contents of the 'sub-type' field and define which potential attributes we may want to introduce within the facility structure.

- Check that L/C Amendments have been included in v4.5 and that there are no outstanding issues around this notice type.

- Update v1.34 of the business requirements document to include the latest lender position report requirements.

- Update v1.34 of the business requirements document to include the latest trading requirements.

- Integration of the "loan trading" and "lender position" schemas.

- Progress the schema design to cover all docmented Par Loan trading requirements (to be followed by distressed trading requirements).

Example Notices:

- DTCC have volunteered to produce example notices for the lender position history structure.

- We will require participants to volunteer for trading notices. Please let me know if you are interested in providing some input.

Validation:

- We will need to start working on business validations also. Initial step is to create an excel model of proposed validations.