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FpML-MWG40 minutes meeting 05/26



Next meeting: June 9, 2005

 

May 26, 2005

 

Attendees

---------------

Ira Fuchs (XML Associates)

Kedar Kodlapur (Lehman)

George Boukis (Lehman)

Someone else from Lehman but I didn’t get the name. Kedar, could please
give me his name?

Marc Teichman (DTCC)

Matthew Rawlings (JP Morgan Chase)

Brock Arnason (Morgan Stanley)

Marc Gratacos (ISDA)

 

Regrets

----------- 

 

Addition of masterConfirmation element within Allocation type

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--------------

It seems that we need the addition of an optional masterConfirmation
element within the Allocation type. Marc Teicham explained that the dates
of the Master Confirmation or Master Confirmation Annex for the individual
accounts may vary so we need the inclusion of the element for each one of
the allocated trades.

 

Kedar confirmed this internally and posted it in the mailing list. 

 

However, an additional issue was raised by Marc Teichman. He said that the
masterConfirmationType element should be expressed in the block trade
structure while the masterConfirmationDate should be specified in the
allocated trade level. This doesn’t work with the exisiting
MasterConfirmation type since both masterConfirmationType and
masterConfirmationDate are mandatory. Move this issue to Coordination
Committee.

 

Matthew Rawlings raised the issue regarding the naming of the elements
contained in masterConfirmation. We don't need to duplicate the text
"masterConfirmation" in the child elements of the "masterConfirmation"
element. The parent element already names the context. Marc said that it’
s a valid point that should be included in the Architecture Spec.

 

Allocations

----------------

Matthew raised the issue about the existing allocation support in FpML
using the existing trade structure. He raised the word "trade" is
overloaded. It is used for both the "block trade" and the "trade
allocation". Matthew said that the model should distinguish the trade
information from the single allocations. A block trade should have one or
more allocations. Marc said that there wasn’t an agreement from
participants (DTCC, Swapswire) when this was discussed six months ago. 

 

Matthew suggested using UML diagram to show the relationships between the
different concepts and after agreement on the UML model, review the actual
content model.

 

Marc Teichman said that’s fine but the final solution should work for
different implementations, as stands now. The DTCC approach is to send
first the block trade information and then the block trade plus
allocations. So the block trade is still identified upfront without
allocation information.

 

Brock added that the issue is to accommodate a solution that is backwardly
compatible with the existing FpML.

 

Option Exercise proposal

------------------------------------

We didn’t have time to discuss the updated proposal. Members will send
comments to the mailing list. We’ll discuss it in the next meeting.

 

Actions

-----------

-Marc G. will update the option exercise proposal.

-Marc G. will put masterConfirmation optional/mandatory elements issue in
the issue tracker.

-Marc G. will put naming guidelines (parent/children no prefixes) for
discussion in the AWG.

-Matthew will work on UML representation.

 

Best Regards,

-Marc

 

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