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FpML-MWG40 minutes meeting 05/12



Next meeting: May 26, 2005

 

4.2 First Working Draft was published early this week.

 

May 12, 2005

 

Attendees

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

Kedar Kodlapur (Lehman)

Marc Teichman (DTCC)

Rajeev Kotyan (Sonic Software)

Matthew Rawlings (JP Morgan Chase)

Brian Lynn (GEM)

Henri Pegeron (ISDA)

Marc Gratacos (ISDA)

 

Regrets

-----------

Brock Arnason (Morgan Stanley)

 

 

Addition of masterConfirmation element within Allocation type

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

-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.

-Marc Teichman said that the use of the documentation element is too heavy
in this case since most of the information will be contained within the
documentation element in the block trade.

-Kedar will check to see how Lehman handles this situation internally.

 

Option Exercise proposal

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

Agreed to make the following changes:

-Need to identify an option. Create an option identifier element within
original trade.

-Produce two examples: IR Collar and Straddle

-Change name exerciseCharacteristics to characteristics.

-Make time element mandatory.

-Move asset information to the characteristics container instead of having
it inside the partial element. Make asset optional since it’s not
relevant for some type of options.

-the physical settlement should contain information about the new
trade/tradeId

-Instead of having a notification message we’d create an
OptionExerciseRequest (request message) and OptionExerciseResponse
(response). The only difference between the two is that in the request the
settlement element will be option while it will be mandatory in the
response.

-We would create an OptionExpiryNotification message. This message will
contain the originalTrade element as it will be defined in OptionExercise
and an expiryDate element.

 

-AOB

--------

-tradeSide structure is within Trade and DataDocument type. It should be
removed from DataDocument. An errata should be posted.

 

Actions

-----------

-Kedar will check inclusion of confirmation element within short form
representation of allocations.

-Marc G. will update the option exercise proposal.

-Marc G. issue errata for tradeSide.

 

 

Best Regards,

-Marc

 

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