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FpML-MWG40 Option Exercise



Dear Messaging Working Group members. 

As discussed in today's meeting, I wish to make the following proposal to
the MWG for Option Exercise. 

It is based to a large extent on the ISDA Operations Working Groups's
document for Best Practise for Option Exercise Documentation:
<http://www.isda.org/c_and_a/docs/BPDocOptionsExercise.doc>
http://www.isda.org/c_and_a/docs/BPDocOptionsExercise.doc   

Here is the modified schema (based on the latest from CVS), plus examples.


  

Significiant points: 

1.	An option to be exercised is identified by the contract's
tradeIdentifier. Implicitly this assumes that a contract has at most one
option. This is currently always the case but may change. There is no way
to specify more than one option currently. There is no way to identify an
option independently of the contract. This may be revised if FpML in
future supports multi-option contracts with identifiers for the options. 

2.	The best practise document requires a termination date. We have
not included this as we could not identify a use for it. 

3.	Exercise time is not included, only a date. 

4.	The paper process includes an "exercise advice" which is a simple
echo of the message. This is excluded from the FpML version as the working
assumption is the transport mechanism is reliable. 

Matthew Rawlings 
+44 791 539 7824 




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