[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

RE: FpML-CD Upfront Payment Amounts



Hi Andrew,

I saw "NonNegativeMoney" in the fpml-shared-4.6.xsd and thought it would 
be the ideal base for the paymentAmount element. 

I tend to believe that where possible we should have the schema enforce 
certain things rather than rely on convention: I like to have something 
official to point at and know that "these are the only valid values". This 
would apply in some other cases, e.g. the use of marketFixedRate for index 
tranches (c.f. e-mails on 11th June). 

Best Regards,

Ian






Internet 
andrew.p.parry@xxxxxxxxxxxx
Sent by: cdwg@xxxxxxxx
18/08/2009 13:39
Please respond to
cdwg@xxxxxxxx


To
cdwg@xxxxxxxx
cc

Subject
RE: FpML-CD Upfront Payment Amounts






Ian

"I would like to request that the definition of this element is changed in 

a future FpML version so that it is only allowed to be an Unsigned value. 
Some other elements may also require a review"

FpML *convention* is non negative, directional payments

To enforce this convention, I wrote types such as "NonNegativeMoney" and 
"NonNegativePayment"

Regards

-----Original Message-----
From: cdwg@xxxxxxxx [mailto:cdwg@xxxxxxxx] On Behalf Of 
ian.scott@xxxxxxxxxxxxxxxxx
Sent: 18 August 2009 13:32
To: cdwg@xxxxxxxx
Subject: FpML-CD Upfront Payment Amounts

Hi All,

Following a number of problems, could I request an evolution to the CDS 
schema, affecting the element:

CreditDefaultSwap/feeLeg/initialPayment/paymentAmount/amount 

Currently, the element :

feeLeg/initialPayment/paymentAmount

is of ComplexType "Money".  Within "Money", the "amount" element  is a 
decimal. 

As far as I read the schema, this means that one is allowed to transmit a 
signed value in this field (please correct me if I am wrong). Certain 
brokers have been doing this.

This means that our processing logic to receive FpML trades needs to be as 

follows (substitute ("BNPP" for "us" in all cases)): 

IF initialPayment/payerPartyReference = BNPP 
THEN
        IF initialPayment/paymentAmount/amount < 0 
        THEN
                BNPP Fee direction = Receive
        ELSE 
                BNPP Fee direction = Pay
        END IF
ELSE
        IF initialPayment/paymentAmount/amount  <  0
        THEN
                BNPP Fee direction = Pay
        ELSE
                BNPP Fee direction = Receive
        END IF
END IF

Given that the initialPayment block allows the user to specify who the fee 

payer is and who the fee receiver is then this additional logic should be 
unnecessary, in my opinion. 

I would like to request that the definition of this element is changed in 
a future FpML version so that it is only allowed to be an Unsigned value. 
Some other elements may also require a review.

Many thanks,

Ian



--------

This communication is confidential, may be privileged and is meant only 
for the intended recipient. If you are not the intended recipient, please 
notify the sender by reply and delete the message from your system. Any 
unauthorised dissemination, distribution or copying hereof is prohibited.

BNP Paribas Trust Corporation UK Limited, BNP Paribas UK Limited, BNP 
Paribas Commodity Futures Limited, BNP Paribas Asset Management UK Limited 
and Investment Fund Services Limited are authorised and regulated by the 
Financial Services Authority.

BNP Paribas London Branch and BNP Paribas Wealth Management London Branch 
are authorised by the CECEI and supervised by the Commission Bancaire. 

BNP Paribas London Branch is authorised and subject to limited regulation 
by the Financial Services Authority. Details about the extent of our 
authorisation and regulation by the Financial Services Authority are 
available from us on request. BNP Paribas is also a member of the London 
Stock Exchange.

BNP Paribas Wealth Management London Branch is subject to limited 
regulation by the Financial Services Authority.  Details about the extent 
of our authorisation and regulation by the Financial Services Authority 
are available from us on request. 

BNP Paribas Securities Services London Branch is authorised by the CECEI 
and supervised by the AMF, and subject to limited regulation by the 
Financial Services Authority. Details on the extent of our regulation by 
the Financial Services Authority are available from us on request. BNP 
Paribas Securities Services is also a member of the London Stock Exchange.

BNP Paribas Trust Corporation UK Limited is registered in England and 
Wales (registered no. 4042668) at registered office 55 Moorgate, London 
EC2R 6PA.

BNP Paribas UK Limited is registered in England and Wales (registered no. 
1488108) at registered office 10 Harewood Avenue, London NW1 6AA.

BNP Paribas Commodity Futures Limited is registered in England and Wales 
(registered no. 2391477) at registered office 10 Harewood Avenue, London 
NW1 6AA.

BNP Paribas Asset Management UK Limited is registered in England and Wales 
(registered no. 2474627) at registered office 10 Harewood Avenue, London 
NW1 6AA.

Investment Fund Services Limited is registered in England and Wales 
(registered no. 6110770) at registered office 55 Moorgate, London EC2R 
6PA.

BNP Paribas London Branch is registered in England and Wales (registered 
no. FC13447) at registered office 10 Harewood Avenue, London NW1 6AA.

BNP Paribas Wealth Management London Branch is registered in England and 
Wales (registered no. FC023926) at registered office 10 Harewood Avenue, 
London NW1 6AA.

BNP Paribas Securities Services London Branch is registered in England and 
Wales (registered no. BR006393) at registered office 55 Moorgate, London, 
EC2R 6PA.

-------------------------------------------------------------------------------
To unsubscribe: Email majordomo@xxxxxxxx with a blank subject line
In the body include the line: unsubscribe cdwg youremail@address
To view archives: http://www.fpml.org/_wgmail/_cdwgmail/threads.html
This communication is for informational purposes only. It is not
intended as an offer or solicitation for the purchase or sale of
any financial instrument or as an official confirmation of any
transaction. All market prices, data and other information are not
warranted as to completeness or accuracy and are subject to change
without notice. Any comments or statements made herein do not
necessarily reflect those of JPMorgan Chase & Co., its subsidiaries
and affiliates.

This transmission may contain information that is privileged,
confidential, legally privileged, and/or exempt from disclosure
under applicable law. If you are not the intended recipient, you
are hereby notified that any disclosure, copying, distribution, or
use of the information contained herein (including any reliance
thereon) is STRICTLY PROHIBITED. Although this transmission and any
attachments are believed to be free of any virus or other defect
that might affect any computer system into which it is received and
opened, it is the responsibility of the recipient to ensure that it
is virus free and no responsibility is accepted by JPMorgan Chase &
Co., its subsidiaries and affiliates, as applicable, for any loss
or damage arising in any way from its use. If you received this
transmission in error, please immediately contact the sender and
destroy the material in its entirety, whether in electronic or hard
copy format. Thank you.

Please refer to http://www.jpmorgan.com/pages/disclosures for
disclosures relating to European legal entities.

-------------------------------------------------------------------------------
To unsubscribe: Email majordomo@xxxxxxxx with a blank subject line
In the body include the line: unsubscribe cdwg youremail@address
To view archives: http://www.fpml.org/_wgmail/_cdwgmail/threads.html


-------------------------------------------------------------------------------
To unsubscribe: Email majordomo@xxxxxxxx with a blank subject line
In the body include the line: unsubscribe cdwg youremail@address
To view archives: http://www.fpml.org/_wgmail/_cdwgmail/threads.html