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Please find the minutes for today’s call. Thank you for your participation. Participants -
Kaizad Bhathena (GlobeOp) -
Sammy Lee (GlobeOp) -
Anil Panchal (GlobeOp) -
Vivian Wu (Goldman Sachs) -
Charles Miller (JPMorgan) -
Harry McAllister (BNP Paribas) -
Wayne Forsythe (State Street) -
Tom Brown (OMGEO) -
Lucio Iida (Blackrock) -
Marc Gratacos (ISDA) -
Irina Yermakova (ISDA) -
Lyteck Lynhiavu (ISDA) Apologies -
Vinod Jain (Headstrong) -
Richard Barton (algorithmics) Notes -
MC5 / MC6
(dispute)
·
The group agreed in principle on the need of a mechanism in the message that will convey why a margin call is being disputed and what is disputed, but the group couldn’t agree on which mechanism(s)
1.
use a free-form comment field and/or
2.
use high-level reason code(s) and/or
3.
return disputed field values (e.g., TotalMTM, as outlined in the business specs pdf p.24) The group ultimately agreed to allow a combination of all of the above for maximum flexibility (the free-form comments field and reason codes will be optional)
·
The group discussed the list of high-level reason codes that Peter/Wayne/Harry circulated
à Action item 2 -
What happens after MC12/MC13 (request portfolio)? Closing the process loop
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Kaizad raised the concern that after the MC12/MC13 exchange, there is no provision in the PDF specs to loop the result of the portfolio reconciliation back to the margin call <please correct if needed>
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The Dispute Resolution Process is outside the scope of the collateral messages, but from an implementation perspective, we may need a new message or fields (TBD) to tie the result back to the original margin call request
à Action item 3
1.
The FpML <correlationId> mechanism will be used to correlate related messages
2.
One suggestion was to simply rescind the original call (MC2) and resend a new margin call (MC1)
3.
It was also suggested that perhaps MC12/MC13 should be integrated with MC5/MC6, earlier in the process. We should be careful however, to design messages that can be used by service providers & matching services Action Items 1.
à Richard to circulate an example of margin call response that could model acceptance/full dispute/partial dispute (MC3/MC5/MC6) with a single message (deferred from
2/17 meeting) 2.
à ISDA will consolidate the list of generic reason codes based on everyone’s input 3.
à Everyone to think how the result of the dispute resolution process can be tied back to the margin call, if at all Next Meeting – Wednesday March 3, 2010
@ 10am NY / 3pm London time Draft Agenda:
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Review margin call response example from Richard (à
action item 1)
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MC5/MC6 Dispute Reasons: review consolidated list (à
action item 2)
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Closing the process loop (à
action item 3)
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Continue reviewing data fields for MC7..MC13
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