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FpML-Com Reminder: FpML Commodity Working Group call at 3pm LDN / 10 am NY Friday 15 August



All,

Please note that there is a call today at the usual time.

AGENDA:

1. Review minutes / actions from last call.

2. Review attached units for addition to unit scheme.

3. Addition of 'Calculation Period' to the Delivery Dates enum.

4. Update on plans for physical trades.

5. Attached paper from Brian Lynn.


Dial in details:

US: 1 888 481 3032

UK: 0 800 904 7961

Intl: 1 617 801 9600

Participant Code: 52016709


Note that the minutes to the last call are included below.

Regards,

Piers Evans


*************************************************

* Present

Hans Ellis, SWIFT (Co-Chair)
Piers Evans, Markit (Co-Chair)
Jared Getz, Glencore
Raphael Iyageh, GS
Chito Jovellanos, Forward Look
Owen King, Markit
Lyteck Lynhiavu, ISDA
Brian Lynn, GEM
Veli Omercik, ABN
John Solder, UBS
Peter Stockman, DTCC
Irina Yermakova, ISDA
 
* Apologies
Hugh Brunswick, EFETnet
Marc Gratacos, ISDA


* Review actions from last meeting 1500 LDN  1st August 2008

>> ALL to validate the schemas by constructing test trades.

Those who have looked at the schema have not raised any particular
issues.

>> ALL to investigate whether Expiration Time is ever confirmed for
averaging/Asian options.

No one had a view on this.

>> ALL to provide agricultural and metals confirms.

Done. These are being annonymised for inclusion in working draft 2.

>> ALL Please send in any basis / options examples. 

Some confirmations have been sent. Further examples would be gratefully
received.

>> BO to follow up on why this might be needed in commodities (if at
all).
Possibly as a first price for an averaging period?

>> BO will also follow up on whether there are forward-starting options
on commodity underlyers (in the sense that the strike is set on the
effective date / strike determination date rather than fixed up front).

>> BO will follow up on asianing in (average strike) options.

>> BO to review need for number of options / option entitlement and the
case for supporting exchange look-alike options.

BO was not on the call.

>> CW to review how deferred premiums work - is it simply a fixed split
per month or is the number of days taken into account? (e.g. a 12 month
strip with per calendar day delivery and deferred payment... is the
payment each month simply premium/12 or is it premium/number of days in
month ?) Would a full premium payment schedule ever be required?

CW was not on the call.

>> PS to update to the group on his rounding work.

PS has done a first draft of this paper and this will be circulated
shortly.


* Minutes

1. The group discussed recent changes to the schema following on from
last week's review.

The group agreed these changes. 


2. The group reviewed changes for settlement periods related to power
trades.

It was pointed out that some European trades start to deliver hour
ending 23.00 the night before which would not work with the current
example.

Action: Group to provide sample confirmations.

Action: PE to review samples and update this section if necessary for
working draft 2.


3. The group discussed future priorities

Overwhelmingly, the group felt that physical trades should be the next
priority.

JG agreed to approach the LEAP working group to see if any of the more
physically-focused market participants would be interested in joining
the group and sharing their expertise.

Rather than meet less regularly, the group felt it best to push on and
get physicals done, so weekly meetings will continue.

To allow time for PE to investigate the best approach for physicals, the
next two weeks will be spent discussing BL's cash flow matching paper
and PS's rounding paper.


* Actions

Group to provide sample confirmations of EU power trades starting the
night before.

PE to review samples and update this settlement periods if necessary for
working draft 2.

JG / PE to approach LEAP to ask for assistance in understanding the best
approach for tackling physical trades.

* Next meeting 1500 LDN Fri 15th August 2008



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Attachment: Additional Units.xls
Description: Additional Units.xls

Attachment: Commodity Schema 2008-08-12.zip
Description: Commodity Schema 2008-08-12.zip

Attachment: FpML Cashflow Matching Model.doc
Description: FpML Cashflow Matching Model.doc