FpML-Com Minutes of 2008-09-05 call - please note request for guidance on which physicals to approach first

["Piers Evans" <Piers.Evans@xxxxxxxxxx>]

* Present

Krishna Devabhaktuni, Citadel
Hans Ellis, SWIFT (Co-Chair)
Piers Evans, Markit (Co-Chair)
Marc Gratacos, ISDA 
Owen King, Markit
Brian Lynn, GEM
John Solder, UBS
Peter Stockman, DTCC
Irina Yermakova, ISDA
 
* Apologies

Luis Fierro, DB
Jared Getz, Glencore


* Review outstanding actions
 
BO could not attend the meeting. His actions will be reviewed on the
next call.


* Minutes
 
1. Consider FX change to schema.

Group agreed to this change. 

PE to add a choice allowing the option of specifying a rule for FX
observation dates or pointing to the pricing dates for the commodity and
forward to ISDA for addition to subversion.


2. Consider balance-of-period proposal.

Group agreed that this was a sensible addition.

PE to send to update schema and send to ISDA.


3. Owen King's analysis of differing documentation and gaps versus the
existing schema

PE said that the group needs to provide guidance in terms of which
commodities to tackle first in the light of OK's analysis and in the
light of what would be most useful to participants. 

One argument is that bullion could be a quick win given its similarity
to what has already been implemented and because the documentation
allows both physical and financial trades.

Another is that the group should focus on markets where high volumes of
standardised transactions could provide maximum benefit to the FpML
community.

JS said he would consult ops & legal to get buy in and identify the next
priority.

Group will consider their preference and feed back to PE who will review
whether there is enough consensus to meet next week or if the group
should meet in two weeks.


* Decisions
 
Schema to be updated in accordance with points 1 & 2 above.

Group will feed back their preferences in terms of physicals for PE to
collate.
 

* Actions
 
ALL Decide priorities for physicals work.

BO to follow up on why the spot price might be needed for a commodity
option (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.

--> See singleUnderlyer in fpml-asset for how this could look in fpml
with future as an underlyer and openUnits for the number of futures for
listed options look alikes.


* Next meeting 1500 LDN Fri 12th / 19th September 2008



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