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FpML-Com Reminder: FpML Commodity Working Group call today (Friday 15 May) at 15:00 LON / 10:00 NYC



All,

Please note that there is a call today at 15:00 London / 10:00 New York.


AGENDA:

1. Minutes / Actions from last call (attached)

2. Product names for physical transactions

Confirmation that participants are happy with the proposal in the
minutes of last week's call (attached).

3. Physical COAL

Discussion of questions document (attached).

4. Physical OIL

Proposal to create the following external coding schemes for oil product
grades:

Colonial Pipeline Company: Product Codes and Specifications
	2009-03-02:
http://www.colpipe.com/pdfs/Sect%203%20Prod%20Spec%20March%202009.pdf
	2009-06-01:
http://www.colpipe.com/pdfs/Sect%203%20Colonial%20Prod%20Spec%20Effectiv
e%20June%202009.pdf
	2009-04-06:
http://www.colpipe.com/pdfs/Sect%203%20Prod%20Spec%20April%202009.pdf

Enbridge Pipelines: Crude Characteristics
	2008:
http://www.enbridge.com/pipelines/about/pdf/crudecharacteristics2008.pdf

5. Physical ELECTRICITY and GAS

Proposal to create the following external coding schemes for delivery
points:

European Transmission System Operators: EIC Approved Area Codes
	http://www.etso-net.org/Activities/edi//eic/ars/area.htm

6. AOB


Dial in details:

US: 1 888 481 3032

UK: 0 800 904 7961

Intl: 1 617 801 9600

Participant Code: 52016709


Regards,

Owen King
+44 20 7071 0137



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Attachment: Physical Commodities Questions - Coal v1.doc
Description: Physical Commodities Questions - Coal v1.doc

--- Begin Message ---
* Present
Marc Gratacos, ISDA
Raphael Iyageh, GS
Lyteck Lynhiavu, ISDA
Owen King, Markit (Chair)
Andreas Michael, Citi
Farzad Moshfeghi, Standard Bank
Peter Stockman, DTCC
William Wise, Markit
Irina Yermakova, ISDA

* Apologies
Alicia Szybillo, DTCC


* Review outstanding actions

>> ALL to find out more details on averaging-in options.
Awaiting feedback. [Carried Forward]

>> ALL To send example confirmations for power trades documented under
ISDA/EEI/GTMA.
Additional confirmations would be appreciated. [Carried Forward]

>> PS to provide feedback on the sample trades included with the schema
files.
PS has reviewed the sample trades and did not feel changes were needed.
[Closed]

>> ALL to provide sample coal confirmations.
No additional coal confirmations have been received. [Carried Forward]

>> RI to investigate the source of oil grade values used in internal
trading/risk systems.
RI explained that the oil grade data used at GS varied by region and
pipeline and will send out an email to the group detailing this further.

OK suggested that since the current ISDA oil documentation is primarily
focused on pipeline trades the group could start to compile a list of
published pipeline specifications with a view to referencing them as
external coding schemes. Further analysis would be needed to ensure
coverage of the grades needed for title transfer trades. [Closed]


* Minutes

1. Product names for physical transactions

OK asked the group for their opinions of the current use of
CommoditySwap and CommodityForward for physically-settled commodity
trades in FpML:

- CommodityForward
  + Fixed Price, Single Period (Bullion)

- CommoditySwap
  + Fixed or Floating Price, Single or Multiple Periods (Gas, Oil,
Electricity, Coal)

RI noted that GS only use "Forward" to refer to fixed price, single
period metals trades which concurs with the current approach in the
schema. "Term" is used by GS for other single period trades and "Series"
used to refer to periodic trades.

OK explained that a potential area of confusion is that while a fixed
price, single period physical bullion trade would be a CommodityForward,
a fixed price, single period gas, oil, electricity or coal trade would
be a CommoditySwap. However, moving other physical commodity leg
components to within CommodityForward would mean that all the periodic
elements within those components would cease to make sense and could
lead to misuse of the schema.

Please consider and let the group know whether you are comfortable with
the current approach.


2. Physical COAL

OK explained the revised proposal for physical coal, noting that there
were still areas that require further work.

OK asked that participants distribute the questions document (attached)
to the relevant people in their organisations in order to get specific
answers to those questions for next week's call.

WW said he would try to get some feedback on these questions.

FM suggested that rather than having both standardQuality and
rejectionLimits elements, standardQuality could be updated to include
limits/thresholds on each constituent element. OK agreed with this, but
noted that the group would need to confirm how Periodic Performance
Quality specifications are applied in practice. (If the quality and
limits are not both specified per period, it may be preferable to keep
them as separate elements)

OK also noted that allowing more than one Delivery Point may be
necessary.


* AOB

OK said that Working Draft 3 of FpML 4.6 has been published which
includes all physical commodities work to date excluding coal:

http://www.fpml.org/spec/fpml-4-6-3-wd-3/

OK asked for feedback on whether participants feel there should be the
facility within the electricity schema to refer to a pre-defined load
shape (using a coding scheme) in addition to explicitly specifying the
Settlement Periods.


* Actions

[Carried Forward] ALL to find out more details on averaging-in options.

[Carried Forward] ALL To send example confirmations for power trades
documented under ISDA/EEI/GTMA.

[Carried Forward] ALL to provide sample coal confirmations.

[New] RI to send an email to the group outlining GS's use of oil grade
values.

* Next meeting 15:00 UK / 10:00 US Fri 15th May 2009



The content of this e-mail is confidential and may be privileged. It may be read, copied and used only by the intended recipient and may not be disclosed, copied or distributed. If you received this email in error, please contact the sender immediately by return e-mail or by telephoning +44 20 7260 2000, delete it and do not disclose its contents to any person. You should take full responsibility for checking this email for viruses. Markit reserves the right to monitor all e-mail communications through its network.
Markit and its affiliated companies make no warranty as to the accuracy or completeness of any information contained in this message and hereby exclude any liability of any kind for the information contained herein. Any opinions expressed in this message are those of the author and do not necessarily reflect the opinions of Markit.
For full details about Markit, its offerings and legal terms and conditions, please see Markit's website at http://www.markit.com <http://www.markit.com/> .

--- End Message ---