* Present
Marc Gratacos, ISDA
Raphael Iyageh, GS
Owen King, Markit (Chair)
Farzad Moshfeghi, Standard Bank
Peter Stockman, DTCC
William Wise, Markit
Irina Yermakova, ISDA
* Review outstanding actions
>> ALL to find out more details on averaging-in options.
Awaiting feedback. [Carried Forward]
>> ALL to provide feedback on the physical coal questions paper.
Some feedback was received (see below) but further input would be
helpful. [Carried Forward]
>> MG to circulate the original proposal for the creation of a global
commodity underlyer.
[Carried Forward]
>> MS to distribute the physical coal questions document within DB for
feedback.
MS was not on today's call. [Carried Forward]
>> RI to find out what documentation physically-settled periodic bullion
trades are confirmed under.
RI has enquired and is awaiting feedback. [Carried Forward]
>> OK to update the CommodityForward and CommoditySwap annotations to
clarify their intended usage.
OK updated the annotations. [Closed]
* Minutes
1. Physical COAL
- Discussion of questions document (attached).
OK summarised the feedback he had received to the questions document:
(1) There is no obvious reason why the ISDA confirmation template should
be restricted to a fixed price.
(3) It is not common to use units other than those stated on the
confirmation template.
(6) Several sources would normally be specified by referencing a single
"area".
(7) Periodic Performance Specifications would be included per shipment
e.g. one Unit Train load, one barge load etc.
Based on this feedback, OK proposed that deliveryAtSource be changed to
type xsd:boolean as suggested by FM. Setting this to true would indicate
the coal product could be delivered anywhere within the specified
source. If a more specific delivery location is required, the
deliveryPoint element could be used.
OK said further validation that standardQualitySchedule can adequately
represent Periodic Performance Specifications would be ideal, though the
feedback received appeared ruled out the possibility the periodicity was
relative to the observation of the quality.
2. Physical Bullion
- The group agreed with the annotation change
3. Financial Options
- FM and MG agreed that this section of the schema should be
re-architected to remove the enumerations from optionType that do not
make business sense ("Forward", "Payer", "Receiver", "Straddle"). OK
will put together a proposal for this.
+ Participants should note that such a change will not technically
be backwards-compatible with FpML 4.5 - please inform the group if you
have any concerns.
4. Readiness for 4.6 Trial Recommendation
- OK suggested that work on new products in FpML 4.6 for commodities
was now complete and invited participants to begin validating the
finished schema in detail and consider their priorities for FpML 4.7.
Possible candidates include:
+ Physically-settled options
+ Emissions, though OK noted this area could change considerably
following the December talks in Copenhagen.
* Actions
[Carried Forward] ALL to find out more details on averaging-in options.
[Carried Forward] ALL to provide feedback on the physical coal questions
paper (attached).
[Carried Forward] MG to circulate the original proposal for the creation
of a global commodity underlyer.
[Carried Forward] MS to distribute the physical coal questions document
within DB for feedback.
[Carried Forward] RI to find out what documentation physically-settled
periodic bullion trades are confirmed under.
* Next meeting 15:00 UK / 10:00 US Fri 19th June 2009
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Attachment:
Physical Commodities Questions - Coal v1.doc
Description: Physical Commodities Questions - Coal v1.doc