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FpML-Com Reminder: FpML Commodity Working Group call today (Friday 27 November) 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. EU Emissions

  - Review of emissionsLeg proposal and example (attached).

  - Outstanding questions:
    + Buyer and seller VAT jurisdictions. 
      - Optional representation within FpML/use of a shared structure?
 
    + Business Days
      - What specifically does this field refer to on the ISDA
confirmation template? (It may be possible to capture in an existing
businessCenter element)

3. 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 3367 0347
--- Begin Message ---
* Present
Henri Van Den Boogaerde, Murex
Marc Gratacos, ISDA
Raphael Iyageh, GS
Owen King, MarkitSERV (Chair)
Peter Stockman, DTCC
Irina Yermakova, ISDA

* Review outstanding actions

>> RI to find out what events option Expiration Dates are commonly
confirmed relative to for gas, power, bullion, coal and oil.
RI had not yet been able to do this [Carried Forward]

>> ALL to indicate their priorities for future FpML commodities
development to the group.
No specific priorities were raised. Participants are welcome to raise
new priorities at any point. [Closed]


1. EU Emissions

The group agreed that the Emissions Leg element should be placed within
the commodityForward element so as to represent single-delivery
transactions only.

OK outlined some of the additional information that would need to be
modelled for emissions transactions. PS volunteered to put together a
list of fields that should be considered.


2. Finalisation of physical options schema

MG and OK agreed that the changes to the schema to support
physically-settled options should be reviewed at the next coordination
committee meeting.

The group agreed to include the changes in FpML 4.8 to allow greater
time for validation and to provide for easier modification for any
emissions-specific terms.

OK asked the group to review the daily-expiring sample trade and
confirmation (attached)


3. Leg structure

MG explained that the MTF has been looking at ways to extend xsd:choice
instead of creating a substitution group for the members of the choice.
This has the advantage of keeping the elements locally defined but
allowing extensibility. The solution proposed by the MTF is to include a
global abstract element with a type that is not defined to potentially
create a substitution group for extensions. The element is then
referenced within the existing xsd:choice structure.
 
As an example, the commodity legs could be restored to be a choice
structure and add an additionalCommodityLeg as an extension point.

OK said he would like to change the schema to follow the MTF's
recommendation for the FpML 4.7 release to avoid having to make a
subsequent change in 4.8.


4. Return swaps on commodity indices

OK summarised the example commodity index swap sample trade and
explained that it was not immediately clear how the payment amounts
should be presented. MG was not aware of any current use of FpML where a
calculation formula was actually included in the message, therefore OK
suggested that a commodities-specific coding scheme should probably be
created representing common calculation formulae.

The group was asked to review the sample trade with their business.


* Actions

[Carried Forward] RI to find out what events option Expiration Dates are
commonly confirmed relative to for gas, power, bullion, coal and oil.

[New] PS to collate a list of fields to consider for inclusion in an
emissions schema.

[All] To review and provide feedback on the return swap sample trade.

[All] To review and provide feedback on the daily expiring option sample
trade.

* Next meeting 15:00 UK / 10:00 US Fri 27th November 2009

--- End Message ---

Attachment: com-ex26-physical-EU-emissions-forward.doc
Description: com-ex26-physical-EU-emissions-forward.doc

Attachment: com-ex26-physical-EU-emissions-forward.xml
Description: com-ex26-physical-EU-emissions-forward.xml

Attachment: fpml-com-4-7.xsd
Description: fpml-com-4-7.xsd

Attachment: commodity-emissions-allowance-type-1-0.xml
Description: commodity-emissions-allowance-type-1-0.xml

Attachment: commodity-emissions-compliance-period-1-0.xml
Description: commodity-emissions-compliance-period-1-0.xml