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FpML-EQD FpML EQD WG Agenda 14:00 LDN Wed 23 Sep 2009



* Telephone Conference

 

US: 1 888 481 3032

UK: 0 800 904 7961

Intl: 1 617 801 9600

 

Participant code: 8682747

 

 

* Agenda

 

=== 1. Actions from our last meeting 14:00 LDN Wed 09 Sep 2009

 

AP create EQD FpML-4-7 branch from current trunk

AP use EQD FpML-4-7 to implement solution to

i) dividend settlement currency

ii) forward starting strike

iii) dividend payout on underlyer vs. derivative contract

 

CA report on meeting with legal counsel, share update legal drafting timelines

 

IY show group published version of FpML with FpML-4-6 and FpML-4-7 with EQD updated

IY synchronise production FpML-4-X series with experimental FpML-5-X

 

 

=== 2. New Branch Created

 

https://dedicated.fpml.org:443/svn/fpml/branches/FpML-4-7-EQD-1

 

from the trunk at rev. 6408 for the Equity Derivative work we wish to be included in the first official release of FpML-4-7

 

in response to my actions above

 

i) dividend settlement currency

ii) forward starting strike

iii) dividend payout on underlyer vs. derivative contract

 

 

=== 3. Naming of content model "“ReturnSwapCurrency.model”

 

IY has found that "“ReturnSwapCurrency.model” containing a choice of amount currency definition methods

in FpML-5-0 is called “CurrencyAndDeterminationMethod.model. Which of the names is the best to keep?”"

 

We should use the name "CurrencyAndDeterminationMethod.model"

 

 

=== 4. MCA Type vs. MCA Annex Type

 

We have no way of enforcing valid combinations of MCA Type and MCA Annex Type, these are controlled by seperate coding schemes

 

http://www.fpml.org/coding-scheme/master-confirmation-type

 

http://www.fpml.org/coding-scheme/master-confirmation-annex-type

 

There is one outstanding

 

"The value "ISDA2009EquityEuropean" (“The ISDA 2009 Equity European Annex to the ISDA 2009 European Master

Equity Derivatives Confirmation Agreement.”) was added to “MasterConfirmationAnnexType” scheme. What is a

corresponding value in the “MasterConfirmationType” scheme?

 

Here is Takeo’s comments:

 

“We are not sure with the scheme value. This probably needs discussions in the next FpML call.

 

*           The annex value "ISDA2009EquityEuropean" does not state whether it is Index or Share.

*           The annotation states (“ISDA 2009 European Master… “) but the docs heading states (“2009 European Interdealer Master…”)

*           Note that the 2009 Index Annex is a client template so comes under the 2007 MCA”

 

 

=== 4. FpML-4-6 and FpML-4-7 Releases

 

The FpML 4.6 Recommendation (build 6) is published and  available for your review at: http://www.fpml.org/spec/fpml-4-6-6-rec-1/

 

FpML-4-7 schema/examples ( attached to IY email of 22 Sep 2009 ) with EQD updates for your review. The schema/examples will be sent to Coordination committee for review/approval tomorrow, after EQD WG meeting. (Note: there are two new examples in the ”equity-swaps/” folder - eqs-ex13-pan-asia-interdealer-share-swap-short-form.xml and eqs-ex14-european-interdealer-share-swap-short-form.xml. )

 

 

=== 5. FpML Roadmap Correction

 

http://www.fpml.org/roadmap/roadmap.pdf

 

should match our corrections implemented by IY as per our last meeting

 

IY correct EQD FpML-4-6 description in FpML roadmap as below, add release dates for Q3 2009

                Variance Swap Option

                EU ( Interdealer ) Index Swap

                US Share Swap

                Swap Averaging Dates

IY add EQD FpML-4-7 description in FpML roadmap as below, add release dates for Q4 2009

                EU ( Interdealer ) Share Swap

                EU ( Client ) Index Swap

                PAISS

                US Client Option

 

 

=== 6. ISDA Legal Drafting

 

Timelines, implementation consequences

 

 

=== 7. NY Fed OTC Commitments, Equity Trade Repository

 

Progress update

 

 

=== 8. Usage of values now controlled by determination-method coding scheme

 

The FpML release process checks values in scheme controlled elements. Now that we have created the determination-method coding scheme, IY has found the found values listed below in EQD sample files which do not match

 

http://www.fpml.org/coding-scheme/determination-method

 

In each case we should decide

 

a) value is correct, should be added to determination-method coding scheme with annotation

b) value is NOT correct, we should change the sample file

 

*             “PriceAtValuationTime” - (eqs-ex01, … trs-ex01, … invalid-ref-35, )

*             “HedgeUnwind” -  (eqs-ex01, ... trs-ex01,…, invalid-ref-35,)

*             “DividendCurrency” - (eqs-ex05, … trs-ex01,)

*             “GoodFaith” (eqs-ex01, …, invalid-ref-35,)

*             “PublishedIndexAtValuationTime” (eqs-ex02, ..)

*             “Average price per share obtained by Party B on Trade Date by selling 18,388,000 shares in the market, net of commissions” - (eqs-ex05)

*             “At the discretion of Party A, either (i) the amount received by Party A in selling 10,000,000 shares in the market (net of taxes and commissions), or (ii) the amount paid by Party B in buying 10,000,000 shares in the market (net of taxes and commissions)” - (eqs-ex05)

*             “Number of Shares * Initial Price” - (eqs-ex05)

 

 

=== 9. Proposed new BBH representative, Christina MacDonald

 

Please see email to the group on 22 Sep 2009

 

 

=== 10. AOB

 

 

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