|
All, Apologies for my absence last Friday –
there might have been some misunderstandings – just to clarify: Regarding the first paragraph of the minutes
below, I do not think the
<currency> element within the underlier component particularly ambiguous. Rather, my previous comment was about the
currency structure within the <dividendConditions> component. This
structure does not indicate that it is for electing the dividend settlement
currency. Although in the current usage (for the recent 2009 docs) it can be
deduced from the value of <determinationMethod>, if the <currency> element
of the choice field is used in the future, it could be taken equally as indicating
the dividend’s native currency or the agreed dividend settlement
currency. I am not currently presenting this as a
big issue, but just for the record, as there might have been some misunderstandings. Regards, Takeo From: * Present DTCC: RM, HP, SS ISDA: IY JPM: AP ( Chair ) MarkitSERV: JC Omgeo: TB * Apologies MarkitSERV: TA, CY * Minutes IY/TA view the <currency> element on underlyers such as Equity as
being ambiguous. The common understanding in the group is that this is the listing ( and trading ) currency of
the Equity. We will revise the documentation to reflect this common understanding Listing currency, trading currency are per underlyer. Settlement
currency may be agreed per derivative contract We welcome Venkat Krishnamurthy as an Observer for Oracle to the group IY has been working with CA on valid MCA / MCA Annex pairs. CA will
provide this in spreadsheet form. This is of particular importance for EQD,
since we such a large number of MCA and MCA Annexes Service providers do not wish to track legal adherence, but they do
wish to know of valid MCA / MCA Annex pairs, since this will allow them to
validated business correct usage We have two principal outstanding items of ISDA Legal Drafting i) Pan Asia Index "PAISS". Effectively a Dividend Swap within
an Equity Swap for the Japanese Market. It may be possible to achieve this
concept by using definitions, rather than structural changes to the transaction
supplement, which would adversely impact FpML ii) which leaves us with AEJ Closed Market as the only stable draft Since the valid set of values is subject to change, We will use a
coding scheme controlled type for AEJ 2009 Closed Market Changes, We must also support the Multiple Exchange Annex ( MEA ) II i) MEA II will apply by default to Swaps, but may be over ridden in
favour of MEA I ii) MEA I will apply by default to Non Swaps This continuing complexity in legal drafting is being driven by the
requirements of market participants, and has an adverse impact on FpML, in
terms of greater complexity, and lower ease of automation NY Fed Target dates, such as PAISS and EU Index Swap have been slipped,
this has been escalated to the ISDA Equity Implementation Group ( EIG ) FpML-4-7-TR-1 is scheduled for release at the end of December Thanks from the Chair for your contributions to timely and accurate
implementation * Decisions 1. adopt AEJ 2009 Closed Market Changes proposal from JC for FpML-4-7 1.1 new scheme controlled complex type SettlementPriceDefaultElection 1.2 new Coding scheme settlement-price-default-election 2. adopt MEA II proposal from TA for FpML-4-7 Next meeting 14:00 LDN Fri 11 Dec 2009 ONLY IF we have ISDA
publications to discuss Final meeting of the year 14:00 LDN Wed 16 Dec 2009 * Actions AP contribute improved documentation for <currency> element of
underlyers such as Equity IY propose clarification of currency for various purposes on underlyer
( listing, trading ) IY propose further addition and correction of MCA and MCA Annex coding
scheme values IY add AEJ 2009 Closed Market Changes proposal from JC for FpML-4-7 IY add MEA II proposal from TA for FpML-4-7 This communication is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. All market prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any comments or statements made herein do not necessarily reflect those of JPMorgan Chase & Co., its subsidiaries and affiliates. This transmission may contain information that is privileged, confidential, legally privileged, and/or exempt from disclosure under applicable law. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or use of the information contained herein (including any reliance thereon) is STRICTLY PROHIBITED. Although this transmission and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by JPMorgan Chase & Co., its subsidiaries and affiliates, as applicable, for any loss or damage arising in any way from its use. If you received this transmission in error, please immediately contact the sender and destroy the material in its entirety, whether in electronic or hard copy format. Thank you. Please refer to http://www.jpmorgan.com/pages/disclosures for disclosures relating to European legal entities. |