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RE: FpML-IM-Custodian FpML IM custodian call - meeting minutes



 Hi Karel/Malene
 
 I would also recommend that the IM-Custodian Working group should also cover the dependency
with the Pricing and risk management working group which would focus on the below,
 
1. Pricing Information flow between IM- Custodian- Pricing Vendors.
2. Frequent reconciliation btw IM-Custodian-Pricing vendors, on the value of the swap.
3. IM/Custodian who would independantly price the swap.
 
 
Thanks and regards,
Bhargavi Hemanth
Business Analyst
Wipro Technologies 
 91-80-9980088904 
 
 
 

From: im-custodian@xxxxxxxx [mailto:im-custodian@xxxxxxxx] On Behalf Of Karel Engelen
Sent: Thursday, July 12, 2007 2:46 AM
To: im-custodian@xxxxxxxx
Subject: FpML-IM-Custodian FpML IM custodian call - meeting minutes

Thank you all for your participation in the meeting today

 

Attendees:

Dan Eckert –Elliot Associates

Fitnan Akahan – Morgna Stanley

John Booth – Northern Trust

Bradley Kuehn – Northern Trust

Lucio Iida – BGI

Mark Areuter – State Street

Bob Green- DTCC

Andrew Jacobs – BGI

Ivan Djurkin – BGI

Malene McMahon – Swift

Marie-Paule Dumont – Swift

Francoise Massin – Swift

Marc Gratacos – ISDA

Karel Engelen – ISDA

 

 

Minutes

 

Karel gave an overview of the discussions leading to the formation of the working group. The intended goals of the working group include a decoupling of the standards discussions with regard to contract notification from the Swift CUG working group. The FpML group however is potentially broader both with regard to participants (not limited to CUG participants) as with regard to the scope. The Swift CUG implementation requirements form one set of inputs with regard to prioritization and is one of the areas to receive feedback from. Comments received during the call for participation are that the scope should be broadened to cover parties active in the IM –custodian world and their processes (e.g. dealers and their interaction with IMs and custodians), rather than only IM and custodians.

 

Previous discussions with Steve Goswell – ISITC have indicated a concern of overlap between the work and the participants in this group and the ISITC OTC derivatives working group. Two distinctive features of the FpML working group brought forward on the call today are the fact that FpML work (as opposed to broader best practices work) only can happen in an FpML working group and that FpML is better positioned to bring in or link into derivatives expertise. Coordination with existing group like ISITC but also work that Swift and DTCC are doing is important.

 

The IM custodian working group is a subgroup of the business process working group (BPWG - chaired by Marc Gratacos). The IM custodian working group will have its own agenda and separate meetings but coordination needs to happen with the agenda and priorities of the BPWG as this last one looks at business processes across asset classes and impacting all potential FpML users. E.g. Discussion on amendment and cancellation messages needs to happen in coordination with the BPWG. Through the BPWG the IM-custodian working group links into the work happening in the other FpML working groups.

 

Karel and Malene will co-chair the initial set of meetings, with a goal to transition to industry co-chairs for the group.  

 

Next steps:

The group will reconvene in 2 weeks time. The goal of that meeting will be to set a priority for the issues to cover and to further discuss industry dependencies as well as to agree on a schedule of meetings and targets for a period of 4 months.

 

Some of the issues to potentially cover and prioritize:

-          feedback on use of contract notification messages

-          processing of block trades

-          definition and treatment of amendments, cancellations, corrections

-          use of short form versus need of MCA information

-          payment information

-          other – please let us know.

.

 

If you have any questions, do not hesitate to contact Malene ( Malene.McMahon@xxxxxxxxx) and/or myself (kengelen@xxxxxxxx). For groups discussions you can use the e-mail address above (im-custodian@xxxxxxxx).

 

Regards,

Karel

212 901 6012

 

 

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