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Thank you for joining the call today. Attendees: Lucio Iida – BGI Jason Brasil – Marc Sousan - Western Asset Ivan Djurkin- BGI John Booth – Northern Trust David Neary – Western Asset Penny Morgan – Western Asset Marc Reuter – Robert Stowsky – Brook path partners Karel Engelen – ISDA Apologies: -
Robert Green - DTCC -
Malene Mc Mahon - Swift We discussed the settlement information document Irina
distributed. The document explains where currently in FpML it is possible to
provide settlement information with the trade details. If you have any
questions on that topic, certainly don’t hesitate to contact Irina
(iyermakova@xxxxxxxx) or myself. Block trade processing: Robert Stowsky will provide examples on the use of block
trades and allocated trades related to a specifc implementation he is working
on, Penny Morgan will take the point up with the ISITC group as well. Next
meeting, August 22 we will focus on this item and discuss additional
requirements to cover allocation related processes. Currently FpML provides a
mechanism to link block trades and allocation trades. Next meeting: Wednesday August 22nd. From: Reminder for the meeting today at 11:am NY
time Dial in details: Us: 888 481 3032 Non US: 617 801 9600 Code: 28413758 Agenda: -
settlement
information doc discussion -
Block
trades From: Thank you for participating in the meeting. Below are the
minutes and action items Attendees: Dan Eckert –Elliot Associates John Booth – Northern Trust Michael Burg – Bank of New York/Mellon Mark Reuter – Matthew Hawkings – Randy Magdaluyo – Steve Goswell – BGI Malene McMahon – Swift Marie-Paule Dumont – Swift Francoise Massin – Swift Robert Stowsky – Brookpath partners Karel Engelen – ISDA Meeting dates, times and admin The group agreed going forward to meet every other Wednesday
at 11:00 a.m. NY time on alternating Wednesday’s from the business
process working group. The next regular meeting dates are August 8 and August
22. The dial-in details are fixed: Us: 888 481 3032 Non US: 617 801 9600 Code: 28413758 The e-mail address:
im-custodian@xxxxxxxx
can be used to send materials to the working group. The history of the e-mails
to the working group can be consulted on the FpML website in the working group
section: http://www.fpml.org/wg/mailarch.html Update on ISITC discussions: Karel updated the group on the discussions with Steve
Goswell. Work related to the market practice, specifically for investment
managers and custodians will be dealt with in the ISITC OTC derivatives group. Future topics for discussion The group went over the different topics for discussion that
have been brought forward. (see “Future agenda items” below). - Settlement information: This has been discussed in the CUG group
recently. From the IM-custodian side there is not immediate need to have this
information covered. Karel clarified that settlement information in FpML would
cover all information needed to do a settlement of a trade but FpML will not
cover actual payment messages. Marc specified that FpML currently provides
settlement information for some upfront payments. In addition, recent
discussions on this topic within the FpML community go in the direction of
keeping the settlement information separate from the trade/contract
information. ISDA will provide an overview to the group where currently in FpML
it is possible to specify settlement information with the payment information
(upfront payments). - Definition and treatment of
amendments, cancellations and corrections: This falls within a broader
discussion that currently takes place in the FpML business process working
group and the coordination committee. The group indicated that for purposes of
the CUG a work around (contract id versioning) has been defined but the
expectation is that a more robust solution will be developed in the standard.
The IM-cust working group should be involved in these discussions. Feedback on the use of the contract
notification messages Besides the point noted above on the amendments, there is no
immediate feedback. We will keep this as a regular agenda point. The meeting
with the Swift CUG on August 23 will likely provide additional input as well.
Processing of block trades In FpML there is currently a way to make the link, in the
trade structure, between a block trade and the allocated trades, using
partyTradeIndentifier. For the strict purpose of the contract notification
process the group indicated that this happens on the allocated trade level and
that there is no need to communicate block trade information. Robert Stowsky
mentioned a case where an IM communicates both the block trade and the
allocated trade information for trade events e.g. novations and terminations.
Robert will distribute more information on the specific use cases. One could
think of a case where the IM outsources the Middle Office function to a
custodian and for that purpose would send block and allocated trade information
to the custodian. Although in a different process than contract notification,
this is still communication between an IM and a custodian. Karel asked if the
ISITC group would be interested to put together a description of the different
possible cases, Steve will take it back to the ISITC otc derivatives group. Actions: -
ISDA - distribute info on settlement
information -
Robert Stowsky – provide
examples of use of block and allocated trade information -
Steve/ISITC – consider a
description of block trade - allocation scenarios that could be used as the
basis to define the process and messages in FpML From: Dial in details for the meeting tomorrow, Wednesday August 1
at 11:00 a.m.: Us: 888 481 3032 Non US: 617 801 9600 Code: 28413758 Agenda: -
regular meeting schedule –time
and frequency -
update on discussions with ISITC -
feedback on use of contract notification
messages -
processing of block trades Future agenda items: -
feedback on use of
contract notification messages -
processing of
block trades -
use of short form versus need of MCA
information -
payment information -
Other IM-custodian business
processes -
definition and treatment of
amendments, cancellations, corrections -
Pricing information flows between IM
- custodian and third party vendors -
Valuations and reconciliations
between IM-Custodian and third party vendors From: Karel Engelen All, The next working group meeting is next
week Wednesday, August 1 at 11:00 a.m. NY time. I will circulate an
agenda later this week. Regards, Karel From: Karel Engelen Thank you all for your participation in the meeting today Attendees: Dan Eckert –Elliot Associates Fitnan Akahan – Morgan Stanley John Booth – Northern Trust Bradley Kuehn – Northern Trust Lucio Iida – BGI Mark Reuter – Bob Green- DTCC Ivan Djurkin – BGI Malene McMahon – Swift Marie-Paule Dumont – Swift Francoise Massin – Swift Cherie Graham - BBH 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 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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