FpML-IM-Custodian FW: [fpml-coord] minutes call 2007-12-17

FYI. See below minutes from he coordination committee.

From: coord@xxxxxxxx [mailto:coord@xxxxxxxx] On Behalf Of Marc Gratacos
Sent: Wednesday, December 19, 2007 5:11 AM
To: coord@xxxxxxxx
Subject: [fpml-coord] minutes call 2007-12-17

Participants

Andrew Jacobs (HandCoded)

Pierre Lamy (Goldman Sachs)

Bhavik Katira (chair Loan WG)

Andrew Parry (JPMorgan)

Brian Lynn (GEM)

Lyteck Lynhiavu (ISDA)

Harry McAllister (BNPParibas)

Danielle Cauthern (ISDA)

Irina Yermakova (ISDA)

Marc Gratacos (ISDA)

Henri Pegeron (DTCC)

Ben Lis (T-Zero)

Regrets

Robert Stowsky (BrookPath Partners)

Simon Heinrich (IONA)

4.3 Trial Recommendation http://www.fpml.org/spec/2007/tr-fpml-4-3-2007-12-14/

The 4.3 Trial Recommendation will be published this week. It solves some issues present in the Last Call Working Draft version. It doesn’t add any new content in terms of product coverage or messages.
The 4.4 Third Working Draft will include the Loan Working Group work (1^st phase notices) and the cancellation messages for contract notification messages.

Cancellation of Contract events (see attached)

Andrew Parry expressed that the description from Andrew Jacobs using the example of a hotel booking was very clear and answered his questions regarding when modifications and cancellations could be performed:

· The simplest analogy I can think of is a hotel room booking. Having made room booking (e.g. ContractCreated) I can change the date, type of room, cancel etc. right up until the date that I’m supposed to stay (‘instruction execution’). After then my booking is ‘executed’ and I’m financially liable regardless of whether I actually stayed or not. If I was to receive a refund for not staying it is likely that it would have to be negotiated and take into account some administration fees (like a termination).

· The documentation needs to be more explicit regarding the effective date boundary and the fact that there is a cut off for the event to be processed.

· ACTION: Marc to add documentation about effective date as cut off for the event to be processed.

· Marc stated that this will be an evolutionary process and that in future phases a request/response scenario may be introduced.

· Andrew Parry and Harry McAllister expressed that there should be a clear mechanism for modifications and that should be distinct from amendments. This is for the im-custodian to discuss whether/when they introduce explicit messages for modifications instead of using the same XYCreated message within the same conversation and with an updated version number.

· ACTION: Marc to bring topic about modifications to the group.

· Andrew Jacobs and Marc said that only changes in contract size (increases, terminations) were in scope for the first phase.

· ACTION: Marc to introduce cancellation messages in next working draft.

Changing Spec URL

Marc stated the need to have a unique URL per build number. The proposal is to use the same convention that we have for tagging in SVN.
There was general agreement but Marc said that ISDA we’ll distribute a final proposal.
There was a separate discussion regarding the schema namespace for version 5 and whether it should contain the minor version number. The AWG has been discussing removing the minor version within the namespace to facilitate moving from one version to another. Andrew Jacobs expressed that they should me much stricter in terms of keeping document backward compatibility between minor versions.
This discussion will continue in the AWG.

Update on Loan Working Group (Bhavik)

Bhavik gave an update on the work. The group has created an architecture document describing the different components.
Harry requested examples as requirement before publishing the work. It’s a mechanism to spot inconsistencies in the model.
Some of the terms are not FpML (rateBasis is used instead of dayCountFraction). Bhavik said that he’ll check with the group about the terms being used in the market.
Marc said that the substitution group being used to express the type of draw down may be too complex and an enumeration could be used instead.
ACTION: Marc/Bhavik to distribute examples before publication.

Best Regards,

-Marc

+13472846531

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