Robert,
Yes, there should be a validation rule to enforce the association of
firstPaymentDate with an initial stub.
However, I would caution against making firstPaymentDate mandatory in the
presence of an initial stub - this is a stronger constraint that stating
that the "element must only be included if there is an initial stub" (the
fact that element cannot appear *without* an initial stub does not
necessarily imply that it *must* be produced when there is a stub). There
may be perfectly reasonable usages of the schema where an initial stub is
specified, but it is not required to specify the firstPaymentDate.
I'd be interested to know what is the value to your clients of using this
element in the absence of an initial stub - do we know how they use the
date?
On this subject, there are a couple of existing rules concerning
firstPaymentDate which only seem true if we assume that payment dates are
always determined relative to calculation period end dates:
ird-6 (Mandatory)
Preconditions: isParametric
paymentDates/firstPaymentDate >
calculationPeriodDates/effectiveDate/unadjustedDate.
ird-36 (Mandatory)
If both firstPaymentDate and lastRegularPaymentDate are present then the
period defined by these dates must be an integer multiple of
paymentFrequency.
Given ird-3 (paymentDates/firstPaymentDate must match one of the unadjusted
calculation period dates), ird-6 & ird-36 are falsifiable if we allow the
possibility of an initial stub with paymentDates/payRelativeTo =
CalculationPeriodStartDate (a rare/artificial case, I admit).
Lastly, ird-35 (firstPaymentDate < lastRegularPaymentDate) would be
falsified by a trade comprising two periods, the first period regular and
the second broken, with payment linked to period end date - given the rule
in its current form, the only solution is to omit one of
[first|lastRegular]PaymentDate - so another argument against making the
date mandatory in the presence of a stub.
Comments, anyone?
Best regards,
Harry
|---------------------------------------->
| Internet |
| rstowsky@xxxxxxxxxxxxx |
| |
| |
| Sent by: irdwg@xxxxxxxx |
| |
| 27/02/2008 14:55 |
| |
| |
| Please respond to |
| irdwg@xxxxxxxx |
| |
|---------------------------------------->
>---------------------------------------------------------------------------------------------------------------|
| |
| |
| To|
| irdwg |
| cc|
| |
| Subject|
| FpML-IRD firstPaymentDate |
| |
| |
| |
| |
| |
| |
>---------------------------------------------------------------------------------------------------------------|
The definition reads for firstPaymentDate reads:
"This element must only be included if there is an initial stub"
There is no validation rule enforcing this.
Should it read:
If there is an initial stub this element must be included. Otherwise, it
is optional." ?
I have a number of clients who use this element without an initial stub.
Thanks,
Robert
-------------------------------------------------------------------------------
To unsubscribe: Email majordomo@xxxxxxxx with a blank subject line
In the body include the line: unsubscribe irdwg youremail@address
To view archives: http://www.fpml.org/_wgmail/_irdwgmail/threads.html
This communication is confidential, may be privileged and is meant only for the intended recipient. If you are
not the intended recipient, please notify the sender by reply and delete this message from your system. Any
unauthorised dissemination, distribution or copying hereof is prohibited.
BNP Paribas Fund Services UK Limited, BNP Paribas Trust Corporation UK Limited, BNP Paribas UK Limited,
BNP Paribas Commodity Futures Ltd and Investment Fund Services Limited are authorised and regulated by
the Financial Services Authority.
BNP Paribas, BNP Paribas Securities Services and BNP Paribas Private Bank are authorised by the CECEI
and AMF. BNP Paribas London Branch, BNP Paribas Securities Services London Branch and BNP Paribas
Private Bank London Branch are regulated by the Financial Services Authority for the conduct of their UK
business. BNP Paribas Securities Services London Branch is also a member of the London Stock Exchange.
-------------------------------------------------------------------------------
To unsubscribe: Email majordomo@xxxxxxxx with a blank subject line
In the body include the line: unsubscribe irdwg youremail@address
To view archives: http://www.fpml.org/_wgmail/_irdwgmail/threads.html