Mazhar,
Thanks for your detailed
feedback/comments.
The latest schema is available
on the fpml.org website. If you look on the right hand side of the home page,
you will see a section called latest news. The links within each of the announcements
allow you to navigate to the associated specifications section (once you
login).
You can download the package
(zip file) and that will provide you with the schema code.
The pricing change notice was
one of the last sections to be updated. I now see the inconsistency between the
spec and the schema.
I was looking into our email
archive. We actually introduced Interest Rate Periods within the Pricing Change
notice early in the design phase. On reviewing the design, I believe we
subsequently decided to simplify the structure to only contain the actual rate
(percentage) itself. It seems the spec wasn’t updated after this. The spec
has been updated – let me know whether this makes sense, we can discuss
tomorrow.
Within the MarginRateChange
there is a choice which allows a loan contract summary to be specified. We
wanted to allow re-pricing at a contract and borrowing option level.
With the question on PIK, could
this be a candidate for introducing another option in the choice block within
the MarginRateChange section…? (We haven’t yet got to analyzing PIK
in its entirety). We should discuss where you were thinking of adding a ‘flag’.
Regards,
Bhavik Katira
CEO
TenDelta™
Fresh
insight. Pure logic.
www.tendelta.com
+1.917.582.4574 new york
+44.(0).7780.808732 london
TenDelta™
provides business process consulting, technology design/implementation &
education services, specializing in the Syndicated Loan Market. Entrusted with
engineering innovative & logical solutions, we endeavor to deliver timely,
robust, cutting-edge solutions.
TenDelta™
Limited is a company registered in England & Wales. The Company registered
number is 06285903. The registered office is 3 Francis Road, Harrow, Middlesex,
HA1 2QZ, United Kingdom.
From: loanwg@xxxxxxxx
[mailto:loanwg@xxxxxxxx] On Behalf Of Iqbal, Mazhar
Sent: Wednesday, July 01, 2009 11:28 AM
To: loanwg@xxxxxxxx
Cc: paulwhardy@xxxxxxxxxxx
Subject: RE: FpML Working Group Meeting: 23 June 2009, 1000-1100EST
(London Time: 3-4pm)
Hi Bhavik,
I had a couple of questions. Where can I find the latest
schema? I see there are several changes in the requirements document that
I can't find reflected in versions I'm seeing on the fpml website (or in
the local version we've been sent via email). Main change seems to be the
Pricing Change Notice. I don't see the "Interest Rate
Periods" in the schema but they are documented in spec, also the
Margin Change allows contract to be specified but I don't see that in
schema. May be this is still work in progress.
Also is the Pricing Change Notice also to be used in the future to
reset the PIK margin? I think I remember it should be in which case can we add
a field right now that allows us to distinguish type of margin being set.
Regards.
Mazhar.
From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On
Behalf Of Bhavik Katira
Sent: Monday, June 15, 2009 5:36 PM
To: loanwg@xxxxxxxx
Cc: paulwhardy@xxxxxxxxxxx
Subject: FpML Working Group Meeting: 23 June 2009, 1000-1100EST (London
Time: 3-4pm)
Dial-in
details:
US:
+ 1 (888) 481 - 3032
Intl:
+ 1 (617) 801- 9600
UK:
0800 904-7961
Participant
Code: 28413758
Agenda
-
Review minutes/actions from the previous WG meeting
-
Review trade settlement updates from the latest requirements document
– (To be sent)
Regards,
Bhavik Katira
CEO
TenDelta™
Fresh
insight. Pure logic.
www.tendelta.com
+1.917.582.4574 new york
+44.(0).7780.808732 london
TenDelta™
provides business process consulting, technology design/implementation &
education services, specializing in the Syndicated Loan Market. Entrusted with
engineering innovative & logical solutions, we endeavor to deliver timely,
robust, cutting-edge solutions.
TenDelta™
Limited is a company registered in England & Wales. The Company registered
number is 06285903. The registered office is 3 Francis Road, Harrow, Middlesex,
HA1 2QZ, United Kingdom.
Minutes from Previous WG Meetings:
-
Lender Position deferring agreed.
-
Business requirements update discussed at high-level
o
New Deal and Facility capture
-
Schema design presented
o
Deal
o
Facility
o
Deal Trade Notice
o
Deal Trade
o
Facility Trade
o
Par Confirm Notice
-
Feedback: Make the borrower and guarantor array names at the deal
and facility level, singular.
Questions:
- When are we due
to cover Commitment Adjustments, PIK scenarios…?
These are all covered in upcoming phases of work. Please see the scope
matrix in the requirements document.
- For L/C notices,
why have we not allowed a choice between describing either the L/C summary
and the full L/C structure – just like in the loan contract-based
notices…?
It never came up as a requirement. Investigate whether there is a
business case to make the (l/c and loan contract) notices consistent with
each other.
- From a practical
implementation perspective, how should vendors manage
cancellations…?
Cancellation notices have not been covered by the standard as yet.
Maybe we should scope them into a particular phase…?
Most vendors are extending basic FpML structures and implementing their
own cancellation methodology.
Other asset classes within FpML do define business event specific messages
to allow cancellation and potential re-statement of the event. We would
need to create a cancellation message for each business event created so
far.
It was also noted that there may be two cancellation scenarios: a business
cancellation and a protocol-transmission error.
This work should be scoped.
- When describing
sub-limits should we consider just borrower limits or other kinds of
limits…?
We should be considering all kinds of limits on the deal structure and
the best way to represent them in the deal/facility structure. This is not
necessarily a trade-related requirement and can be complex. It is
currently scoped for an upcoming phase of work.
- Should we
include any expected settlement date…?
The business working group agreed to remove those fields from the
confirmation.
- Delayed
compensation. Are there any fields on the confirmation that describe the
way in which delayed comp would be calculated…?
Not on the confirmation. There is a delayed compensation structure
which when defined will exist on the funding memo structure and will
define arrays of accruals for each type of ‘income stream’
(e.g. fees, interest).
- Facility Trade /
Upfront Fee. Should this be removed…?
Need to check with the business working group.
- Facility Trade /
On Risk Until Date. Should this be removed…?
Need to check with the business working group.
- Trade
allocations. What other information will need to be captured at the trade
allocation level…?
Are there additional data points that need to be captured here in
addition to the counterparty and the amount (e.g. any settlement details
etc…?)
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