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RE: Minutes - Loan FpML WG Meeting: 3 November 2009



Hi Bhavik,
Unfortunately, I have a conflict today and will not be able to attend the discussion.  However, I would like to update you on the current status of my analysis regarding providing contract information on a rollover.
 
1)    MISYS functionality currently only allows rollovers to existing contracts if the new contract is a BASE loan.  There is discussion at this time to open that up for all contract types.  I am still obtaining information from MISYS on this.  Whether or not CS would use that functionality is a pending business conversation.
 
2)    Regardless of allowing rollovers to the same contract id, when there is more than one contract involved, the breakdown of how the payment or increase associates to each rollover contract is not stored.  MISYS has indicated that this could be derived.  This is pending discussion and agreement.  Derivations are not done by our development teams but may be approved for use if supplied within the Loan IQ functionality.
 
3)    Regarding your agenda items:
 
1)  ok with CS
2)  ok with CS
3)  pending business discussion
4)  pending business discussion
5)  pending business discussion
6)  ok with CS
7)  agreed by CS
8)  this is how CS processes post cash release
9)  ok with CS
10) see above, CS cannot provide contract details when there is a payment or increase at this time
11) ok with CS
12) If there were a contract specfic drawdown on a rollover, we would want to send the rateset/drawdown notice 
 
Please let me know if you would like to discuss further.  Thanks, Ann
 

    Ann Taylor
    CREDIT SUISSE
    Fixed Income IT
    One Madison Avenue, Floor 10
    New York, NY 10010
    (     Direct  +1 212 538 1741
    ( Mobile +1 516 459 3324
    mailto:ann.taylor@xxxxxxxxxxxxxxxxx

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From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Monday, November 09, 2009 11:23 AM
To: loanwg@xxxxxxxx
Subject: Minutes - Loan FpML WG Meeting: 3 November 2009

Next Working Group Meeting: 17th November 2009: 1000-1100 EST (3-4pm GMT)

Agenda, schema etc will be sent prior to the meeting.

 

Minutes from 3rd November 2009

 

1.       Comm. Adjustment: Update the scheme for Increase/Decrease to an enumeration.

2.       Comm. Adjustment: The amount field should be an absolute figure (the enumeration defines the direction).

3.       Business question: What happens in the case that a commitment adjustment is refused…? Does this affect the structure of the notification we have created…?

4.       Business question: Should we capture a flag to denote whether a commitment adjustment is mandatory from the borrower’s perspective…?

5.       Business question: Should we capture a ‘schedule date’ (in the case where the adjustment is pre-defined)…?

6.       General design: All ‘flags’ should be named consistently (we decided to maintain a –flag suffix).

7.       General design: Modification flag should not be required in the Facility Notice section.

8.       General design: There was a discussion around corrections. The working group agreed that there is effectively a window within which modifications to existing business events can take place. But, if the event has been processed and there has been cash movement then a correcting event may need to take place. In this latter case, the eventId may need to be different. To be discussed further… (current structure should still be able to handle this scenario).

9.       General design: Move the effective date into the Facility Notice section (the wg agrees that all facility business events should have an associated effective date).

10.   Rollover: Some providers/agents may not be able to provide full details of specific loan which have been repaid during a rollover. WG members have stated that they may only be able to provide facility repayment details in cases. The current loans in this scenario would be a set of new loan contracts. Unfortunately, this would mean making the loanContractRepayment (within the Repayment structure) optional. This, in turn, brings up the question as to what kind of validation there will be around the provision of loanContractRepayment details… This needs to be discussed further.

11.   Rollover: Conversion flag should be captured at a higher level within the rollover message structure.

12.   New Request: Rate Set Notices. In a rollover situation where we have multiple existing loan contracts transforming to a new set of loan contracts, each of the contracts may require a rate set notice to be created. At the moment the rate set notice is not part of the rollover message. Is the expectation that the sender would need to generate separate rate set notices for each loan contract ‘rolling over’ or should we incorporate this workflow within the rollover structure itself…?

 

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 & education services; specializing in the Syndicated Loan Market. Entrusted with engineering innovative & logical solutions; we endeavor to deliver timely, robust, cutting-edge solutions.

 

Copyright ©2008-2009. TenDelta™ LLC (US), TenDelta™ Limited (UK). All Rights Reserved.

 

From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Tuesday, November 03, 2009 9:49 AM
To: loanwg@xxxxxxxx
Subject: RE: Loan FpML WG Meeting: 3 November 2009, 1000-1100EST (London Time: 3-4pm)

 

Additional Item to add to the list below

 

12. New Request: Rate Set Notices. In a rollover situation where we have multiple existing loan contracts transforming to a new set of loan contracts, each of the contracts may require a rate set notice to be created. At the moment the rate set notice is not part of the rollover message. Is the expectation that the sender would need to generate separate rate set notices for each loan contract ‘rolling over’ or should we incorporate this workflow within the rollover structure itself…?

 

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 & education services; specializing in the Syndicated Loan Market. Entrusted with engineering innovative & logical solutions; we endeavor to deliver timely, robust, cutting-edge solutions.

 

Copyright ©2008-2009. TenDelta™ LLC (US), TenDelta™ Limited (UK). All Rights Reserved.

 

From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Tuesday, November 03, 2009 3:25 AM
To: loanwg@xxxxxxxx
Subject: Loan FpML WG Meeting: 3 November 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

 

Please refer to the attached schema design.

 

Items to discuss:

 

1.       Design Proposal: Introduction of a Commitment Adjustment Structure.

a.       Review structure

b.      What business scenarios should it be used…? Is it simply when there is a commitment change where no cash flow occurs…?

c.       Agree that it should be used whether there is a decrease or an increase.

d.      Change can be positive or negative…? Or should we have a flag followed by an absolute amount…?

2.       Design Proposal: Should we introduce an ‘Effective Date’ in the facility notice section…?

3.       Design Proposal: Rollover changes

a.       Added ‘effectiveDate’.

b.      Renamed ‘Maturing-‘ to ‘Prior-‘ and ‘New-‘ to ‘Current-‘.

c.       Introduced the ‘currentLoanContract’ structure

d.      CurrentLoanContract contains a optional choice which contains either a DrawdownPayment, loanContractIncrease or conversionFlag.

4.       Design Proposal: L/C Termination should contain the change amount rather than the prior amount. More generically, should we be capturing change amounts in all notices, rather than prior amounts…? (It was mentioned in the last call that prior amounts are notoriously difficult to extract in many cases).

5.       Design Proposal: Interest payment adjustment added to InterestPayment structure. Should we capture this extra field to take into account an adjustment from a previous period…? The other option is to capture this in the new Cash Flow section and make it generic to all business events.

6.       Design Proposal: Updated the LenderLoanContractPeriod in the InterestAccrualSchedule to InterestLoanContractPeriod. This is to account for the fact that the interest accrual may not be based on the actual lender position. It may be based on a portion of the lender position. E.g. A repayment occurs mid-accrual period and the interest relating to the repayment amount is paid. When the interest payment is communicated, the underlying InterestLoanContractPeriod, not the full lenders loan contract position.

a.       Are we interest in knowing whether the InterestLoanContractPeriod is actually the lender’s position…?

b.      Should we represent both InterestLoanContractPeriod and LenderLoanContractPeriod…?

7.       Confirm: Modification Flag in Facility Notice. There is no way to tell multiple instances of a modification… is this an issue…?

8.       Confirm: L/C contains amount and participation amount.

9.       Confirm: Choice containing full deal structure in the Facility Notice.

10.   Confirm: Contacts structure.

11.   New Request: In the following scenarios should we expect to send multiple messages out or come up with a combination message type:

a.       Repayment with Interest

b.      Repayment and New Loan

c.       Multiple On-Going Fees, Interest Payments, Rate Fixes, Margin Changes etc…

 

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 & education services; specializing in the Syndicated Loan Market. Entrusted with engineering innovative & logical solutions; we endeavor to deliver timely, robust, cutting-edge solutions.

 

Copyright ©2008-2009. TenDelta™ LLC (US), TenDelta™ Limited (UK). All Rights Reserved.

 

From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Monday, October 19, 2009 6:19 PM
To: loanwg@xxxxxxxx
Subject: No Loan FpML WG Meeting: 20 October 2009

 

All,

 

Unfortunately I have a clash with this call for tomorrow and will be travelling.

 

In the last few weeks we have had feedback from working group members regarding:

 

-          Increased flexibility with the Rollover Notice structure – especially with respect to increases & repayments.

-          Suggested updates to the Business Validations from the business working group.

-          Suggested updates to the L/C structure.

-          Suggested updates to the Interest Payment structure to cater for the case where we have a partial interest payments, mid-period.

-          The introduction of Contact information.

-          Simplification of new vs modified messages using a flag to denote the difference.

-          The introduction of a simple Commitment Adjustment structure.

 

The feedback has been great and we are expecting more, based on our last FpML call.

A new copy of the schema will be available as soon as the latest changes are in. We are waiting for some feedback on a few design points – we expect it to be completed at some point this week.

 

Please keep sending in your comments as they relate to applying the standards to real-life messages.

 

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 & education services; specializing in the Syndicated Loan Market. Entrusted with engineering innovative & logical solutions; we endeavor to deliver timely, robust, cutting-edge solutions.

 

Copyright ©2008-2009. TenDelta™ LLC (US), TenDelta™ Limited (UK). All Rights Reserved.

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