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FW: FpML-REPO Citco FpML Proposal Questions



FYI

 


From: Brian Lynn [mailto:brian.lynn@xxxxxxxxxxxxxxxxxxx]
Sent: Tuesday, August 29, 2006 6:10 PM
To: Marc Gratacos
Cc: Bauer, Jeff
Subject: RE: FpML-REPO Citco FpML Proposal Questions

 

Marc –

 

See below, the answers to the best of my ability.  I’ve cc’d Jeff Bauer from Citco, who may be able to shed some light in areas where my knowledge is limited.

 

Jeff, FYI I presented the repo part of the the Citco trade instructions work to the FpML repos working group today.

 

- Brian

 


From: Marc Gratacos [mailto:MGratacos@xxxxxxxx]
Sent: Tuesday, August 29, 2006 11:40 AM
To: Brian Lynn
Subject: FW: FpML-REPO Citco FpML Proposal Questions

 

Some questions around the proposal.

 


From: repowg@xxxxxxxx [mailto:repowg@xxxxxxxx] On Behalf Of Moeller, Danny
Sent: Tuesday, August 29, 2006 4:56 PM
To: repowg@xxxxxxxx
Subject: FpML-REPO Citco FpML Proposal Questions

 

Brian-

 

Thanks for your overview of the Citco FpML Repo Proposal.

 

Some questions we have regarding this proposal:

 

[1] How are on-leg/off-leg information described?

>> I don’t believe that this is covered.  Jeff might be able to shed light into whether this is something that Citco captures.

[2] How are margins/haircuts handled?

>> net and gross prices, principal amounts, and settlement amounts, etc. are covered in the InstrumentTradePricing, InstrumentTradePrincipal, and InstrumentTradeSettlement structures, respectively.

[3] How are ‘mid-life’ events handled – such as repricings, rate changes, substitutions?

>> there is no specific support for this in the specification.  Jeff might be able to shed light on how this is handled.

[4] Where is Trade Type described: repo vs. reverse?

>> Good question.  I don’t think that reverse repos are covered by this proposal – Jeff, do you need to represent reverse repos?

[5] How is the Repo Rate described?

>> as a decimal number.

[6] Also, why is it necessary to have a repo type [open/term]? Isn’t that obvious as to whether it has an end date or not?

>> I suppose that this could be argued.  The Citco sample data actually does have an end date for open repos, but this is documented as “not used”.

 

Sample messages might also help us understand the proposal better.

>> I don’t have any sample messages for repos.  I’ve attached a sample for an equity allocation – it demonstrates the other fields.

 

 

Thanks,

John Singler

Jeffery Stephens

Danny Moeller

 

Helix Financial Systems L.P.

Cantor Fitzgerald

 

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