## 13 CORRELATION PRODUCT ARCHITECTURE

### 13.1 Overall Architecture

Correlation Swaps are modelled using the following product element in FpML:

- correlationSwap

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13.1.1 correlationSwap

The correlationSwap product is modelled as a single netted leg.

| productType - A classification of the type of product. FpML defines a simple product categorization using a coding scheme. productId - A product reference identifier allocated by a party. FpML does not define the domain values associated with this element. Note that the domain values for this element are not strictly an enumerated list. additionalPayment - Specifies additional payment(s) between the principal parties to the netted swap. extraordinaryEvents - Where the underlying is shares, defines market events affecting the issuer of those shares that may require the terms of the transaction to be adjusted. correlationLeg - A type describing return which is driven by a Correlation calculation.

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13.1.2 correlationLeg

The correlationLeg - A type describing return which is driven by a Correlation calculation.

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