FpML Issues Tracker
As I worked on the CDM legal agreement representation, I came to realize that the above mentioned scheme values are actually included as part of the governingLawScheme. As a result, it should be deprecated and the legal model should be adjusted to reference this latter.
07/15/19 6:58 am
I talked to legal about this.
Legal document style scheme should be updated, to include French law and Irish law. This is a recent change to accommodate Brexit, so the scheme should have 5 values: Ny law. English law, Japanese law, Irish law and French law.
The legal document style specifies the governing law, so for a NY law style contract, the governing law is NY and according to legal there is no separate space where you can specify a different governing law, so you can not pick a NY style doc and than say the governing law is Illinois.
However, the actual governing law is determined by the location of the party and where the contract is executed. For example an Illinois insurance company might execute a NY law Master Agreement, but state legal and policy considerations might impact this and make the insurance company and the contract subject to Illinois insolvency laws in case of insolvency.
Do we know where the governing law concept in FpML is coming from?
07/15/19 7:00 am
I thought Governing Law was coming from the ISDA definitions. I checked the 2006 Defs and if you don’t have a Master Agreement signed, I think you need to specify the governing law at the confirmation level. See footnote on page 107 of the 2006 ISDA Defs. However, it think it was added to FpML for extra information.
By the way, we already have French Law in the Governing Law Coding Scheme but we don’t have the Irish law http://www.fpml.org/coding-scheme/governing-law-1-2.xml
07/18/19 11:49 am
Minutes AWG 2019-07-18
- Agreement that currently these should be separate lists.
- The reason is that we could have a trade with a New York Law Master Agreement but in a Massachussets Governing Law.
- The scope of the governingLaw is broader than the legal document type.
- Agreement that the legal document type scheme should contain five values: New York Law, Japanese Law, English Law, French Law, and Irish Law. We should add French and Irish to the current scheme.
- Action: Marc to add two codes to the legal document scheme and close the issue.
07/18/19 11:58 am
The two new codes IrishLaw and FrenchLaw have been added to the legalDocumentStyleScheme.
Leave an update
You must be logged in to post an update.