FpML Issues Tracker

1336: Annotations of SettlementTypeEnum values

October 23, 2023

new

Tweak

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Documentation

XAPWG

mgratacos

None

Summary

The annotations of the enumerated values for SettlementTypeEnum are option specific but the type is being used in the future underlyer, productSummary, and the genericProduct.

Should we update the annotations to make them more generic or have a more specialized type that is not option specific?

"Cash": The intrinsic value of the option will be delivered by way of a cash settlement amount determined, (i) by reference to the differential between the strike price and the settlement price; or (ii) in accordance with a bilateral agreement between the parties

"Physical": The securities underlying the transaction will be delivered by (i) in the case of a call, the seller to the buyer, or (ii) in the case of a put, the buyer to the seller versus a settlement amount equivalent to the strike price per share.

"Election": Allow Election of either Cash or Physical settlement.

"CashOrPhysical": Allow use of either Cash or Physical settlement without prior Election.

Notes:

  • mgratacos

    12/04/23 6:56 am

    See Minutes for the FpML Cross Asset Class Product Working Group of Thursday 2023-11-09 – Section 3 C) https://www.fpml.org/mg_threads/08e5e58c/

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