Commodities Working Group
Mission: The Commodities Working Group will further extend the existing FpML commodity coverage in order to support upcoming reporting and clearing requirements.
Chairs of Working Group
Andrew Jacobs (HSBC)
Jonathan Cinque (Bloomberg) Jyoti Sahrawat (CME Group) Peter Stockman (DRG) Arun Narayanan (DTCC) Brian Lynn (GEM) Denise Webster (Goldman Sachs) John Chirichella (Goldman Sachs) Kent Tung(Goldman Sachs) Shambhu Kumar (Goldman Sachs) Timothy Capuano (Goldman Sachs) Fred Litjens (Murex) Stephane Ducher (Murex) Vijay Addanki (State Street) Irina Yermakova (ISDA) Karel Engelen (ISDA) Lyteck Lynhiavu (ISDA) Marc Gratacos (ISDA)
Scope: Develop FpML schemas, examples, coding schemes, and supporting documentation for commodity products that are commonly traded as OTC derivatives to support reporting and clearing. Specific objectives will include:
- Review requirements from regulators and SDR (swaps data repository) offerings to identify top priority product areas beyond the existing FpML energy derivatives swaps and options coverage.
- Review proposals from group members, as available.
- Develop product representations of the products identified in the priority list.
Priorities: Priorities for the group include:
- Additional Commodity Priorities:
- Agriculturals and softs derivative
- Freight derivatives
- Environmental derivatives (e.g. emissions allowance derivatives)
- Metals (including base metals and possibly additional precious or other metals)
- Weather and catastrophe derivatives
- Plastics and other chemicals
- Storage and inventory
- Additional Product Priorities:
- Option strips
- Bespoke commodity indices
- Commodity baskets
- Other Priorities:
- Review Commodities Taxonomy and UPI requirements of these underlyers and products and provide input to the Taxonomy and UPI working group.
- The working group will cover off swaps and options at the same time for each additional commodity underlyer.
Meeting Schedule: Weekly on a day and at a time to be decided in the kick-off meeting (and adjusted as necessary). Rules of Operation: The working group will adopt the FpML Working Group Rules of Operation. These outline best-practices for meetings, managing member participation, reaching group consensus and voting. Estimated time commitment from Participants: Members should be prepared to commit approximately 2 hours per week for meeting participation and document review in addition to the meeting time. Full members must have the agreement and support of their management before signing up to the Working Group. It is expected that participants will sign up to complete action items and make proposals, and will generally be participating in discussions during the week. Participants will also need to liaise with other working group members to ensure the consistency of the standard. Key to making progress will be access to example confirmations for transactions in the priority products. It is expected that participants from firms which transact these products will share example confirmations. Where confidentiality is required such sharing can be with the working group Chair, who will abstract information from the confirmation for purposes of developing the product representation without disclosing the confirmation itself. It is not expected that each participant will be versed in every priority product. It will be useful if each participant has access to experts in a given priority product within his or her company. Experience has shown that occasional face-to-face meetings can expedite the process. Members should be aware that some travel and full-day meetings might be required. Target Participants: Business analysts, technical architects, business specialists