FpML Issues Tracker

684: sameCurrency is too strong a precondition for eqd-20

May 2, 2008

closed

Minor

Always

Equity Derivatives

Admin

apparry

Summary

This is the same issue as #683.

The corrected rule is:

" Context: (EquityOption (complex type), EquityDerivativeShortFormBase (complex type))[numberOfOptions][optionEntitlement][equityPremium/paymentAmount][equityPremium/pricePerOption][val:same-currency((equityPremium/pricePerOption, equityPremium/paymentAmount))] eqd-20 (Mandatory) /equityPremium/pricePerOption/amount * $equityOption/numberOfOptions * $equityOption/optionEntitlement eq $equityOption/equityPremium/paymentAmount/amount "

In XQuery this is: " (for $equityOption in (//element(*, EquityOption)|//element(*, EquityDerivativeShortFormBase))[numberOfOptions][optionEntitlement][equityPremium/paymentAmount][equityPremium/pricePerOption][val:same-currency((equityPremium/pricePerOption, equityPremium/paymentAmount))] return ) "

Notes:

  • mgratacos

    05/09/08 1:23 pm

    EQDWG 2008-05-09: agreement to what it is proposed to amend the rule.

  • matthewdr

    05/09/08 1:23 pm

    Discussed at EQDWG. Agreed to adopt proposal.

  • iyermakova

    05/14/08 7:20 pm

    The way it is expressed needs to be checked by the Validation Working Group.

  • matthewdr

    05/16/08 1:51 pm

    Today the rule is:

    eqd-20 (Mandatory)
    Preconditions: SameCurrency
    If numberOfOptions, optionEntitlement, equityPremium/paymentAmount and equityPremium/pricePerOption are present then: equityPremium/pricePerOption/amount * numberOfOptions * optionEntitlement = equityPremium/paymentAmount/amount.

  • mgratacos

    06/06/08 1:49 pm

    EQDWG: waiting for implementation.

  • matthewdr

    06/06/08 1:49 pm

    Discussed at EQDWG. VWG decisions has happened and this is waiting for implementation from ISDA.

  • lyteck

    07/10/08 8:41 pm

    rewritten using new specifications.

    corrected context from EquityDerivativeShortFormBase to EquityOptionTransactionSupplement (per Irina and Marc verification)

  • matthewdr

    08/12/08 5:31 pm

    “corrected context from EquityDerivativeShortFormBase to EquityOptionTransactionSupplement” – this needs to be discussed at the EQDWG. I can’t find EquityOptionTransactionSupplement.

  • lyteck

    08/15/08 7:03 pm

    The context was changed to EquityOptionTransactionSupplement (defined in fpml-eqd.xsd) when implementing the rule because the condition [optionEntitlement exists] is not in the path of the originally proposed context (EquityDerivativeShortFormBase).

    Please advise.

  • matthewdr

    08/19/08 4:56 pm

    Closed after review.

  • matthewdr

    08/19/08 5:02 pm

    Andrew – did the EQD change the schema between May and now, or did we just all miss this in the review? What concerns me is that these two are the same by coincidence rather than being factored in the schema. It would be easy for them to get out of synch. Presumably this is waiting for the MTF to act?

    //element(*, Context: EquityOption)/optionEntitlement
    //element(*, EquityOptionTransactionSupplement)/optionEntitlement

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