FpML Issues Tracker

703: invalid-eqd-5-01.xml breaks rule eqd-9

May 14, 2008

closed

Minor

Always

Equity Derivatives

Admin

apparry

Summary

The example invalid-eqd-5-01.xml breaks rule eqd-9. This is a mistake, as it should only break eqd-5.

eqd-9 is: " Context: equityBermudaExercise (complex type) eqd-9 (Mandatory) All dates in bermudaExerciseDates/date must be less than or equal to expirationDate/adjustableDate/unadjustedDate. "

Please fix the example to only break eqd-5.

Notes:

  • iyermakova

    05/21/08 8:32 pm

    This is not mistakes in this invalid-eqd-5-01.xml case. The way the dates are tied up around the rules eqd-4, eqd-5, eqd-8, eqd-9 to make the rule eqd-5 invalid, one of the additional rules has to be broken too.
    – commencementDate >= tradeDate (eqd-4)
    – expirationDate >= tradeDate (eqd-5)
    – bermudaExerciseDates > commencementDate (eqd-8)
    – bermudaExerciseDates <= expirationDate (eqd-9) ED >TD (eqd-5)
    2002-06-21Z >= 2002-01-17
    BED <= ED (eqd-9) 2002-04-21Z <= 2002-06-21Z 2002-05-21Z <= 2002-06-21Z 2002-06-21Z <= 2002-06-21Z CD < BED (eqd-8) 2002-01-17Z < 2002-04-21Z 2002-01-17Z < 2002-05-21Z 2002-01-17Z < 2002-06-21Z TD=< CD (eqd-4) 2002-01-17 <= 2002-01-17Z

  • matthewdr

    05/22/08 9:09 am

    Irina – thank you for pointing this out.

    There is a redundancy in the rules. The four rules are circular. To break this circularity I proposing eliminating eqd-8. The effect of eqd-8 is available by entailment on eqd-4, eqd-5, and eqd-9.

  • iyermakova

    05/23/08 2:28 pm

    The removal of eqd-8 will not solve the issue above because of the rule eqd-10 (The dates in bermudaExerciseDates/date must be unique)

    The rule eqd-5 (ED >TD) can be eliminated to break the circle.

    Right now all 4 rules (eqd-4, eqd-8, eqd-9 and eqd-5) look like this.

    TD =< CD < BED <= ED > TD

  • mgratacos

    06/06/08 1:46 pm

    Agreement from the EQDWG that eqd-5 is redundant and it should be removed.

  • matthewdr

    06/06/08 1:46 pm

    Discussed at EQDWG. WG agreed with Irina. EQD-5 will be removed.

  • iyermakova

    06/25/08 3:26 pm

    As per EQDWG agreement rule EQD-5 and examples (valid-eqd-5-01, valid-eqd-5-02, invalid-eqd-5-01) were removed. The change was committed to 4-5 (trunk), 4-4 (branches) and 5-0 (branches)

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