FpML Issues Tracker
closed
Major
Sometimes
Business Process
BrianLynn
mgratacos
Summary
In a cleared product environment, rather than terminating trades it will become common practice to perform an offsetting trade off-market, leaving the clearing service to net out the position. This means that any product that can be cleared will need to have a way to represent trades that are off-market. This is currently supported for CDS and basic IRS, but not for many products, like FRAs, swaptions, many equity derivatives, etc. This has already posed a problem for production implementation of clearing services.
To address this problem, we could either use the existing "trade/otherPartyPayment" element and change its annotation to allow its use for this purpose, or create a new "trade/additionalPayment" element, or create product-specific fields.
Notes:
mgratacos
03/12/13 11:28 am
In an implementation I worked for we added additionalPayment to all products but CDS and IRS. It would probably be better to have the structure at the trade level but for symmetry on what we had we added at each product.
mgratacos
11/29/19 9:55 am
AWG 2019-11-21
mgratacos
12/10/19 5:13 am