FX CashFlow / Payment via FpML

[peledg]

Hi, I’m trying to figure out a way to represent a Cashflow instrument via FPmL. For example: On April 10th, 2011 counterparty A pays 60,000 USD to counterparty B The closest thing I can find is bulletPayment which is an IR element, but my deals are FX based. Though business logic of an IR & FX cashflow/payment is the same, would it be a problem to use an IR element for something FX? There is also an FX element called cashflowAssertion but it is not ideal for me (it is missing the productType field -> which is displayed in bulletPayment). Any suggestions?

[mgratacos]

Hi, Are you trying to represent the cashflow alone? or the cashflow within the FX product? 1. If you are trying to represent the cashflow alone then yes, the bulletPayment works and there is no issue on the fact that the bulletPayment is defined within the IRD files. This is completely arbitrary since the product was developed by the IR Working Group but it can be used to represent multiple types of payments for multiple products. 2. Not sure what FX deals you are working on. Let’s say that with FX Spots. You could use the exchangeCurrency1 and exchangeCurrency2 structures filling out all details of the payments (payment dates, types, etc.). Regards, Marc

[peledg]

I’m representing the cashflow alone. Thanks for the detailed and quick reply. This is really helpful.

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