FpML Issues Tracker

1358: Possibility of presence backdated trade conditions only for one leg (swapStream) in a trade

September 6, 2024

closed

Tweak

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Interest Rate Derivatives

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okpo

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Summary

Dear colleagues,

Could you please clarify the following question:

According to fpml schema ird-5-12, Is it possible that the <firstPeriodStartDate> element, which displays the backdated trade, will be included in only one leg (one swaptream) along with the <effectiveDate> element. In this case, the <firstPeriodStartDate> will be absent for the second leg, which will mean that the backdated trade conditions do not apply for the second leg and, accordingly, only the <effectiveDate> element will be included?

This question arose because the fpml validator does not display an error in such a structure, where we have a <firstPeriodStartDate> structure and an <effectiveDate> structure (back trade) presented in <swapStream 1> and an <effectiveDate> structure in <swapStream 2> in that same Swap.

However, the FpML documentation does not describe cases where backdated trade conditions are presented for only for one leg (swapStream) in a trade.

Thank you in advance.

With best regards,

Oksana Potebenko

Notes:

  • jbaserba

    09/09/24 6:22 am

    Hi Oksana,

    Yes, it is unusual but it is possible for a trade to have this backdated structure using <firstPeriodStartDate> only in one leg, while the second leg uses <effectiveDate> alone. There are no examples of this case because it is not a common one but there should be no problem in doing that.

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