FpML Issues Tracker
closed
Major
Always
Validation Rules
Admin
mgratacos
Summary
We recently started trading ABX CDS's which we message over to our accounting agent via FpML. They are telling us that the trades get rejected from their systems because of the following:
****************************************************************************** Following are the business validation rules that failed: ******************************************************************************
Rule number=CDS_Rule1 Error description=Trade date is not before Unadjusted Effectivedate.
However, ABX CDS instruments have TD = Effective Dates. Is there a workaround to correct this issue. Is there another transaction type other than CDS we can use?
Thank you
Notes:
mgratacos
06/09/06 10:44 am
The validation rules for credit derivatives were introduced before the introduction of product variants such as cds indices and baskets. You are right identifying this issue since this rule doesn’t apply to some of these product variants.
Currently the Credit Derivatives and Validation working groups are revising and updating the credit derivatives rules.
mgratacos
06/13/06 6:12 am
A precondition called SingleName will be added to rule cd-1. This rule will be triggered only in the case of a Single Name CDS product, excluding indexes and baskets. The precondition will be defined as creditDefaultSwap/generalTerms/referenceInformation is present.
I think that this update of the rule will fix your issue.
mgratacos
06/15/06 7:24 am
The validation rules for credit derivatives will be updated in version 4.2 Recommendation and 4.3 Working Draft.