FpML Issues Tracker
closed
Block
Always
Schema
Admin
mgratacos
Summary
The party definition in fpml-doc-4-2.xsd at /xsd:schema/xsd:complexType/xsd:complexContent/xsd:extension/xsd:sequence/xsd:element/xsd:annotation/xsd:documentation is incorrect.
It states: "The parties obligated to make payments from time to time during the term of the trade. This will include, at a minimum, the principal parties involved in the swap or forward rate agreement. Other parties paying or receiving fees, commissions etc. must also be specified if referenced in other party payments."
This is incorrect because: 1. References are made to parties that do not make payments. For example: calculaters, accountants, confirmers, etc. 2. Reference to "swap" or "forward rate" is too exclusive. 3. Any party can be included. There is no obligation it is referenced in the trade. If there was an obligation then there should be a validation rule to enforce it.
Notes:
mgratacos
11/10/06 10:47 am
Any suggestion for a good party definition?
mgratacos
11/13/06 5:43 pm
Should we use the ISO definition of Party? “Entity involved in an activity.”
mgratacos
11/14/06 5:06 pm
The definition of party has been updated to:
The parties relating to the trade. These will include, at a minimum, the principal parties obligated to make payments from time to time during the term of the trade, but may include other parties involved in, or incidental to, the trade, such as parties acting in the role of novation transferor/transferee, broker, calculation agent, accountant, confirmation agent etc. In particular, parties paying or receiving fees, commissions etc. must be specified if referenced in otherPartyPayments. It may also service an account of a party that is party to the trade, but is not itself a party to the trade.
matthew
11/16/06 8:20 pm
“The parties relating to the trade.” – this is inappropriate as many messages do not involve trades.
mgratacos
11/20/06 10:09 am
The Coordination Committee proposed the following definition (2006-11-20)
An entity having a role in a trade lifecycle. For example, the principal parties obligated to make payments from time to time during the term of the trade, but may include other parties involved in, or incidental to, the trade, such as parties acting in the role of novation transferor/transferee, broker, calculation agent, etc.
This definition has been committed to the trunk.
apparry
11/30/06 4:12 am
Response does not cover the issue raised
mgratacos
03/06/07 9:00 am
Andrew, do you have any definition that we can propose to amend this and speed up the process? Maybe you have done this change in house already?
Thanks.
matthew
03/19/07 1:59 pm
A definition of Party should be a definition of what a Party is, it should not be a list of what you can use a Party for. The definition should be independent of usage.
matthew
04/02/07 10:57 am
JPMC’s ‘house’ view is:
* The definition should be “A Party is a legal entity. Any legal entity may be a party.”
mgratacos
04/05/07 9:23 am
Coordination Committee April 5, 2007:
“A legal entity or a subdivision of a legal entity.”
“Parties can perform multiple roles in a trade lifecycle. For example, the principal parties obligated to make payments from time to time during the term of the trade, but may include other parties involved in, or incidental to, the trade, such as parties acting in the role of novation transferor/transferee, broker, calculation agent, etc. In FpML roles are defined in multiple places within a document.”
mgratacos
04/10/07 2:36 pm
This has been committed to the trunk.