FpML Issues Tracker
closed
Minor
Always
Validation Rules
Admin
apparry
Summary
The context for eqd-17 doesn't take into account optional fields.
The rule today is: " Context: EquityOption, EquityDerivativeShortFormBase (complex type) eqd-17 (Mandatory) equityExercise/equityAmericanExercise/equityMultipleExercise/maximumNumberOfOptions * equityExercise/equityAmericanExercise/equityMultipleExercise/integralMultipleExercise >= numberOfOptions. "
This is a change. The rule was changed in issue #457. This fixed one problem but removed the handling of optional fields from the context.
The correct form of the rule in XQuery is:
(for $equityOption in (//element(*, EquityOption)|//element(*, EquityDerivativeShortFormBase))[equityExercise/equityAmericanExercise/equityMultipleExercise][numberOfOptions]
return
The solution is to rewrite the rule as: " Context: (EquityOption (complex type), EquityDerivativeShortFormBase (complex type))[equityExercise/equityAmericanExercise/equityMultipleExercise][numberOfOptions] eqd-17 (Mandatory) equityExercise/equityAmericanExercise/equityMultipleExercise/maximumNumberOfOptions * equityExercise/equityAmericanExercise/equityMultipleExercise/integralMultipleExercise >= numberOfOptions. "
NB This uses the FpML way to write out contexts which doesn't use XPath.
Notes:
mgratacos
05/09/08 1:34 pm
EQDWG 2008-05-09: agreement to work on a simplification of the rule. AP will work on a proposed solution.
matthewdr
05/16/08 1:21 pm
Discussed at the EQDWG. “We have discussed that integralMultipleExercise is not applicable for the last exercise ( automatic or manual ) as per Robert Masri and Piers Evans. Since we cannot capture ‘last exercise’ as a context, we may have to remove rule eqd-17”
The only possibility is to add an explicit field to identify the last exercise. Andrew Parry will consider this.
matthewdr
08/20/08 9:20 am
Has the EQDWG considered this further since May?
mgratacos
03/05/10 11:48 am
Guards for optional elements were added to the rule description but from the discussion here it seems that the rule is not applicable to the ‘last exercise’.
A comment has been added to the rule:
Issue: The integralMultipleExercise is not applicable for the last exercise ( automatic or manual ).
iyermakova
03/16/10 6:37 pm
danieldui
03/29/10 3:13 pm
Discussed at the VWG on 2010-03-23.
Daniel sent an email to EQD asking for clarification. We are waiting for their reply.
iyermakova
04/13/10 3:07 pm
Eqd WG will be discussed Business rules ( eqd-17 )at the next meeting on Fri 16 Apr 2010
iyermakova
06/25/10 7:40 pm
Find attached MultipleExerciseAmountExplanatoryNotes_v1.0.doc created by Takeo Asakura (MarkitServ) and agreed by the FpML EQD Working Group on 2010-06-18 meeting.
This document provides both business logic and pseudo code to help the FpML Val Working Group in correcting the existing FpML business validation rules for equity multiple exercise (e.g. eqd-17).
h_mcallister
07/02/10 6:23 pm
In the “Explanatory Notes” doc, Section 4.1, to make the intended meaning of the pseudo-code explicit the ‘int’ function should be replaced with ‘floor’, thus:
if (mod(Proposed Amount, Integral Multiple)==0)
{ Exercise Amount = Proposed Amount ; }
else
{ Exercise Amount = floor(Proposed Amount / Integral Multiple)* Integral Multiple; }
danieldui
08/03/10 5:37 pm
danieldui
08/03/10 5:37 pm
danieldui
08/18/10 12:01 pm
Discussed on Aug 3 meeting.
TODO: Need to update the rules affected.
ISDA/Irina now own this task.
When rules are updated and we’re happy with rules and document, we can release both.
See child issue
danieldui
08/18/10 12:06 pm
See child issue for follow up actions.