2020-08-04 Meeting notes
- Elisa Kendall
Date
Attendees
Agenda
1) Use Case reminder
2) Where we are on our road map.
3) Open Action Items
4) JIRA Issues Review - https://jira.edmcouncil.org/projects/DER/issues/DER-10?filter=allopenissues
5) Todays content discussion.
6) For next week.
Proceedings:
Reviewed the latest version of EquitySwaps. We had determined a couple of weeks ago that we need several possible leg types. These include:
- dividend stream for a single stock (we have this)
- increase in value for a single share
- increase in value for a basket of shares
- increase in value for an index
- value of a dividend stream for a basket of shares
And there may be combinations of the above, but this is the basic set.
Looking at the CFI standard under equity swaps, one row defines a 'CFD'. That is:
A contract for differences (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash-settled. There is no delivery of physical goods or securities with CFDs.
The CFI standard also includes total return swaps, which can apply to debt as well as to equities:
A total return swap is a swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains. In total return swaps, the underlying asset, referred to as the reference asset, is usually an equity index, a basket of loans, or bonds. The asset is owned by the party receiving the set rate payment.
So, return swaps should either be a standalone ontology or merged with swaps. We'll have to fix that ontology to complete the work on equity swaps.
For next week - will work on cleaning up the equity swaps ontology so that we can then review definitions in that and in the higher level security-based derivatives ontology.