Date

17 Aug 2021

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:

Today we continued our discussion on commodities, and on the CPMI IOSCO / FSB discussion on the UPI, which is still in work. The ROC Derivatives Service Bureau is responsible for the UPI, and it is possible that they will describe the properties of a derivative in CDE terms as part of that work. See https://www.risk.net/derivatives/7706826/ready-for-the-unique-product-identifier-upi-in-two-years and https://www.iosco.org/library/pubdocs/pdf/IOSCOPD598.pdf (for the CDE) for more on ongoing work. The draft UPI document is available at https://www.iso.org/obp/ui/#iso:std:iso:4914:dis:ed-1:v1:en (possibly through TC 68).

Commodity Future: It is an agreement to either buy or sell a particular amount of a commodity on a pre-decided date at a pre-determined price. Commodity Forward: It is an agreement between two parties who agree to exchange a certain quantity of a commodity at a pre-determined price on a fixed future date. Commodity Option: This type of contract gives the holder the right but not obligation to execute the transaction on the expiration date. The put option gives the right to sell while the call option gives the righttobuy. Commodity Swap: In this type of agreement, the floating price of an underlying asset is traded for the fixed price over a particular period of time.

See also https://www.educba.com/commodity-derivatives/

We made adjustments to a few of the definitions in the commodities ontology under DER-105. Note that diamonds are considered extraction resources in the CFI and we don't call out precious stones separately to date. Interesting related articles include: https://www.diamonds.net/news/NewsItem.aspx?ArticleID=66174,
https://www.marketwatch.com/story/diamonds-may-have-a-future-as-a-commodity.

Decisions:

Action items

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