2024-02-09 Meeting notes
- Elisa Kendall
Date
Feb 11, 2024
Participants
@Elisa Kendall
@Pete Rivett
@John Gemski
@Tahoe Blue
Discussion
Today we continued our discussion of FBC-713, primarily around where certain constructs related to schedules - interest rate calculation schedules, rate reset schedules, related payment schedules, etc. and where they should be vs. where they currently are. We agreed that some schedules that are more broadly applicable are in the IR Swaps ontology and should be moved to Debt Instruments.
The overall lifecycle of a debt product would include things like origination. A product lifecycle is a series of business events, whereas a contract lifecycle would begin on the effective date of the contract and cover the various kinds of events that can occur once a contract is ‘active’. These might include scheduled events, renegotiations at various points in the contract, etc. but mainly, interest rate calculations and resets, principle and interest payment schedules, and so forth. Many rates are based on indices - resets may be daily although the rate may not change that often (so the actual rate reset value would only vary when the rate itself changed but one would recalculate it daily). Other calculations may be annually, semi-annually, quarterly, monthly …
No decisions were reached, but we identified several concepts that should be moved. We also need the notion of a contract lifecycle and related events as a composite schedule that would include, in the case of a debt instrument, interest rate calculations and rate resets. Examples of similar concepts are available in the ACTUS data dictionary which we can use as the basis for more formal semantics.