eteridvalishvili commented 5 months ago

CDM Asset Refactor Task Force Minutes

Meeting Host: Lionel Smith Gordon, Regnosys

Date

May 23rd, 2024 - 11am ET / 4pm BST

Untracked attendees

Meeting notices

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Agenda

[x] Convene & roll call (5mins)
[x] Display FINOS Antitrust Policy summary slide
[x] Review Meeting Notices (see above)
[x] Approve meeting minutes
- [x] https://github.com/finos/common-domain-model/issues/2904
[x] Re-cap: Remodelling objectives, assets & payouts.
[x] Refactored examples: Security Lending.
[x] Product Qualification.
[x] AOB, Q&A & Adjourn (5mins)

Materials

ARTForce 23May24.pptx

Minutes

Minutes:

Minutes of 16 May Noted the feedback provided.
Remodeling Objectives, Assets & Payouts a. Revisited the aims of the exercise and the rationale for some of the proposals (see deck pg 3) b. Broad agreement with the objective, with the addition of the words in italics: “Create a framework which enables the representation all types of financial transactions, products and events, in a consistent model that supports all markets and activities, to resolve years of inconsistent representations and data formats”. c. Discussed the hypothesis that “a Trade consists of a set of one or more commitments to settle or transfer assets, including cash, over its lifetime”. d. Differentiated key terms: i. Asset: represents the fundamental building block of financial products as something that can be owned or transferred in the markets. ii. Transfer: the event which transfers an Asset; part of the event model in CDM which deals with all of the state changes through the life, for example settlement. e. Proposed that Payout is the right mechanism, if not right name, to represent the commitments as it defines the what (the asset involved), when, how much and which direction. f. A Payout is a digitization of the commitments in a trade; an Event is the actual occurrence, such as a movement or settlement of assets. g. All types of Trade, from the simplest cash transaction through to the most complex, parameterized derivative, ultimately consists of a set of commitments. h. Increased comfort within the Task Force members that the concepts make sense although reservations on the Payout term. Next steps i. Participants to digest the materials and discussion and revert with further questions or comments before the next meeting.
Refactored examples a. Diagrammatic and JSON examples provided of securities lending trades, before and after the proposed refactoring. b. Participants to review and comment.
Product Qualification a. The examples demonstrate an outstanding activity to address product qualification for securities financing. b. This will be the next focus on the Task Force.

Zoom info

Join Zoom Meeting https://zoom.us/j/91947398280?pwd=YS85Mmo4ejhvV2VKMlpaU1FmeDYydz09

Meeting ID: 919 4739 8280 Passcode: 867245

Oblongs commented 5 months ago

Example of Securities Lending trade (based on a securities lending event):

Pictorial view and representation in Powerpoint: ARTForce - SecLending Examples.pptx
Full JSON in the current model, ie CDM 5. SecuritiesLendingCDM5.json
Full JSON in the proposed refactored model, ie CDM 6. (updated to reflect correct orientation of payouts) SecuritiesLendingCDM6-v2.json