Fpml Message

[Carolina Bornman]

FpMLFinancial products Markup Language) is an XML based messagestandard used for complex financial products. Oracle FLEXCUBE supportsgeneration of messages (notices) using this format. The messages canbe broadly categorized into two groups:

The system supports FpML messaging for regular back-valued activity,which is not prior to any other activity. This is treated as any othercurrent dated activity message. Any back-valued activity prior to anyother event is suppressed by the system.

As mentioned earlier, there are various types of FpML messages thatcan be generated. These typically include notices from agent to individualparticipants, manually-generated notices to Markit, system-generatednotices to Markit and updates relating to CUSIP and MEI CODE changesto Markit.

The Take on Deal Definition notice can be generated for tranches thathave not yet been sent to MarkIt. The system will ensure that the tranchedetails are sent only for the first tranche under the deal (facility)and that the tranches are not generated or handed-off more than once.You will be allowed to generate other FpML messages for tranches/ drawdownsonly if the Take on Deal /Take On Facility Definition messages have beengenerated and handed-off to MarkIt.

The Take on Facility Definition notice can be generated for tranchesthat have not yet been sent to MarkIt. The system ensures that the tranchedetails that are being sent are not for the first tranche under the deal(facility) and that the tranches are not generated or handed-off morethan once. You are allowed to generate other FpML messages for tranches/drawdowns only if the Take on Deal /Take On Facility Definition messageshave been generated and handed-off to MarkIt.

This message can be used at a tranche or drawdown level for all theparticipants under the tranche or drawdown and is generated only afterthe Take on Deal / Take on Facility notices have been generated and handed-offto Markit.

The Drawdown Notice is generated at the borrower level for new drawdownbookings and principal increases on drawdowns. The notice consists ofa notice for each participant and a notice for the global details forthe borrower.

The Commitment Adjustment notice, which is generated at the borrowerlevel, is generated whenever principal is increased or decreased fora tranche. It has all the participant and global details and consistof a message for each participant and a message for global details forborrower. You need to maintain the message for the VAMB event for trancheproducts to generate the notice for tranche value-dated amendment notice.

If there are no principal changes for the value-dated amendment orif the amendment results in the tranche being decreased to nil principaland the maturity date to less than or equal to today, this notice issuppressed. You can also suppress the generation during value dated amendmentif you require. Since the notice is generated only for principal changesdone directly on the tranche and not as a result of any drawdown activity,the system does not generate the notice for drawdown payments on non-revolvertranches.

Deal Definition Notice generated for facility/deal amendment containsdetails of all the active tranches that have the same Ext Deal CUSIP/ISINas that of the facility/deal CUSIP, provided Take on Deal/Take on Facilityand Position Update for Position Statement type have already been generatedfor all those tranches.

Deal Definition notice generated for tranche amendment contains detailsof all the active tranches that have the same Ext Deal CUSIP/ISIN asthat of the tranche which being amended, provided Take on Deal/Take onFacility and Position Update for Position Statement type have alreadybeen generated for all those tranches.

This notice does not contain details of tranches for which Take onDeal/Take on Facility and Position Update for Position Statement typeis not generated. In this case, the notice generation does not fail but excludes such tranches.

Deal Definition notice generation for a facility/deal amendment issuppressed systematically if none of the tranches under the facility/dealhave the Ext Deal CUSIP/ISIN same as the facility CUSIP. Deal Definitionnotice for a facility/deal amendment is suppressed systematically ifnone of the tranches (with matching CUSIP) have Take on Deal/Take onFacility and Position Update for Position Statement type generated andhanded off. This notice is suppressed systematically for a tranche amendmentif the tranche does not have Take on Deal/Take on Facility and PositionUpdate for Position Statement type already generated and handed off.

For Deal Definition generation for a tranche amendment, the detailsin the notice for the current tranche that is amended in Oracle FLEXCUBE contains the latest amended details and all other tranches containthe latest details. In case of facility/deal amendment, the latest detailsare present in the notice for all the tranches.

Deal Definition Notice is generated for all tranche value dated amendments(VAMI event) involving change to the maturity date of the tranche andresulting in the tranche being liquidated. In this scenario, this noticeshould be maintained for the VAMI event as part of the tranche productsetup for the tranche which is getting amended.

The message is a bulk message which consists of a message for eachparticipant and a message for the global details for borrower. You needto maintain the message at the VAMB event for the drawdown product. Ifthe VAMB event is for anything other than changes in maturity date ,then the system suppresses the notice generation. You can manually suppressthe notice during VAMB.

You need to maintain the message at the VAMB, IRAM, MRFX, REVN andERAM events for the drawdown product. If the VAMB event is for anythingother than changes in interest rate, the system systematically suppressesthe notice generation. In addition, you can manually suppress the noticeduring VAMB but not during IRAM, ERAM, MRFX, FRFX, and REVN events.

If the fee rate change involves fee rate change for multiple fee components,then system generates one message for each fee component for which therate is changed. Rate set notice for Interest/Margin/Exchange/Fee ratechanges is applicable only when Take on Deal/Take on Facility FpML noticeand Drawdown notice are generated. Position Update Notice should alsobe generated if you want to generate the Rate Set Notice.

The Repayment Notice is generated at the borrower level for partialor full payments of principal on the drawdown. It is a bulk message fora drawdown payment with all the participant and global details and consistof a message for each participant and a message for the global detailsfor the borrower. You need to maintain the message at the LIQD eventfor drawdown products.

If the payment is only for the interest, the system will suppressthe notice. If the payment is for both interest and principal, then thesystem will generate the Interest Payment Notice for the interest liquidatedand the Repayment Notice for the principal liquidated. You cannot suppressthe notice generation manually during drawdown payment. However, by doinga contact amendment in the Drawdown online screen, you can suppress themessage. If needed, before making the payment, an amendment can be doneto suppress the notice for the termination and then payment can be done.

The Interest Payment Notice is generated at the borrower level forfull or partial interest payments on the drawdown. It is a bulk messagefor drawdown interest with all the participants and global details and consist of a message for each participant and a message for the globaldetails for the borrower. You need to maintain the message at the LIQDevent for drawdown products.

If the payment is only for the principal, the system suppresses thenotice. If the payment is for both interest and principal, then the system generates the Interest Payment Notice for the interest liquidated andthe Repayment Notice for the principal liquidated. Or it can bulk thetwo notices if principal and interest are being paid together.

You cannot suppress the notice generation manually during drawdownpayment. However, by doing a contact amendment (CAMD) in the Drawdownonline screen, you can suppress the message. If needed, before makingthe payment, an amendment can be done to suppress the notice for thetermination and then payment can be done.

The LC Issuance Notice is generated at the borrower level with onebulk message for a LC drawdown with all the participant and global details.It consists of a message for each participant and a message for the globaldetails for the borrower. It is generated for:

You should not maintain drawdown notices for the BOOK, VAMB and DNOTevents since maintaining this would lead to LC Issuance notices beinggenerated for those drawdowns instead. You can suppress the notice manuallyfor the new LC drawdown bookings but not for the LC increases and decreases.However, by doing a contact amendment (CAMD) in the Drawdown online screen,you can suppress the message. If needed, before making the payment, anamendment can be done to suppress the notice for the termination andthen payment can be done.

The LC Termination Notice is generated at the borrower level withone bulk message containing all the participant and global details. Itconsists of a message for each participant and a message for the globaldetails for the borrower. It is generated for full payments on LC drawdown.

You cannot manually suppress the message during LC drawdown payment.However, by doing a contact amendment (CAMD) in the Drawdown online screen,you can suppress the message. If needed, before making the payment, anamendment can be done to suppress the notice for the termination andthen payment can be done.

The Ongoing Fee Notice is generated at the borrower level with onebulk message for a tranche and have all participant and global details.The message consists of one message for each participant and one messagefor the global details for the borrower. It is generated for:

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