Syndicated Loan FpML Design(Proposal for FpML v5.6)

Bhavik Katira, TenDeltaChair - Syndicated Loan Working Group

Page 2

Syndicated Loan FpML Outline

• Loan Asset Definitions– Deal, Facility, Loan Contract, Letter of Credit

• Loan Servicing Business Events• Loan Servicing Notifications

– Correctable Request Message– Embedded business event

• Loan Statement– Asset– Position– Party Profile

Page 3

Syndicated Loan FpML Outline (contd.)• Loan Trading Life Cycle

– Trade Capture– Trade Settlement– Trade Management

• General Process Management– Payments– Message Confirmation (for any message)– Retraction [Cancellation]

• Message / Business Event / Loan Trade / Hold– Hold

• Deal / Facility / Trade / Allocation / Party

Page 4

Loan Asset Definitions

• Deal & Facility– ‘Identified Assets’ (Instruments)– Main parties– Dates– Notional amounts– Rules

• Loan Contract & Letter of Credit– Standalone types (Not instruments)– Used to communicate outstanding borrowings

and accrual rates against facilities

Page 5

Loan Servicing Business Event• Business Event

– Generic (standalone) abstract type– Unique business event (business event id)– Events are applicable at different asset ‘levels’

– Generic business event management:• Release• Retraction

Page 6

Loan Servicing Notification

• Inherited from Correctable Request Message

• Used to communicate a single (embedded) business event

• Logical separation of notification and business event details

Page 7

Loan Statement

• Statements inherit from Correctable Request Message

• Point-in-time ‘statement’, communicates:– Deal– Facility– Loan Contracts– Letter of Credits– Current lender-specific positions in any of the

above• Also used to communicate Party Profile

Page 8

Loan Trading Life Cycle

• Loan Trade & Loan Allocation– Party Trade Identifier– Stand-alone trade structures

• Settlement events– Containers for settlement information

• Notifications inherit Correctable Request Message

Page 9

General Process Management• Payments

– Notification inherits Correctable Request Message

– No re-use of FpML payment types– Full payment (bank account) information– Payments can be made against one or more:

• Business Events• Loan Trades / Loan Allocations

• Message confirmation (via message id)• Retraction

– Message / Business Event / Loan Trade / Hold

Page 10

General Process Management (contd.)

• Hold– Used to publish the immediate halting of all

relevant (settlement) activity– Publishable by any party– Hold can be placed on:

• Deal / Facility• Trade• Allocation• Party• E.g. hold can be placed by an agent bank on a

facility (due to amendment processing)