CDM Asset Refactor Task Force - April 11th, 2024

[eteridvalishvili]

CDM Asset Refactor Task Force Minutes

Meeting Host: Lionel Smith Gordon, Regnosys

Date

April 11th, 2024 - 11am ET / 4pm GMT

Untracked attendees

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Agenda

• Convene & roll call (5mins)
• Display FINOS Antitrust Policy summary slide
• Review Meeting Notices (see above)
• Approve past meeting minutes
  • CDM Asset Refactor Task Force - April 4th, 2024 #2816
• Participant feedback on the proposals presented on 4 April and represented in PR Lionel Smith-Gordon ARTForce initial proposals #2831 / Issue Proposed refactoring of Asset, Product and Observable in the CDM to address model limitations #2805:
  • ART-01: New Asset data type.
  • ART-02: Changes to Observable and Index.
  • ART-03: Refactored identifiers: Identifier and AssetIdentifier.
• Decisions as listed within the attached deck
• New proposals
  • ART-04: Proposed remodeling of Basket
  • ART-05: Assets and AssetBase
• Upcoming topics.
• AOB, Q&A & Adjourn (5mins)

Deck
ARTForce - Model Updates 11Apr24.pptx

Minutes

Definitions

Majority agreed the objective to define the three main data types as follows:
Asset - can be held or transferred and can exist without a Product or trade.
Product - can be composed from parts, including Assets, parties and terms in order to create something which can ultimately be traded.
Observable - something in the market that we can see things about, such as a price.

ART-01 Discussion on Asset Data Types:

Specifically, the attributes of the Asset data type. Views varied on defining and classifying assets, especially commodities, loans, and securities. While commodities and cash were unanimously considered standalone assets, opinions diverged on loans and securities, some viewing them as products because of the need to define contractual terms. Some participants stated that loans and securities can be defined simply – as they are in CDM5 – and then used in the Payout definitions of more complex OTC products and this is the intended use in CDM6.

• Agreed: Attributes of Asset should include AssetPool, Basket, Cash, Commodity, DigitalAsset.
• Agreed: To leave DigitalAsset, which could be used to model native digital assets, as a stub for future development.
• Agreed: To retain AssetPool as some participants are using this.
• Agreed: Not to introduce Derivative as an Asset.
• Agreed: Not to collapse Security and Loan into an “issued” asset type.
• Follow-up required to settle the use of Security and Loan.

ART-03 Identifier Refactoring

Not explicitly discussed, but no objections raised.

ART-02 Proposal for Observable Assets:

A proposal was made to shift focus to defining observable items, rather than distinguishing between assets and products. The aim is to agree on a list of observable items without categorization, emphasizing a functional approach to modelling.

• Agreed: Definition of the Observable type.
• Agreed: Attributes of the Observable type - AssetIdentifier, QuotedCurrencyPair, Index.
• Agreed: The definition of Index including the addition of name and provider to IndexBase.
• The proposal to add FixedRate will be postponed to the next discussion.

ART-04 Proposed Remodelling of Basket

Deck and Open Contribution presented that models Basket as a collection of Observable. As Observable includes some non-transferable items, it is proposed that a condition be added to TransferBase to preclude this.

• Agreed

Next topics to be scheduled

• Product qualification & assets
• UNION construct
• PriceQuantity and TradeLots.

ART-05 Assets and AssetBase

No time to discuss; participants requested to review and comment on GitHub.

Action Items

Actions:

• Create a new Open Contribution / PR with the changes agreed to date.
• Schedule topics for next meeting (Lionel on vacation)

Topics to be resolved:

• Use of Security and Loan data types
• Proposal to add FixedRate to Observable

Zoom info

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

Meeting ID: 919 4739 8280
Passcode: 867245

[LionelSG-REGnosys]

Lionel Smith-Gordon for REGnosys

[nicholas-moger]

Nick Moger / JPM

[mikealambert]

Mike Lambert / Broadridge

[tomhealey-icma]

Tom Healey/ICMA

[JBZ-Fragmos]

JB Ziadé // FRAGMOS

[mgratacos]

Marc Gratacos / TradeHeader

[mahoneg1br]

Greg Mahoney / Broadridge

[chrisisla]

Chris Rayner / ISLA

[LionelSG-REGnosys]

Additional attendees: Jon Espley / JPM, Lytek Lynhiavu / ISDA.

[JBZ-Fragmos]

@Oblongs, about Minutes :

• all agreed
• only one item i'm not confortable yet is whether Product may be missing in the list of Attributes of the Observable type ? unless it is already present implictly as part of Asset, meaning whenever a Product may have an "Identifier" then it can be represeented with it as part of Observable->AssetIdentifier, so we do not need to add Product as an additional attribute per se ?

[LionelSG-REGnosys]

Product may be missing in the list of Attributes of the Observable type ?

Only "missing" because we haven't discussed this yet...!