Proposed change to the CDM - Completion Life Cycle Events Implementations

[dschwartznyc]

CDM's support for life cycle events has limited documentation and seems to be incomplete. These gaps are not aligned with the goals for standardization and are limiting the technology's potential.

Background

Two notable examples of gaps in the OTC derivatives workflow support are the Allocation and Affirmation events. In both cases the workflow implementation is incomplete.

• For example, Qualify_Allocation is the function provided to confirm that an allocation is appropriately formed but this function does not confirm that the sum of the notionals of the allocated trades is equal to the notional of the unallocated trade.
• Similarly, while the model includes a data model type to encapsulate an affirmation, it is unclear what function should be used to execute the event.
  If an existing function such as Qualify_ContractFormation is part of the workflow, then shouldn't there be an EventIntentEnum corresponding to affirmation or confirmation?

Proposal

In response, there should be a prioritized review of the events CDM intends to support leading to complete workflow implementation where there are gaps and more comprehensive documentation.

For OTC derivatives, the suggested primary working group is the CDM Derivatives Products and Business Events Working Group.

Gaps in the Collateral Management, if any, should be covered by the CDM Collateral Working Group
Securities Lending and Repo/Reverse may best be supported in the respective Trade Association Working Groups.
Unclear where analysis of the gaps in the documentation workflow should reside.