Main discussion was around creating a more general definition for Financial Instrument, possibly the definition that Jeff Braswell proposed, or the new FASB definition, which are both included below. Folks who were on the call and/or participating in this group should review these, along with a new proposal based on these that will be sent around later this week, for further discussion next week.
Everyone will review the text of the standard this week and provide comments using pdf comments; email them to Elisa for correlation (hopefully by Friday).
Reviewed the content of the slides, including the status of the current draft specification. The main challenge here has been posting content larger than 10 MB, which Dennis is working on.
Reviewed open actions – several have been closed (done), including refactoring of the Products and Services ontology. Gareth reiterated that he will assist in working on the EU Jurisdiction content; he will send Elisa times when he is available for a one-on-one call for Friday, 8/21.
Reviewed suggested definitions for Financial Instrument to replace the current definition (see table 9-3 in the current draft specification). These include:
- From Jeff Braswell:
A financial instrument is a general class of a wide range of contractual vehicle patterns that establish financial arrangements among the respective parties to each arrangement as specified by the roles of parties and terms required or determined by the contractual structure of the type of arrangement.As a class concept, a financial instrument can be thought of as a template that defines an arrangement structure that remains to be originated with terms and parameters in order to establish a specific instance of the contract type.Examples of financial instrument categories include: cash, evidence of an ownership interest in an entity, or a contractual right to receive (or deliver) cash, or another financial instrument.
- units in collective investment undertakings,
- money-market instruments,
- financial-futures contracts, including equivalent cash-settled instruments,
- forward interest-rate agreements,
- interest-rate, currency and equity swaps,
- options to acquire or dispose of any instrument falling into these categories, including equivalent cash-settled instruments. This category includes in particular options on currency and on interest rates,
- derivatives on commodities,
- any other instrument admitted to trading on a regulated market in a Member State or for which a request for admission to trading on such a market has been made.