Uncertainties concerning business rules

[oeschfel]

Some business rules I find confusing. Below I describe the business rules that appears not entirely clear to me. Notes A) up to C) refer to the CT Plain Vanilla Swap (SWPPV).

notation of a business rule: a(b,c,d)e

A) CA group number 9 contains the following attributes and business rules.

For me is not clear whether one of the CAs CycleAnchorDateOfRateReset and CycleOfRateReset has to be defined or not. By the following definition one of the two attributes must be defined if there is at least one of the unconditional CAs defined (but none of them is)! Definition: “At least one of the CAs with c=2 in this group has to be defined provided that at least one of the unconditional CAs of the group is defined (if any exists)”
Similar problem with the last four CAs: The digit 1 means that a = x applies (so the attributes are optional) if at least one of the unconditional CAs of this group is defined. Due to the fact there is no unconditional CA in group 9, for me this means rule a = x does not apply for these attributes.

B) Group 2 has only two CAs (CycleAnchorDateOfInterestPayment and CycleOfInterestPayment), both with c = 0. What is the purpose of this group? And if the group was not defined, it would amount to the same thing?

C) The CA StatusDate has the business rule NN(,,1) (and a lot of others too, e.g. LegalEntityIDRecordCreator). This means CT SWPPV has a parent / child structure but has SWPPV not always to be a stand-alone attribute (in contrast to SWAPS)?

D) The following explanation belongs to rule d (inheritance rule):
"NN(b, c, 3): means that the CA and business rules b, c is mandatory on child CTs only and not applicable on parent CTs"
What does apply to stand-alone CTs?
Suggestion: NN(b, c, 3): means that the CA and business rules b, c is mandatory on child CTs only and not applicable on parent and stand-alone CTs.

E) If rule e is set to the value 1 this means CA cyclePointOfRateReset must be set to the value E provided that CyclePointOfInterestPayment is set to the value B.

So, I do not understand why rule «e» is also set to one for the CA «CyclePointOfInterestPayment», for me this seems to be redundant because rule «e» does in this case only affect «cyclePointOfRateReset».

F) Rule e is set to the value 2 only for four attributes of the CT «ANN» as you can see in the following table (which contains cycle-attributes).

For anchor attributes e = 2 means the CA must be equal to one of the principal redemption dates. Otherwise e = 2 means the CA must be equal to a multiple of «CycleOfPrincipalRedemption». So, I find it more logical to set e = 2 for the interest payment attributes instead of for the four attributes above. Because all annuity payments must be the same and this is not possible if there are annuity payments which only consists of interest payments without redemption payments. I suggest the following changes: