For
Immediate Release Friday, June 30, 2006
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ISDA and SWIFT Enhance Collaboration to Leverage
FpML and SWIFTNet Capabilities
By forming a Closed User Group on SWIFTNet for the transport of FpML, the collaboration will further expand the use of FpML, particularly for end-users of derivatives. In addition to increased automation and operational efficiencies, FpML allows for reduced switching costs between solution providers.
“This strategic collaboration between FpML and SWIFTNet will greatly benefit our combined user base and further enhance efficiencies in straight-through processing,” said Robert Pickel, Chief Executive Officer and Executive Director, ISDA.
Transporting FpML over SWIFTNet is the first of several steps in a multi-phase approach and is expected to go live before the end of 2006. Future phases will consider additional services such as matching and full use of FpML validation rules and capabilities on SWIFTNet.
About
FpML
FpML (Financial products Markup Language) is the freely licensed business information exchange standard for electronic dealing and processing of privately negotiated derivatives and structured products. It establishes the industry protocol for sharing information on, and dealing in, financial derivatives and structured products over the Internet. It is based on XML (Extensible Markup Language), the standard meta-language for describing data shared between applications. The standard is developed under the auspices of ISDA, using the ISDA derivatives documentation as the basis.
About SWIFT
SWIFT is the industry-owned co-operative supplying secure, standardised messaging services and interface software to over 7,800 financial institutions in more than 200 countries. The SWIFT community includes banks, broker/dealers and investment managers, as well as their market infrastructures in payments, securities, treasury and trade. Over the past ten years, SWIFT message prices have been reduced over 70%, and system availability approaches 5x9 reliability — 99.999% of uptime.
About ISDA
ISDA, which represents participants in the privately negotiated derivatives industry, is the largest global financial trade association, by number of member firms. ISDA was chartered in 1985, and today has over 700 member institutions from 50 countries on six continents. These members include most of the world's major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities. Information about ISDA and its activities is available on the Association's web site: www.isda.org.