ISDA Releases Recommendation for Version 5.0 of FpML

NEWS RELEASE

For Immediate Release, Tuesday, July 20, 2010

 

For More Information, Please Contact:

Cesaltine Gregorio, ISDA New York, +1 212-901-6019, cgregorio@isda.org

Deirdre Leahy, ISDA New York, +1 212-901-6021, dleahy@isda.org

Rebecca O’Neill, ISDA London, +44 203 088 3586, roneill@isda.org

 

ISDA Releases Recommendation for Version 5.0 of FpML

 

NEW YORK, Tuesday, July 20, 2010 

The International Swaps and Derivatives Association, Inc. (ISDA) today released the Recommendation for Version 5.0 of its Financial products Markup Language (FpML). Version 5.0, a complete re-release of the standard, is the first major FpML release since 2004 and should further drive and facilitate the industry’s focus on automation and standardization in the derivatives pre- and post-trade and reporting space.

Version 5.0 contains a number of important technical and design changes, including the introduction of Views, a revision of the messaging framework and use of multiple root elements. The Views allow for the development of a reporting framework in FpML by combining the richness of the product representations with the necessary flexibility for reporting. The Views also facilitate better support of additional life cycle processes such as pre-trade and risk.

In addition to these changes, recommendations from a cross-product task force have increased the consistency of the product representations and rationalized the business process definitions. The expanded coverage in this version includes new sets of clearing messages and reset and activity reporting.

Version 5.0 is available on the FpML website (www.fpml.org). As it is not backwards compatible, ISDA will continue to support the 4 series of the FpML standard for existing coverage in parallel with the 5 series for a limited time. The recommendation for version 4.8 will be released later this month. Version 4.8 contains additional support for commodity and equity derivatives.

Looking ahead, the next release in the 5 series, Version 5.1, will include the redesign of the existing coverage for FX and syndicated loans and incorporate the work of the collateral working group.

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. For more information, please visit www.fpml.org.

 

About ISDA

ISDA, which represents participants in the privately negotiated derivatives industry, is among the world’s largest global financial trade associations as measured by number of member firms. ISDA was chartered in 1985, and today has over 820 member institutions from 57 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.

ISDA is a registered trademark of the International Swaps & Derivatives Association, Inc.

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