FpML

The Financial Products Markup Language ( FpML ) is an XML - based protocol for electronic trading and processing of complex financial products. The goal is to be able to represent all OTC derivatives.

FpML defines, in contrast to similar standards such as SWIFT or FIX, neither network structures still transport mechanisms.

Background

Trading in OTC transactions such as swaps has grown by leaps and bounds since the early 1980s. Since there are only two counterparties involved, the characteristics of the business may be flexible, but also non-standardized negotiated. This flexibility incurred in connection with the large trading volumes a technology and personnel, complex workflow that is also error prone.

In recent years, various attempts have been made to solve the problem. None of these approaches, however, managed to attract the necessary critical mass of market participants.

Revision history

The first publication of the FpML Standards on 9 June 1999 JPMorgan and PricewaterhouseCoopers International in the work "Introducing FpML: A New Standard for E -commerce". On 14 November 2001, the development of FpML ISDA was referred to a committee.

The current version of FpML 4.1 was published in July 2005. Be taken into account so that, among other FX, interest rate swaps, credit default swaps, total return swaps and swaptions. Included business processes are: trade, Evaluation, Confirmation, Assignment, increase, amendment and termination.

Are currently working on version 4.2. To include, among other instruments inflation swap and asset swap as well as the business processes to the use of production factors, the level Punk analysis and the formal definition of the roles of the parties involved.