FpML Working Group Extends Equity Derivatives Coverage
ISDA Issues Call for Participation
FpML Working Group to Extend Equity Derivatives Coverage
New York, NY, USA. May 3, 2002.
The International Swaps and Derivatives Association (ISDA) today issued a call for participation for the Equity Derivatives Working group for the Financial products Markup Language (FpML) standard.
FpML is the XML-based, freely licensed, e-commerce standard supporting OTC trading of financial derivatives.
After the inclusion of the basic equity derivatives in FpML Version 3.0, the working group intends to cover more exotic equity derivatives. "There is interest in the industry for equity derivative coverage and a great deal of momentum within the working group," said Brian Lynn, Co-Chair of the FpML Standards Committee and Vice President e-Trading, Cross-Business e-Commerce group for JP Morgan Chase.
The working group plans to immediately start work on version 4.0 of the standard focusing on inclusion of option features such as Asians, Barriers, Baskets, Bermudans, Binaries, Quantos, Composites, different forms of deferred term options and different option trading strategies. "We are pleased with the continued progress of FpML in the area of equity derivatives and the success of the FpML working group in developing products in coordination with the ISDA documentation working group," said Robert G. Pickel, Executive Director and CEO of ISDA. ISDA's documentation working group on equity derivatives is currently reviewing the Equity Definitions.
The charter of the Equity Derivatives working group and the full scope of the work for version 4.0 can be found at: http://www.fpml.org/wg/equity/index.asp. Parties interested in participating in this working group should complete the form available on the FpML website: http://www.fpml.org/wg/joining/join-form.asp. The time commitment for this working group is one-half a day a week.
FpML is a business information exchange standard for electronic dealing and processing of financial derivatives instruments. It establishes the industry protocol for sharing information on, and dealing in, financial derivatives over the Internet. It is based on XML (Extensible Markup Language), the standard meta-language for describing data shared between applications. All categories of over-the-counter (OTC) derivatives will eventually be incorporated into the standard.
ISDA is the global trade association representing leading participants in the privately negotiated derivatives industry. ISDA was chartered in 1985, and today has more than 560 member institutions from 44 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.
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