FpML Joins Forces with ISDA
Combined Focus Strengthens Technology Supporting Electronic Trading of Financial Derivatives
New York, NY, USA. November 14, 2001.
FpML.org (FpML) today announced that FpML and The International Swaps and Derivatives Association (ISDA) have agreed to integrate the FpML standards development process into ISDA.
FpML.org is developing the Financial products Markup Language as the XML-based standard supporting OTC trading of financial derivatives. ISDA is known for its documentation and risk management standards for the privately negotiated derivatives industry.
"This initiative combines the organizational strengths of ISDA with FpML's technology base for sharing information on, and dealing in, financial derivatives over the Internet," said Tim Fredrickson, a member of both Boards. Mr. Fredrickson is Global Head of Fixed Income Derivatives and Government Bonds at UBS Warburg.
Robert G. Pickel, Executive Director and CEO of ISDA, said, "This is an exciting and important step toward derivatives technology development that is consistent with other ISDA efforts to provide an effective structure for derivatives documentation and trading."
Philippe Khuong-Huu, Chairman of FpML.org's Board of Directors, noted that "The integration of FpML into ISDA will mean speeding-up the development of the standard and expansion of its coverage consistent with our original mission. The goals of FpML.org and ISDA are similar as both have worked toward technological advancement in standard setting."
The FpML initiative will function as an ISDA committee and related working groups and will continue to communicate via the www.fpml.org website. Brian Lynn, co-chair of the FpML.org Standards Committee, said that the Committee retains responsibility for approving new versions of the standard. "Strong input from vendors is a key success factor for the development and adoption of the standard," Mr. Lynn said. "Vendors will continue to be represented on the Standards Committee and on Working Groups."
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 540 member institutions from 41 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.
FpML.org is comprised of volunteers from some 30 companies who participate on the Board of Directors, the Standards Committee or as members of Working Groups. Volunteers are employees at leading banks, information and software vendors, and systems integrators. FpML is a freely licensed standard designed to support the electronic dealing and processing of financial derivatives between trading partners, including financial institutions and their client network.
[See also the "Talking Points for the FpML/ISDA Integration."]