Securities Financing Extensible Markup Language (SFXL)
10 Securities Finance Service Providers to Develop a New Securities Financing Industry XML Standard for Data Exchange
London, UK. 6-May-2002.
10 leading providers of services to the securities finance industry announced today that they are planning to embrace a common standard for securities financing industry data exchange. These include:  Reconciliation Service Providers: Pirum Systems Limited and Syntegra;  Risk Management Service Providers: Reech Capital and Securities Finance Systems Limited;  Electronic Marketplace Providers: SecFinex Ltd; and  Transaction Processing Service Providers: Anvil Software ARTS, Grips, OM OneWorld, Real Time Financial Management, and SunGard Securities Finance GLOBAL ONE.
On behalf of the group, SecFinex has developed an initial draft standard, SFXL (Securities Financing Extensible Markup Language), which will standardize the transfer of information on securities finance transactions. Future enhancements will encompass securities inventories and the post-trade servicing of securities finance actions such as trade matching, billing and marking to market. A common standard will make it much easier for companies to share and exchange data, thereby streamlining operations and increasing efficiency.
SFXL will be an open standard, freely available to all service providers and participants in the securities financing arena. The draft standard is to be offered to FpML, the financial services industry organization that oversees development of XML industry standards for the financial derivatives industry. The 10 service providers have agreed to incorporate these standards in their systems provided to securities finance customers. Additional information about SXFL is available at http://www.sfxl.org.
XML (Extensible Markup Language) is a flexible way to create common information formats and share both the format and the data on the World Wide Web, intranets, and elsewhere. For example, computer makers might agree on a standard or common way to describe the information about a computer product (processor speed, memory size, and so forth) and then describe the product information format with XML. Such a standard way of describing data enables a user to send an intelligent agent (a program) to each computer maker's Web site, gather data, and then make a valid comparison. XML can be used by any individual or group of individuals or companies that wants to share information in a consistent way.
Carol Kemm, Director of SunGard Securities Finance (SSF) GLOBAL ONE, commented "in our position as software provider to a client base of over 250 firms using SSF products as their core securities finance solution, we are extremely aware of the size of the problem faced by market participants seeking more efficient STP. We believe that the development of this standard will provide a positive step forward in facilitating greater efficiency, and associated cost savings, for many of the system integration issues faced today."
Malcolm Clark, from Anvil Software, remarked, "Electronic market trading such as offered by SecFinex is the way of the future. Advanced industry players are connecting their front office trading and position management systems to electronic markets. This gives them the full power of the markets at their fingertips. The SFXL standard will ultimately make market-to-front office and front-to-back office integration so much easier." Rupert Perry, chief executive of Pirum Systems said: "Pirum are pleased to be supporting the SFXL initiative to develop open, freely available message standards for the securities finance industry. We believe these message standards will substantially reduce the cost of systems integration, enabling industry participants to quickly and easily link their systems to other customers and service providers."
Mark Sear, Chief Technical Architect at SecFinex said "We have developed SFXL in response to our customers' desire to create an industry standard for information transfer in the highly fragmented securities finance market."
The securities financing industry is a trillion-dollar industry, with the size of the market estimated at between $1.5 trillion and $2 trillion worldwide.
For further information, please contact:
Anvil Software ARTS
Tel: +44 20 7749 7900
Tel: +44 20 7236 4299
OM OneWorld Securities Finance
Tel: +44 20 7065 8352
Real Time Financial Management
Tel: +44 20 7420 6387
Pirum Systems Limited
Tel: +44 20 7959 3334
Tel: +44 20 7623 6333
Tel: +44 20 7570 4333
Tel: +44 20 7570 4337
Securities Finance Systems Limited
Mark Faulkner, Managing Director, London Office
Tel: +44 20 7377 2977
Allan Moore, Technical Consultant, Edinburgh Office
Tel: +44 131 272 2782
SunGard Securities Finance GLOBAL ONE
Tel: +44 1483 429095
Tel: +44 20 7777 7021
SFXL Press Office
Lesley van Dijk and Belinda Crisp
Tel: +44 20 7841 5632
Prepared by Robin Cover for The XML Cover Pages archive. "Financial Products Markup Language (FpML)." See also the news item: "European Service Providers Develop Securities Financing Extensible Markup Language (SFXL)."