A communiqué from Steven Lord (Chair, FpML Interest Rate Product Working Group) announces the release of a version 2.0 Working Draft for the FpML specification. The Financial Products Markup Language (FpML) "is an XML-based protocol enabling e-commerce activities in the field of financial derivatives. The development of the standard, controlled by FpML.org, will ultimately allow the electronic integration of a range of services, from electronic trading and confirmations to portfolio specification for risk analysis. All types of over-the-counter (OTC) derivatives will, over time, be incorporated into the standard, although the current focus of FpML Version 2.0 is interest rate derivatives. The FpML IRD Products Working Group has been working complete definitions for the following new products and features: (1) Interest Rate Cap, (2) Interest Rate Floor, (3) Interest Rate Swaption (European, Bermudan and American Styles; Cash and Physical Settlement), (4) Extendible and Cancelable Interest Rate Swap Provisions, (5) Mandatory and Optional Early Termination Provisions for Interest Rate Swaps, and (6) FX Resetable Cross-Currency Swap..." The new "work in progress" FpML Version 2.0 specification extends the standard to include interest rate options (Swaptions, Caps/Floors), and extends the coverage of swaps (FX Resetables, Cancellables, Early Termination Provisions). The developers intend to release a Last Call Working Draft will be published in November 2001, incorporating feedback received in the interim.
Bibliographic information: FpML Version 2.0. FpML Working Draft August 23, 2001. 289 pages. Version URL: http://www.fpml.org/spec/2001/wd-fpml-2-0-2001-08-23. Latest version URL: http://www.fpml.org/spec/fpml-2-0. Previous version URL: http://www.fpml.org/spec/2001/rec-fpml-1-0-2001-05-14.
From the 2001-09-18 announcement, "FpML.org Seeks Comments on Version 2.0 Working Draft. Extends Coverage to Interest Rate Option and Swaps": "FpML.org has published Financial products Markup Language Version 2.0 as a working draft and is seeking comments from interested parties before issuing a last call working draft, reports Brian Lynn, co-chair of the non-profit consortium's Standards Committee. The final step in the progress of Version 2.0 is to be endorsed as a Recommendation by FpML.org. A Recommendation reflects consensus within FpML.org, as represented by approval from the Standards Committee. The Standards Committee considers that the ideas or technology specified by a Recommendation are appropriate for widespread deployment and promote the mission of FpML.org."