Standardised and secure messaging for derivatives to foster automation and reduce risk
BRUSSELS, Friday, 30 June 2006—SWIFT today announced that it has entered into an agreement with ISDA to support FpML messaging services over SWIFTNet.
The two organisations have agreed to create a SWIFT Closed User Group, which is expected to transport FpML messages before the end of 2006.
This agreement is a key building block in SWIFT’s Alternative Investments/Derivatives solution roadmap to help members respond to automation challenges in the OTC derivative post-trade area.
FpML support on SWIFTNet will speed implementation of FpML-based messaging by a broad group of industry participants, including new counterparties. It will reinforce automation within the buy-side and asset servicing communities and help reduce operating costs.
ISDA and SWIFT continue to work together on issues related to interoperability, coexistence and the ultimate convergence of standards through their joint participation on the ISO 20022 Registration Management Group.
ISDA and SWIFT are uniquely positioned to play a catalyst role in these interoperability efforts, covering trade confirmation, cash flow settlement, portfolio reconciliation and collateral management.
“This collaboration will bring tremendous benefits to our mutual community of users,” said James P. Donovan, Head of Securities Industry Division, SWIFT.
This agreement between ISDA and SWIFT is viewed by both as a major step forward to further improve automation levels in the OTC post-trade environment.
