NEW YORK, August 10 - Planned use of FpML 1.0 by Reuters in a new Internet-based system for traders in the Overnight Index Swaps (OIS) market is a clear indication of the new standard's general industry acceptance, Brian Lynn, co-chair of FpML.org's Standards Committee said today. Lynn, a vice president responsible for e-trading systems, and FpML program manager at JP Morgan, is one of several major securities industry volunteers working to develop the new standard for Internet trading of OTC derivatives.
Mark Robson, Reuters Director, Business Development, Money Transaction Solutions, said "Dealing for Swaps, an enhancement to Reuters Dealing 3000, will use FpML version 1.0 to export trade data. We aim to launch the service in the fall." He explained Dealing for Swaps as "a secure, browser-based solution allowing traders in the OIS market to automate their workflow, structure trade negotiations, reduce processing costs and increase their overall efficiency." The enhancement will be available via Reuters Dealing 3000 and delivered over the Radianz network.
Lynn said, "Reuters is an active participant in developing FpML and now becomes one of the early adopters of the standard. Reuters has dedicated four employees to working with FpML.org and is a major contributor to our Business Message and Architecture and our FX options working groups." He added, "The success of this standard is based on volunteers from multiple industry segments donating their time to address the myriad technical issues involved in automating the flow of information across the entire derivatives network."
FpML is the XML-based, freely licensed e-Commerce standard supporting OTC trading of financial derivatives. FpML.org is a non-profit consortium comprised of leading global derivatives trading institutions, financial, technology and consulting firms.
FpML.org endorsed FpML version 1.0, covering interest rate swaps and forward rate agreements, as a recommendation in May 2001. Version 2.0, covering interest rate options such as caps, floors and swaptions, will be released for trial recommendation later this year.
Organizations that are Members of the FpML Standards Committee Bank of America - BNP Paribas - Citigroup - Credit Suisse First Boston - Deutsche Bank - HCL Perot Systems - ISDA - Mizuho Capital Markets Corporation - Goldman Sachs - Integral Development Corp - International Business Machines - JPMorgan - Morgan Stanley - PricewaterhouseCoopers - Reuters - SunGard Trading and Risk Systems - SwapsWire - S.W.I.F.T. - UBS Warburg.