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FIX, FpML and TWIST to Collaborate on Foreign Exchange Standards

July 1, 2005 - FIX Protocol Ltd. (FPL), the International Swaps and Derivatives Association, Inc. (ISDA) and TWIST Process Innovations Ltd., signed a Statement of Understanding outlining a collaborative approach in developing and using a common industry protocol for the Foreign Exchange markets.

In this joint effort, FPL, ISDA and TWIST will work together and provide resources to undertake a product coverage and business process gap analysis with regard to the FX coverage in their respective standards – FIX, FpML and TWIST. This gap analysis will serve as the basis for future developments in the FX area.

The three organizations believe that agreeing on the universal business meaning of information and message scenarios covering the financial trading processing chain and utilizing common messaging standards, will enable and encourage the end-to-end straight through processing of foreign exchange messages between industry counterparties, without regard to the network(s) used, the platforms employed or the operating systems utilized.

Scott Atwell of American Century Investments and FPL Global Steering Committee Co-Chair commented, "Through the collaboration of these three standards bodies, we will now be able to more clearly define and articulate the ‘spaces’ each standard serves, to leverage the unique capabilities each provides, and to attempt to avoid the appearance of duplication."

The three standards bodies will capitalize on their extensive expertise with XML-based representation and share resources in this regard.

"By supporting the individual standards and building on the XML expertise of all three organizations, we aim to achieve greater efficiency of transaction processing in the foreign exchange industry to the benefit of all its participants," said Robert Pickel, Chief Executive Officer and Executive Director, ISDA.

The Statement of Understanding was developed on the basis of meetings and discussions involving various industry leaders, including representatives of the three standards bodies.

Tom Buschman, chairman of TWIST, said: "Processing Foreign Exchange transactions involves transacting counterparties and many service providers. Where counterparties may differ but processes are the same, it makes sense for likeminded standard organisations to work together to deliver harmonized standards. This accelerates the ability for the market to obtain benefits from high degrees of automation and enhanced low-cost market access. TWIST is firmly committed to make the collaboration with FpML and FIX a success and a major stepping stone in effective harmonization of standards for financial service processing."

A copy of this Statement of Understanding is available on the respective organizations’ websites.