Fourth Working Draft of FpML Version 5.0

ISDA has published a Fourth Working Draft for FpML Version 5.0. The Draft is available on the FpML website in the Specifications section at: http://www.fpml.org/spec/fpml-5-0-5-wd-4/
The following is an overview of the changes compared with the FpML 5.0 Third Working Draft which was published on May 12, 2009 :

• Equity Derivatives:
• The Equity product definitions have been updated in line with the 4.7 Trial Recommendation definitions. The refactoring work published in the previous working draft has been removed.
• Messaging:
• A new messaging framework has been introduced with the following features:
• New consistent message correlation mechanism - correlationId and sequenceNumber elements to link successive messages together.
• Correctable messages contain an "isCorrection" indicator to indicate whether the message corrects a previous message.
• Added an onBehalfOf element as an explicit indication of the party for whom the trade should be processed included in every message.
• General Pattern of Messages approach:
• A process request or notification message initiates the process.
• For each request or notification message there is at least one defined acknowledgement message. (In the case where the response to the request might be delayed pending additional information, the recipient of the request should acknowledge the request).
• There is an exception message for each message workflow.
• All retractable request/notification messages have a corresponding messages ending with "Retracted” to withdraw the original request or notification.
• Optional response/status messages can be used, when appropriate. 
• Most messages are now designed to be able to handle multiple types of events, such as new trades and post-trade events. This allows consistent coverage of a number of post-trade events with a number of business processes.
• Business Processes:
•  A new set of Clearing messages has been introduced.
•  New messages for Reporting:
• Position Reporting has been updated
• Reset and Activity Reporting have been added.
• Parties and Accounts:
•  Accounts previously specified within a party definition,  have now been moved outside of party.
•  All areas: 
•  All examples have been updated to reflect the schema changes.
•  Documentation has been updated.

More information on the timing of version 5.0 and the coverage and timing of future versions can be found in the FpML roadmap: http://www.fpml.org/roadmap/roadmap.pdf.

Please send your comments to us by filling in the form at http://www.fpml.org/issues.

FpML Team