Version 1.0 of the Financial products Markup Language
Becomes an FpML.org Recommendation

New York, May 21 - The FpML Version 1.0 specification, providing XML-based trade and product definitions for the OTC interest rate derivatives market, has been endorsed as a Recommendation by FpML.org, after successfully completing a public review period, reports Matt Meinel, co-chair of the non-profit consortium's Standards Committee.

"The specification covers Interest Rate Swaps and Forward Rate Agreements (FRAs) and will facilitate the electronic trading of these products," Mr. Meinel said. According to the latest survey conducted by the International Swaps and Derivatives Association (ISDA), Global OTC derivatives volumes increased by 8.14% in the year ending December 31, 2000. Volumes globally totaled $63.009 trillion of notional at year-end.

"The Version 1.0 Recommendation is another major milestone in establishing FpML as the industry standard," Mr. Meinel said. "Its adoption by market participants will substantially reduce the estimated $1 billion spent annually processing OTC derivatives." He commended the IRD products working group, comprised of representatives from 21 banking institutions, software suppliers, systems integrators and service organizations, "for tackling a formidable array of challenges and delivering this initial recommendation. This group is also well on the way to delivering Version 2.0 of the standard, which will extend the product coverage to include interest rate options such as caps, floors and swaptions." He added that the FpML 1.0 Architecture Specification was released as a Recommendation in March.

Other current FpML.org working groups are focusing on Business Messages and Architecture, Foreign Exchange and Equity Derivatives Products. Mr. Meinel also added that the organization will be focusing most of its financial resources on speeding the development of standards and increasing product and business process coverage going forward.

FpML.org is developing the freely licensed FpML standard to automate the flow of information across the entire derivatives industry network, independent of the underlying software or hardware infrastructure supporting the transactions.

Visit www.fpml.org to download a copy of the specification.