J.P. Morgan, PricewaterhouseCoopers announce IBM will join team to help establish e-commerce standard

Technology leader will join technical committee for new XML-based protocol

Today, J.P. Morgan & Co. Incorporated and PricewaterhouseCoopers LLP announced that International Business Machines Corp. would participate on the technical committee for the recently announced Internet-based protocol FpML™ (XML-based financial products markup language), a specification for electronic dealing and information sharing of financial derivatives. The two firms also announced that IBM would help create FpML seminars for technical and financial services professionals worldwide.

The FpML standard, announced last week by J.P. Morgan and PricewaterhouseCoopers, enables Internet-based electronic dealing and information sharing of financial derivatives, initially focusing on interest rate and foreign exchange products.

Simon Moss, head of Financial Markets Solutions for the Americas at IBM, commented: "IBM is delighted to be involved in the development of FpML. We are currently reviewing this emerging standard to determine how it can best be used to improve our customers’ systems and businesses."

Thorkild Juncker, head of e-commerce for J.P. Morgan’s Global Markets business, commented: "We are pleased to have the expertise and market influence of IBM behind the FpML standard. Their skill in sophisticated XML-based technologies will ensure that our clients’ needs will be met through this emerging standard."

The FpML standard, which will be licensed freely to the technical and financial markets, is based on XML, the emerging Internet standard for data-sharing between applications. The FpML specification will allow the Internet-based integration of a range of services, from electronic trading and confirmations to portfolio specification for risk analysis.

IBM recently demonstrated its emphasis on XML-based applications with its backing of XML.ORG, the industry XML portal. Marie Wieck, director of XML technology for IBM, said: "IBM strongly supports industry standardization of XML specifications, and XML data-interchange standards for the foreign exchange and interest rate derivatives markets will be a very important growth area. We will be working with J.P. Morgan on expanding the use of the FpML specification, and we plan to support it in a range of tools and client services."

For more information on the FpML seminars or the FpML standard, see www.fpml.org.

J.P. Morgan & Co. Incorporated is a leading global financial firm that meets critical financial needs for business enterprises, governments, and individuals. The firm advises on corporate strategy and structure, raises capital, makes markets in financial instruments, and manages investment assets. Morgan also commits its own capital to promising enterprises and invests and trades to capture market opportunities.

PricewaterhouseCoopers (www.pwcglobal.com) is the world’s leading professional services organization. Drawing on the knowledge and skills of 155,000 people in 150 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk, and improve performance. PricewaterhouseCoopers refers to the U.S. firm of PricewaterhouseCoopers LLP and other members of the worldwide PricewaterhouseCoopers organization.

IBM leads in the creation, development and manufacture of advanced information technologies, and then translates these advanced technologies into value for their customers through their professional solutions businesses. IBM has many resources devoted to creating XML technologies and advancing the standard, including 500 developers. With more than 20 XML technologies available to developers via its alphaWorks web site, IBM has provided the building blocks its partners and ISVs need to create XML applications and solutions.

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