ISDA has published FpML 5.11 First Working Draft

ISDA has published the First Working Draft (WD1) for FpML version 5.11

The International Swaps and Derivatives Association, Inc. (ISDA) has published the First Working Draft for Financial products Markup Language (FpML) version 5.11.

The main enhancements in this first Working Draft are:

• Regulatory Reporting Redesign framework
• Extensive refactoring of syndicated loan processes and notifications.

First Working Draft is available on the FpML website in the Specifications section at: http://www.fpml.org/spec/fpml-5-11-1-wd-1

Below we provide a high level overview of the changes. A detailed overview of the changes in version 5.11 can be found in Section 18 of the online documentation.

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

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

A Summary of the changes in version 5.11 WD1 compared to FpML 5.10 Recommendation:

1. Redesigned Regulatory Reporting Framework: FpML is introducing a new reporting format, based on lessons learned from regulatory reporting to date. Benefits include:
   • Closer alignment with requirements from regulators, reducing errors and uncertainties in reporting to regulators;
   • The new format will improve data quality overall, and reduce systemic risk in the market;
   • The new format can be leveraged by existing users of FpML as well as users new to FpML.
   As part of the reporting redesign, a new set of reporting messages is introduced:
   • regulatoryDisclosure - new message used to report record keeping information to trade repositories (TRs)
   • regulatoryReportingAcknowledgement - response message acknowledging the request and providing a status on the submission
   • regulatoryReportingException - message used to report exceptions
   • regulatoryWithdrawal - message used to request withdrawal from reporting to one or multiple regulators
   • requestRegulatoryReportingStatus - message used to request the reporting status of a trade earlier submitted
   • regulatoryReportingStatus - response message indicating the status of a trade with respect to relevant regulators.
   Additionally, several structures -shared across views- have been refactored:
   • In the trade header: refactored trade identification to clarify and simplify usage
   • Within trade/tradeHeader/partyTradeIdentifier: consolidated the different trade identification structures (i.e. originatingTradeId, versionedTradeId, linkId, allocationTradeId, resultingTradeId, blockTradeId) into a single linkedTrade structure
   • In addition to party trade identifiers, the USI and UTI were made more prominent and are now specified using dedicated structures.
2. RedesignedSyndicated Loan refactoring: The First Working Draft includes significant design approach changes for the loan schema. These changes are based on extensive conversations with working group members, and have been made to improve uniformity and consistency of design, increase extensibility, and allow for a simplification e.g. by reducing the number of different message element "wrappers" in favor of a more consistent utilization of "substitution groups". These changes include:
   • Removal of the event differentiation between "trade" and "transfer"
   • Redesign of existing substitution groups to make them more consistent
   • Addition of abstract types to support better organization within substitution groups
   • Addition of events to make the design more consistent across the Loan FpML schema
   • Changed approach for the treatment of embedded events
   • Streamlined message wrappers and naming changes.

The changes to the Loan framework include non-backward compatible changes. We encourage feedback in particular on the non-backward compatible changes in this first working draft.

More details can be found in the Loan changes introduced in version 5.11 compared to FpML 5.10 Recommendation (pdf)

Thank you

The FpML Team