FpML

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FpML (Financial products Markup Language) is an XML message standard for the OTC Derivatives industry.

All categories of privately negotiated derivatives will eventually be included within the standard. The standard is managed by ISDA on behalf of a community of investment banks that make a market in OTC derivatives.

The FpML standard was first published by JP Morgan and PricewaterhouseCoopers on 9th June 1999 in a paper titled "Introducing FpML: A New Standard for E-commerce". As a result, the FpML standards committee was founded.

As of May 2007 FpML 4.2 is the latest [Recommendation] version. The core scope includes the products of Foreign Exchange (FX) Swaps and Options, Interest Rate Swaps, Inflation Swaps, Asset Swaps, Swaptions, Credit Default Swaps, Credit Default Swap Indices, Credit Default Swap Baskets, Tranches on Credit Default Swap Indices, Equity Options, Equity Swaps, Total Return Swaps, and many others. The core processes include trading, valuation, confirmation, novations (also known as assignments), increases, amendments, terminations, allocations, position reporting, cash flow matching, a formal definition of party roles, as well as trade notification between asset managers and custodians.

The FpML community is currently working on versions 4.3, 4.4, and 5.0. Version 4.3 includes additional product support for Mortgage Credit Default Swaps, Loan Credit Default Swaps, Commodity Swaps, and Repos. A new process included is portfolio reconciliation.

FpML is distinct from similar financial standards such as SWIFT and FIX in scope because it provides no network or specification of a transport mechanism.