J.P. Morgan, PricewaterhouseCoopers Propose FpML, A New E-commerce Standard
Financial products markup language handles FX and fixed income derivatives
source from pwcglobal.com
J.P. Morgan incorporated and PricewaterhouseCoopers LLP today announced the release of FpML? (Financial products markup language), a new protocol for Internet-based electronic dealing and information sharing of financial derivatives, initially handling interest rate and foreign exchange products.
The specification, which will be freely licensed, is expected to set the standard within these industries for the rapidly growing field of business-to-business electronic commerce. Based on XML, the emerging Internet standard for data-sharing between applications, FpML enables Internet-based integration of a range of services, from electronic trading and confirmations to portfolio specification for risk analysis.
Thorkild Juncker, head of e-commerce for J.P. Morgan's Global Markets business, commented: "We believe the wide adoption of this robust standard is the most efficient way to bring the benefits of electronic commerce to our clients. As an innovator in the wholesale financial services industry, we view FpML as a cornerstone of our e-commerce efforts."
Edward Hoofnagle, director of technology and e-business of the Financial Risk Management Group at
PricewaterhouseCoopers, noted: "Until now, the benefits of this type of connectivity have been reserved for the retail financial services world. This markup language will allow the wholesale financial services market to take advantage of interactive technology to reduce operational risks."
Morgan is actively working on a suite of client services that employ FpML, including trade execution, confirmation, valuation, risk analysis, and the exchange of market data. PricewaterhouseCoopers will use FpML to address financial and operational risk management issues for its clients and will also support the industry's adoption of FpML and related solutions.
J.P. Morgan and PricewaterhouseCoopers are both working with market participants to achieve the benefit of this proposed standard. A series of workshops and seminars, the first of which is to be held in July, will help market participants, software vendors, consulting firms, dealers, and industry trade groups to understand, adopt, and use FpML. For more information on the workshops or on the FpML language itself, visit 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.