FpML.org (FpML) and the International Swaps and Derivatives Association (ISDA) have entered an agreement to integrate the development process of their respective industry standards.
FpML is developing the XML-based Financial products Markup Language as a standard for support of OTC trading of financial derivatives. ISDA is focusing on documentation and risk management standards for the privately negotiated derivatives industry.
Tim Fredrickson, global head of fixed income derivatives and government bonds at UBS Warburg, says the initiative will combine the organisational strengths of ISDA with FpML's technology base.
Philippe Khuong-Huu, chairman of FpML.org's board of directors, notes: "The integration of FpML into ISDA will mean speeding-up the development of the standard and expansion of its coverage consistent with our original mission."
The FpML initiative will function as an ISDA committee and related working groups and will continue to communicate via the organisation's Web site. The FpML standards committee will retain responsiblity for approving new versions of the standard.