FpML at a Glance

Dodd-Frank has big implications on the $650 Trillion Swap market in terms of the regulation of Swap dealers and participants – yes that is a big number, think about it…the US stock market is around $17 Trillion! To put it another way, the population of the world is around 7 billion, I’m sure you can do the math to figure out the dollar amount per head…

One of the implications of Dodd-Frank is that OTC derivatives will be need to be electronically cleared, this will give greater visibility and control around the Derivatives market, though it does mean standardising on a common messaging format, Financial Product Markup Language (FpML) is already emerging as a major part particularly for describing the more complex deals, many IB’s and other organisations already use FpML or variations of it to represent their deals. The graphic below gives an overview of FpML.

FPML-Glance3

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~ by kevinsmi on July 30, 2012.

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