Investment Roadmap FAQ November 2018
Within the financial services industry, there are multiple standards being used, hence the desire
to ensure some level of interoperability. It is clear that the FIX Protocol is the de facto standard
for pre-trade and trading, that FpML is the de facto standard for OTC Derivatives and that ISO is
the de facto standard for settlement. We need an approach that leverages and includes these
standards into a broader framework without reinventing and creating redundant messages that
increase implementation costs and cause confusion for the industry.
This collaboration affirms the commitment of each organization to the ISO 20022 standard by
laying the groundwork for defining a common underlying financial model. The model allows for
20022 based messages to be created to support the business processes, while at the same time
provides in certain circumstances for existing independent protocols to be maintained in order to
protect the investments of market participants.
The purpose of the collaboration between these organizations is to produce a consistent direction
for financial services messaging standards and communicate that direction clearly. This will allow
the industry to spend its money more wisely.
2. What is the overall role of each of the standard bodies / organizations involved in this
collaboration?
FISD
The Financial Information Services Division (FISD) of the Software and Information Industry
Association (SIIA) is a global neutral forum that has been serving the financial information
industry for more than 20 years. FISD is comprised of 140 member companies that recognize
that market data distribution and efficient trade execution require a high level of consistent and
predictable service - all of which are dependent on the close cooperation of many independent
organizations and systems, which is why industry stakeholders support FISD as the forum of
choice to identify and resolve the business and technical issues that affect the administration,
distribution and utilization of market data. For more information, see www.fisd.net.
FPL
FIX Protocol Limited (FPL) is the not-for-profit industry association that owns, develops and
promotes the FIX Protocol messaging standard. Nearly 250 firms from across the global buy-side,
sell-side, exchange/ATS/MTF, regulatory, association and service provider communities are
members of FPL. The Financial Information eXchange ("FIX") Protocol is the de-facto messaging
standard for pre-trade and trade communication globally. Having achieved significant levels of
adoption within the Equity markets, it is now experiencing horizontal expansion across the
Derivatives, Foreign Exchange and Fixed Income markets. Further to this, it has expanded
vertically into the post trade space, supporting Straight-Through-Processing (STP) from
Indication-of-Interest (IOI) to Allocations, Confirmations, and Regulatory and other reporting. For
more information, see www.fixprotocol.org.
FpML
FpML (Financial products Markup Language) is the freely licensed business information
exchange standard for electronic dealing and processing of privately negotiated derivatives and
structured products. It establishes the industry protocol for sharing information on, and dealing in,
financial derivatives and structured products over the Internet. It is based on XML (Extensible
Markup Language), the standard meta-language for describing data shared between applications.
The standard is developed under the auspices of ISDA, using the ISDA derivatives
documentation as the basis. For more information, please visit www.fpml.org.
ISITC
ISITC (International Securities Association for Institutional Trade Communication) is a non-profit
industry group in which securities market participants (broker/dealers, investment fund managers,
banks, market infrastructures and vendors) collaborate to develop common approaches for