FMSIG-Standards

Owned by Vipin Bharathan
Last updated: Jul 01, 2022
2 min read

Ideas toward a template for standards

  1.  Overview (what product does the standard apply to) ( a precis of all the sections below)- applicability to CMSIG & Blockchains
  2.  Category (Is it a data standard, a data interchange standard, a standard for legal contracts also )
  3. Standards body that controls the standards and governance around this
  4. Regulation or sovereign adoption (i.e. which regulatory agencies refer to the standard), is it a requirement
  5.  Adoption rates
  6.  Perceived challenges or gaps
  7. Listed POCs, MVPs, Production use cases based on this.
  8.  Next steps....

FIX/FIXML:

Overview: 

The Financial Information eXchange (FIX®) Protocol is the standard way for financial participants to exchange information (Orders, Executions, Trades, Market Data) between them. It is the most widely used protocol for trading most assets ranging from Equities, FX, Fixed Income, Repo, Security Finance and exchange derivatives covering Futures, Options and Swaps. 

You can find more details here.

Category: Data interchange standard

Standards Body: fixprotocol.org

Adoption: Widely adopted for more than 20 years

Products applicable:  Cash Equities, Fixed Income, Futures and Options

FpML:

The Financial products Markup Language is an XML standard for processing and communicating pre-trade to post-trade life cycle events in OTC derivatives. The derivatives product coverage ranges from Interest Rate Swaps (IRS), Credit Default Swaps (CDS), Equity Swaps, FX forwards, swaps, options, Commodity derivatives, Repos and Security Finance. 

You can find more details here.

Category: Data standard and interchange standard

Standards Body: FpML.org  governed by ISDA (International Swaps and Derivatives Association, Inc.)

Adoption: Widely adopted for more than 15 years

Products applicable: mostly OTC derivatives such as Interest Rate Swaps (IRS), Credit Default Swaps (CDS), Equity Swaps, FX, Commodities etc. 


ISDA CDM:

Details are found under our site.

The ISDA CDM Project aims to facilitate the build of a common, robust, digital blueprint for how derivatives are traded and managed across the life-cycle, represented in a standardized format. This will be transformational for the derivatives market, and will help drive much-needed efficiencies by cutting down on mismatches that occur in how firms record events and actions in their own internal systems. It is intended to improve accuracy and consistency in regulatory reporting, compliance, data controls. It will also establish a bedrock of standards upon which new technologies, such as distributed ledger, cloud and smart contracts, can be built, enhancing consistency and boosting the potential for these services to operate across firms and platforms. The CDM project started on the standard on Feb 2018 and it is still in heavy development. It is expected to release a stable version 2.x in 4Q'19 and most of the tools and artefacts are now in open source. The project can be accessed by registering here.  The open source documentation can be found here. 

Category: Data and business process standard (does not address messaging)

Standards Body: Governed by ISDA (International Swaps and Derivatives Association, Inc.)

Adoption: no industry adoption yet as of 3Q'19. 

Products applicable: OTC derivatives, Repos and Securities Finance. 

ISO 20022:  (TBC)


EY report on DerivHack 2019 (Dealing with ISDA CDM implementation)