Choreography Proposal FpML Standards Committee Off Site 21 June 2006 Andrew Parry JP Morgan Steve Ross-Talbot Pi4Tech

Agenda What is a Choreography ? Why do we need one ? Supporting Features Choreography Definition Using the Definition Next Steps Appendix : References, Contact Details The key points I want to cover are: Kick off with a brief description of IBML and why converging on a standard way to exchange data between our applications is a valuable thing to do Go on to talk about what IBML really consists of and give a very high level idea of how it would be used Then going to speak briefly about how IBML relates to the various industry initiatives to standardise messaging Finally I’ll wrap up with how IBML will evolve and be managed over time Going to try and leave at least 30 mins at the end to take questions

What is a Choreography ? Key Facts It is a formal global specification of how a business process should be conducted This specification may be used for implementation and documentation Formal Statement “The Web Services Choreography Description Language (WS-CDL) is an XML-based language that describes peer-to-peer collaborations of participants by defining, from a global viewpoint, their common and complementary observable behaviour; where ordered message exchanges result in accomplishing a common business goal” W3C Candidate Recommendation 9 November 2005

Why do we need one ? Natural path of evolution in our industry as supported by ISDA/FpML Non standard hardcopy document, explicit process “fax confirmation” ISDA hardcopy documents, explicit process “fax standard confirmation” ISDA/FpML electronic data documents, implicit process “data bucket” ISDA/FpML standard messages, implicit process Implicit process results from the lack of formal specification, where we rely on each user to make an educated guess about how messages should be used, which will vary For example should I allow a trade to be amended before it has been confirmed ? We now need to formally specify how the standard messages should be passed around amongst the participants in a standard business process ISDA/FpML standard process, using standard messages “explicit content, explicit process”

Supporting Features In order to support the implementation of a Choreography two sets of supporting features have been added, in a way that is fully backward compatible with FpML-4-2 Version Support In order to make the version of a trade un ambiguous, optional version support has been added to trade identifier, which allows each party to assign there own version of a trade Exceptions When writing a Choreography, we need to handle Business Exceptions in a way that relates to the Business Process, such as “TradeCreatedException” when a system has received “TradeCreated” but is unable to create the trade as instructed

Choreography Definition

Using the Definition Only the Allocation Created part of the Definition has been shown on the previous page The full Definition may be Viewed and changed in an open source editor Used to generate HTML documentation Used to generate code stubs This is particularly attractive since the same Definition may be used from the point of analysis, right through to the point of code generation, which ensures correct implementation of the specification by all parties involved in the business process, regardless of the implementation technologies chosen by each party

Next Steps We are already using Choreography within JP Morgan, both for internal systems, and going out to service providers such as DTCC, and see this as a natural extension to ISDA/FpML We wish to review this proposal with all interested parties, and work towards adoption of Choreography in FpML-4-3, which will accelerate the evolution of Electronic Trading

Appendix References Web Services Choreography Description Language http://www.w3.org/TR/ws-cdl-10/ Open Source CDL Editor http://www.pi4tech.com/ Contact Detail Andrew Parry andrew.p.parry@jpmorgan.com +44 20 7325 1486 Steve Ross-Talbot steve@pi4tech.com +44 7855 268848