1 Agenda What is XML? XML Jargon Why XML? Why Now? Advantages Disadvantages of XML What is FIX? What is FIXML? What other standards are available? How to get started

2 What is XML? History eXtensible Markup Language Uses Tags to organize data The tags describe the content of the message Description of the message with the message provides for the flexibility

3 Example XML Message - Order

4 Example XML Message - Positions

5 Why XML? Why Now? Advantages Technology is easily integrated Focus on integration Wide adoption across computer vendors Ability to interoperate across standards

6 Disadvantages Message Size Newness

7 XML Jargon XML Document Tag – value – Element - Tagname Attribute - value associated with an element and extra addition DTD - Document Type Definition Schema - New approach to defining XML Messages Translation - Ability to use capabilities to automatically translate FIX documents W3C - World Wide Web Consortium

8 What is FIX? Financial Information Exchange Protocol FIX Protocol Ltd. FIX Global Derivatives Committee FPL and FIA Statement of Understanding –Similar to BMA and FPL for Fixed Income

9 What is FIXML? XML version of FIX Provided as a DTD with each version of FIX –If you here FIX there is an XML and a tag=value version FIXML for messaging FIX 4.4 Timeline

10 FPL Reorganization Goals Expand membership to include wider financial community Represent products/services beyond equities Globally coordinate/share expertise in support of education and marketing Provide regions with source of product and implementation expertise, business process for obtaining that support Accommodate protocol implementation stage at both the regional and product level Reduce workload on key FPL members, establishing business processes to allow additional participation for achieving what a handful of people now do Enhance and articulate member benefits Avoid unnecessary bureaucracy/hierarchy Maintain grass-roots and volunteer culture

11 XML Relevant to Derivatives ISO 15022/XML (SWIFT) –Statement of understanding with SWIFT toward a common standard FpML –Financial Products Markup Language - ISDA –OTC Post Trade SFXL –Security Financing XML Language MDDL –Market Data Definition Language

12 Current Standards Initiatives Fixed Income –Additional changes to support full life cycle Listed Futures and Options Post Trade Support –Trade Capture –Position Management –Allocation ISO/XML –Working with ISO Working Group 10 Pre-trade Trade Post Trade FIXML –Schema based upon FIX 4.3 Errata to meet current commitment –Attempt to address message size issue using Schema technology Interoperability –FpML, SWIFT

13 Potential Standards Initiatives SFXL Integration –Securities Financing Corporate Actions –ISO –MDDL Post Trade –Clearing and settlement window notification –Account Transfer

14 New FPL Structure

15 Organization Concept

16 FIX 4.4 Update FIX 4.4 –Incorporate final round of Fixed Income changes –Incorporate listed futures and options post trade support –Minor improvements –Seen as incremental to FIX 4.3

17 How to get started Participate in the Standards Working Group IT staff start to become educated Continue to push for standards adoption using existing standards