Swap Data Repositories Reporting: A Standards Face-Off?

By Robert Stowsky, Aite Group

Originally published on Aite 

The derivatives industry is currently split on the use of Financial Products Markup Language (FpML) and the Financial Information eXchange (FIX) Protocol for reporting to swap data repositories (SDRs). OTC derivatives dealers, which have long used FpML to electronically confirm and record OTC derivatives trades, are pushing hard to make FpML the globally accepted standard; meanwhile, clearinghouses that have for years reported in FIX see no reason to change. But what are the differences between the two representations? And how do their corresponding taxonomies identify both products and risk exposures?

Written by senior analyst Robert Stowsky, this Impact Note puts the politics aside and focuses on how FpML and FIX each represent an OTC derivative trade, paying special attention to the shorthand each product taxonomy has created. This report also reviews the data requirements for CEA Part 43 and Part 45 reporting and takes a look at the structure of FpML and FIX syntax.

This 26-page Impact Note contains 10 figures and seven tables. Clients of Aite Group's Institutional Securities & Investments service can download the report by clicking here.