Over-the-counter (OTC) trading platfrom Blackbird has achieved full compliance with FpML (Financial products Markup Language), the standard industry protocol for electronic derivatives transactions.
Financial products Markup Language is a standard for defining business information for the electronic trading and processing of financial derivatives instruments. Based on XML (Extensible Markup Language), the standard meta-language for describing data shared between applications, the FpML standard is expected to eventually incorporate all categories of OTC derivatives. The current version focuses on interest rate swaps and forward rate agreements (FRAs).
Blackbird intends to leverage FpML to automate the flow of information within and between derivatives counterparties, particularly with regard to the communication and confirmation of transaction details. Upcoming iterations of FpML will ultimately allow for the electronic integration of a range of services, including electronic trading and portfolio specification for risk analysis.
Gary Solomon, co-chief technology officer of Blackbird, says: "FpML enhances Blackbird’s ability to deliver a host of benefits to our clients, including straight-through-processing, saving users significant effort in the execution and confirmation of trades."
"Our adoption of FpML provides our customers with an easy way to realise the benefits of FpML without having to undergo an expensive development or installation effort on their own," he adds.