Bond Market Association and FPL forge protocol alliance

Bond Market Association and FPL forge protocol alliance

The Bond Market Association and FIX Protocol Ltd. (FPL) have forged an alliance to develop a common industry protocol for global fixed-income market securities.

It is intended the development of a common set of protocols for the global fixed-income industry will alleviate incompatibility concerns among the various electronic trading platforms. FPL is currently extending FIX business-level messages into the new ISO 15022 XML repository.

Dexter Senft of Lehman Brothers and chairman of the Association's Subcommittee, says; "Both the Association and FPL have been making significant advances toward the development of common protocols...This combining of efforts represents a major step toward the goals of promoting efficiency and expediting initiatives related to straight-through processing and T+1 settlement."

Under the agreement, the Association's Protocols/Standards Subcommittee will merge into FPL's Fixed Income Working Group (FIWG). The newly constituted FIWG will create two focus groups: a technology focus group that will address design and implementation issues and provide rapid response to inquiries from the group's participants, and a business practices focus group that will develop appropriate business practices for electronic trading in additional sectors of the global fixed-income market.

The FIWG will have balanced representation from the two entities and will divide the reporting responsibilities. A member of the Association's Online Bond Steering Committee will be appointed to chair the new FIWG.

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