FpML—The Building Blocks for Trade Automation?

What can plastic playthings from Denmark contribute to OTC derivative processing?

Whilst not as mathematically challenging as writing a new pricing model, the world of OTC derivative processing is gathering momentum given the enormous amounts of money that can be saved through trade automation, and taking manual effort and human error out of the process. However, as much as technological standards such as the Financial products Markup Language (FpML) provide hope of increased automation, the reality is different with market players modifying standards, and poor uptake by the buy side. In answering the question about what happens when the pricing model is done and trading begins, then maybe OTC derivative processing still has a lot to learn, maybe even from one of my favorite childhood toys, Lego.

View whole article (PDF)