FpML (Financial products Markup Language) is a business information exchange standard based on Extensible Markup Language (XML) that enables business-to-business over-the-counter (OTC) financial derivative transactions online by following W3C standards.
[2][3] All categories of privately negotiated derivatives will eventually be included within the standard.
FpML is distinct from similar financial standards such as SWIFT and FIX because it does not specify a network or transport mechanism.
[citation needed] As a result, the FpML standards committee was founded.
The core processes include trading, valuation, confirmation, novation, increase, amendment, termination, allocation, position reporting, cash flow matching, formal definition of party roles, as well as trade notification between asset managers and custodians.