FISD held a series of working meetings in London on May 16-18. Separate meetings were held on MDDL (XML for market data), unique security identification, billing automation, the FISD Market Data Policy database and the World Financial Information Conference. Below is a summary of the important points:

Market Data Definition Language (MDDL)

Twenty-five people turned out for an MDDL working meeting hosted by Reuters. Progress has been made on both the MDDL vocabulary and technical architecture. The deadline for the delivery of the initial DTD/Schema for global equities, mutual funds and indices is the FISD working meeting on June 22.

The two primary data dictionary documents (domains and descriptors) have been updated and posted on the web. FISD members are in the process of reviewing the documents (particularly the asset class domain for equities and the indicators domain for indices) for completeness and accuracy. The Vocabulary Committee is also required to create a data field map (identifying which descriptors must be associated with which domain class) and a data relationship map (identifying which descriptors can also be attributes of other descriptors).

The deadline for submitting the revised data dictionary and data maps (for equities and indices) to the technical committee is June 15.

The technical committee has taken another step forward in producing an element-centric approach to MDDL. This example is best viewed as a tree, e.g. using Extensibility's "XML Instance".

A major design rule here is that "<XXX><value>yyy</value></XXX>" can be represented by the shorthand "<XXX>yyy</XXX>" so long as "<value>" is the only child of "<XXX>". This is the mechanism by which elements with text content can be extended without resorting to mixed content. Properties are inherited. For example, if an element does not contain a specific "currency" element, then it inherits the currency of the nearest ancestor with a "currency" element. The existence of a "current" child overrides any inherited currency. The same is true for other properties.

There is more than one way to write the same information, so different variations are used in different sections of the document. The structure of this document is not representative of an actual document, because some odd structures have been used to demonstrate how inheritance and overriding of properties works. This is a first draft for industry reaction. More input is needed from the vocabulary committee on the details of the information being represented.

The deadline for development of the draft DTD/Schema is June 22.

Unique Security Identification

FISD has held five working meetings (as well as a number of conference calls) as part of an open inquiry into the requirements for unique security identification -- as it relates to assisting the industry in meeting the efficiency objectives of automation and STP. Over 30 organizations, representing all segments of the market data information chain, have been active participants in the discussion on a regular basis. FISD staff will deliver an issue paper -- outlining what we've learned so far -- at the next ISIN working group meeting on June 12. Copies of the paper will be posted on the web and distributed to FISD members prior to the meeting.

The purpose of the inquiry is to define what each segment of the financial information chain requires for security identification (at what level of granularity) and to provide an assessment of how the information might be communicated in an automated environment.

In summary … we've learned that financial instruments can be issued, priced, traded and settled in many ways. And that different types of identifiers are relevant at various levels and are used to convey information about the market on which the security is listed, the clearing system through which the trade will clear, the CSD where the trade will settle and the register to record changes in security ownership. As such, ISIN (issue level identifier) alone no longer provides an unambiguous pointer to trade and settlement location -- or security price. So far, FISD has identified at least five core elements required for security identification and STP as illustrated in the table below.

The open questions relate to how the missing data elements will be collected and disseminated, the standards used for their expression and the spectrum of practical issues associated with implementation of new identification elements. The inquiry is not complete. FISD is not ready to make a definitive statement on either industry requirements or probable solutions. At the June meeting we will only be ready to summarize the results of our inquiry and give a preliminary assessment of implications.

Click here to see the FISD issue summary prior to the meeting in London.

ISIN User Group Issues

The Association of National Numbering Agencies (ANNA) has released the names of the new Advisory Board. The Advisory Board is the entity charged with overseeing the implementation and running the new ANNA Service Bureau. Click here for a copy of the press release from ANNA. The following is the agenda for the ISIN User meeting on June 12:

• Outcome of the ANNA General Meeting in Prague
• ANNA Service Bureau and ASB Advisory Board
• ASB Standard Contract - Action taken to reach the goal
• Minimum requirements for assignment of an ISIN (FISD)
• Unique Security Identification - FISD/SWIFT Presentation
• ISO-10383 - Impact on the Market Identifier Code (MIC)
• Next steps and next meeting

Billing Automation Project

FISD and the UK Information Providers User Group (IPUG) held a joint working party on business process automation. Most of the discussion is focusing on the efficiency gains and cost reduction opportunities associated with simplification and automation of billing/reporting systems and processing. During the meeting:

• Reuters demonstrated components of Reuters Internet Office (RIO) -- an initiative designed to simplify administration, automate datafeed reporting, reduce the need for manual invoice reconciliation and automate billing processes. One component is the definition of the data elements that are required for reporting and the potential of creating an XML standard for billing and reporting functions across exchanges, vendors and client firms. FISD is very interested in facilitating the development of the XML standard for billing/reporting.
   
• It was agreed on the importance of developing and publishing a BPA specification document to clearly define the business problem to be solved with this initiative and to serve as a guideline for moving this initiative to its next stage. Members are currently working to produce the specification.
   
• NEW FISD STAFF: FISD is hiring a full time staff member to open our NYC office and manage market data business management issues -- including billing automation, market data policy project, administration, and contractual issues. We view this job as being able to devote full time to making this segment of the FISD agenda move along the incremental path toward the long term goal of "the STP of market data administration." We've interviewed a dozen candidates and have narrowed the selection down to a few finalists. We expect to hire the new staff member and open the NYC office of FISD by mid-June.

Market Data Policy Database

The Market Data Policy database has been in beta testing since early March. It currently contains market data policies from 40 exchanges and agreed fee schedules from 28 exchanges (with another 50 awaiting exchange clearance). Over 100 members have requested access to the test database with about 30 actively participating in some part of the beta test program. Based on member feedback:

• The content within the database is accurate and functional. However, users need to have some degree of understanding about market data contracts and the structure of the database in order to know how to properly frame the questions and in order to get practical information from their query.
   
• Market data managers need to have access to the original source material (dated versions of contracts) before they will be able to rely on the results of queries from the MDPP. The database is still useful as a reference tool without the links to the contracts, but its value is significantly enhanced with the contract links.
   
• FISD is planning on a "soft launch" of the database following the June meeting. Prior to launch we need to make sure we accurately position the MDPP (i.e. clear and precise descriptions of what's included and how to use it). We also need a clear statement on our approach to maintenance and illustrations of how the database can be used. The soft launch will include access to the online version of the database by members and non-members (initially without charge).

World Financial Information Conference

The program for this year's World Financial Information Conference (WFIC) is almost finalized. We think the planning group has done an outstanding job in identifying -- and effectively positioning -- the real issues facing the market data industry in this time of transition. The theme for the conference revolves around the overall movement to efficiency and business process automation -- and in particular the critical role of standards in making BPA happen.

We're privileged to have created a partnership with Dow Jones Newswires on the development of this conference. They bring a broad and unique view of the industry to the table and have helped make this conference significantly better. On the program development side of the equation -- we hope you agree that the relationship has been both additive and fruitful.

We've built a web page for the World Conference and we are posting speaker confirmations and new program enhancements as they occur. Please feel free to bookmark the site and to make it known within your organization and among your external contacts. The more people that know about the Conference, the more useful the event will be for building and extending business relationships.