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FPL’s response to Giovannini Draft Protocol Recommendation - January 2006
The essence of FPL’s response to the Giovannini Protocol
Recommendation in February 2006 was:
FPL believes the Giovannini recommendation represents an important
initiative to guide, inform and encourage standardisation of settlement
processing, and FPL believes in the same four principles identified by the
Giovannini Group of leverage, inclusivity, neutrality and openness.
In response to the specific question of whether the updated
recommendation is an acceptable solution, FPL answered yes provided that the
scope is settlement processing and that the distinction between ISO15022 and
ISO20022 and the depiction of standards within diagram 1 is clarified.
Consistent with Giovannini’s principle of leverage, FPL believes that
extending the most widely adopted standard in a space to universal coverage in
that space is the best first step towards achieving the industry’s goals of
simplicity, automation and ROI. Thus, for the recommendation’s primary
focus on cash equities and fixed income, FPL sees the FIX Protocol being used
from pre-trade up to and including post-trade/pre-settlement, and the
ISO15022-based MT54x series (and relevant downstream) messages being used to
service settlement.
FPL appreciates having been invited to provide feedback on this important
initiative and having had the opportunity to participate in the Independent
Advisory Group to further refine the recommendation in 2005. Given that
the current Giovannini recommendation states that relevant expert bodies will be
consulted for exchange traded derivatives, FPL looks forward to the opportunity
to participate in this next phase.
FPL’s
Response Letter
Elimination of
Giovannini Barrier 1: Draft Protocol Recommendation – October 2005
Elimination of
Giovannini Barrier 1: Consultation Paper – January 2005
Giovannini
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