Usage of XML in Developing Forex and Finance Applications
XML AND FOREX
Extensible Markup Language or XML was actually created by W3C (also known as www Consortium) almost ten years ago. The primary purpose of this company is to create a unique language that can easily be interpreted by the wide ranges of computer software including forex and finance software and machines. Xml in fact provides a platform for the storing, sharing, carrying and exchanging of data.
XML is the Language of Forex and Finance
Huge number of financial institutions has recognized that XML plays an important role in content management and in resolving data exchange problems. That is why, standard bodies, vendors and regulatory agencies are trying hard to boost up XML standards that are just ideal for the working practices of the marketers in the finance industry.
One of the biggest advantages of XML based system or applications is, it allows the same content and data to be accessible to several different service providers, groups and vendors in order to establish both external as well as internal connectivity. There are several different XML based standards and protocols that are being used by the finance regulatory agencies these days. Some of these XML protocols are as follows:
The FIX or Financial Information Exchange protocol is actually a messaging standard which is owned by FIX Protocol, Ltd. The main objective of this organization is to refine global trading process by managing, promoting and defining an open protocol for the forex account for the quick and real time global electronic communication between vendors and other market participants.
It is XML based industry standard protocol for the complicated forex and financial products. FpML version 1.0 basically covers the Forward Rate Agreements and Interest rate swap. Version 2.0 of FpMl expands the interest rate financial product coverage to the simple and the most common option products including floors, caps, extendible and cacelable swaps and swaptions. Version 3.0 of FpMl actually covers the Forex and Equity Derivatives and it also covers the interest rate work of FpMl 2.0 version.
Extensible Business Reporting Language (XBRL)
XBRL or Extensible Business Reporting Language actually exchange, collect and analyze complex financial information into the interactive and the dynamic realm of cyberspace. XBRL provides a unique and common platform to the vendors and the marketers for the decisive business reporting process. XBRL also improves the validity of the financial data and it also helps the users to make their communication better. XBRL is an XML based protocol that was specially invented by a Consortium with the help of 170 agencies and companies in order to provide benefits to accountants, investors, executives, regulators, financial analysts, and business and information providers.
The SWIFT is financial industry- owned cooperative and it generally provides standardized and secure messaging services to more than 8,000 financial institutions all over the world. The SWIFT community basically deals with brokers/dealers, banks and with investment managers.
XMl protocol is indeed a huge revolution in the field of finance and forex. In forex industry XML data feed plays a vital role in retrieving real time data over internet. By having XML data feeds or XML protocols we can make sure that our forex and financial solutions are integrated with the current standards.