The Japan Exchange Group has selected two developers that it believes will help cement its position as the region’s leading electronic trading hub
Japan Exchange Group (JPX), the financial services group charged with operating both the Tokyo Stock Exchange and Osaka Securities Exchange, has decided on which technology firms will help develop its derivatives trading terminal. The decision aligns with the group’s ongoing technological overhaul and marks yet another upgrade to its already highly competent systems.
Although the Japanese market plays host to some of the world’s largest exchanges, the region still has a reputation for falling behind somewhat when it comes to technology
JPX started to accept proposals for its next-generation derivatives trading system in February to “build a system for subsidiary Osaka Exchange, Inc that is both highly convenient and globally competitive, and takes into account the system’s role in the public infrastructure of the securities market.”
The selected technology vendors, NASDAQ OMX and NTT DATA Corporation, will help secure the exchange’s position as the region’s preferred electronic trading platform and enable JPX to offer a greater variety of services and increased risk management capabilities. “Developing the next-generation derivatives trading system is an important supporting infrastructural initiative toward JPX’s core strategy of expanding the derivatives market set forth in our medium-term management plan,” according to a JPX press release. “We believe that our constant efforts to increase our competitive edge and further enhance the reliability of our infrastructure will contribute to the realisation of a highly reliable and convenient market for investors, trading participants and other market users.”
Work on the project is due to commence immediately, and JPX, together with its new technology partners, is expected to roll out the updated trading system in 2016.
Although the Japanese market plays host to some of the world’s largest exchanges, the region still has a reputation for falling behind somewhat when it comes to technology. “In the Japanese market, when we consider the electronic trading systems, we are progressing to a certain extent in terms of the innovation, and we may be on par with the other markets when it comes to low-latency trading and high-frequency trading, as well as algorithmic transactions and order routing,” said the co-Chair of Japan FIX Protocol, Hiroshi Matsubara in an interview with Waters Technology. “We do have the hardware in place already, but there ought to be some change of the mindset for the regulators and participants to make it functional and to change market customs.”