On February 13, Japan Exchange Group (JPX) successfully launched its new clearing system for exchange traded derivatives, based on Cinnober’s TRADExpress RealTime Clearing, and a CCP Risk solution. The JPX ETD derivatives market is operated by the Osaka Exchange (OSE) and cleared by the Japan Securities Clearing Corporation (JSCC), both part of JPX.
With the new technology, JPX is modernizing its post-trade and clearing infrastructure in a move to strengthen its position as an internationally renowned clearinghouse.
“By launching these new risk and next generation clearing systems we have created a cutting-edge post-trade infrastructure,” said Ryusuke Yokoyama, Senior Executive Officer & CIO. “We’re happy to offer improved services to our clearing members and clients, and easier access through standard protocols. We look forward to the next step in the near future in which we will continue the rollout of the CCP Risk solution to the rest of our clearing products.”
JPX’s new clearing system is a state of the art solution offering more sophisticated risk-, account- and position management functions, global standard interfaces and a modern graphical user interface. With the solution, JPX is able to calculate members’ and clients’ risk for ETD in real time. New account types are introduced for individual clients. The new clearing system provides a more transparent omnibus account model, allowing members to report and see client accounts and margin requirement individually. Additionally, new products can be added with very short time thanks to the flexibility of the new clearing system which will enable JPX to grow in their business.
“We’re very happy and proud to be live with our TRADExpress solutions in the Japanese market, being part of realizing JPX’s vision with our technology and committed people”, says Veronica Augustsson, CEO of Cinnober. “We have been working in a close and productive cooperation with JPX which gives us a strong position for our continuous partnership.”
The separate CCP Risk solution is used for model validation and exposure monitoring both within and across JPX clearing venues, covering initial margin monitoring, sensitivity calculations, credit- and liquidity stress testing and backtesting.
TRADExpress RealTime Clearing from Cinnober enables clearinghouses to manage clearing and monitor risk in real time across multiple markets, both OTC and exchange-traded. The solution has proven itself at several high-profile clearinghouses globally — enabling margin and settlement savings for their clients, and offering improved risk management, extreme performance, faster product development capabilities and efficient operations.
TRADExpress CCP Risk is a risk solution tailored specifically to the needs of central clearing counterparties (CCPs), and the challenges that have emerged in today’s increasingly complex clearing landscape. It can be integrated with Cinnober’s TRADExpress RealTime Clearing solution or other clearing systems.
Download the press release here.
About Cinnober Financial Technology
Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance.
Cinnober’s customers include the Australian Securities Exchange, B3, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand.
Using its extensive experience in financial technology, Cinnober has broadened its reach through the establishment of highly specialized and competitive subsidiaries. Today, three such subsidiaries exist within trade reporting and transparency, post-trade and client clearing and trade surveillance and analytics.
For additional information, please visit www.cinnober.com.
JPX, the Asia’s leading comprehensive exchange group, is integrated market infrastructure, with its business domain covering cash and derivatives market operation, self-regulation, and clearing Tokyo Stock Exchange (TSE), the Asia’s largest cash equities exchange, is home to more than 3,500 companies and a wide variety of ETP and REIT products, and Osaka Exchange (OSE), the derivatives arm of the group, provides trading opportunities for Japanese derivatives such as Nikkei 225 futures, TOPIX futures, and JGB futures. In addition to efficient, stable and transparent market mechanisms, self-regulation at Japan Exchange Regulation and CCP functions provided by Japan Securities Clearing Corporation also contribute to trust and confidence in its robust and reliable market infrastructure. JPX will drive market development and continue to diversify its business portfolio as it pursues the next step forward towards becoming "Your Exchange of Choice".
For further information, please visit our website: http://www.jpx.co.jp/english/.