Japan Exchange launches utilising Cinnober clearing solution
16 February 2018 Tokyo
Image: Shutterstock
Japan Exchange Group (JPX) has launched its new clearing system for exchange traded derivatives, based on Cinnober’s TRADExpress real time clearing, and a central counterparty (CCP) risk solution.
JPX’s new clearing system offers risk, account and position management functions.
With the solution, JPX is able to calculate members’ and clients’ risk for exchange-traded derivatives (ETD) instantly.
The JPX ETD derivatives market is operated by the Osaka Exchange and cleared by the Japan Securities Clearing Corporation, both subsidiaries of JPX.
JPX has also introduced new account types for individual clients. The new clearing system provides an omnibus account model, allowing members to report and see client accounts and margin requirement individually.
The separate central counterparty (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.
According to JPX, the new technology will assist the exchange to modernise its post-trade and clearing infrastructure.
Ryusuke Yokoyama, senior executive officer and chief information officer at JPX, said: “By launching these new risk and next generation clearing systems we have created a cutting-edge post-trade infrastructure.”
He added: “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.”
Veronica Augustsson, CEO of Cinnober, commented: “We’re proud to be live with our TRADExpress solutions in the Japanese market, being part of realising JPX’s vision with our technology and committed people.”
JPX’s new clearing system offers risk, account and position management functions.
With the solution, JPX is able to calculate members’ and clients’ risk for exchange-traded derivatives (ETD) instantly.
The JPX ETD derivatives market is operated by the Osaka Exchange and cleared by the Japan Securities Clearing Corporation, both subsidiaries of JPX.
JPX has also introduced new account types for individual clients. The new clearing system provides an omnibus account model, allowing members to report and see client accounts and margin requirement individually.
The separate central counterparty (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.
According to JPX, the new technology will assist the exchange to modernise its post-trade and clearing infrastructure.
Ryusuke Yokoyama, senior executive officer and chief information officer at JPX, said: “By launching these new risk and next generation clearing systems we have created a cutting-edge post-trade infrastructure.”
He added: “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.”
Veronica Augustsson, CEO of Cinnober, commented: “We’re proud to be live with our TRADExpress solutions in the Japanese market, being part of realising JPX’s vision with our technology and committed people.”
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