Next step in the Japanese Exchange’s Next Generation Clearing System Project
JPX, one of the world’s largest financial marketplaces, has chosen Cinnober for risk monitoring across the entire Japanese market of equities, bonds, futures, options, CDS and IRS. This follows an announcement earlier this year where JPX selected Cinnober for the clearing of the exchange’s listed derivatives market.
The new risk monitoring solution, customized and partially based on the risk module in the TRADExpress RealTime Clearing platform, will provide JPX with unique cross-asset risk monitoring and sophisticated stress testing, back testing and Value at Risk (VaR). The solution will enable JPX to serve global standards and trends across all products.
“The real-time clearing of listed derivatives, paired with sophisticated risk monitoring across all asset classes, are important milestones in our next generation clearing system,” says Hiroyuki Shibuya, CIO of JPX. “This will take our services to the next level and strengthen our position in a global and very competitive market.”
Cinnober has unique experience of providing clearing and risk management solutions to tier one exchanges and clearinghouses, such as Brazilian BM&FBOVESPA, the British LME Clear, DGCX in Dubai, and the South African JSE.
“We’re truly proud of our collaboration with JPX on the modernization of the Japanese post trade markets. The partnership has now been expanded to include a highly-innovative risk management solution, which underlines the great start we’ve made on this journey,” says Veronica Augustsson, CEO of Cinnober. “Building an improved, safer, and even more efficient Japanese market, using new, cutting-edge technology, will give JPX a solid and global competitive advantage.”
JPX was established in January 2013 via the merger of the Tokyo Stock Exchange Group and the Osaka Securities Exchange. It operates financial market venues for trading of listed securities and derivatives instruments. In addition to providing market infrastructure and market data, JPX also provides clearing and settlement services through a central counterparty, and it conducts trading oversight to maintain the integrity on the markets.
Cinnober is a world-leading independent supplier of financial technology to marketplaces and clearinghouses. Customers include major exchanges with extreme demands on reliability and performance, such as the Australian Securities Exchange, BM&FBOVESPA, Dubai Gold & Commodities Exchange, Euronext, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand.