Japan Exchange Group goes live on Cinnober’s clearing and risk solutions
Japan Exchange Group (JPX) has launched its new clearing system for exchange traded derivatives (ETD), based on Cinnober’s TRADExpress RealTime Clearing and CCP Risk solution.
Arigatou gozaimasu Cinnober
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 modernising its post-trade and clearing infrastructure.
Ryusuke Yokoyama, senior executive officer and CIO, says its “next step in the near future” will see it continue the rollout of the CCP Risk solution to the rest of its clearing products.
According to Cinnober, JPX’s new clearing system offers more sophisticated risk, account and position management functions, global standard interfaces and a modern graphical user interface.
JPX can calculate members’ and clients’ risk for ETD in real time. New account types are introduced for individual clients. The system provides a more transparent omnibus account model, allowing members to report and see client accounts and margin requirement individually.
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.
CCP Risk is “tailored specifically” to the needs of central clearing counterparties (CCPs), and it can be integrated with Cinnober’s TRADExpress RealTime Clearing solution or other clearing systems.
Cinnober’s customers include the Australian Securities Exchange, B3, Dubai Gold & Commodities Exchange, Euronext, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand.
