Japan Exchange Group (JPX) launched its new clearing system for exchange-traded derivatives, based on Cinnober’s TRADExpress RealTime Clearing, and a CCP Risk solution.
JPX’s new clearing system has more sophisticated risk, account, and position management functions, global standard interfaces and a modern graphical user interface. 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, so members can report and see client accounts and margin requirement individually. Additionally, new products can be added within a very short time.
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.
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.