The president and managing director of Osaka Securities Exchange have had their pay docked in recompence for a four-hour shut down of the J-Gate derivatives trading system in March.
An investigation into the incident uncovered a system glitch in queuing procedures for J-Gate's order receipt and execution process. The problems disrupted trading in Nikkei225 options and spilled over into related futures contracts.
Japan Exchange Group, which is set to integrate derivatives trading with J-Gate in March next year, says it has taken measures to prevent the occurrence of similar incidents and also fined Osaka Exchange president and CEO Motoharu Fujikura 30% of his monthly wages for one month. Managing director Yoshinori Karino has been ordered to take a 20% cut and received "strict admonishment" alongside systems development head Hirokazu Takemoto.
In Australia, meanwhile, an investigation by the country's securities regulator Asic into a technological malfunction of the Australian Securities Exchange's market announcement platform in October last year has found no fault in the ASX's operational procedures but has questioned the approach it took to keeping all market users adequately informed.
As a result, ASX has agreed to review its communication procedures, including the timing of future communications about system issues to market participants and other market users.