Osaka Securities Exchange and Jasdaq launch trading continuity system

Source: Osaka Securities Exchange

Osaka Securities Exchange (OSE) and Jasdaq Securities Exchange(JASDAQ) on October 9 put the related rules into effect, and commenced operations of Emergency Trading System.

As a result, an unprecedented attempt to establish a trading continuity system between markets was realized.

As a provider of a securities exchange, which is important social infrastructure, OSE and JASDAQ had made all the necessary arrangements, from May 2006, to establish a scheme to continue trading on the other exchange in case one exchange faced a difficult situation to continue trading due to an emergency situation, such as natural disaster - necessary arrangements include
  1. modifications of the platforms,
  2. modifications in the rules, etc., including responses to legal issues,
  3. impact study on Transaction Participants and responses to the issues with them,
  4. responses to issues on reporting and/or statistics,
  5. impact study on clearing & settlement and responses to the issues,
  6. impact study on information vendors and responses to the issues with them, and so on.

OSE and JASDAQ published the draft rules in related to the trading continuity system in December 2006 and the final rules in March 2007. After publication of the rules, OSE and JASDAQ conducted the drills to test the trading continuity system between markets, and commenced the operations of Emergency Trading System.

Through the implementation of Emergency Trading System, in case a trading platform of one exchange halts due to a natural disaster, etc. and it is judged to be difficult to resume the trading promptly, the trading continuity system will be activated and trading will be resumed on the other exchange, after due consideration on readiness of securities companies, in principle, from the next business day.

Since this trading continuity system between markets allows OSE and JASDAQ to have a backup system between two different platforms, OSE Trading Platform and JASDAQ Platform, in addition to a hot-standby backup, OSE and JASDAQ will become able to respond to a failure arising from the program which cannot be addressed by a hot-standby backup.

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