Implementation of "OSE-FX" exchange system for Osaka Exchange
The market for exchange FX margin trading, "OSE-FX," was established by Osaka Exchange in July 2009. When creating this OSE-FX exchange system, Simplex achieved both high reliability and high functionality, which was required for this mission-critical exchange system.
When OSE-FX was established in 2009, there was a constant growth in FX trading volumes, particularly for individual investors. On the other hand, there was an increased demand for listing FX on the exchange which has a highly transparent pricing process and eliminate counterparty credit risk. Furthermore, the enactment of the Financial Instruments and Exchange Act in September 2007 allowed securities exchange to handle financial instruments other than securities. Under such circumstances, Osaka Exchange decided to establish an exchange FX market to improve the convenience for individual investors by providing a wide range of new options for investing and hedging in foreign exchange instruments.
Achieved High Reliability and Functionality Required for Exchange System
A mission-critical exchange system requires high levels of both reliability and functionality. Simplex was given the task of designing and operating the OSE-FX exchange system and it achieved the high levels of reliability and functionality demanded by the exchange system. Clients have praised the system stating, "Being both highly reliable and functional, Simplex has overcome the difficulties of designing a market system that did not exist before."
Top Class Low Latency Performance with an Average of Two Milliseconds*
In addition to system reliability, the greatest success of the OSE-FX exchange system architecture was its' latency (i.e., the processing speed for orders and executions). In 2009, the target was to achieve speeds that surpassed those for equities and derivatives market at Osaka Exchange. Ultimately, the system was able to achieve an average latency of two milliseconds, fastest (at the time) in Japan market.
High Development Efficiency with a Small Team of Experts
In general, deployment of large scale projects, such as an exchange systems, requires hundreds of people at the peak of the development. However, Simplex's expert project team with knowledge and experience deployed a new development methodology unprescedented in traditional system development projects. As a result, development efficiency was significantly improved through a small team of top talents and the project was completed within a short period of time.
Reduced Cost of System Maintenance
Simplex provides a wide range of high level and flexible services for all phases of a system life cycle, from consulting, system development, to system operation and maintenance. Since the system was launched in 2009, Simplex provides 24/7 system operation and support to ensure stable operation, thus reducing the cost of system maintenance for Osaka Exchange.
Overview of the OSE-FX exchange system.
The OSE-FX exchange system consists of three important components: (1) a trading system that manages and matches the agency or proprietary transactions from securities companies or FX companies; (2) a market broadcasting system that transmits price information to participants; and (3) a settlement system that provides the settlement processing functions necessary for participants and Osaka Exchange.
- *The latency value is measured by Simplex.
|Name||Osaka Exchange, Inc.|
|Address||1-8-16, Kitahama, Chuo-ku, Osaka|
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