About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Johannesburg Stock Exchange Selects Cinnober to Support Strategy for Growth

Subscribe to our newsletter

The Johannesburg Stock Exchange’s (JSE) partnership with Cinnober to develop a multi-asset clearing platform is expected to deliver not only real-time clearing, but also overall trading improvements and greater market certainty.

The contract between Cinnober and the JSE to build a real-time integrated clearing platform initially handling six asset classes was signed last week. Implementation of a customised version of Cinnober’s TRADExpress RealTime Clearing system by the partners is due to start soon, with delivery of the platform to the exchange in the first quarter of 2015 and the exchange then deciding when to go live. The platform will replace a number of clearing systems covering different asset classes, some of which have been built in-house and others sourced from local partners.

Riaan van Wamelen, chief information officer at the JSE, says: “Modern clearing requirements and the evolving regulatory landscape result in significant technology demands for exchanges worldwide. The project we are embarking on seeks to process all asset classes from all markets on a single integrated solution and will enable our strategy for growth.”

While this is a major project for the JSE, it is a first win for Cinnober at the exchange, which uses the London Stock Exchange’s Millennium Exchange technology to power some of its equity trading systems. Other trading platforms, like the exchange’s clearing systems, are in-house built or provided by local suppliers, begging the question of whether a successful implementation of the Cinnober clearing platform could open the door for the company to provide an integrated trading platform.

Meantime, the implementation of the clearing platform is expected to lead to some trading improvements. Cinnober CEO Veronica Augustsson explains: “The platform will provide JSE clearing and trading members with a real-time view of risk, while the integrated clearing of asset classes will provide a view of net risk, which means clearing firms shouldn’t have to post unnecessary collateral. There is lots of value for clearing firms to pass on to trading customers and overall trading should improve as a result of real-time clearing, making the market more certain. For example, if an algorithm being used in high frequency trading goes wrong, it is possible to see in real time positions that require more than there is coverage for. This is good for the market and helps to build confidence.”

Cinnober is conducting implementation and integration projects similar to the JSE project at LME Clear and BM&FBovespa, and says there are more to come as organisations realise the need for integrated clearing platforms to reduce high, and sometimes prohibitive, costs of collateral.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Maximising success when migrating big data and analytics to cloud

Migrating big data and analytics workflows to the cloud promises significant cost savings through efficient use of infrastructure resources and software that scales dynamically based on data volume, query load, or both. These are valuable gains for investment banks, but they can only be fully realised by taking a new approach to architecture and software...

BLOG

Horizon Expands Algo Platform to Include Agency Trading Functions

Algo trading technology provider Horizon Software has expanded its Electronic Trading Platform to include agency trading functionality. Initially designed for market-making and algo trading services, Horizon has added high-touch, DMA, DSA and global order routing for equity and global derivatives, to support banks and brokers conducting agency trading. Clients that use Horizon for their market-making...

EVENT

Data Management Summit New York City (Redirected)

Now in its 8th year, the Data Management Summit (DMS) in NYC explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Preparing For Primetime – How to Benefit from the Global LEI

They say time flies when you’re enjoying yourself, and so it seems the industry have been having a blast with its preparations for the introduction of the global legal entity identifier (LEI) next month. But now it’s time to get serious. To date, much of the industry debate has centred on the identifier itself: its...