BCP Forum: Report of Technical Committee on Exchange Transactions

Japan Exchange Group, Inc. (JPX) establishes a business continuity plan (BCP) to define its basic policy for contingency situations and matters including backup plans and procedures when it becomes difficult to continue business operations.

In addition to BCP, since the lifecycle of a transaction on the exchange market also involves the clearinghouse and settlement organization, JPX must work with other institutions in the securities market to examine continuity in a contingency situation. This involves examining frameworks to ensure continuity in exchange trading operations as well as clearing and settlement operations in such situations and also how to resume operations as quickly as possible if it becomes difficult to avoid temporary stoppage. To discuss such matters, Tokyo Stock Exchange joined market participants to form the Technical Committee on Exchange Transactions, and the technical committee released a report of its discussions in September 2006.

In the ten years that have passed since then, the Great East Japan Earthquake had struck in March 2011 and the government has reviewed the damage estimates for wide-area disasters including the Tokyo Inland Earthquake. The market environment has also changed drastically alongside advancements in exchange trading technology and the changing shares of trading activity among the different trading participants. In light of these changes, the technical committee decided that it would be timely to resume discussions to conduct a review of the BCP for exchange markets. To gather a wide range of opinions from market participants, the technical committee established a sub-committee in December 2016 to conduct a review with a focus on the (1) backup plans at JPX and (2) its contingency plans. Between December 2016 and March 2017, the sub-committee identified issues in the exchange BCP, examined measures, and compiled the content of its discussions into "Second Report of the Technical Committee on Exchange Transactions".

Outline of Second Report of the Technical Committee on Exchange Transactions icon-pdf
Second Report of the Technical Committee on Exchange Transactions (Abstract) icon-pdf