JPX begins second blockchain partnership

JPX begins second blockchain partnership

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Japanese exchange group JPX is teaming up with think-tank Nomura Research Institute to blockchain technology.

The pair announced a joint project on Thursday, which will run between April and June and evaluate blockchain’s suitability for use in markets with "low transaction data volume".

JPX - one of the world’s largest financial marketplaces - was established in January 2013 via the merger of the Tokyo Stock Exchange Group and the Osaka Securities Exchange.

As well as operating an exchange, the group provides clearing and settlement services through a central counterparty.

The group appointed Swedish technology group Cinnoberl to upgrade its derivatives clearing systems last month.

The Nomura agreement comes two months after JPX teamed up with IBM Japan to test blockchain’s applications in the post-trade environment, intending to aid the exchange’s CCP capabilities.

Proof of concept trials began in March with simulated clearing and settlement operations applied to a simulated basket of securities.

It comes amid a growing interest in blockchain across the Asia Pacific region.

In January Australian bourse ASX began testing distributed ledger systems, another term for blockchain, with New York-based blockchain technology firm Digital Asset Holdings after it bought a 5% stake in the company.

The exchange intends to use the technology to replace its current Clearing House Electronic Subregister System (CHESS).

Meanwhile, Japan’s SBI Sumishin Net Bank announced in December 2015 that it would explore blockchain-based banking services in conjunction with Nomura Research Institute.

SBI Sumishin is a joint project between Japan’s largest trust bank, Sumitomo Mitsui Trust Bank, and SBI Holdings. 

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