FAST FORWARD - JSE MAGAZINE

FAST FORWARD

The JSE’s hard work on its Integrated Trading and Clearing (ITaC) initiative is set to lead to greater cross-market harmonisation and a swifter, world-class technology platform

FAST FORWARD

The ITaC project – a multi-year programme focused on introducing an integrated solution for the JSE’s trading and clearing services – is the most significant programme of work the JSE has undertaken in recent years, according to Carl Scholtz, ITaC Programme Director.

He says the scope and complexity of ITaC is significant not only in JSE terms but also in global exchange terms. The changes being introduced by ITaC have been implemented by the top exchanges worldwide and the initiative is expected to provide an integrated environment. This will allow for centralised risk management, efficient utilisation of assets, clearing efficiency and a world-class technology platform.

On the trading side, all derivatives and cash bond markets will be migrated to the MilleniumIT trading platform, while for clearing, all markets will be migrated to the new Cinnober real-time clearing solution. Cinnober provides clearing solutions across the capital markets transaction chain.

The shift to a new system will allow traders to execute trades much faster than under the previous system. According to Scholtz a single and integrated trading platform has other great advantages as it will provide a consolidated view of big data across markets. ‘The JSE is a big data environment and the single platform will ensure improved data management and analytics across its data repository,’ says Scholtz.

The overall transformation will be achieved by the two international software providers – the Sri Lanka-based MilleniumIT and Sweden-based Cinnober, together with the significant in-house development of several JSE systems.

fast forward
‘The ITaC project is the most significant programme of work the JSE has undertaken in recent years’

 CARL SCHOLTZ, PROGRAMME DIRECTOR, ITAC

ITaC has assembled a world-class team of more than 200 people from various countries, which is led by the JSE from its Johannesburg offices. The multiple work streams are co-ordinated by teams of project managers, team leaders and business owners.

Scholtz says the programme has been structured to be delivered in frequent releases. Some significant progress has already been made across all work streams. ITaC completed its first two releases successfully, on time and according to plan in August and September this year.

‘During these releases the first phases of three core systems were delivered into production. They have addressed key risk elements and are already resulting in real tangible value for clients and the JSE,’ he says.

The JSE’s ITaC project will be phased in over a number of years. The first phase will deliver an upgraded equity trading platform in 2016. The ITaC solution for equity and currency derivatives will follow in 2017, with commodity and bond derivatives to be added in the years thereafter.

On the clearing side, a new platform is now vital as modern clearing requirements and the changing regulatory landscape have led to a significant increase in the technology demands for exchanges worldwide. For the trading side, ITaC will leverage the Millennium platform for derivative markets to ensure it remains a world-class exchange in the global market. ‘By decoupling trading and clearing in our new solution, the JSE’s strategic objectives for trading and clearing will be realised,’ says Scholtz.

Momentum is building around the initiative, and Scholtz says team morale is positive and energy levels are being kept high by recognising early successes.

While the programme is both extensive and expensive, it stands to reap rich rewards. Scholtz says being able to attract new clients to an internationally recognised system will position the JSE favourably for future growth opportunities.

‘The integrated approach will position the JSE in line with global trends and will cement its position as a legitimate global player and an attractive market proposition for potential clients,’ he says.

By Kim Cloete
Image: Fredrik Broden/ReneeRhyner.com