The Korea Exchange (KRX), the world's second largest derivatives exchange, has commenced member testing of a modern, faster version of its trading platform, in anticipation of a rise in business stemming from the introduction of the country's Capital Market Consolidation Act.
The upgrade, which involved aligning the trading, settlement and information distribution systems, includes the Kind (KRX E-Disclosure) & data warehouse systems which have both been operating since August 2008, a market surveillance system, operating since October 2008, and the trading & settlement systems, which will commence operation in March.
Kim Jeong-woo, CIO of KRX, comments: "Within the new system, all functions including order submissions, trading execution, price information delivery and client account management have been integrated and standardised as a single process."
The upgrade will double capacity to accommodate up to 40 million quotes per day and cut latency to less than 0.08 seconds per transaction, he says.
The existing mainframe back-end has been converted to an Open Unix environment and real-time restore and back-up procedures have been implemented, as well as the construction of disaster recovery centres in Seoul and Busan.
Member companies will be able to test the new system any time from now until launch on March 23.
The introduction of member testing coincides with the arrival of new legislation that lifts restrictions on business involvement in multiple asset classes, spanning equities and derivatives.
KRX's Kim Jeong-woo states: "We are looking forward to accommodating a wide range of financial product ranges as prescribed by the Korean Capital Market Consolidation Act."