The Tokyo Stock Exchange (TSE) is inviting financial technology vendors to tender for the contract to build its next-generation electronic trading system.
The TSE's existing Fujitsu-built trading technology has been plagued by a series of operational failures and the exchange said earlier this year that it was investing around $529m over the next three years on upgrading its electronic trading platform.
The bourse was forced to close early on 17th January because its trading system was unable to cope with a surge in sell orders. This followed an incident in December when the exhange's systems failed to cancel a mistaken order from a Mizuho trader to sell 610,000 shares for one yen, instead of one share for Y610,000.
That glitch came only weeks after the TSE suffered its worst ever systems failure that halted trading for more than four hours on 1 November 2005. The TSE later blamed Fujitsu for the crash.
The exchange is now seeking a developer to build a new trading system which will include order matching, market data dissemination and market monitoring functions and connectivity to the clearing system.
The deadline for initial application sxcreening is 8 September. The TSE is inviting companies to put forward collaborative proposals, and will issue the top five with a formal Request for Proposal. The winning tender will then be selected from a shortlist of two or three finalists. The final selection process is expected to begin in mid-October and the developer that wins the tender will be named by the end of December.