The Tokyo Stock Exchange has named Fujitsu as the developer of its next generation trading system, following an open tender to replace a previous Fujitsu-built trading system that was plagued by a series of costly operational faults.
The TSE invited financial technology vendors to tender for the contract to build the new system in August. The Exchange has vowed to spend $529 million over the next three years to improve its electronic trading systems.
The new system will accelerate order acceptance and execution processes, and manage smaller-scale orders and an increased number of executions, in an effort to make the market more reliable and conventient for dealers and investors.
The TSE says the new system will be in operation during the latter half of 2009.
The bourse was forced to close early in January this year 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.