Japanese broker Daiwa Securities has signed separate deals with technology vendors Fidessa and Fujitsu to support institutional and retail trading flows in Korea and Japan.
Daiwa will use a Fidessa-supplied platform for trading equities in Korea. The system will provide Daiwa with order management and routing, consolidated position management and efficiencies of scale as it manages its regional order workflows. It is anticipated that the deal will yield further collaboration between the two firms in Hong Kong, Singapore and Taiwan.
Special local functionality for Korea includes basket/program trading, order management, integration with the Korean Exchange through Koscom and conformance with the Korean messaging standard, KFIX.
“We have an extremely strong equity trading business in Korea and therefore needed a system robust and scalable enough to support it,” said John Zendano, managing director, information technology, Daiwa Asia-Oceania. “Like elsewhere, regulators are driving change in the Korean trading and investment markets. Experience tells us this could significantly affect our operating environment and we need to be ready to adapt to this.”
“We understand the importance of localising our global solutions and infrastructure to cater for regional regulatory and market requirements,” added David Jenkins, head of business development at Fidessa. “This ensures firms like Daiwa are able to trade different markets from a consolidated platform as efficiently as possible. While international firms require a global approach to the front office for international client relationships and trading memberships, every market has unique requirements.”
Daiwa Securities has also partnered with Japanese technology firm Fujitsu to upgrade the infrastructure platform for Daiwa’s online trading system for retail investors. The new Japanese system is built using Linex open source software, and is designed to be faster and more reliable than the firm’s previous platform. Daiwa began a phased migration to the new system in October last year and it has been fully live since April.