NEX Data is working in conjunction with NEX Markets on behalf of the Financial Futures Association of Japan (FFAJ) to produce new FX margin ratios for 170 currency pairs that are core to meeting new Japanese regulatory requirements.
Launched in February 2017, the FX margin ratios support the derivatives margin calculations which Japanese retail brokers now have to provide to local authorities, following the new regulations which kicked in on 27 February 2017.
Using underlying data taken from NEX Markets’ FX Central Limit Order Book (CLOB) EBS Market as a primary source in addition to third party sources, the FX margin ratios are used to support the provision of accurate and transparent data in the Japanese retail market.
The new FX margin ratios are published on the FFAJ's website to Japanese market participants and individual investors with NEX Data’s indices business acting as the outsource provider to create and maintain the required underlying margin ratio and rates. NEX Data is applying its technological expertise in the creation of indices by accessing and leveraging NEX Markets’ strength in the Japanese currency market. Users will also be able to download the margin ratio data via NEX Data’s secure File Transfer Protocol (FTP) site.
Kevin Taylor, managing director, NEX Data, says: “It is a huge honour to work with the FFAJ on this ambitious project. The need for transaction-backed data continues to grow in order to provide the required transparency in financial markets. At NEX we create robust indices and provide a wide variety of data services. The ability to create a full suite of FX margin ratios demonstrates that we have the technology, the skill and the underlying data through NEX Markets and other providers to offer much needed services to the Japanese market.”