The exchange expects the new technology, which will
facilitate the introduction of coffee and cocoa futures, to be rolled out in
August.
It will use Trayport’s GlobalVision Exchange Trading
System as well as 3i Infotech’s Awacs risk management and surveillance offering
and its Tradis Online broker workstation.
Lukas Lauw, head of trading and IT at JFE, said that
after shortlisting five local and four overseas technology companies, it had selected
UK-based Trayport and 3i Infotech of India because they “matched the exchange’s
needs within its budget constraints”. Work on the new systems began in April.
Lauw said the systems would address the bourse’s two
main problems — robustness and the ability to link its platform to other
trading systems.
The JFE’s existing platform cannot receive and
transmit electronic messages with other technology using the Financial
Information eXchange (FIX) protocol.
“Indonesia is geographically a difficult country in
that our commodity market participants are scattered over several thousand
islands. The telecommunication costs in Indonesia have made it almost
impossible for them to trade at the JFE so we want to offer access via the
internet,” Lauw said.
As soon as work is completed on the new trading
system, JFE will introduce futures on robusta coffee and cocoa — it hopes in
August.
JFE has tried before to list robusta coffee but Lauw
said market participants had favoured trading at Liffe — the market leader in
the commodity. But as the new trading platform will offer customers direct
access, the bourse hopes for success this time.
Indonesia is the world’s fourth largest producer of robusta
coffee. The Singapore Commodity Exchange has said it will introduce a
physically delivered robusta contract on April 22.
Trayport wins Green Exchange contract
Separately,
Trayport agreed a deal in mid-April with the Green Exchange, the fledgling US
environmental bourse, to make the exchange’s products available to Trayport’s customers.
A
connectivity interface will be established between Trayport’s platform, the GlobalVision
Trading Gateway, and the CME Globex electronic trading system.
The companies
said the interface would use the Australian-based Object Trading’s FrontRunner
software.
The Green
Exchange is a venture by CME Group and a group of energy trading firms to
establish a US designated contract market offering environmental derivatives.
Until the Commodity Futures Trading Commission has approved the market, the
contracts are listed on Nymex.