Background

JFX was concieved to use an electronic trading system from the very start of its operation. Exchange management saw this as a necessity as this is the trend all exchanges are experiencing. An electronic trading system called JAFeTS was then devised to meet management’s criteria, i.e.:

• It should use latest technologies which to facilitate the adaptation of newer technologies.
• It should give room to system expansion if market so dictates.
• It should be affordable, so are its future modifications.
• It should be custom built, as are the modifications so that modifications can be made in the appropriate time, without the normal delays encountered with off-the-shelf systems.

Purpose and Benefits

Main purpose of the implementation of the JAFeTS and therefore its benefits are:

• To provide level playing field where all market participants have equal access.
• To provide trading facility with integrated control which minimises trade risks.
• To provide efficient, fast, economical and reliable trading facility.
• To provide a system that uses latest technologies on par with foreign leading bourses.
• To provide a solid foundation for remote trading system, whereby market participants can access the system from their premises.
• To provide a system that can be easily tailored to suit market demand as it arises, such as: adding new products, extending trading hours.

JAFeTS Components

Basically, there are five components that constitute JAFeTS:

• Trader Interface. This is the screen that Screen Traders input, change, and delete orders. They can also view overall market situation through this interface.
• Trade Information. Publication of trade data to quote vendors and the outside world is done through this component.
• Administrator Interface. This is used by exchange officers to define and set up parameters that govern the operation of JAFeTS. Among others, parameters that can be set include: contract types, price limit, screen traders’ user ids and passwords, trading sessions.
• Surveillance Application. A facility through which exchange surveillance officers monitor market activities.
• Clearing House Interface. Trade data are sent to the clearing house electronically via this interface.
• Data Vendor Interface. Trade data are sent to the data vendors electronically via this interface.
• Interface for Bappebti. Trade data are sent to Bappebti (Coftra) electronically via this interface.

JAFeTS Development

Eversince JAFeTS 1.0 was used as the electronic trading platform, it has been continuously improved and upgraded. Version 1.0 – put in usage on 15th December 2000 – used web based technology. When the a major upgrade was done to the system – hence dubbed version 2.0 – JAFeTS uses push client-server technology with Java Messaging System and Application Server at its core.

Currently, JAFeTS can be accessed remotely by our members and liquidity providers. It also features basis trading among other enhancements programmed into the system. Execution speed of 50 messages per second is deemed sufficient for current trading activities. Plan is underway to radically upgrade the electronic trading system for even greater capacity and capabilities.

The Next JAFeTS

Expect to see future JAFeTS capable of:

• Handling > 500 messages per second
• Doing risk management functions
• Online trading
• Handling various contract types