Japanese Government Bond Futures Suffer Trading Halt on BOJ Day

  • Outage lasted 20 minutes on morning of much-awaited decision
  • Delay in system processing was to blame, said Osaka Exchange

Trading was halted in Japanese government bond futures and options Friday morning, Osaka Exchange Inc. said, just hours ahead of the Bank of Japan’s much-anticipated policy decision.

The halt lasted from 9:51 a.m. to 10:12 a.m. Tokyo time, the bourse said. The outage was a result of a delay in system processing, it said in a note to traders, adding that the reason for the fault is under investigation. Average daily trading in 10-year JGB futures was 5.15 trillion yen ($49 billion), according to data from Japan Exchange Group Inc.

“To users of our system, we are extremely sorry for the inconvenience,” the exchange said in the note.

Osaka Exchange, which operates Japan Exchange Group’s derivatives-trading platforms, launched an upgraded system on July 19, its first major revamp in 5 1/2 years. The new derivatives trading system was operating normally, Akira Kiyota, chief executive officer of Japan Exchange Group, told reporters in Tokyo on July 28.

The upgrade aimed speeds up the amount of time it takes to process orders to about 100 microseconds from 2 milliseconds -- a 20-fold improvement -- and dramatically increases the number of orders that can be processed at any one time, according to the exchange.

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