BOJ-NET, the Bank of Japan’s online settlement system for JGBs, was down for 1 1/2 hours yesterday, delaying settlement of transactions.
A computer glitch is being blamed for temporarily blocking the flow of data from seven financial institutions whose host computers are directly connected to the BOJ’s computer processing center. The seven financial institutions switched to an alternative method of data feed to continue operations.
The BOJ-NET platform was up and running again by the afternoon, but the delay forced the BOJ to extend its foreign exchange settlement deadline to 2 p.m. and the government bond settlement deadline to 6 p.m. to ensure all the day’s settlements were all successfully completed.
This is the first time BOJ has ever admitted to a systems failure.