The Clearing Corporation (CCorp) says the JSE Securities Exchange of South Africa (JSE) has bought its onExchange Extensible Clearing System (ECS).
ECS will initially provide the JSE with the ability to clear exchange-traded equities, futures and options through the Internet-enabled, multi-product system. But the platform has the potential to be extended to OTC products such as swaps and swap options.
CCorp says the system enables the JSE to offer market users real-time position, credit and risk management capabilities.
ECS was selected by the JSE as part of Project Orion, where the exchange is working with Accenture as outsourcing partner to modernise its systems.
“As part of Project Orion, we conducted a study to determine the requirements for the next generation clearing system and found that CCorp’s ECS system provided us with the array of features, the level of flexibility and the operating efficiencies that we were seeking,” says Accenture Director Raj Makanjee. “The technological capabilities of ECS and the long-standing reputation of The Clearing Corporation as an innovator in clearing systems and services made ECS the clear choice for our long-term technology strategy.”
“Project Orion was conceived as the key project in addressing the JSE’s future technology operating costs and allowing for the implementation of business applications on next generation architectures”, adds Leanne Parsons, Chief Operating Officer of the JSE. “We were among the world’s first exchanges to adopt the fully integrated, multi-asset-class exchange model. To allow our model to work seamlessly and cost efficiently we need best of breed technology. We believe the decision to work with CCorp is a significant step in helping us achieve our objectives.”
“The selection of ECS technology by the JSE and Accenture substantiates CCorp’s strategic objective of becoming a key global provider of multi-asset class clearing services and technology” adds Dennis Dutterer, CCorp’s President and CEO. “This transaction clearly demonstrates the immediate added value that the recently acquired onExchange technology brings to CCorp. CCorp is confident that the business combination of CCorp and onExchange will continue to produce global technology sales growth for CCorp.”
CCorp acquired onExchange Inc.’s assets in August 2004.