I-STAR/LC: Bank of Japan RTGS-Compatible Software, Now Upgraded with a New ASP Service -Designed for compatibility with the new Japan Government Bond Clearing Corporation and the next generation BOJ-Network-

The Nomura Research Institute, Ltd. (NRI: Tokyo; Akihisa Fujinuma, President, CEO&COO) will be fully upgrading its I-STAR/LC software package, which since 2001 has provided financial institutions compatibility with the Bank of Japan's RTGS (real time gross settlement) system. The upgrade will introduce a new ASP (application service provider) service, which will be compatible with the soon-to-be-launched Japan Government Bond Clearing Corporation (JGBCC) system as well as with the next generation BOJ-Network. It will thus help financial institutions to dramatically reduce costs associated with these changes.

The BOJ's RTGS system settles Japanese government bonds and funds in checking accounts. In order to achieve compatibility with this system, financial and brokerage institutions must either develop software in-house or implement a package system with which to connect to the BOJ-Network. NRI, which has up to now provided an I-STAR/LC package for compatibility with the RTGS system, has decided to replace this system with an ASP service, thereby establishing a framework which will enable institutions to swiftly adapt to the new settlement system for Japanese government bonds.

Centralizing the operation and maintenance of ASP servers at NRI's Yokohama Data Center will enable all financial institutions using the system to dramatically reduce their hardware investment and system operating costs.

All financial institutions will likely be required to make a considerable investment in order to ensure compatibility with JGBCC and the next generation BOJ-Network (via TCP/IP). I-STAR/LC's ASP service will save these institutions money both through its shared-system format and by reducing system costs.

The ASP service requires trade data matching to be compatible with the JGBCC system. By connecting to I-STAR/MX, an ASP-service system that interfaces online with the Japan Securities Depository Center's Pre-Settlement Matching System and is already being used by 18 financial institutions, the new service will provide a system for fully automated straight-through processing (STP). This system will automate all post-trade securities operations, thereby reducing the cost required for developing interfaces between the systems.

Meanwhile, it has become incumbent upon financial institutions around the world to take measures to avoid operational risks. NRI will establish a Disaster Recovery Site for I-STAR/LC and I-STAR/MX in its Osaka Data Center. In the event of a problem at the Yokohama Data Center or an unforeseen disaster, system services will be transferred to and operated at the Osaka Data Center. This will provide customers the assurance of being able to continue operation of their businesses without fear of interruption.