JPX taps Cinnober for Risk Monitoring

Next step in the Japanese Exchange’s Next Generation Clearing System Project
JPX, one of the world’s largest financial marketplaces, has chosen Cinnober for
risk monitoring across the entire Japanese market of equities, bonds, futures,
options, CDS and IRS. This follows an announcement earlier this year where JPX
selected Cinnober for the clearing of the exchange’s listed derivatives market.

The new risk monitoring solution, customized and partially based on the risk
module in the TRADExpress RealTime Clearing platform, will provide JPX with
unique cross-asset risk monitoring and sophisticated stress testing, back
testing and Value at Risk (VaR). The solution will enable JPX to serve global
standards and trends across all products.

“The real-time clearing of listed derivatives, paired with sophisticated risk
monitoring across all asset classes, are important milestones in our next
generation clearing system,” says Hiroyuki Shibuya, CIO of JPX. “This will take
our services to the next level and strengthen our position in a global and very
competitive market.”

Cinnober has unique experience of providing clearing and risk management
solutions to tier one exchanges and clearinghouses, such as Brazilian
BM&FBOVESPA, the British LME Clear, DGCX in Dubai, and the South African JSE.
“We’re truly proud of our collaboration with JPX on the modernization of the
Japanese post trade markets. The partnership has now been expanded to include a
highly-innovative risk management solution, which underlines the great start
we’ve made on this journey,” says Veronica Augustsson, CEO of Cinnober.
“Building an improved, safer, and even more efficient Japanese market, using
new, cutting-edge technology, will give JPX a solid and global competitive
advantage.”

JPX was established in January 2013 via the merger of the Tokyo Stock Exchange
Group and the Osaka Securities Exchange. It operates financial market venues for
trading of listed securities and derivatives instruments. In addition to
providing market infrastructure and market data, JPX also provides clearing and
settlement services through a central counterparty, and it conducts trading
oversight to maintain the integrity on the markets.

Cinnober is a world-leading independent supplier of financial technology to
marketplaces and clearinghouses. Customers include major exchanges with extreme
demands on reliability and performance, such as the Australian Securities
Exchange, BM&FBOVESPA, Dubai Gold & Commodities Exchange, Euronext, Johannesburg
Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock
Exchange of Thailand.

For further information or discussion, please contact:
Fredrik Backlund
Head of Corporate Communications
Cinnober Financial Technology
Tel. +46-73 403 12 39
fredrik.backlund@cinnober.com

About Cinnober and commercial definitions
Cinnober provides solutions and services to leading trading and clearing venues,
including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are
largely based on the TRADExpress™ Platform, incorporating everything needed for
mission-critical solutions in terms of performance, robustness and flexibility.
The portfolio of offerings includes price discovery and matching, real-time risk
management, clearing and settlement, index calculation, data distribution and
surveillance. Cinnober’s customers include the Australian Securities Exchange,
BM&FBOVESPA, Dubai Gold & Commodities Exchange, Euronext, Johannesburg Stock
Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of
Thailand. For additional information, please visit www.cinnober.com

Cinnober’s shares are traded on the Nasdaq First North exchange and the
company’s Certified Advisor is Avanza. To help the market to assess the value of
the deals won by Cinnober, the following definitions have been established. A
major deal is one for which the order value over a period of five years is
estimated to exceed SEK 100 million. A smaller deal is one for which the order
value over a period of five years is estimated to be less than SEK 30 million. A
medium-sized deal is one for which the order value over a period of five years
is estimated to be in between that of a smaller deal and a major one. The
Japanese clearing deal is a major one and the risk deal involving risk
management is considered to be a small one for Cinnober.