Golden Copy: Cultural Evolution of Data Handling in Japan
Increased openness to foreign engagement with financial data emerges

When last in Tokyo in 2012, data management executives I interviewed and heard speak in our conference that year all emphasized that the Japanese markets tended to function in isolation. This, they explained, meant the country's markets existed mostly if not only for trading by Japanese firms, in Japanese securities, with other Japanese counterparties—unlike markets in other Asia-Pacific centers such as Hong Kong and Singapore.
Data management functioned in a similar insular fashion, with firms and markets keeping data all in one place, not considering how to make better use of data within their organizations, much less deriving more value from data or leveraging data to communicate and do business with markets and entities outside Japan.
At that time, enterprise data management was slowly starting to catch on, as IT and data expert Raymond Yeung, who was then a technology products executive at Nikko Asset Management, said. Last week, Yeung, speaking on a panel at our Tokyo Financial Information & Technology Summit (TFITS), said regulatory compliance demands, as well as greater demand for alpha, has firms actively looking for new ways to handle data—and definitely not settling for just "jamming it all into one database."
As a result, Japan's firms are now mindful of the need to ensure clean data among trading, performance management and even human resources systems—before aggregating the data. "If they don't have those core data systems clean, forget it, they can't actually aggregate," Yeung said. "It's a cultural change."
With such movement and change in data systems, Japan's markets could begin to set an example for other Asia-Pacific markets. Japan's central bank, the Bank of Japan (BOJ), just last October launched BOJ-NET, a new transaction settlement system. Hiromi Yamaoka, director general, payment and settlement systems department, BOJ, speaking at TFITS, said the bank is considering connecting BOJ-NET with foreign markets' payment systems.
"To modernize the economy, there are a lot of transactions on a cross-border basis and across time zones," he said. "Only a central bank can provide ... a safe haven for settlement procedures."
Yeung's take on Japan's new willingness to consider different ways to organize and process data, as well as leveraging data for functions like risk management, along with the extraordinary statement by Yamaoka that BOJ-NET could interface with foreign markets, portray a very different climate for data management in Japan than there was in 2012. Even back then, Yeung had said, Japan had the opportunity to lead on data process and technology. It's taken until very recently for Japan to reach for that opportunity.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Waters Wavelength Ep. 314: Capco’s Bertie Haskins
Bertie Haskins, executive director and head of data for Apac and Middle East at Capco, joins to discuss the challenges of commercializing data.
Nasdaq, AWS offer cloud exchange in a box for regional venues
The companies will leverage the experience gained from their relationship to provide an expanded range of services, including cloud and AI capabilities, to other market operators.
Bank of America reduces, reuses, and recycles tech for markets division
Voice of the CTO: When it comes to the old build, buy, or borrow debate, Ashok Krishnan and his team are increasingly leaning into repurposing tech that is tried and true.
Navigating the tariffs data minefield
The IMD Wrap: In an era of volatility and uncertainty, what datasets can investors employ to understand how potential tariffs could impact them, their suppliers, and their portfolios?
Project Condor: Inside the data exercise expanding Man Group’s universe
Voice of the CTO: The investment management firm is strategically restructuring its data and trading architecture.
Tariffs, data spikes, and having a ‘reasonable level of paranoia’
History doesn’t repeat itself, but it rhymes. Covid brought a “new normal” and a multitude of lessons that markets—and people—are still learning. New tariffs and global economic uncertainty mean it’s time to apply them, ready or not.
HSBC’s former global head of market data to grow Expand Research consulting arm
The business will look to help pull together the company’s existing data optimization offerings.
Stocks are sinking again. Are traders better prepared this time?
The IMD Wrap: The economic indicators aren’t good. But almost two decades after the credit crunch and financial crisis, the data and tools that will allow us to spot potential catastrophes are more accurate and widely available.