Keeping One's Head About Japan
There's no way this week can pass without discussing the devastating earthquake, tsunami and aftershocks in Japan that have led to a nuclear disaster. This human tragedy will go down in history as one of the defining moments for modern Japan. The thoughts and prayers of the entire Sell-Side Technology staff are with all the victims of this horrible situation.
As with all disasters, there's the news coverage that works on raw emotion and stoking fear with "what if it happened here" scenarios that result in people half the world away emptying pharmacies of iodine pills.
Of course, neither the Japanese government nor Tokyo Electric Power Co. (Tepco) has done themselves any favors with the way they keep the flow of information on the situation at a trickle.
From an infrastructure perspective, the Tokyo markets were spared. Right after the initial event, the Japanese Financial Services Agency (FSA) established its disaster management team headed by Shzaburo Jimi, minister for financial services. The FSA, in conjunction with the Bank of Japan, requested that financial firms take appropriate measures to accommodate the quake victims. They also decided to monitor the markets to make sure that no one was using the situation to manipulate the markets. As part of this, they implemented a strict ban on naked short selling.
Currently, the markets face three major challenges: power, connectivity and psychological issues.
Due to a fluke in Japanese history, as reported quite well in ComputerWorld,the nation is split between competing power standards. The affected north and east of the country operates on a 50Hz network, while the south and west operate on a 60Hz network, which makes importing power to meet Tokyo's demands from the unaffected regions difficult if not impossible.
While the earthquake and resulting tsunami caused untold damage above the ocean, they also did a dramatic job on the number of sub-sea telecom cables linking the island nation to the rest of the world.
According to telecom research firm Telegeography, six of the major cables are out of service or have segments that are out of service. As a result, Internet traffic coming into Tokyo has seen a 15 percent drop in maximum incoming traffic over the previous week, according to data from internet exchange (IX) operator Internet Multifeed Co.'s JPNap Tokyo I IX.
Fixing these physical issues will take time and capital, but the most difficult issue will be addressing the psychological issues associated with the disaster. Over the past week, there has been a major brain drain happening in the financial community, as international bankers quickly relocate themselves and their family away from Tokyo.
How long will this last and what will it take to bring people back? I haven't a clue, but something will need to be done to make sure that Tokyo doesn't lose its standing in the global markets. To make this happen, clear heads will need to prevail.
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.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
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. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Getting aggressive: Overbond uses AI to assess dealer axes
The fixed-income analytics specialist has developed a new tool to help buy-side firms decide if they’re getting a good price from their dealers.
TS Imagine integrates LTX’s pre-trade analytics tool
Users of the fixed-income EMS will now have access to LTX’s Liquidity Cloud tool, which provides a pre-trade score for the likelihood of trading success.
European exchanges turn to dark trading in battle for flow
The EU’s two biggest exchanges are launching dark pools this year. The apparent change in their stances on dark trading reflects a profound shift in equities markets.
After contentious Opra upgrades, vendors brace for a faster future
Upgrades to the datafeed widely used to gauge the current market price for options contracts went into effect in February after three separate delays, which market participants say were caused by persistent bandwidth issues at some important recipients.
The IMD Wrap: No more turf wars, or why CDOs should heed the Voice of the CTO
Max reviews how our recent Voice of the CTO series has implications for those beyond a firm’s technology function, and how communication and collaboration between tech, data, and leadership will deliver better results.
Dark horse: Deutsche Börse building dark pool
New functionality allowing exchange members to execute sweep trades comes hot on the heels of European rival Euronext launching its own dark pool.
Waters Wrap: The tough climb for startups
Anthony speaks with two seasoned technologists to better understand why startups have such a tough time getting banks and asset managers to sign on the dotted line.
European firms prime for lopsided settlement in North America and at home
With T+1 imminent in North America and increasingly likely to traverse the Atlantic, operations and trading professionals in Europe are fighting on two fronts.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Dark horse: Deutsche Börse building dark pool