The FIA Japan Principal Trading Group (‘JPTG’) has been set up in 2016 with the main objective of creating an open dialogue between principal trading firms and key stakeholders in Japan. Topics generally include market developments related to High Speed Trading (‘HST’) activities, HST regulatory discussions and general market advocacy. Since 2020, JPTG is a division of the Market Development Committee (MDC).

 

JPTG follows the lead of successful groups in the US (FIA Principal Traders Group) and Europe (FIA European Principal Traders Association). In these examples, principal traders/electronic market makers have successfully established industry groups facilitating and advocating common industry positions towards legislators, regulators, exchanges, media and the public.

 

JPTG is a group of firms that trade with their own capital in financial markets in various products, including equities, futures & options. JPTG firms engage both automated and manual styles of trading, and deploy proprietary strategies with varying investment time horizons and trade frequencies. JPTG generally transact in a wide variety of asset classes such as equities, fixed income, foreign exchange and commodities. They serve as a critical source of liquidity in Japan, allowing those who use the markets, including individual investors, to manage their risks and invest effectively.

 

JPTG aims to:

• Provide a forum to identify and discuss issues confronting the JPTG

• Define common positions on public policy issues in Japan and advance the group’s collective interests

• Improve regulators’ understanding of the constructive role played by principal trading firms/HSTs in exchange-traded equities and derivatives markets in Japan

• Promote a pro-active role in discussions with regulators and exchanges on algorithmic trading and HST in Japan

• Promote cost-effective & transparent access to Japanese markets

 

JPTG believes:

• Integrity - All market participants should operate with integrity and communicate with regulators in an open and honest way

• Regulation - A well regulated market provides stability and creates efficiencies. For this reason, market participants and trading platforms should be appropriately regulated

• Transparency - Markets should strive for real transparency for investors and market participants

• Stability - Stable, reliable and well-functioning markets increase security & safety and provide the foundations that encourage investor confidence

• Equal access - Access to markets should be open to all in a non-discriminatory way

• Equality of information - All market participants should have access to the same trading information in order to provide a level playing field

• Risk Management - Having risk controls in place to ensure orderly, safe and secure markets

• Competition - Fostering competition between market participants, trading platforms, clearing platforms and co-location facilities to encourage innovation and promoting market efficiencies

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Prop firms interested in participating in JPTG initiative are encouraged to contact the FIAJ Office for details.
 

Report Archives

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• 2017, November 22 - JPTG Comments to Proposals for the Implementation of the Financial Instruments and Exchange Act relating to High Speed Trading