Technology Revolutionizes Capital Markets Platforms in Japan

Tokyo Financial Information & Technology Summit (TFITS) is the only event in Japan that focuses on the opportunities and challenges that IT, data, and operations executives from financial institutions face.

TFITS is a conference hosted by WatersTechnology and sponsored by seven solution providers across APAC, with 30 speakers and more than 250 delegates. The 2023 in-person summit was held on June 28 and featured an agenda packed with program items featuring practical insights on a variety of topics:

• The keynote address, “Capital markets ecosystem on growth: Japan’s future prosperity.”
• The keynote panel, “Technology revolutionizes capital markets platforms in Japan.”
• “Redesigning technology to accelerate the digital transformation of the Japanese financial sector.”
• “Future of communication compliance.”
• “ESG factors are now at the heart of investment sector decision-making.”
• Post-trade Panel, “Future-proofing post-trade services in Japan.”
• “Building and optimizing low latency infrastructure for high-frequency trading.”
• “Disclosure highlight: The future of security and privacy in valiant new worlds.”

I had the privilege of moderating “Technology revolutionizes capital markets platforms in Japan,” a strategic panel discussion on the main stage.

Our Esteemed Panelists:

• Shinichiro Shiraki | CEO, Aizawa Asset Management Co., Ltd.
• Makoto Nagahori | President and CEO, Phillip Securities Japan, Ltd.
• Masaki Bessho | Head of Fintech, Bank of Japan

Keynote Panel Agenda:

1. It is imperative to understand how capital markets technologies will impact your business and industry: What are the challenges of addressing digital assets as a new asset class? | Which technologies leverage data as a differentiator? | How can we innovate the customer experience?
2. Japan’s capital markets in 2023 and beyond: Key drivers of business and tech change.

At the beginning of the panel, Celent gave a short keynote on global capital markets trends in emerging technologies.

Moderator’s Keynote: Technology Is Revolutionizing Japan's Capital Markets Platform

1. Technology Trends in Global Capital Markets
2. Initiatives by Japanese Market Participants

We are now facing a new post-pandemic capital market after overcoming the difficulties of COVID-19, and with it, the need to fundamentally rethink not only capital markets, but all aspects of social life, from business in general to consumer spending, healthcare, education, and more. The low interest rate phase is over, and the focus in financial and capital markets has shifted to a tug-of-war between inflation and monetary tightening. The speed of market volatility and change in interest rates/exchange rates/stocks is beyond imagination, and its ultimate magnitude and exit are not in sight. The only principle that has remained unchanged is that innovation is driven by technology.

Celent has outlined the technology trends in global capital markets in five priority areas.

What are the commitments of Japanese market participants? The results of Celent’s fall 2022 survey, Celent Survey: Japan’s Capital Markets Platforms Innovated by Technology, will inform the efforts of Japanese market participants to overcome challenges and pave the way for a post-pandemic capital market.

This keynote also addressed the changing IT initiatives in Japan’s capital markets and the resource challenges therein.