SZSE New Generation Trading System Goes On Line

Date: 2016-06-07

June 6, 2016 marks the first trading day of the official commissioning of Shenzhen Stock Exchange's (SZSE) new generation trading system which went through four-week trial run. To this, SZSE held a brief commissioning ceremony where more than 100 principals from China Securities Regulatory Commission (CSRC), Guangdong Government, Shenzhen Municipal Government and industrial representatives of securities and futures witnessed the great moment.


At the commissioning ceremony, Jiang Yang, vice chairman of CSRC, said that strengthening the infrastructure construction of capital market is of great significance to improve market operation efficiency, lower trading cost, support the reform and innovation and opening-up of capital market, protect mass investors' legal interests and safeguard national financial security. CSRC has been taking industrial informatization and information security as the top priority for safeguarding stable market development. Specifically, CSRC has issued an overall plan for the informatization construction and information security of capital market and launched a series of relevant policies and regulations, which have driven the development of industrial informatization and improved the emergency mechanism of information security. Also, CSRC has performed information system check, effectively regulating the security operation and maintenance and risk management of industrial institutions. Through hardships and difficulties, SZSE progressed to higher levels and independently developed a world-class new generation trading system. Official commissioning of the system marks a key milestone in the information construction of China's capital market and an essential move of practicing national independent innovation strategy in capital market information system. SZSE will stick to the idea of strict operation and maintenance and unbreakable baseline and strongly build risk awareness to grasp the law of system operation, build sound risk control systems and fortify risk management, thus ensuring seamless and smooth transition between old and new systems and holding up to the baseline of "trading uninterrupted and data in order."


Vice Governor Lan Fo'an of Guangdong Province, expressed that launching of the new generation trading system is a big event in the process of China's capital market informatization construction and also a pioneering undertaking for driving the construction of a strong financial province of Guangdong. As a basic technical platform, the new generation trading system has been up to the level of world-class trading systems. Southern Information Technology Center, as the largest data center in securities and futures industries, can not only offer quality technical support to financial businesses and products, but amplify the attraction and radiation force of regional financial resources. And it will lay solid foundation for multi-layer, multi-variety and cross-market trading.


Deputy Mayor Xu Anliang of Shenzhen Municipality believed that launching of the new generation trading system and the commissioning of Southern Information Technology Center are milestone events in Shenzhen finance and will further improve SZSE's core competitiveness, having profound significance to the development of China's securities market. Shenzhen Municipal Party Committee and Municipal Government will continue to create a favorable environment and provide quality service to fully support the layered capital market development of SZSE.


SZSE General Manager Wang Jianjun remarked that SZSE sticks to independent development of important systems and implements the technical route of "technology first, controllable independence, resource integration and ongoing optimization." Accordingly, it has grasped the design and maintenance technologies of world-class advanced trading systems and formed strong independent innovation ability and secure and efficient operation capacity, which will be strong technical guarantee for a layered capital market system.


The new generation trading system is SZSE's brand new product of four-year independent R&D and the fifth-generation trading system that is researched and developed specifically according to China's securities market trading environment and taking into account the new trend of technical development in international securities market. Compared with the original trading system, this 5th generation is safer, more efficient, fairer, more convenient, more flexible and more economical. Its launching will further strengthen the infrastructure construction of our capital market and improve the technical support ability for innovative development of future businesses, therefore elevating the core competitiveness of China's securities market.


It is reported that in business this new generation could deliver integrated trading of spot goods and derivatives and features diversified market service functions encompassing domestic and overseas mainstream trading models like bidding transaction and protocol transaction. In addition, the new system also supports diverse market access modes, such as access through international standard protocols, private protocols and trading clients. Moreover, the new product is embedded with multiple technical reformations. For example, it constructs a distributed large-scale parallel processing architecture based on high-speed message bus to deliver the application architecture deployment of dual-active data centers of local hot backup and access. It develops key technologies including highly available message bus, low time delay technology, multilevel pipeline processing based on high-speed lock-free queues, template-based protocol conversion engine, simultaneous arrival of first orders. And it introduces industrial mainstream open platform and open source technologies so that trading hosts may adopt domestic servers. All these reformations not only further intensify the system's security reliability, but also greatly improve system processing performance, as well as system flexibility, expandability and economics. Currently, the new system is capable of continually processing 300,000 orders per second, which is three times of the original speed, and its average order processing time delay is about 1.1 milliseconds, which is only 1% of that of the original system. Furthermore, its five-year ownership cost lowers to 1/3 of that of the original system. All these signify that China's securities trading has entered a new era of "high-speed railway" and the comprehensive competence is up to world-class level.


On the same day, Southern Information Technology Center of China Securities and Futures which is constructed by SZSE was also officially commissioned. Being the largest and highest-spec southern center in the industry, its data center was constructed in accordance with international T3+ and T4+ class standards. In the first phase, it will launch 5,000 hosting cabinets to the industry, which can fully meet the hosting demands of the industry. Commissioning of the Southern Center is SZSE's key move in implementing CSRC's aims stated in Overall Plan for Informatization Construction of Capital Market (2014-2020) as "stepping up industrial infrastructure construction, further optimizing industrial resource allocation and improving market operation efficiency." Together with the fifth generation trading system, the Southern Center will provide strong support for the healthy development of China securities market.

marks the first trading day of the official commissioning of Shenzhen Stock Exchange's (SZSE) new generation trading system which went through four-week trial run.