JPX Outlines COVID-19 Action Plan Amid Market Volatility

Amid the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic, the financial industry continues to find ways to support itself, with regulators, exchanges, and market participants alike all launching initiatives to try and weather the storm. This Tuesday, the Japanese Exchange Group (JPX) laid out its response to COVID-19.

JPX, which operates numerous financial exchanges, will establish a Business Continuity Plan (BCP) Emergency Headquarters headed by Group CEO Kiyota Akira under its coronavirus plan.

"In regard to the spread of the novel coronavirus, Japan Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Group (JPX) understands the need to fulfil its duty as public infrastructure by ensuring continued smooth operation of the market," the company said in today's statement.

JPX initiatives

In addition to this, the Japanese exchange company has also launched a number of other initiatives to try and support the financial markets and ensure that it continues to run as smoothly as possible.

This includes the use of back-up offices and strengthening of back-up facilities in Tokyo and Osaka, the enforcement of remote working where possible, after careful examination of each department's duties and situation and the active implementation of staggered working hours, using the flex time system, the statement released today showed.

The global response to COVID-19

The JPX Group is not alone in its efforts. In fact, a number of global regulators have been implementing measures to protect the integrity of their domestic financial markets.

As Finance Magnates reported, the Financial Conduct Authority (FCA) announced this month that it would allow a delay in the publication of audited annual financial reports from 4 to 6 months from the end of the financial year. This is meant to be a temporary measure, whilst the United Kingdom deals with the challenges and disruption caused by COVID-19.

Earlier this month, the Australian Securities and Investments Commission (ASIC) issued directions under the ASIC Market Integrity Rules to a number of large equity market participants. Specifically, they have been told to limit the number of trades executed each day until further notice.

Under the watchdog's directions, firms need to reduce their number of executed trades by up to 25 percent from the levels executed on Friday. Therefore, high volume participants and their clients will need to actively manage their volumes.