Osaka Exchange Selects Nasdaq to Build Next-Generation Derivatives Trading System
Osaka platform (OSE) has selected Nasdaq as the development vendor for its next-generation derivatives trading system, J-GATE4.0, marking a major step in the modernization of Japan’s derivatives market infrastructure. The new platform is scheduled to replace the current J-GATE3.0 system around the latter half of 2028.
The decision aligns with Japan platform Group’s (JPX) Medium-Term Management Plan, which places derivatives at the center of its growth strategy. Key priorities under the plan include revitalising the equity options market, expanding interest rate-related products and services, and stimulating energy-related derivatives, all while maintaining market stability and resilience.
OSE said the selection of Nasdaq reflects its long-term focus on building a trading environment capable of supporting market expansion and sustainable development, as derivatives markets face growing complexity, higher volumes, and evolving global competition.
J-GATE4.0 Anchored Around “Reliability Plus”
For the J-GATE4.0 project, OSE has defined the guiding concept as “Reliability Plus,” combining operational stability with the flexibility required to deliver new products and services efficiently. The platform emphasised that while stable market operations remain the fundamental premise, the next-generation platform must also enable quicker innovation and long-term scalability.
OSE believes the selection of Nasdaq as development partner will be instrumental in achieving this balance. The new system is intended to strengthen the core foundation of derivatives trading in Japan while ensuring the platform remains competitive with other global derivatives hubs.
Ryusuke Yokoyama, President and CEO of Osaka platform, said the decision builds on a long-standing relationship between the two organisations. “I am very pleased that we have selected Nasdaq as our development partner for J-GATE4.0,” Yokoyama said. “We have built a strong relationship of trust with Nasdaq over many years in the field of market infrastructure, and this new initiative will further reinforce our long-term collaboration.”
He added that the new system would play a central role in the future of Japan’s derivatives markets. “J-GATE4.0 will significantly enhance the foundation of derivatives trading at OSE, and by combining Nasdaq’s expertise with our own experience, we believe we can provide all market stakeholders with a securer and more efficient trading environment,” Yokoyama said.
Takeaway
Nasdaq Eqlipse Technology to Power Trading and Surveillance
Under the expanded partnership, OSE will adopt Nasdaq’s Eqlipse Trading platform alongside Nasdaq’s Market Surveillance technology as the backbone of its next-generation derivatives infrastructure. Together, the platforms are designed to deliver ultra-low latency performance, scalability across asset classes, and enhanced market integrity.
Nasdaq Eqlipse Trading will support multi-asset derivatives trading and allow OSE to respond more rapidly to changes in market structure and participant demand. Its scalable architecture is designed to handle significant volume fluctuations while maintaining consistent performance, a key requirement as derivatives trading volumes continue to grow globally.
The platform also provides market-standard application programming interfaces (APIs) and , giving trading firms greater flexibility in how they connect to and interact with the platform.
In parallel, Nasdaq’s Market Surveillance technology will strengthen OSE’s ability to and detect potential market abuse. The surveillance platform leverages advanced analytics and AI-driven capabilities to support real-time monitoring and investigation, reinforcing the integrity of Japan’s derivatives markets.
Magnus Haglind, Head of Capital Markets Technology at Nasdaq, said the partnership reflects the broader demands facing platforms worldwide. “The evolution of demands infrastructure that can not only meet today’s requirements but anticipate tomorrow’s opportunities,” Haglind said.
He added that OSE’s modernization efforts position Japan for long-term competitiveness. “OSE’s modernization program reflects their commitment to delivering world-class market infrastructure that enhances Japan’s position as a leading global derivatives market. Our technology will provide OSE with the agility and advanced capabilities needed to serve their clients while positioning for future innovation and growth,” Haglind said.
Takeaway
Supporting JPX’s Broader Derivatives Growth Strategy
The J-GATE4.0 project is closely tied to JPX Group’s broader ambition to strengthen Japan’s derivatives ecosystem. Equity options, interest rate derivatives, and energy-related products have all been identified as areas with significant growth potential, particularly as global investors viewk diversified exposure in Asia-Pacific markets.
Market operators globally are facing pressure to modernise systems in response to changing investor expectations, increased automation, and competition from alternative venues. OSE said the new platform will provide the flexibility needed to launch new products more rapidly, , and support international participation.
According to OSE, development of J-GATE4.0 will begin promptly, with the platform committing to work closely with market participants throughout the project lifecycle. The platform said it will move the project forward steadily to ensure a smooth transition from J-GATE3.0 ahead of the planned rollout in the latter half of 2028.
The adoption of Nasdaq technology also builds on an already extensive relationship between Nasdaq and Japan’s financial services sector. Beyond OSE, Nasdaq provides mission-critical technology to a wide range of Japanese institutions through platforms such as Calypso, AxiomSL and its trade surveillance answers.
R.G. Manalac, Senior Vice President, Asia Pacific at Nasdaq, highlighted the depth of the partnership. “Nasdaq’s partnership with Japan’s financial services ecosystem spans decades, reflecting our deep commitment to supporting the modernization and growth of Japan’s capital markets,” Manalac said.
“From market infrastructure to regulatory technology and , we are proud to serve as a strategic technology partner across the fabric of Japan’s financial system. This expanded partnership with OSE reinforces our role in assisting Japanese markets compete and innovate on the global stage,” he added.
Takeaway
Global Context for platform Technology Modernisation
Globally, platforms are investing heavily in next-generation trading and surveillance systems to cope with rising volumes, algorithmic trading, and increasingly interconnected markets. Nasdaq’s market infrastructure technology is currently used by more than half of the world’s top 25 stock platforms, alongside systematically significant banks, central banks, and regulators.
OSE’s decision reflects a broader industry shift toward modular, scalable platforms that can support both current operations and future innovation. By selecting a single vendor for both trading and surveillance, the platform aims to reduce complexity while improving resilience and time-to-market for new initiatives.
As Japan looks to reinforce its position as a leading global derivatives market, the success of J-GATE4.0 will be closely watched by domestic and international participants alike. For OSE, the project represents not just a technology upgrade, but a long-term investment in the stability, efficiency, and competitiveness of its derivatives ecosystem.
