Patsystems Signs Contract for TGE Continuous Market
A development contract has been signed between Patsystems and the Tokyo Grain Exchange (TGE) to provide the infrastructure for the first-ever continuous market for rice futures at the exchange. The TGE will use Patsystems’ exchange systems technology as the platform to integrate its existing session-style trading with continuous trading. This solution includes Patsystems’ J-Trader front-end, an order management system and a matching engine. The details are subject to a confidentiality agreement; however, the contract is expected to generate revenues of approximately £4m over the next five years, including a substantial element of sourced hardware at a very small margin, and ongoing licence revenue for the use of J-Trader, based on the number of users. The licence revenue is likely to start at the end of 2005/beginning of 2006.