The Japan Exchange plans to build a new derivatives trading system with Nasdaq OMX and Japanese software vendor NTT Data Corporation, as part of a medium-term strategy to grow trading and prepare for swap market reforms.

The exchange group said in an announcement that it plans to replace its current system, also supplied by Nasdaq OMX, in 2016. According to the Japan Exchange its new derivatives exchange will improve risk management functions and allow it to list a wider range of products than is currently possible.