Tokyo Stock Exchange, Inc. (TSE) will launch “CredNex,” a new platform supporting exchange-traded fund (ETF) creation and redemption operations, on September 29, 2025.
CredNex will overhaul the current ETF creation and redemption platform provided by Japan Securities Clearing Corporation (JSCC), enabling automation and acceleration of ETF creation and redemption operations. This is expected to further enhance the stability and liquidity of the ETF market.
CredNex provides direct connectivity between user systems and CredNex, along with automated functions to verify creation and redemption applications. This significantly reduces manual operations, enabling the drastic shortening of traditional creation and redemption tasks- which previously took minutes – to just seconds. This enables swift creation and redemption even during periods when liquidity provision is currently difficult, such as just before the end of trading hours.
This allows liquidity providers to offer price quotes and facilitates stable trading throughout the entire trading session.
CredNex not only improves creation and redemption processes, but through these improvements, enables stable liquidity provision as described above. This creates an environment where investors can buy and sell ETFs closer to their fair price than ever before.
As the first step toward optimizing the entire ETF market, TSE focused on reforming the particularly labor-intensive creation and redemption processes. The introduction of CredNex enables liquidity providers to offer quotes for longer periods and with greater stability, while also reducing the operational burden on asset managers. This makes the listing of a greater number of ETF issues more feasible, establishing a solid foundation for market expansion.
