Fujitsu's ETF RFQ Platform: A Catalyst for Global Market Efficiency and ETF Liquidity

The global ETF market, now exceeding $10 trillion in assets under management, stands at a crossroads. Technological innovation is no longer optional but essential to address liquidity fragmentation, reduce operational costs, and attract capital in an increasingly competitive landscape. Fujitsu's ETF Request for Quote (RFQ) platform, already proven in Japan's $614 billion ETF market, is now poised to transform the Australian Securities Exchange (ASX) into a leader in 21st-century market infrastructure. This expansion represents a strategic lever for investors to capitalize on structural growth in ETFs while benefiting from the scalability of tech-driven efficiency.

The Japanese Success Story: A Blueprint for Efficiency

Fujitsu's RFQ platform, built on the Tokyo Stock Exchange's (TSE) CONNEQTOR system, has achieved remarkable results since its 2021 launch. With over 290 users and a record monthly trading volume of JPY 306.4 billion (US$1.7 billion) in April 2025, it has reduced trading costs for participants while enhancing liquidity. The platform's core innovation lies in its ability to aggregate liquidity across multiple ETF providers, enabling institutional investors to execute large trades at optimal prices. This efficiency has contributed to Japan's ETF assets hitting a record high of US$614.26 billion by April 2025, with net inflows of US$5.91 billion that month alone.

The ASX Opportunity: Globalizing a Proven Model

On June 2, 2025, ASX, TSE, and Fujitsu signed a Memorandum of Understanding (MOU) to deploy a SaaS-based RFQ platform in Australia, leveraging the TSE's CONNEQTOR framework. This move addresses a critical gap: while ASX is Australia's largest exchange, its ETF market lags behind Japan and the U.S. in liquidity and cost efficiency. The platform's 2026 launch targets three strategic goals:
1. Enhance liquidity discovery: By aggregating quotes from multiple providers, the system reduces slippage in large trades.
2. Lower operational costs: Streamlined processes will cut the expenses of manual quote comparisons.
3. Attract global capital: Improved transparency and accessibility could position ASX as a gateway to the Asia-Pacific ETF market.

The ASX's ambition is clear: replicate Japan's success. Andrew Walton of ASX stated the platform will “develop the market segment,” while Fujitsu's Masaru Yagi emphasized the firm's commitment to “globalizing” the technology. The initial focus on ETFs—a fast-growing asset class with US$1.8 trillion in ASX-linked ETFs as of 2024—hints at future expansions into equities or derivatives.

Investment Implications: Riding the Wave of Scalability and Synergy

For investors, the Fujitsu-ASX partnership offers two compelling opportunities:
1. ASX-listed ETFs: Post-2026, the platform could boost liquidity and reduce bid-ask spreads, making ASX ETFs more attractive to global investors. This dynamic could accelerate inflows, especially into ETFs tracking Asia-Pacific equities or commodities. Investors should consider overweighting in diversified ASX ETFs such as Vanguard FTSE Australia ETF (VAF) or iShares S&P/ASX 200 ETF (IVFS), which benefit directly from improved market structure.

1. Fujitsu and Tech Infrastructure Providers: Fujitsu's role as the platform's service provider positions it to capture recurring revenue from ASX, potentially opening doors to further global deals. The MOU's mention of “expansion to other international exchanges” suggests a pipeline of opportunities. Investors might look to Fujitsu (6702.T), which could see valuation upgrades as its financial tech division grows.

Risks and Considerations

While the platform's success in Japan is compelling, challenges remain. Regulatory alignment between Japan and Australia must be seamless, and adoption by Australian institutions could lag without aggressive marketing. Additionally, competing platforms (e.g., Bloomberg's ETF trading tools) pose a threat. Investors should monitor the platform's user adoption rates post-2026 and its impact on ASX ETF trading volumes.

Conclusion: A Structural Shift in ETF Markets

Fujitsu's RFQ platform represents more than a technological upgrade—it is a step toward a new paradigm of market efficiency. By reducing friction in ETF trading, it aligns with the ETF industry's core advantage: low-cost, liquid access to broad markets. For investors, the ASX's modernization underscores a broader trend: the ETF boom will favor markets with the best infrastructure.

Investment thesis: Allocate to ASX-listed ETFs for structural growth and to Fujitsu for its role in enabling this transformation. The risks are manageable, and the upside—driven by global capital inflows and cross-market synergies—is substantial. The future of ETFs is not just about passive investing; it is about smart infrastructure.

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