Japan Exchange Group: Provision Of API Distribution Service "J-Quants API" (Beta) For Retail Investors And Launch Of Applications For Early Adopters

J-Quants API

The current environment in Japan does not allow easy access for retail investors to obtain and use raw financial data.

To tackle this, last year, JPX Group launched an environment through the J-Quants project which enabled retail investors to learn about investment analysis utilizing data, by providing financial data that professionals use such as historical stock prices and corporate financial data together with analytical methods for these data.

Following its provision of financial data through API as part of this initiative, such as stock price and corporate financial data, we received many requests for this to be continued. Accordingly, JPX has decided to launch this service as a beta version.

The following data will be distributed though API. This will allow comparisons among listed companies and chronological stock price analysis from the user's preferred perspective.

We plan to increase the frequency of data updates for the beta version in stages. We also plan to improve other aspects of the service by incorporating comments from beta version users during the beta service period, in order to create a service that can attract a large number of users.

The launch of the beta version is scheduled for the first half of this year, but ahead of the launch, we will set a one month window for early access. Early Adopters will be chosen by lottery.

Early Adopter lottery winners will receive an "Early Access NFT" (non-fungible token) issued by the Company.

Early Access NFT

A non-fungible token (NFT) is a token issued on a blockchain, associated with a digital file. NFTs have been gaining greater popularity in recent years due to their characteristic of being uniquely identifiable.

JPXI has decided to use NFTs as the early access keys to this service with the aim of acquiring expertise in newly emerging technologies and services and exploring technological potential.

Compared to existing authentication methods using an ID and password or social media, using an NFT as an access key has more advantages, such as the convenience of being able to use authentication information common to each service, the provision of new value with content that can also be commemorative, and regeneration of and accessibility within communities driven by the transfer of the NFT.

Despite this, the technology has not yet permeated widely, and there is still a hurdle in that use of the technology requires a certain amount of specialist knowledge.

As we expect that applicants for Early Adopter of J-Quants API will mostly have a certain level of technology and expertise or find our initiative interesting, and that there will thus be an affinity between those interested in NFTs and those interested in the service, we have decided to use NFTs as access keys.

The NFT can be used as an access key to the service during the early access period of one month. In practice, Early Adopter lottery winners can acquire the API key needed to use the service by showing their ownership of the NFT.

In addition, NFT owners can invite another participant to join early access and transfer their own NFT to others just like for general NFTs.

The NFT can be used as an access key to J-Quants API (beta) during the early access period spanning one month and will lose its effectiveness as an access key at the end of the early access period.

However, as the NFT itself will be recorded on the blockchain even after the end of the early access period, users can retain ownership of the NFT. After the general launch of the beta version following the end of the early access period, user registration will be necessary to use the service and NFTs will not be used.

Application for Early Adopters

We will accept application forms for lottery selection from those interested in participating as Early Adopters.

Application form for lottery selection (only available in Japanese)

We hope to receive proactive feedback on the service from Early Adopter participants.

Schedule

Reference: Development Process

By tasking JPX Group employees with the development and operation of these API data provision and NFT issuance/authentication functions, we aim to develop internal human resources and accumulate knowledge and expertise.

Additionally, in developing the smart contracts necessary for the issuance of NFTs, we have been cooperating with partners which have expertise in the NFT area, including the use of a code review service provided by Monobundle Co., Ltd.

JPXI, a new company established on April 1, 2022, aims for highly flexible and agile business development without being constrained by the traditional "exchange" framework. Using the technological expertise and development-focused structures we gain through this service, JPXI will keep working towards improvements to J-Quants API (beta) and the full-fledged launch of the service.