Japanese broker targets high-frequency traders
Nissan Century Securities, a Japanese securities and derivatives broker, has selected technology vendor KVH as the service provider for its new low-latency connectivity offering, specifically designed to target high-frequency trading (HFT) firms.
From this month, the service will provide access to the Tokyo Commodity Exchange (TOCOM) and will be expanded to the new derivative trading system, J-GATE, operated by the Osaka Securities Exchange (OSE), in April 2011.
Based on KVH's ultra-low latency proximity hosting solution, the offering enables Nissan Century Securities to provide a low-latency connectivity environment to all major Japanese exchanges from a single location. The KVH Proximity Service is designed to connect participants to exchanges, brokers, software vendors and market data vendors under one roof; it also connects to trading venues in Hong Kong, Singapore and Chicago.
Nissan Century Securities' move to expand its HFT electronic broking services follows the introduction of low-latency trading platforms across multiple Japanese venues, including the Arrowhead trading platform on the Tokyo Stock Exchange (TSE) in January 2010, a development widely viewed as a significant landmark in the Japanese securities market.
“While Japan has not experienced the same level of growth as other Asian markets, efforts by the Japanese exchanges to stimulate high-frequency trading are starting to show results,” said Takehiko Nuki, president of Nissan Century Securities. “We are resolved to further drive demand in this market and increase the number of market participants from Asia and other countries.”
Nissan Century Securities is a member of the TSE, OSE, TOCOM and the Tokyo Grain Exchange.
KVH also provides proximity hosting for proprietary trading system Chi-X Japan, which launched on 29 July 2010.