Direct market access

Credit Suisse offers co-location in Japan

Investment bank Credit Suisse has launched co-location services for Japanese equities, taking advantage of the new Arrowhead trading platform installed by the Tokyo Stock Exchange (TSE) at the start of the year.

The bank’s Advanced Execution Services (AES) Velocity service will give clients direct market access speeds of under one millisecond.

By placing its trading servers within the TSE’s building, Credit Suisse reduces the physical distance data is required to travel, cutting overall execution latency. The broker said users of its AES Velocity service can achieve one-way latency of up to 200 microseconds.

According to Credit Suisse, its co-location service can help algorithmic trading strategies to react faster to changing market conditions, enabling clients to increase alpha.

“This breakthrough confirms Credit Suisse’s position at the forefront of electronic trading in Japan,” said Christina Makiguchi, head of AES for Japan at Credit Suisse. “Ultra-fast direct market access, along with much quicker execution speeds on the TSE since the introduction of Arrowhead, makes trading Japanese equities via Credit Suisse an even more attractive proposition to domestic and global investors.”

The TSE launched its new Arrowhead trading platform on 4 January 2010, which cut the exchange’s order response time to five milliseconds and data distribution to three milliseconds, and increased capacity to 46 million orders a day from 28 million.