Chi-X Japan, the proprietary trading system (PTS) operated by Chi-X Global, has selected telecommunications provider KVH to provide proximity hosting and other low-latency services for its market.
Using KVH's full-redundancy networks and data centres, clients of Chi-X Japan will be able to place their trading systems as close as possible to the PTS's matching engine. This will enable the platform’s members to reduce the latency incurred by the physical distance data is required to travel, thus decreasing the time required to send orders to the market.
“Chi-X Japan believes that our high-speed platform and proven world-leading technology will greatly contribute to a more efficient trading environment, benefiting all participants in Japan,” said Jospeh Meyer, representative director, Chi-X Japan. “KVH's low-latency services and its expertise in the financial services sector are important components in delivering to Japanese investors our fast, low-cost, innovative trading performance.”
Chi-X Japan entered into a soft launch on 29 July 2010, joining other PTSs including SBI Japannext and Kabu.com in challenging the Tokyo Stock Exchange (TSE) for Japanese equity trading. The TSE has so far managed to maintain its dominant position, losing little market share to alternative venues. In July, the TSE accounted for 95% of total equity trading in Japan, according to data vendor Thomson Reuters. So far this month, Chi-X Japan has traded $4.57 million, compared to the TSE's €156.3 billion.