Tokyo-based firm Okasan Securities has selected trading solutions provider Fidessa for its prop trading business, as trading firms in Japan adapt to increasing levels of automated trading.
Okasan Securities will adopt Fidessa's trading platform to support the expansion of its multi-asset prop-trading business ahead of next year’s merger between the Tokyo Stock Exchange (TSE) and Osaka Stock Exchange (OSE).
The two exchanges have lowered the latency of their respective trading infrastructures in recent years, with TSE launching its arrowhead system and OSE unveiling the J-GATE system, which has stimulated a rise in high-frequency trading (HFT).
The introduction of the arrowhead platform on the TSE in January 2010 kicked off an influx of HFT traders from the US and Europe and has been met with increased algo trading from Japanese buy-side traders.
The rise of automated trading means traditional manual day-trading is less effective, pushing many firms to adapt systems such as the Fidessa prop trading solution.
“It provides an integrated multi-currency and multi-asset trading capability across equities, futures and options, along with access to a comprehensive global connectivity network,” said Kazuhiko Kitagawa, senior general manager, proprietary investment, Okasan Securities.
“The service will cover all the system upgrades required for changes in regulation and exchange connectivity as a result of the TSE and OSE merger,” Kitagawa said.
Fidessa has provided solutions for Okasan's agency business for Japanese cash equities and derivatives since November 2011 and this expansion of its prop trading systems includes access to Fidessa's global connectivity network and the algo engine BlueBox.