Tokyo-based KVH, an information delivery platform, has established a new connection that will facilitate high-frequency trading (HFT) in Australia just weeks after the Australian Securities Exchange (ASX) launched a new trading platform tailored for high-speed trading.
KVH will expand its ultra low-latency network to Sydney by adding a new network point of presence at ASX’s new data and co-location centre called the ASX Australian Liquidity Centre. The new route, which will be made available on 6 February, will offer a latency of below 100 microseconds for routing between Tokyo and Sydney.
The ASX’s new data centre allows the exchange to expand the availability of hosting services to its members, vendors and the broader financial market community. On 28 November, the ASX introduced PureMatch, its new low-latency trading platform that has been specifically designed for attracting high-frequency trading flow and is regarded as a direct competitor to Chi-X Australia, the alternative trading system that launched on 31 October.
“The ASX Australian Liquidity Centre represents the lowest latency access to our various execution venues and information services,” said David Raper, general manager, ASX. “Connectivity via KVH provides our global customer base with a flexible, reliable and cost-effective means of connecting to their inventory within this new facility.”
“Sydney is a key financial market in this region and KVH is committed to serving the needs of financial customers with reliable low latency infrastructure,” added Richard Warley, president and CEO of KVH. “ASX and KVH will address the needs of those in high frequency trading, and will contribute to the expansion of transaction volume and the improvement of market liquidity by helping more trading participants enter the markets in Japan and Asia.”
Meanwhile, KVH has also announced that it has been selected by the Tokyo Stock Exchange (TSE) to provide the platform for the market’s new TSE Market Impact View, a service that offers visual online analytics based on the latest order status by FLEXFull, the TSE’s market information system.
The TSE’s Market Impact View, which is currently available on a trial basis lets institutional investors and market participants gain a visual understanding of their orders in real time. It will use KVH’s infrastructure-as-a-service (IaaS), which offers hybrid cloud and traditional system configurations.
“KVH IaaS will allow the platform to scale efficiently with the rapid increase in users expected from to the growing HFT market in Japan,” said Warley. “With our information delivery platform strategy allowing enterprise customers to store, process, protect and deliver their vital business information, KVH continues to strengthen its capabilities in cloud services for the financial services industry.”