SBI Japannext, a proprietary trading system (PTS) for Japanese equities, has reported a successful upgrade of its trading engine to a platform supplied by Nasdaq OMX.
The PTS – Japan’s most popular alternate venue for trading equities – went live with Nasdaq OMX’s INET X-stream system on Monday. A version of the same technology was implemented at SIX Swiss Exchange earlier this year.
SBI Japannext members will now be able to benefit from improved performance, with the new system able to cope with a maximum message handling rate of 40,000 messages per second and average latency of 500 microseconds when using the FIX Protocol. Once the trading venue upgrades its messaging protocol to Nasdaq OMX’s OUCH, the message processing rate will grow to 80,000 messages per second and latency will drop to 100 microseconds.
Last month, SBI Japannext became the second largest venue for Japanese equity trading, behind domestic bourse the Tokyo Stock Exchange. The PTS garnered a market share of 3.99% in August according to data from Thomson Reuters, ahead of the derivatives-focused OSE, which traded 3.56%. Rival PTS Chi-X Japan grabbed 1.83% market share in August.