Thomson Reuters has become the first data vendor to offer a direct market data feed from SBI Japannext, a Japanese proprietary trading system (PTS) for equities.
By using Thomson Reuters’ RDF-Direct portfolio of low-latency feed handlers, customers will be able to access data from the PTS at microsecond speeds, according to the vendor.
In addition, Thomson Reuters is planning to offer co-location services to SBI Japannext. This will allow trading participants to decrease latency by placing their trading applications next to the venue’s matching engine.
Alternatively, customers can connect the feed into their own data centre or use Thomson Reuters’ proximity hosting solution, via either a managed Reuters Market Data System middleware platform or a direct connection through their application programming interface.
“With the Thomson Reuters direct feed participants will be able to take advantage of ultra-low-latency market data for their sophisticated algorithm and SOR systems to offer better execution quality for their clients,” said Mitsunori Fukushi, CEO, SBI Japannext, in a statement. “For many of our members, their familiarities with Thomson Reuters’ data format should ease the burden for time-to-market deployment.”
“The provision of alternative pools of liquidity in Asia is now gaining momentum,” added Scott Kennedy, global business manager, direct feeds, Thomson Reuters. “We are seeing increased requirements from clients for high-performance, light-touch solutions to fully leverage latency as a competitive advantage.”
SBI Japannext, one of a new breed of Japanese equity trading platforms, was formed as a joint venture between Japanese financial services firm SBI Holdings and global broker Goldman Sachs. Other shareholders include Credit Suisse Securities (Japan), and Merrill Lynch Japan Finance. The platform started daytime trading in October 2008, having launched as an after-hours venue in August 2007.
PTSs are the Japanese equivalent of Europe’s multilateral trading facilities and the US’s electronic communications networks.