Market participants in Japan will gain significantly improved connectivity from separate improvements by domestic bourse the Tokyo Stock Exchange (TSE) and derivatives-focused software as a service (SaaS) provider FFastFill.
The TSE has set out plans to upgrade arrownet, the access network to its trading and market information systems, with broadband services in the first quarter of 2012.
The bandwidth of the TSE's connection lines will be increased to one gigabit per second, allowing better responsiveness to sharp market moves and increased market information. Users will be able to take advantage of a more efficient network with consolidation of order-placement and market information lines and consolidation of live and test lines.
The TSE is also in discussions to establish a connection with the Japan Securities Depository Centre, as well as with exchange group NYSE Euronext to join its Secure Financial Transaction Infrastructure (SFTI). Joining the SFTI would make it easier for international investors to access the Japanese market – as well as give Japanese firms better access to the outside world.
Meanwhile, through cloud computing specialists KVH Proximity Solutions, FFastFill will provide ultra-low latency connectivity services to exchanges in Japan.
Using the FFastFill global SaaS platform, traders can connect to multiple trading venues via either their own market access capabilities or that of other brokers. This enables clients who may not have a specific exchange membership to access international execution venues across multiple asset classes.
“Customers will gain all the benefits of a full-featured managed platform, which is connected to a full ecosystem of exchanges, brokers, buy-side ISVs and market data vendors from a single location,” said Zhongmin Guo, executive vice president, international, KVH.
KVH provides network and proximity hosting for the high-frequency trading community in Tokyo and Osaka. Starting in October 2011, its services will be extended to other trading platforms, starting with the Tokyo Commodity Exchange. KVH also helped FFastFill to streamline its logistical and administrative processes with the Japanese exchanges.
KVH solutions combine high-speed optical fibre networks with data centres located close to the major domestic exchanges. The company also has its own network points of presence in Singapore, Hong Kong and Chicago.