The Tokyo Stock Exchange (TSE) is set to introduce co-location services at its data centre, together with two new trading systems.
The TSE said that Tdex+, its new options trading platform, and arrowhead – a next generation cash equity matching engine – were introduced in response to the changes in the development of financial engineering and IT of trading systems. Both systems will be installed during 2009.
In addition, TSE plans to launch arrownet, a new integrated ring network with two access points connected to the data centre, which it claims will enable fast and high volume data communication.
Co-location services for options and cash equities will be available when Tdex+ and arrowhead are introduced, and then for the derivatives trading system following connections to arrownet.
Co-location, or proximity hosting, allows market users to install their servers at data centres to minimise the physical distance between data centres and market users’ devices, therefore reducing latency.
The exchange’s new Co-Location Service Promotion Group will also publish guidelines on using the service by November 2008.
The TSE has reported three separate outages in six months. It has since outlined plans for trading system improvements that will be implemented by September.