The Tokyo Stock Exchange Launches A Co-Location Service And Two New Trading Systems

The Tokyo Stock Exchange (TSE) announced on Tuesday that it plans to launch a co location service at its data center in July 2009, the same day as the launch of one of two new trading systems. The new trading

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The Tokyo Stock Exchange (TSE) announced on Tuesday that it plans to launch a co-location service at its data center in July 2009, the same day as the launch of one of two new trading systems.

The new trading systems are Tdex+, the exchange’s new options trading platform (launched July 2009), and arrowhead, the exchange’s next-generation trading system (launched in late 2009). The TSE says that the new systems will offer higher capacity and throughput, and a more rapid response time.

The co-location service has been developed in response to higher demand for applications with automated order placing functions. A co-location service allows market participants to minimize the latency between their devices, those of other participants, and the systems of trading venues such as stock exchanges. It achieves this by allowing the participants to install their devices in the data centers or network access points of trading venues, thus minimizing the physical distance between each device, while also minimizing the distance between the devices and the trading venue’s data center. With the introduction of the service, the TSE is reportedly aiming to achieve transmission speeds of under a millisecond.

Co-location services have already been introduced in other trading venues such as the New York Stock Exchange.

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