Thomson Reuters has launched a new Elektron feed that will deliver ultra low latency access to pan-Japanese equities and derivatives markets. Thompson Reuters says the service, which was developed in response to changes in Japanese market structure, will deliver the broadest picture of liquidity and performance for price discovery and transparency.
The last 12 months have seen the introduction of new trading platforms such as the Tokyo Stock Exchanges Arrowhead system and regulatory changes that support the growth of alternative proprietary trading systems (PTS), all of which are leading to an increase in the local adoption of advanced trading strategies. Analyst firms predict that nearly 30% of the equity order flow in Japan will be derived from algorithmic trading within the next 2 years. With tighter spreads and rapid price movements, financial firms trading in the Japanese markets will require comprehensive real-time data and higher capacity and scalability in their data infrastructure.
The new Elektron feed provides access to all the Japanese liquidity pools, including the Tokyo Stock Exchange, SBI Japannext, Chi-X Japan, Kabu.com, Osaka Securities Exchange/JASDAQ and TDEX+ Options. Financial markets participants can connect to the ultra low latency feed via a single, resilient connection in addition to Thomson Reuters Elektron proximity and co-location hosting solution. The combination of low latency real-time feeds and strategically located hosting centers creates the optimal high performance price discovery and execution support environment, which will enable firms to lower trading costs and generate alpha, Thompson Reuters says.
Given the growing penetration of advanced trading strategies and competitive innovation taking place in Japan, low latency execution and data will become a differentiating factor for participants, says Mike Powell, global head of enterprise real-time solutions, Thomson Reuters. We are excited to extend this Elektron offering in Asia; the combination of the new pan-Japanese feed and hosting solution will simplify the costs and complexity of high performance access to multiple liquidity pools for our customers. It will also improve time to market and provide a robust solution which will power their trading solutions.