The Japanese marketplace has experienced significant changes in the past two years. The respective launches of arrowhead by the Tokyo Stock Exchange (TSE) and J-GATE by the Osaka Securities Exchange (OSE), and the proliferation of high-frequency trading (HFT), means firms now compete at millisecond and microsecond levels in both cash equities and derivatives trading. With automated trading increasing in popularity, a growing number of Japanese institutional investors are now utilising algorithmic trading systems as well. Consequently, numerous Japanese securities firms are backing away from prop-trading because, in the face of these new technologies, traditional 'manual day-trading' is no longer effective in following market depths. Meanwhile, market participants will also have to upgrade their trading systems infrastructure ahead of the merger of TSE and OSE into the new Japan Exchange Group in the new year.

In the face of these challenges, Okasan Securities has decided to adopt Fidessa's trading platform to support the expansion of its multi-asset prop-trading business. Fidessa has already been used by Okasan's agency business for Japanese cash equities and derivatives trading since November 2011. As well as adding prop-trading, this new deal also includes access to Fidessa's global connectivity network providing links to multiple execution venues both locally and overseas. In addition, BlueBox, Fidessa's fully-integrated algorithm trading engine, will be implemented.

Kazuhiko Kitagawa, Senior General Manager, Proprietary Investment Dept. at Okasan Securities, comments: "We have decided to expand our prop-trading business internationally and Fidessa's trading platform will enable us to extend our coverage beyond the domestic equities market. We selected Fidessa for a number of key reasons. Firstly, it provides an integrated multi-currency and multi-asset trading capability across equities, futures and options, along with access to a comprehensive global con connectivity network. Secondly, the service will cover all the system upgrades required for changes in regulation and exchange connectivity as a result of the TSE and OSE merger. And thirdly, Fidessa has been running live and stable in our agency business for the last year and we felt that it would make a lot of sense to integrate the trading system across our agency and prop businesses. In expanding our prop-trading activities, we will begin by looking at the Asian derivatives markets where the trading hours are close to the Japanese time-zone. We will also be strengthening our global trading capabilities by investing in human resources and staff training."

Ian Chilton, Chief Executive of Fidessa in Japan, comments, "We are very pleased that Okasan Securities has selected Fidessa to support their prop-trading in addition to their agency business. Fidessa recognises the strategic significance of providing a cutting-edge, high-performance trading platform for Japanese domestic securities firms. We are committed to continuing to strengthen our partnerships with these firms and advancing our trading technology to ensure that they can meet the challenges of the ever-changing market environment."