Tokyo Stock Exchange, Inc. (TSE) has announced its decision today to introduce the "TSE Co-Location Service" at its data center.
This service is designed to further enhance market convenience for investors and trading participants.
The TSE will introduce 2 new trading systems as a response to changes in the development of financial engineering and information technology, as well as the increasing speed of trading systems. The new systems, the Tdex+ new options trading platform, and arrowhead, next generation cash equity matching engine, will boast higher capacity, throughput, and offer extremely rapid response time. The TSE will also launch arrownet, a new integrated ring network with 2 access points connected to the data center, which will enable extraordinarily fast and high volume data communication.
As applications with automated order placing functions have become popular for market users like trading participants, the demand for such co-location service has also increased. To meet this demand, the TSE created an internal project team to conduct intensive discussions and examinations into launching a co-location service at the data center on the same day as the inauguration of the Tdex+ system
The co-location service will be available when the Tdex+ and arrownet are introduced, and then for the derivatives trading system following connections with arrownet.
In accordance with this decision, the TSE will set up a "Co-Location Service Promotion Group" on September 1, 2008 in the IT Services Department. This group will be responsible for sales promotion and service planning related to the co-location service. The Co-Location Service Promotion Group and other related departments within the TSE will conduct further examinations of the detailed contents of the co-location service at the TSE data center. The TSE then plans to publish this information in the "Guideline for Co-Location Service" by late November, 2008.
In addition, in order to meet the broad demands of market users, the TSE has been in discussions with NTT Communications Corporation about providing customer connectivity service at the TSE arrownet access point. NTT Communications Corporation will thus operate data center at the TSE arrownet access point, which is planned to be launched in early 2009.