KVH and SingTel team on Tokyo-Singapore low latency network

Source: KVH

KVH Co ("KVH") and Singapore Telecommunications Ltd. ("SingTel"), market leaders in low latency services in Japan and Singapore, respectively, today announced that they have established an ultra low latency network between Tokyo[*1] and Singapore for the new location of the Singapore Exchange ("SGX")[*2] that opens in August, guaranteeing a latency of 67 ms, making it the fastest network between the two locations.

This network is designed with the latest Ethernet technology and shortest network route to achieve ultra low latency as well as high redundancy and availability. By having access points at KVH Tokyo Data Center 1 (TDC1), one of the largest proximity hosting centers for high frequency trading in Japan, and at SGX's co-location center, domestic and international trading participants will have ultra low latency access to major stock exchanges including SGX with the high level of speed and superior scalability.

SGX had announced that it will implement a new stock exchange system that processes one million transactions per second (world's fastest as of the date of announcement) at the new data centre. To facilitate traders to trade in SGX and other exchanges with ease, SingTel continues to offer Proximity Hosting Services at our Kim Chuan Data Centre to provide end-to-end managed hosting services and less than 1ms access to both SGX and SMX Trading Engine.

"In light of Asia's emerging trading landscape, SingTel has moved quickly to leverage on our unparalleled infrastructure to offer a one stop platform exchange-agnostic, ultra low latency network between Tokyo and Singapore. With SingTel's services, traders globally can now trade in the different exchanges in Singapore and Tokyo, and efficiently capitalize on arbitrage opportunities between these marketplaces," said Lee Kai Hock, Vice President, Business Marketing, Business Group.

"The environment in the trading industry has become more embracive of to high frequency trading since KVH announced its alliance with SingTel about a year ago," said Dr. Zhongmin Guo, Executive Vice President, International Division of KVH. "We see a lot of interest and momentum in high frequency trading in Asia from our customers as exchanges here adopt next generation ultra fast trading engines. SingTel and KVH will meet the needs for low latency networks that support high frequency trading, and help more trading pg participants enter the markets in Japan and Asia and contribute to the expansion of transaction volume."

Since March, 2010, the two companies have been running an ultra low latency network connecting the proximity hosting data center adjacent to SGX and TDC1 in order to respond to the need for high frequency trading. With this announcement, KVH and SingTel will directly connect to the data center that will host SGX's new trading engine with further reduced latency.

[*1]Tokyo: KVH Tokyo Data Centre 1
[*2]New Location of SGX: Keppel Digihub

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