According to Toshiba's own testing, Informatica Ultra Messaging proved to be the most efficient, lowest-latency messaging technology available, demonstrating average latencies as low as 660 nanoseconds.

JSOES sits between the trading system of a securities firm and the stock exchange, processing real-time message feeds to help enable the high-performance execution of trades. Informatica Ultra Messaging provides the highly scalable, ultra low latency messaging component of the JSOES gateway, enabling JSOES to handle immense transaction volumes with sub-second latency.

In January 2010 the "Arrowhead System" started operations on the Tokyo Stock Exchange, the main stock exchange in the Japanese securities trading market. The resulting improvement in processing capacity that was realized for trading and the diversification of the trading market caused by the widespread use of Proprietary Trading Systems (PTS) has created a significant increase in the number of securities being traded and the sums of money involved. In addition, influenced by the High Frequency Trading (HFT) and Smart Order Router (SOR) systems, which are in general use in the securities trading markets of Europe and the United States, the Japanese securities trading market is now being asked to provide algorithmic trading to compete. In order to operate these new systems, reliably execute customers' trades (on the buy side), and in order to maximize and improve income from commissions, a lower latency trading system was required.

The partnership will help to improve the processing capacity of the connection gateway to the stock exchanges which are the cornerstones of the trading system, and a new lower latency trading system will be created. By embedding Informatica Ultra Messaging into JSOES, latency is being improved by more than 30 times in comparison with existing approaches, as tested by Toshiba. Processing time for each order will be a few microseconds as compared to pre preto previous speeds. Toshiba expects high-speed order processing that is equal to the best in the industry and the system is designed to not slow even when a large number of trades are being processed.

Toshiba Solutions and Informatica will jointly deliver JSOES to securities organizations in Japan to optimize execution of trades on the Tokyo Stock Exchange and other exchanges. The two companies are also partnering to implement next-generation, ultra low-latency single gateways, trading systems and algorithmic trading systems for the Japanese market.

Supporting Quotes

• "High frequency trading, smart order routing and other financial market trends have made ultra low latency a critical requirement for today's trading systems," said Tomoichi Sato, Financial System Solutions Div. Vice President, Toshiba Solutions Corporation. "By embedding Informatica into JSOES, Toshiba Solutions provides customers with the lowest latency messaging functionality on the market to power their trading interface with the exchange."
• "Transaction volumes are burgeoning in securities markets across the globe, driving a sea-change in how electronic messaging needs to be accomplished," said Mark Mahowald, general manager, Ultra Messaging, Informatica. "Informatica's partnership with Toshiba Solutions means that securities firms in Japan will be able to gain a competitive advantage with their exchange gateway needs because they can now execute trades faster and more reliably. This partnership will help us to drive the presence of the Informatica Ultra Messaging family in the important Japanese market as well as across the Asia Pacific region."