Japan’s TSE offers latency management tools to users
The Tokyo Stock Exchange has begun offering latency performance management as a service to users of its Arrownet network, which the exchange says will help market participants gain deeper insights into the quality of their trading and market data communications between the TSE and their own systems.
The new service will be provided through Corvil, which is offering its CorvilClear platform on a ‘latency management as a service’ basis.
The exchange has been using Corvil to monitor the latency on its Arrowhead and Tdex+ trading systems, as well as Arrownet, since 2012. It says that it has benefited from improved performance management of its order processing and market data distribution. Now, these services will be available for market participants directly, through a menu within Arrownet.
“Supplying a latency measurement and performance management service that uses industry leader CorvilClear allows us to add value to our network infrastructure and thereby to enhance market user-friendliness, as well as responding to the latency management needs of our market participants,” said Yoshinori Suzuki, chief information officer at the TSE. “We will continue to strive to build a highly reliable and efficient market infrastructure in order to achieve our aim of becoming the most preferred exchange in Asia.”
Latency measurement tools are popular with latency-sensitive traders, such as high-frequency trading firms. HFTs are willing to invest substantial resources into minimising any aspect of their hardware, software and connectivity that causes delay, as their trading strategies rely on coming first in the order queue at the trading venues they visit.
The Tokyo Stock Exchange is part of the Japan Exchange Group, which was created in January 2013 from the merger of the TSE and the derivatives-focused Osaka Securities Exchange.