Tokyo bourse rolls out high-speed platform
Tuesday, 5 January 2010
TOKYO, Jan 4 (Reuters): The Tokyo Stock Exchange successfully launched a high-speed trading system Monday to better compete with major global rivals in the growing field of automated trading.
The $140 million "Arrowhead" system was rolled out without any problems, traders said. A series of high-profile trading glitches has tarnished the exchange's reputation in recent years.
Long derided as one of the world's slowest major exchanges, Tokyo is now roughly on par with New York and London. The new system processes trades 600 times faster than previously and is able to handle much larger volumes.
The upgrade is aimed at drawing more business from hedge funds and other professional investors, who increasingly rely on sophisticated automated trading strategies.
"I think it has the potential to significantly reshape trading in not just Japan, but Asia," said Tokyo-based Neil Katkov, head of Asia research for financial services consultancy Celent.
The $140 million "Arrowhead" system was rolled out without any problems, traders said. A series of high-profile trading glitches has tarnished the exchange's reputation in recent years.
Long derided as one of the world's slowest major exchanges, Tokyo is now roughly on par with New York and London. The new system processes trades 600 times faster than previously and is able to handle much larger volumes.
The upgrade is aimed at drawing more business from hedge funds and other professional investors, who increasingly rely on sophisticated automated trading strategies.
"I think it has the potential to significantly reshape trading in not just Japan, but Asia," said Tokyo-based Neil Katkov, head of Asia research for financial services consultancy Celent.