TOCOM Deploys Ultra-Low Latency Networks Between Tokyo And CME’s Data Center
TOCOM has been experiencing an increase in overseas market participants, with foreign trading volume accounting for approximately 40% of TOCOM’s overall volume. This increased trade activity from overseas has been mainly from Hong Kong and Singapore as well as the United States. By leveraging KVH’s global ultra-low latency network for its IT infrastructure, TOCOM will provide U.S. traders with the high-speed connectivity and scalability required to capture across-market arbitrage opportunities, especially in key contracts such Gold, Rubber and Oil.
KVH’s Tokyo Data Center 1 (TDC1) has been endorsed by TOCOM as its access point location and proximity hosting provider since 2008. KVH launched its point of presence (“PoP”) in the CME Group’s new colocation facility, Aurora, Illinois in January 2011 and started offering exchange colocation services comprised of hosting, connectivity and support services. Through network optimization efforts that were announced in March 2014, KVH achieved a latency of 122 milliseconds between Tokyo and Aurora, making this route the fastest network connecting these two locations in the market today.
Mr. Tadashi Ezaki, President and CEO of TOCOM said, “As Asia’s leading futures exchange, TOCOM is implementing measures to reach out to the global investment community. Through these initiatives, market participants would be able to enjoy broader access and trade more products on various markets with more arbitrage opportunities and increase liquidity. We expect KVH to continue supporting our endeavors to establish a strong foothold in Asia and other global financial and commodity markets.”