The Tokyo Commodity Exchange (TOCOM) has selected KVH's Global Ether-WAN, the industry's fastest global ultra-low latency networks, for its connection between TOCOM Tokyo proximity data centre and the Chicago Mercantile Exchange Group (CME) data centres in Aurora and Cermak, Illinois.
This was announced on 13 June by KVH Co. Ltd., Asia's leading information delivery platform headquartered in Tokyo, Japan.
TOCOM is Japan's major commodity exchange and it 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 said in its statement.
KVH's Tokyo Data Centre 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.
"KVH's ultra-low latency network is ideal for market participants pursuing low latency driven strategies to connect to TOCOM," said Ted Higase, President and Chief Executive Officer at KVH "The trading environment in Asia is evolving rapidly, with increasing demand for higher bandwidth and reliable low latency connectivity, and we anticipate transaction volumes between Tokyo and Chicago/Aurora to continue to increase. KVH is committed to serving the needs of financial customers through reliable low latency infrastructure, and will continue to invest in expanding its geographic reach and service portfolio."
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."
TOCOM is Japan's largest commodity futures exchange with a trading volume of 27.2 million contracts, representing a 98.6% market share, in 2013, and one of the most prominent exchanges in Asia.
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