Tokyo Stock Exchange to provide colocation/managed services

Tokyo Stock Exchange, Inc. (TSE) will launch a new "TSE Co-Location Service" at its data centre.
This represents an interesting departure because it effectively offers colocation and a form of managed services to its investor and trading customers. The TSE will introduce 2 new trading systems as a response to changes in the development of financial engineering and information technology, as well as the increasing speed of trading systems. The new systems, the Tdex+ new options trading platform, and arrowhead, next generation cash equity matching engine, will offer higher capacity, throughput, and what is billed as an extremely rapid response time. As applications with automated order placing functions have become popular for market users like trading participants, the demand for colocation services has also increased. The new colocation service will be available when Tdex+ and arrownet are introduced, and then for the derivatives trading system following connections with arrownet. TSE has also been in discussions with NTT Communications Corporation about providing customer connectivity service at the TSE arrownet access point. NTT operate a data centre at the TSE arrownet access point, which is planned to be launched in early 2009.