To provide greater convenience to TOCOM market participants, The Tokyo Commodity Exchange (hereinafter, “the Exchange”) will provide a co-location service, which will coincide with the launch of its next generation system (scheduled on May 7, 2009), that will enable a higher trading speed for members (hereinafter, “Trading Participants”), as well as domestic and foreign investors (including prop houses).
Since this co-location service will offer market participants, including Trading Participants, the ability to install their trading servers on-site with, or closer to, the exchange’s system, the transmission speed of trade-related information (i.e: orders, market data, etc.) will increase. In the past several years, major exchanges overseas (Eurex, ICE Futures, CME, Euronext.Liffe, Nasdaq OMX etc.) have already started to offer such service, and in Japan, the Osaka Securities Exchange and the Tokyo Stock Exchange are also planning to offer co-location services.
- Co-location Service Details
(1) Service Users
“Trading Participants” and “Customers using DMA* (hereinafter, “DMA Users”)”
(2) Service Providers (initially, the below two designated providers)
- KVH Co., Ltd.
- NTT Data Corporation
* The data centers of both providers are located in Metropolitan Tokyo and share the same connectivity terms with the Exchange system.
(3) Conditions of Use
* Each provider will offer installation services, such as server cabinet space and lines.- The Exchange must approve the application made by the Trading Participant (the same shall apply to DMA Users).
- The maximum bandwidth per service user shall be 100 Mbps.
- In case of a DMA User, the Trading Participant with the customer agreement shall be capable to manage risk (or have a risk management system in place), to monitor the trades, positions etc. of said DMA User.
(4)Cost
Service users are required to pay service charges to the Exchange (determined by the Exchange) and service charges to the provider (determined by each provider).
- Co-location Service Launch Date
The launch date of the next generation system (scheduled on May 7, 2009).
* Service to foreign participants may be delayed depending on the status of regulations in their home country.
* Full details on this service and application procedures will be notified to members by the end of September 2008 (tentative).
* Applications and inquiries will start to be accepted from the beginning of October 2008 (tentative).
