KVH appointed as proximity vendor for the Osaka Securities Exchange new Derivatives Trading System

KVH appointed as proximity vendor for the Osaka Securities Exchange new Derivatives Trading System - Supporting high-frequency trading with low latency connectivity environment

01/06/10

KVH Co. Ltd., a leader in IT and Communications in Japan announced today that “KVH Proximity Hosting Service” had been selected by the Osaka Securities Exchange (OSE) as the connectivity service for the new OSE Derivatives Trading System. With this selection from the OSE, KVH will be the underlying service provider for “OSE Proximity,” a connectivity environment within KVH’s Tokyo Data Center dedicated to High-Frequency Trading*1 for OSE trading members.

OSE’s new derivatives trading system, to be introduced during the first quarter (January to March) of 2011, will feature world-class order processing capabilities to meet the needs of high-performance, ultra-high-speed electronic trading. By using “OSE Proximity,” trading members will be able to implement a trading environment at an OSE designated data center like KVH’s Tokyo Data Center and connect to the OSE Derivative Main Center via a high-speed LAN.

The selection of KVH for “OSE Proximity” positions KVH as a leading service provider offering global High-Frequency Trading environments. Leveraging KVH high-speed optical fiber networks and KVH Tokyo Data Center located close to major domestic exchanges, “KVH Proximity Hosting Service” provides a complete hosting environment well-suited for ultra-low latency trading transactions with multiple exchanges from a single location. In addition, KVH offers ultra-low latency access over its global Ethernet network to the world’s major financial centers through a global partnership with COLT and partners in Hong Kong and Singapore.

“For connectivity with the new derivatives trading system, OSE focuses on speed, scalability, and reliability,” noted Mr. Yamazawa, Managing Director of OSE. “OSE highly evaluates KVH’s deep experience in connecting with exchanges, ultra-low latency network, highly secure data center, and flexible bilingual support. By using the high quality services of KVH, we expect that our trading members including overseas investors will enjoy increased convenience,” added Mr. Yamazawa.

“We are very pleased that OSE has selected KVH Proximity Hosting Service for access to the new OSE derivatives trading system. With its ultra-low latency network, comprehensive hosting environment, and bilingual capabilities, KVH hopes to play a key role in the OSE derivative trading market’s growth in the Asia market,” noted Ms. Miyuki Suzuki, President and CEO of KVH.

*1High Frequency Trading: HFT?Trading whereby a large volume of transactions is processed in a very short period of time at a high speed using high performance computing.