Tokyo Stock Exchange: Launch of "arrowhead", the next-generation equity/CB trading system

Tokyo Stock Exchange: Launch of "arrowhead", the next-generation equity/CB trading system

 

04/01/10

arrowhead?logo

 

The Tokyo Stock Exchange (TSE) announces that it has decided to launch "arrowhead", the new equity/CB trading system held to the world’s highest standards of speed and reliability, on Monday, January 4, 2010 as initially planned. This is in line with the TSE's previous announcement that it will make the final decision of the system launch upon implimenting the final transition operation.

 

"arrowhead" is the next trading system developed by the TSE for the next generation cash market in order to meet the needs of investors such as high speed order placement and execution processing and to respond to reductions in sizes of orders and rapid increases in the number of transactions. The new system is used for auction trading of stocks and CBs, and supports the Tokyo Market as an exchange system of the highest global standard for low latency, high reliability, and scalability .

 

Speed

(1) 5 millisecond Order Response(i)

 

The response time for order acceptance notices has been accelerated.

 

(2) 3 millisecond Information Distribution(i)

 

The latency for distribution of stock prices and quote information has been reduced.

(i)Figures based on those from prior testing.

 

Reliability

 

Highly Reliable System built with State-of-the-Art Technology

Trading information such as orders, executions, and order books processed on synchronized 3-node data servers.

 

Scalability

 

Quick Resonse to Rapid Changes in the Number of Transactions

The system is capable of being expanded within approximately 1 week when needs surpass the current capacity.(ii)(iii)

(ii)Capacity is scaled to handle twice the number of orders seen during peak times.
(iii)The number of orders that can be processed per day is 4.68 million at the beginning of the launch.

 

Expansion of Data Distribution

 

Large Expansion of Market Information

In addition to accelerated market information, the TSE will also significantly expand the content of market data provided to market users in connection. For example, the number of quotes disseminated will increase from 5 to 8 above and below the central price. All order data in the order book will be provided in real-time through the new service named FLEX Full.

Furthermore, various trading rules are to be revised in conjunction with the launch of arrowhead. (i.e. partial revision of tick sizes, price limits, special quote parameters, etc.) In doing so, the TSE hopes to promote smooth execution, and improve price discovery functions and market liquidity.

*"arrowhead Square", a page containing various information to arrowhead, is available on the TSE homepage from the following link:
arrowhead Square