Tokyo, June 4th, 2009 –KVH Co. Ltd. (headquartered in Minato-ku, Tokyo, President and CEO: Suzuki Miyuki, hereinafter referred to as “KVH”) and COLT Telecom Group SA (headquartered in London, CEO: Rakesh Bhasin, hereinafter referred to as “COLT”) will strengthen their partnership in supporting electronic trading applications for the global financial and securities industry. KVH and COLT are market leaders in providing ultra low latency connectivity and proximity hosting in Europe and Japan respectively. Through this partnership, they will be able to provide customers with low latency connectivity to trading venues and in major financial markets in Europe, US and Asia, with a joint low latency networking and proximity hosting offers.
Demand for low latency connectivity has increased rapidly with the adoption of new algorithmic trading systems as well as globalization amongst financial and securities markets. To meet this market demand promptly and flexibly, both companies will enhance their proximity services on a global scale using expertise and knowhow acquired through serving the telecommunication needs of financial markets. In addition, KVH will provide facilitation services to support for remote membership and communication to and from the exchanges on behalf of foreign institutional investors, who are entering the Japan market for the first time.
COLT has been offering low latency proximity services in Europe since 2007. COLT is presently connected to over 25 major exchanges and Multi-lateral Trading Facilities (MTFs), including Deutsche Börse, SIX (formerly SWX), Chi-X, Turquoise, and BATs. and is hosting seven such exchange systems in its own data centers. Earlier this year COLT also extended its low latency Ethernet network coverage to the United States. KVH launched its proximity service in 2008 using its Tokyo Data Center as a hub based on experience in network connections with Tokyo Stock Exchange and Osaka Securities Exchange. Moreover, KVH Tokyo Data Center has been endorsed by Tokyo Commodity Exchange (TOCOM) and Tokyo Financial Exchange (TFX) as their access points and proximity hosting provider as of last year. KVH proximity hosting services also started for TOCOM in May and will be available for TFX as well within the year. Between the two companies, low latency connectivity and proximity hosting services with full end-to-end service management are now available in the world’s key financial centers including London, New York, Tokyo, Frankfurt, Chicago, and Paris.
“Through the partnership, COLT and KVH will be able to cover key financial markets in Europe, the U.S., Japan and other Asia-Pacific regions, where major exchanges are located. Going forward, together with KVH, we will support U.S. and European institutional investors as they enter the Asian market,” noted Mr. Detlef Spang, Managing Director for the Major Enterprise Division of COLT. “Despite the global financial crisis continuing, the need for high speed electronic trading continues to increase. Low latency networking has therefore become an extremely important competitive parameter in the global financial industry. In partnership with COLT, KVH hopes to accelerate low-latency trading and help increase liquidity in the market,” noted Ms. Miyuki Suzuki, President and CEO of KVH.
Endorsement from Tokyo Commodity Exchange, Inc.
Mr. Masaaki Nangaku, President & CEO
The Tokyo Commodity Exchange has decided to adopt KVH’s proximity services with the launch of the new trading system in May of 2009. By having both Japan and foreign-based trading members use KVH’s high quality, low latency networks and robust data center services, we hope to reinvigorate trading and further improve reliability. In addition, we hope that the collaboration of KVH and COLT will help support our endeavors globally to establish a strong foothold as a core derivative exchange in Asia.
Source: KHV, 04.06.2009
Filed under: Asia, Japan, News, Trading Technology, Asia, Commodities, Derivatives, DMA Direct Market Access, Japan, KHV Co Ltd, Low Latency, Miyuki Suzuki, TFX Tokyo Financial Exchange, TOCOM Tokyo Commodity Exchange, Tokyo, Trading Network
