New Platform, Proximity Service to Boost TOCOM’s Market Share

The Tokyo Commodities Exchange (TOCOM) is extending its service offering to high-speed traders with a new platform and a new proximity service, both to go live in September of next year. The provider of the proximity service, AT Tokyo, operates some of the largest data centers in the world, and was selected by TOCOM because of its good reputation and years of experience.

International Connection

TOCOM explained in a statement that the new service will offer ultra-low latency connections to a single access point, as well as connectivity to other bourses both domestically and globally. Among them are Singapore Stock Exchange, the Hong Kong Stock Exchange, and CME Group. The connections to the different bourses will depend on the telecom carrier the data centers work with, which include more than 20 companies, among them PCCW Global, Citic Telecom, KDDI and Global Cloud Xchange.

As for the new platform, TOCOM said that it will utilize the J-Gate derivative system developed by the Tokyo Exchange Group, which is based on Nasdaq’s Genium, which is also used by the Singapore Exchange, specifically designed to handle large volumes of trades across asset classes. For clearing services, TOCOM will use the Japan Securities Clearing Corporation’s system.

Pre-Trade Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term

In addition, the bourse will introduce a pre-trade risk management tool, TradeGuard, once again provided by Nasdaq. The tool allows organizations using it to place risk checks wherever they will be most appropriate – pre-trade, at-trade, or on-trade – with these checks also covering cross-asset and cross-market analysis. The solution has a low latency with the aim of minimizing impact on trade Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term. TOCOM said that it will mandate all its members to use the tool when it’s launched.

With the launch of the new system, TOCOM will also introduce some changes to its rules and regulations, including an earlier start to the trading day, an earlier start to order acceptance, as well as the introduction of an immediately executable price range. Some of the changes, like those regarding trading day length, are pending regulatory approval.